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Creating Homeownership Opportunities with Neighborhood Stabilization Program Funds Presented by Robin Benson - Program Manager IL Homeownership Coalition.

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Presentation on theme: "Creating Homeownership Opportunities with Neighborhood Stabilization Program Funds Presented by Robin Benson - Program Manager IL Homeownership Coalition."— Presentation transcript:

1 Creating Homeownership Opportunities with Neighborhood Stabilization Program Funds Presented by Robin Benson - Program Manager IL Homeownership Coalition for People with Disabilities A program of the Illinois Assistive Technology Program

2 NSP OVERVIEW HOMEOWNERSHIP PROJECTS NSP funding to benefit households with incomes equal to or less than 120% of the Area Median Income At least 25% of the funds must benefit households at or below 50% of AMI. States goal is to increase this to 40% of the States allocation Priority populations also include low income seniors, persons with disabilities and persons who are homeless or at risk of becoming homeless Projects that include at least 10% accessible and/or adaptable units are encouraged

3 GETTING STARTED FORMING PARTNERSHIPS Which organizations can provide these services? Affordable loans/additional grants Outreach & Referrals Credit & pre-purchase counseling Homebuyer education (minimum 8 hours) Post-purchase counseling & emergency assistance

4 THE FOUNDATION Affordable Loan Programs IHDAs I-Loan (MRB)-check for availability IHDAs H.E.L.P. - check for availability FHA/VA Rural Developments 502 Direct Habitat for Humanity

5 LAYERING RESOURCES MAKING THE LOAN MORE AFFORDABLE Down payment & closing cost assistance programs Section 8 Homeownership Vouchers Tax Credits – I-Loan Certificates Matching funds – employer assistance & IDAs Seller/builder assistance programs

6 DOWN PAYMENT & CLOSING COST ASSISTANCE GRANTS American Dream Down Payment Initiative (ADDI) IHDA Trust Fund IHDAs I – Loans – check for availability Federal Home Loan Bank of Chicago (FHLBC) - non-profit organizations FHLB – IL League of Financial Institutions NSP funds

7 MORE DOWNPAYMENT & CLOSING COSTS GRANTS CDBG – for cities HOME (HUD-funded) – for cities Assist Program – for cities (Illinois Facilities Fund administers) – check for availability of funds IHDAs H.E.L.P Program (participating communities only) – based on availability of funds REACH Illinois - Employer-Assist Program

8 SECTION 8 HOMEOWNERSHIP VOUCHERS Can use with many loan programs Subsidizes mortgage payment Subsidy based on household income/size Must have Section 8 rental voucher Makes homeownership affordable for households at or below 30% AMI Not all housing authorities have them

9 IHDAs MORTGAGE CREDIT CERTIFICATES First-time homebuyers only Dollar-for-dollar reduction in federal income taxes up to 20% of mortgage interest Remaining 80% of mortgage interest will qualify as itemized tax deduction Used with any conventional loan Income and purchase price limits apply Available through IHDAs partner banks

10 ILLINOIS G-I HOME CREDIT PROGRAM For honorably discharged veterans and active service personnel Credit for a long as remain in property Up to up to 20% of annual mortgage interest First-time homebuyer, except for veterans Must be primary residence Fixed rate mortgages for15-30 year period $500 fee to participate in program Joint effort of IHDA, IL Finance Authority and IL Dept. of Veterans Affairs

11 I-LOAN CERTIFICATE PROGRAM Statewide Program Same guidelines as other MCC programs Follows same guidelines as the I-Loan first- time homebuyer program Check IHDA website for available lenders

12 IHDA COMMUNITY CREDIT CERTIFICATE PARTNER PROGRAM For communities that cede volume cap to IHDA to establish an MCC program For residents of that community Same guidelines as Statewide Program Home must be in that community See website for participating communities Funds available on first-come basis Purchase and income restrictions apply

13 SUMMARY Loan Program 1 st Time Assistance / 1 st Time Homebuyer? Grants Homebuyer? IHDAs I-Loan (if available) YESIHDAs I-Loan ( if available) YES IHDAs H.E.L.P.YESTrust Fund YES FHANOH.E.L.P. YES RDs 502 DirectNOREACH IL YES Habitat for Humanity NOADDI NSP YES NO VANOFHLB FHLB (ILFI) YES NO Section 8 Vouchers YES

14 MATCHING FUNDING REACH Illinois – employer-assist program ( Regional Employer-Assisted Collaboration for Housing) and - list of participating employers Department of Human Services – Individual Development Accounts

15 Benefits of IDAs Can save up to $2,000 Will receive $2,000 in matching funds Funds can only be used towards the purchase of a first home Must complete home purchase within 24 months Participants can drop out and have their savings returned to them, without the matching funds IDA funds can be combined with other first-time homebuyer down payment assistance programs (with exception of the IHDA Trust Fund grant)

16 Six Months Savings Period All participants must save for at least six months & no more than 18 months All IDAs are held at National City Bank All participants must agree to have funds electronically withdrawn from bank account.

17 Getting Started Credit score must be greater than 515 First-come first-served to the first 850 families Must have claimed the Earned Income Tax Credit during the last tax year or Have adjusted gross income less than 200% of poverty level

18 POST-PURCHASE EMERGENCY ASSISTANCE Local/county governments Rent/mortgage payment assistance Weatherization Utilities Repairs/home modifications Homeless Prevention Grants - Continuum of Care agencies, i.e. Salvation Army, Catholic Charities Utilities Rent / mortgage payment assistance HUD-Certified Counseling Agencies – foreclosure mitigation, financial counseling

19 SUCCESS STORIES Habitat for Humanity Section 8 IHDA Trust FHLBC

20 IHDA loan Section 8 voucher IHDA Trust FHLBC grant HOME grant

21 U.S.D.A. Rural Development - Sect.502 Direct IHDA Trust FHLBC grant Dept. of Labor - Home Mod grant

22 HOW WE CAN ASSIST Provide technical assistance to organizations applying for NSP funds in developing a homeownership program if none exists Create partnerships with Centers for Independent Living and other service providers to reach out to priority population Assist applicants in connecting to local partners that will provide the necessary resources.

23 ADDITIONAL ASSISTANCE Assist in developing community support for the project Assist in developing a homebuyer application and income certification process

24 CONTACT INFORMATION Homeownership TA Contact: Robin Benson Illinois Assistive Technology Program (217) DHS Contact: Kirstin Williams (312) CSH Contact: Cindy Thomas (312) x23

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