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HOMEWISE Comes to Chicago
A lucky Chicago family will become the owner of the three-bedroom house at 1418 West 77th Street through the U.S. Department of Housing and Urban Development's (HUD) innovative partnership initiative HOMEWISE. HUD, in cooperation with the National Housing Endowment, the National Association of Home Builders (NAHB), Wells Fargo Home Mortgage and others, hopes to encourage housing counseling nationwide by offering an opportunity to share in the American Dream of homeownership. Because the Bush Administration believes strongly in the power of homeownership to transform lives and wants every family to have the opportunity to own a home, HUD Assistant Secretary Cathy MacFarlane and HUD Midwest Regional Director Joseph Galvan joined with HUD's HOMEWISE partners on August 5, 2004 to announce the opportunity. According to Galvan, "HUD is using the HOMEWISE Program to illustrate the importance of homeownership counseling. Homeownership education plays a vital role in helping people through what can sometimes be an overwhelming home-buying process. Housing counseling gives people the tools and confidence to make the American Dream come true." In the photo above right, Regional Director Galvan is speaking. Looking on, left to right are Cathy McFarlane, HUD Assistant Secretary for Public Affairs, Chicago Alderman, NaTasha Thomas, and Chicago Housing Commissioner, Jack Markowski. Under the pilot program, the National Housing Endowment will purchase HUD homes in Chicago and nine other cities across the country and will work with a local NAHB-affiliated homebuilder to fully renovate each property using in-kind donations of labor and materials as well as $100,000 in donated funds each from Fannie Mae and Freddie Mac. "The President is committed to increasing homeownership and creating new homebuying opportunities for lower-income households," said HUD Assistant Secretary MacFarlane. "This pilot program will help accomplish his goal of creating 5.5-million new homeowners by the end of the decade while also promoting the value of homeownership counseling." Commissioner Markowski, who welcomed the HUD initiative to Chicago, said, "Like HUD, the Department of Housing is committed to the goal of homeownership. We are also committed to preparing people for homeownership and that is why this program is so important. This house represents a unique opportunity to showcase the many homeownership counseling programs that are offered for prospective homeowners." Eligible buyers in Chicago must be first-time homebuyers who have completed an approved housing counseling course and earn less $55,680. The application period will continue through August. Those interested in applying for this program can find information and an application on the HUD website or call 1-888-297-8685. Completed applications must be delivered to a HUD-approved Housing Counseling Agency, such as the Chicago Urban League Development Corporation, the Latin United Community Housing Association (LUCHA), or Neighborhood Housing Services of Chicago-Auburn Gresham/Englewood. After applicants are screened, a list of those who meet the criteria will be forwarded to local officials who will make the final selection by a random process. To make the property more affordable to the lucky Chicago family, they will qualify for a 15-year, zero (0) downpayment and zero (0%) interest rate mortgage on the property, with payments to be based on one-half of the home's appraised value. They will also be required to sign a lien representing the balance of the appraised value, which will be forgiven if the buyer remains in the home and makes timely payments for five years. "While the nation's homeownership rate is at an all-time high, just below 70 percent, minority homeownership rates still fall short of that," said HUD's MacFarlane. "Creative efforts like HOMEWISE will help reduce that gap." In addition to Chicago, the other pilot HOMEWISE sites are Detroit MI, Minneapolis MN, St. Louis MO, Kansas City MO, Atlanta GA Miami FL, Philadelphia PA and Columbus OH and Seattle WA where the applicants must be service-disabled veterans.
Following the announcement Partners and HOMEWISE celebrants, gathered in front of the special house to pose for a commemorative picture. They included representatives from the National Association of Home Builders Remodelers Council, Home Builders Association of Greater Chicago's Remodelers Council, Wells Fargo Home Mortgage, Fannie Mae Illinois Partnership Office, Freddie Mac, City of Chicago, State of Illinois, Chicago Urban League Development Corporation, Latin United Community Housing Association and Neighborhood Housing Services of Chicago-Auburn Gresham/Englewood.
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Content Archived: August 5, 2011 | ||
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