nsp powerpoint - homeownership (ppt)
DESCRIPTION
TRANSCRIPT
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
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
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
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
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
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
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
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
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
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
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
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
SUMMARY
Loan Program 1st Time Assistance / 1st Time
Homebuyer? Grants Homebuyer?
IHDA’s I-Loan (if available)
YES IHDA’s I-Loan
( if available)
YES
IHDA’s H.E.L.P. YES Trust Fund YES
FHA NO H.E.L.P. YES
RD’s 502 Direct NO REACH IL YES
Habitat for Humanity
NO ADDI
NSP
YES
NO
VA NO FHLB
FHLB (ILFI)
YES
NO
Section 8 Vouchers
YES
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
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)
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.
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
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
SUCCESS STORIES
Habitat for Humanity
Section 8 IHDA Trust FHLBC
IHDA loan Section 8
voucher IHDA Trust FHLBC grant HOME grant
U.S.D.A. Rural Development
- Sect.502 Direct IHDA Trust FHLBC grant Dept. of Labor -
Home Mod
grant
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.
ADDITIONAL ASSISTANCE
Assist in developing community support for the project
Assist in developing a homebuyer application and income certification process
CONTACT INFORMATION
Homeownership TA Contact: Robin Benson Illinois Assistive Technology Program [email protected] (217)522-7985
DHS Contact: Kirstin Williams [email protected](312)793-4980
CSH Contact: Cindy Thomas [email protected] (312)332-6690 x23