The parameters around DuPage County’s proposed first-time homebuyers down payment assistance program were hashed over recently as officials turn their attention toward the new fiscal year that is set to take hold in less than a month.
The assistance program is part of County Board Chair Deborah Conroy’s $710.7 million spending plan for the new fiscal year, which begins Dec. 1 and runs through Nov. 30, 2027. The budget and corresponding levy is due for adoption at the board’s next meeting on Tuesday, Nov. 24.
Illinois Housing Development Authority to administer program
At the board’s Tuesday, Nov. 10, meeting, Mary Keating, the county’s director of community services, provided an overview of the program and how it is to be administered once launched.
It is anticipated the Illinois Housing Development Authority, or IHDA, will administer the program, Keating indicated.
“They’ve been doing first-time homebuyer or general homebuyer assistance programs for a long time,” she said. “They have the relationships with the lenders; they have the staffing; they have the knowledge. It really just made sense to piggyback off of what they do so that we’re not recreating the wheel or creating a whole new set of processes and administrative duties.”
At the outset, a $5 million pool of funds is to be made available through the county’s housing solutions fund for the down payment assistance program.
The county-funded initiative, to be referred to as Local Advantage DuPage, will build off IHDA’s existing AccessHome program that has a similar mission in place. Several loan structures are part of the proposal, with some structured around conventional loans and others through second- or third-lien mortgages.
While the phrase “first time” is a part of the proposed program’s title, Keating said opportunities are also available to potential applicants who have owned a home in the past. The proposed program requirements include the following parameters, based on details shared at the recent board meeting:
- Buyer has not owned property within the past three years
- Property must be located within DuPage County
- Buyer must use the purchase as a primary residence
- Successful applicants will have a credit score of 640 or higher
- Completion of a homebuyer education course
- Initial contribution of at least 1% of the purchase price
- A debt-to-income ratio of 50% or less
Based on the plans in motion, the program will be geared toward homebuyers making a maximum income of $121,500 for a 1- to 2-person household or $139,725 for a household of three or more people.
The anticipated maximum purchase price has been set at $566,354 for a 1-unit property, and $725,146 for a 2-unit property.
Based on the pool of funds available, Keating said she anticipates the program potentially serving hundreds people in the next year.
“I don’t have an estimate, but especially as springtime starts up, and the housing market tends to warm up, I would assume that we would run out of these funds prior to the end of 2027,” Keating said.
Conroy, who discussed the potential program during her chair’s report at the recent board meeting, also reiterated the thinking behind its creation in this year’s budget.
“One of our top priorities is to make homeownership in DuPage County an attainable goal for a larger number of people,” Conroy said. “We want to make sure our first responders, teachers, young adults, and seniors can live in the community in which they work, grew up, or raised a family.”
Current residency requirement hashed over at meeting
During deliberations, the board shared a myriad of thoughts on who should be privy to the program. While the program parameters explicitly state applicants must purchase a home in DuPage County to receive funding, the recipient’s current place of residence is not spelled out.
District 3 board member Lucy Chang Evans said she preferred applicants currently live or work in DuPage County.
“If somebody wants to come here from, like, Denver, Colo., and move here, I would say that with our taxpayer dollars it would be preferable to me if they had already lived here or worked here,” Chang Evans said. “They’re already contributing members to our tax base.”
Kari Galassi, a board member also representing District 3, offered similar sentiments, stating she believes it should be structured to serve existing DuPage County residents in need to help mitigate against potential abuse and carry out the intended goal.
“I would just be fearful,” Galassi said. “This is such a tremendous program, and we’re kind of at the cutting edge of it.”
Conroy, for her part, said she agreed with the concerns raised. She stated, “I agree it should be people who live, have lived, or work in DuPage as a priority.”
Board member Mary Fitzgerald Ozog, who represents District 4, gave a different perspective. Regardless of where an applicant currently residents, Fitzgerald Ozog said the bottom line is the recipient will be investing in DuPage County, going forward.
“I think that’s somewhat discriminatory to try to prove someone either works here or lives here,” she said. “Our goal is to have these homes with people with more moderate incomes. I don’t think that’s the right direction at this point.”
Board members provide comments on the program
Overall, a majority on the board indicated they were supportive of the general intent behind the program.
Board member Greg Schwarze, who represents District 6, said he views the program as a valued initiative for the year ahead.
“This is so wonderful,” Schwarze said. “I know we kicked this off almost two years ago, when you (Conroy) first came up with this idea, and to finally see the parameters — it’s just so exciting. It doesn’t look that complicated either.”
District 5 board member Saba Haider also gave her ringing endorsement, stating, “This is amazing. … I’m just so excited for the residents of DuPage County.”
But Grant Eckhoff, a board member in District 4, said he would prefer the county instead work with developers to bring additional housing stock into different areas of the county. Increasing housing supply, he said, will drop prices as demand is being met.
“I want to help people, but I think it would be much better to help people with affordable housing by building houses, as opposed to helping them buy houses,” Eckhoff said.
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