Illinois Receives $269 million in Federal Hardest Hit Funds to Continue Assistance to Struggling Hom
Press release from the Illinois Housing Development Authority
More struggling homeowners and communities in Illinois affected by foreclosures will receive financial assistance as a result of the U.S. Department of the Treasury’s announcement [4/20] to allocate an additional $151 million in Hardest Hit Funds (HHF). In February, U.S. Treasury allocated an additional $118 million to Illinois under Phase 1 of the HHF Round 5 funding through a formula-based allocation, bringing Illinois’ total Round 5 funding to more than $269 million…
IHDA is proposing to use the Round 5 resources to: – Reopen the Illinois Hardest Hit Program this fall, which will provide temporary mortgage assistance to struggling homeowners who have experienced a drop in income; – Extend the current Blight Reduction Program, which provides funding to help revitalize local communities and address the impact of the foreclosure crisis by eliminating blighted single family homes and greening lots. To date, the program has allocated funding for the demolition of 455 abandoned properties across the state; – Continue the 1stHomeIllinois program, which offers a 30-year fixed rate mortgage and $7,500 in down payment assistance to first-time homebuyers, veterans, or anyone who hasn’t owned a home in the last three years in 10 Illinois counties to help reinvigorate the local housing market. To date, 1stHomeIllinois has helped more than 680 people become homeowners; – Introduce a refinance program targeting negative equity borrowers. HHF funds will be used to reduce the principal loan and refinance homeowners into a stable 30-year fixed rate loan.