Habitat Illinois Building Impact
What is the Habitat Community Impact Fund Program?
The Habitat program is a grant generously provided by Illinois Housing Development Authority (IHDA) to Habitat for Humanity of Illinois (HFH Illinois). The grant is for $2,000,000 to provide down payment assistance for Habitat homebuyers. The funding agreement will allow HFH Illinois to make forgivable loans to qualifying Low, and Very Low Income Habitat families to buy down the sales prices to ensure the mortgage does not exceed 30% of gross monthly income.
Building Impact Round 4 Update
Habitat Illinois Building Impact Round 4 has been approved for $2,000,000.
We are in the process of auditing Round 3 files and clearing up any issues by February 2020 at the latest. IHDA and Champaign are also revising the program manual as well as a training webinar. There are several changes and clarifications we need to share with the Affiliates, so any participating Habitat’s will be required to attend the training. We are hoping to accomplish all of this within the next 60 days or sooner.
Thank you again for all your patience as we move into Round 4. Each funding cycle is a learning experience for all of us and we truly value and appreciate IHDA’s support. As soon as the training is ready to launch, we will host two separate webinars. The documents and Affiliate chapter will be posted on Habitat Illinois’ website. If you have any questions, please reach out to Champaign or Sheila as we move to make Round 4 a success for all.
Habitat Illinois Building Impact FAQs
Does the stipend that a veteran receives count as 'included income'
If the income is retirement or disability, yes. Please define “stipend” — or check the inclusion/exclusion list to see if it is more clearly defined for the type of income you are requesting.
What will happen in a foreclosure with the down payment money?
The down payment will be a recorded lien against the property. If there are funds available, the balance will be returned to IHDA at the time of foreclosure settlement. If no funds are available, IHDA will release.
What is included in the development costs (in the adopted policy)?
Development costs include all costs including Gift in Kind, staff costs, etc. Check HfHI’ s approved house pricing document on my.habitat Document expenses and payment to show costs exceed appraised value and provide documentation with request.
- The loans will be made to facilitate the acquisition of homes across Illinois.
- Each loan will be in an amount capped at $20,000 for Very Low Income Households, and $15,000 for Low Income Households.
- Each loan will be interest-free and have a term of five years.
- Each loan will be forgiven at the rate of one-sixtieth (1/60th) of the amount of the loan at the end of each month over the term period.*
How to Qualify
- To qualify as Low Income, the applicant’s household must have an income that is less than or equal to eighty percent (80%) of the area median income for the metropolitan statistical area or county in which the home is located (Using HUD’s Part 5 Income Definition).
- To qualify as Very Low Income, the applicant’s household must have an income that is less than or equal to fifty percent (50%) of the area median income for the metropolitan statistical area or county in which the home is located (Using HUD’s Part 5 Income Definition).
- All homes, households, and contractors must comply with all federal, state and local governmental approvals required by law.
- The Housing Debt to Income ratio for the household must be thirty percent (30% ) or less.
- The Total Debt to Income ratio for the household must be forty-one (41%) or less.
Grant Application Components
- IHDA Housing Application
- IHDA Income Calculator
- Certificate of Income
- Fully executed purchase contract
- Commitment from conventional lender or other institution to make 1st mortgage loan to household
Current appraisal of home showing value of home not exceeding the amount of the first mortgage loan to the
- Copy of calculations by affiliate showing debt-to-income ratio under 30% (housing) and 41% (total). (see IHDA Monthly Homebuyer Housing Debt Worksheet)
- Copies of executed note and mortgage for Habitat mortgage loan (Originals are sent to IHDA)
- Certificate of housing counseling (Form and Certificate are sent to IHDA)
- Home owners’ insurance policy with IHDA listed as additional insured
- Title commitment
- Copy of calculations by sponsor showing debt-to-income ratio of under 35% (housing) and 41% (total)
- Copy of note and mortgage for 1st mortgage loan
- Certificate of Counseling
Downloads – 2020 forms and docs coming soon
*Provided, however that if (x) property is sold or otherwise transferred within five (5) years of making the loan, other than by inheritance to a co-owner of the property or by operation of law upon the death of a joint tenant or to a spouse as a result of a divorce of co-owners, or (y) the household ceases to occupy the home as their principal residence with this five (5) year period or (z) a refinancing of the home resulting in the household being allowed to receive a cash payment, the household shall repay to IHDA the amount of the loan reduced by one-sixtieth (1/60th) of that amount out of net proceeds for each full month the household occupied the property. Please see IHDA Note and Mortgage for more information.