Resource Roundup IHDA Programs and Resources

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1 Resource Roundup IHDA Programs and Resources Bill Pluta Director, Strategic Planning and Reporting, IHDA 29 th Annual Rural Community Economic Development Conference, Springfield, Illinois March 8,

2 IHDA S INVOLVEMENT IN PROGRAMS AND POLICY FOR RURAL COMMUNITIES 2

3 Policy and Programs Annual Conference IHDA participated in this conference almost since its inception (26 years ago), Speaks on panels and hosts an exhibit booth. Rural Development Resource Guide IHDA worked with IIRA to update this guide with IHDA programs that assist rural households in HTF-Rural/Small Cities Working Group IHDA s Housing Task Force started this group which issued a report of recommendations in November Report included the need to provide technical assistance and capacity building to rural communities. IHDA continues to work with community-based organizations to implement these recommendations. This also included the establishment of the annual Governor s affordable housing champion awards program. 3

4 Policy and Programs Rural Housing Technical Assistance IHDA is committed to expanding the capacity of rural communities across Illinois to identify and meet their local housing needs and empowering those communities to take steps to meet those needs. IHDA employs two full-time Community Revitalization Planning Specialists (CRPSs) who are available to work with communities to discuss their current or desired plans for promoting revitalization and development. These efforts can help communities link to existing efforts, identify strengths and needs within the community, and generate a Community Revitalization Strategy process which may connect them to available educational, professional, and financial resources, as well as produce more competitive applications under IHDA s Low Income Housing Tax Credit (LIHTC) program. 4

5 Policy and Programs Governor s Affordable Housing Champion Awards Started in 2010 to recognize unique and innovative achievements in affordable housing development. Includes a non-metro area award: The Jon Linfield Award. Past winners have included the following: 2010 Downtown Commons, Jacksonville MCHA Civic Services Corporation 2012 Windsor Lexington Farms Subdivision, Jerseyville Capstone Development, LLC 2013 Homeless to Homebuyer Program, Marion - Southern Illinois Coalition For The Homeless 2014 Housing Rehabilitation Programs/various communities Western Illinois Regional Council, Macomb 2015 Plowfield Square, Lincoln Brinshore Development, LLC 2016 Maple Ridge Apartments, Paris Laborers Home Development Corporation 2017 Macoupin Homes, Gillespie, Bunker Hill, Staunton Macoupin County Housing Authority 2018 Lawrence Lofts, Sterling Rock Island Economic Growth Corporation 5

6 IHDA S FINANCIAL ASSISTANCE (2017) 6

7 IHDA Financial Assistance in Rural Illinois (2017) Homebuyer Assistance 818 households approved for IHDA loans Homeowner Rehabilitation Assistance 294 units to be assisted Multifamily Development Assistance 392 rental housing units to be produced (8 projects 240 Rehabilitation/152 New Construction) Over $79 million in total loans funded $9,000,000 in IHDA funds ( ) Approximately $53.5 million in financial assistance 7

8 IHDA Financing and Assistance Programs The federal Low Income Housing Tax Credit (LIHTC) Program provides assistance in the development of affordable rental housing. As the State s credit allocating agency, IHDA issued its LIHTC Qualified Allocation Plan ( QAP ) on October 26, The QAP details how credits will be allocated, as well as the application requirements and the scoring system to be used to evaluate applicant projects and developers. It once again establishes geographic set-asides to promote statewide access to this important resource. This includes 20% of the State s credit allocation for non-metropolitan areas. Given the State s 2018 IRS allocation, this equates to approximately $4.7 million in credits for Please note that there is also an Other Metro set-aside of 15% for larger downstate cities and Census-defined urbanized areas located outside of the Chicago metropolitan area. 8

9 IHDA Multi-Family / Rental Housing 2017 Most projects use LIHTC as part of their financing IHDA financed the development of 392 units in 8 projects in rural Illinois last year. Of these, 240 were preservation/rehabilitation and 152 were new construction. A total of 90 of these homes were for seniors. Another 41 were permanent supportive housing for special needs populations. These 8 projects were approved for a total of $53.5 million in IHDA assistance. They also used $10 million in other leveraged (non-ihda) funds as part of their financing. 9

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11 (Continued) IHDA Financing and Assistance Programs The Illinois Affordable Housing Trust Fund (IAHTF) targets 15% of annual available funding for projects and programs in non-metro areas. This includes statewide programs which serve a significant amount of rural communities that do not receive similar entitlement funding from HUD. Two such programs have been funded for the time period. They are: the Single Family Rehabilitation Program (SFRP), with a $6 million total allocation provided to 21 project sponsors, with 19 of them serving partially or entirely non-metro counties; and the Home Accessibility Program (HAP), with a total allocation of $3 million going to 15 project sponsors, 9 of which primarily serve non-metro areas. Qualifying project sponsors compete for available funding, and include municipalities, counties, regional planning commissions, community action agencies, and other qualifying non-profit agencies. Subsequent rounds of funding may be announced later in the calendar year based on current grantee progress and available funding, especially for the SFRP. 11

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14 IHDA Mortgage Financing Programs IHDA s Illinois homebuyer program was revised in February of The Illinois Access Mortgage Program replaced it, and includes three new programs, all offering down payment assistance. They are as follows: IHDAccess Forgivable - A 30-year fixed rate mortgage with 4% of the purchase price up to $6,000 in cash assistance (down payment, closing costs), forgiven monthly over ten years. IHDAccess Deferred - Same type of mortgage, but with 5% of purchase price up to $7,000 cash assistance. Not repaid until the home is sold, refinanced, or paid off by the owner. IHDAccess Repayable - Same type of mortgage, but with 10% of purchase price up to $10,000 cash assistance, offered as an interest-free loan over a ten-year period. Please note that the HUD/IRS household income and purchase price limits apply to all loans and borrowers. These programs are available for all mortgage types, including FHA, VA, USDA-RD, and FNMA-HFA Preferred. Both new construction and existing homes are eligible. Please see IHDA s website ( for additional information. 14

15 (Continued) IHDA Financing and Assistance Programs Other IHDA programs, which significantly assist rural communities, include the following: IHDA Access Mortgage Programs-primarily a first-time homebuyer program with down payment assistance. It replaces Illinois Program, which last year provided over $79 million in total loans to 818 homebuyers in 54 counties. See IHDA s website for additional information. Hardest Hit Fund (HHF)-A Treasury Dept.-funded program. Its major feature is the Homeowner Emergency Loan Program (HELP), an emergency mortgage assistance program for homeowners to prevent foreclosures. I-Refi-A refinancing program for homeowners with underwater mortgages. Also funded through HHF. Foreclosure Prevention Program (FPP)-A State-funded program which provides grants to HUD-approved housing counseling agencies and community-based organizations to support housing counseling and foreclosure prevention outreach. 15

16 (Continued) IHDA Financing and Assistance Programs Abandoned Property Program (APP)- A State-funded program to assist municipalities and counties with maintenance, demolition, and/or rehabilitation of abandoned homes, primarily due to foreclosures. Blight Reduction Program (BRP)- Also funded through HHF, it provides funding to local governments working with non-profit partners for real property acquisition and redevelopment of vacant and abandoned residential properties. Land Banking Capacity Program (LBCP) and Technical Assistance Network (TAN)-A recently established, new program funded through mortgage foreclosure settlement funding administered by the Illinois Attorney General s Office, it allows IHDA to fund the creation and operation of local land banks for affordable housing development. Rental Housing Support Program (RHSP)-A State-funded, unit-based rental assistance program targeted to very and extremely low income households. Administered by Local Administrative Agencies. Also includes separate Long-Term Operating Support funding for specific targeted projects. Please see IHDA s website (@> for additional information on these programs. They are also described in more detail in the State s 2018 Annual Comprehensive Housing Plan, also available on IHDA s website 16

17 Additional IHDA Program Highlights and Funding The following information provides additional allocation and funding information for a selected group of other referenced IHDA programs which assist rural communities. Here they are: Hardest Hit Fund (HHF)- Through additional funding from the U.S. Treasury Department, IHDA s statewide Homeowner Emergency loan Program (HELP) has provided emergency mortgage assistance funding of up to $35,000 per eligible applicant to prevent foreclosure for 3,221 households since August of 2016, as of 12/31/2017. The initial funding under this program provided such assistance to over 13,000 households. Foreclosure Prevention Program (FPP)-A State-authorized program funded through a foreclosure filing fee, 50% of these funds collected are allocated to HUD-approved housing counseling agencies ( HCAs ) and community-based organizations ( CBOs ) which are located outside of Chicago. There are 26 such organizations currently funded (13 in each category) which primarily serve county-wide or multi-county areas as well as rural communities. See IHDA s website for locating both the local HHF loan program and counseling agency organizations which work in your area. 17

18 Additional IHDA Program Highlights and Funding Abandoned Property Program (APP)-Also a State-authorized program funded through foreclosure filing fees, it currently has allocated over $2.1 million to 38 grantee municipalities and counties located outside of the Chicago metropolitan area, with 25 of these grantees being in rural counties or rural communities. Blight Reduction Program (BRP)-Authorized by Treasury as part of IHDA s Hardest Hit Fund program, it provides funding to municipalities and counties which jointly partner with nonprofit organizations to acquire and redevelop abandoned and foreclosed properties. In its most recent funding round, the following local governments were among those assisted: Centralia, Danville, Freeport, Macomb, and Winnebago County. Rental Housing Support Program (RHSP)-This State-authorized rental assistance program is funded through a mortgage recording fee, and is operated by Local Administrative Agencies (LAAs). Of the 14 LAAs currently being funded, 8 of them either fully or partially serve nonmetropolitan areas of Illinois. The Illinois Association of Community Action Agencies (IACAA)actually has a service area which includes 45 rural counties. 18

19 Questions or Comments? THANK YOU! 19

20 For additional information, contact Bill Pluta Director, Strategic Planning and Reporting, Illinois Housing Development Authority (IHDA) (312)

ILLINOIS HOUSING DEVELOPMENT AUTHORITY COMMUNITY AFFAIRS DEPARTMENT PROGRAMS AND RESOURCES AIDING OUR STATE

ILLINOIS HOUSING DEVELOPMENT AUTHORITY COMMUNITY AFFAIRS DEPARTMENT PROGRAMS AND RESOURCES AIDING OUR STATE Illinois Association of Regional Councils Annual Meeting October 26, 2017 IHDA OVERVIEW COMMUNITY