Creating Homeownership Opportunities with Neighborhood Stabilization Program Funds

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 STARTEDFORMING 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 • 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 & CLOSINGCOST 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

14. MATCHING FUNDING • REACH Illinois – employer-assist program (Regional Employer-Assisted Collaboration for Housing) www.reachillinois.org and www.housingactionil.org - 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 • www.dhs.state.il.us/assets

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 rbenson@iltech.org (217)522-7985 • DHS Contact: Kirstin Williams Kirstin.Williams@illinois.gov (312)793-4980 • CSH Contact: Cindy Thomas Cindy.Thomas@csh.org   (312)332-6690 x23