Illinois Expands Housing Assistance Efforts

Foreclosure

On February 3, the Illinois Housing Development Authority (IHDA) published recently adopted Emergency Rules, effective January 23, 2012, to establish a new program through which the IHDA will finance or refinance mortgage loans to persons and families of low and moderate income who meet certain qualifications. The IHDA cited a “serious shortage of decent, safe and sanitary residential housing” in the state due to “recurring critical shortages of funds in private lending institutions” available to certain buyers. The new program is intended for non-first time homebuyers and supplements an existing similar program for first-time homebuyers. The emergency rules will expire after 150 days, or upon adoption of permanent rules. Illinois also announced two additional new housing efforts in early February. First, the Illinois Foreclosure Prevention Network, a multi-agency effort coordinated by the IHDA, will connect struggling homeowners with assistance and resources to prevent foreclosures. Second, the Illinois Building Blocks Program, also administered by the IHDA, will focus on six communities and provide (i) financing to rehabilitate vacant properties to prepare them for productive use and sale, (ii) assistance to homeowners to purchase homes in pilot communities, and (iii) support for existing homeowners in the communities to prevent additional foreclosures.