GROWTH reaches the region with $660,000 in assistance for homebuyers
Rock Island Economic Growth Corporation (GROWTH) has been awarded $660,000 in the most recent round of HOME Purchase Rehab program funding. The HOME Purchase Rehab Program, awarded through the Illinois Housing Development Authority (IHDA), allows GROWTH to expand its service area to assist households living in the Rock Island and Whiteside counties with an emphasis on the following: city of Rock Island, village of Milan, city of Moline, city of East Moline in Rock Island County and city of Sterling, city of Morrison and city of Fulton in Whiteside County.
HOME funds will be used to provide a down payment of up to $10,000, which will be determined according to the need of the homebuyers and the required loan to value ratio of the participating lender, and rehabilitation costs of up to $30,000. The maximum total allocation is $40,000 per unit.
The assistance to the homebuyer is provided in the form of a zero percent interest IHDA deferred forgivable loan. The loan is forgivable after five or ten years based on the amount of assistance provided.
The intent of the program is to create housing that is affordable and to ensure the properties meet all housing quality, health, and safety standards. GROWTH is currently administering $960,000 Purchase Rehab Program funds for eligible homebuyers looking to purchase a home anywhere within the city of Rock Island.
Buyers looking to purchase homes through the HOME Purchase Renovation Program have to meet the following criteria:-
- Complete homebuyer application.
- Meet eligibility and be approved through GROWTH’s homebuyer program.
- Earn at or below 80% of the Area Median Income (AMI). For example, a household of four earning at or below $50,500 adjusted gross income would be eligible in Rock Island County. In Whiteside County, a household of four earning at or below $46,100 adjusted gross income would be eligible.
- $1,000 minimum downpayment
- Attend a one-day, eight-hour homebuyer education class
Once approved through the homebuyer program, the buyer is eligible:
ü For up to $30,000 for improvements to the home purchased.
- For up to $10,000 in down payment and closing cost assistance.
- 0% Illinois Housing Development Authority (IHDA) deferred forgivable loan
- The loan is forgivable after 5 or 10 years based on the amount of assistance provided.
How to Apply:
In order to determine eligibility, a homebuyer application must first be completed. To apply, pick up a homebuyer’s packet at Rock Island Economic Growth Corporation, 100 19th Street, Suite 109, Rock Island. Office hours are 8:30 a.m. to 5 p.m. Monday through Friday. Equal housing opportunity.
Rock Island Economic Growth Corporation GROWTH is a 501(c)3 Community Housing Development Organization (CHDO) and is regarded as a local and national leader in developing innovative housing opportunities by convening and facilitating work among various community partners.
GROWTH works to:
GROWTH has over 30 years of experience and has successfully managed over $66 million in grant funds to date and has leveraged over $160 million in housing and housing related activities. GROWTH is a HUD approved counseling agency and an administrator for the Illinois Hardest Hit Fund.
GROWTH introduced the HOME Purchase Renovation Program as a pilot initiative in Rock Island in 1998 and continues to use the HOME program for Rock Island households to obtain homeownership. Using nearly 20 years of HOME program success, GROWTH has been awarded HOME funding to reach homebuyers in underserved markets of Rock Island County and Whiteside County.
Building upon Previous Success:
GROWTH formed the Northwestern Illinois Housing Coalition in 2009, bringing more than $21 million in state and federal housing dollars to the northwestern Illinois region. The Coalition began between GROWTH, the City of Rock Island, the City of Moline and the City of Sterling, and recently expanded to reach a four county area. For the past three years, this consortium has successfully worked together and has extensive knowledge and experience as evidenced by NSP 1 ($3.1 million) and NSP 2 ($18.5 million) awards with positive monitoring reviews from the Department of Housing and Urban Development (HUD).
Due to this success, Rock Island Economic Growth Corporation (GROWTH), applied for HOME funding to serve both Rock Island County and Whiteside County to better reach underserved markets.