In an attempt to restore vacant properties in Illinois suburban communities gravely affected by foreclosures, four prominent real estate developers have been given the green light. Utilizing a robust $10 million fund provided through the Illinois Jobs Now! initiative, these developers are tasked with the rehabilitation of approximately 75 single-family homes scattered across various locations, including Berwyn, Chicago Heights, Maywood, Park Forest, and South Holland.
Revitalizing the Real Estate Landscape: The Anticipated Reintroduction of Rehabilitated Homes and the Critical Role of IHDA in Developer Selection
It’s anticipated that the first of these rehabilitated homes will be reintroduced to the real estate market later this year, offering potential homebuyers exciting new options. The Illinois Housing Development Authority (IHDA) played a crucial role in the selection of the participating developers. These include New Directions Housing Corp., focusing its efforts in Berwyn; Mecca Cos., Inc., earmarked for projects in Chicago Heights and South Holland; Housing Helpers, Inc., working diligently in Maywood; and Tower Contracting, LLC, set to make a difference in Park Forest and South Holland.
Leveraging $10 Million from the Illinois Jobs Now! Program, Developers Embark on a Mission to Rehabilitate Foreclosed Properties
The Illinois Jobs Now! initiative, introduced by Governor Pat Quinn, lies at the heart of these ambitious developments. Its aim is to assist communities in stabilizing neighborhoods that have been impacted by an abundance of vacant and foreclosed properties.
Under the specifications of this initiative, each home is subject to a funding limit of $100,000. This amount comprises a $10,000 developer fee and $15,000 for holding and soft costs. Developers are granted a 24-month timeframe to complete the rehabilitation and sale of the properties. Post-construction, a 12-month marketing period for each property will ensue. Proceeds from the sales will be channeled into a revolving fund managed by IHDA. This fund will be utilized to purchase and rehabilitate additional properties, thus continuing the cycle of neighborhood revitalization.
Unlocking Homeownership: Exploring the Opportunities and Incentives Offered by the Building Blocks Program for Prospective Homebuyers
Prospective buyers are encouraged to explore the affordable homeownership opportunities offered by the Building Blocks program. This initiative offers incentives to potential buyers of vacant homes, aiming to promote the security and stability that homeownership brings. Simultaneously, it assists communities in reducing the risk of acquiring more abandoned properties. Homebuyers are offered a low-interest IHDA first-position mortgage (currently at 3.5 percent), along with $10,000 in aid for the down payment and closing cost assistance.
The program caters to a broad range of potential homeowners. Buyers do not need to be purchasing their first home to qualify. Eligibility requirements include:
A minimum FICO score of 600, broadening the pool of qualifying homebuyers;
- An income that does not exceed 140 percent of the area’s median income, translating to $90,960 for a family of two and $106,120 for a family of three or more;
- Completion of homeownership counseling, equipping buyers with the knowledge and tools necessary for successful homeownership.
- This comprehensive approach seeks to revitalize neighborhoods, provide affordable housing solutions, and foster a sense of community in the areas hardest hit by the foreclosure crisis.