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.
State’s goal is to increase this to 40% of the State’s 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. Affordable Loan Programs
THE FOUNDATION
Affordable Loan Programs
IHDA’s I-Loan (MRB)-check for availability
IHDA’s H.E.L.P. - check for availability
FHA/VA
Rural Development’s 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
IHDA’s 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
IHDA’s 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. IHDA’s 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 IHDA’s 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 Veteran’s 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 1st Time Assistance / 1st Time
Homebuyer? Grants Homebuyer?
IHDA’s I-Loan (if available)
YES
IHDA’s I-Loan
( if available)
IHDA’s H.E.L.P.
Trust Fund
FHA NO
H.E.L.P.
RD’s 502 Direct
REACH IL
Habitat for Humanity
ADDI
NSP VA
FHLB
FHLB (ILFI)
Section 8 Vouchers

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
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 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