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The Champaign Housing Authority

Local Homeownership Program

Description - HACC partnered with Habitat for Humanity to utilize its MTW flexibility to fill a gap in affordable homeownership needs in Champaign County. HACC refers existing residents of HACC programs that complete the MTW Mandatory Local Self-Sufficiency Program through compliance with employment requirements. Habitat selects from referrals in accordance with the Habitat Partner Family Selection Process. 

Habitat provides all homeownership program services including pre and post home purchase counseling; financial literacy, credit repair and counseling; sweat equity by the home buyer; and, home mortgages at 0% interest, amortized at 25 years. HACC provides a second mortgage at the time of construction completion and closing of permanent financing for the difference between the appraised value of the home and the maximum mortgage that can be supported by the purchaser. However, HACC’s maximum second mortgage is limited to $40,000 per home. The second mortgage is forgivable at the rate of 5% per year over a 20-year period. 

Update on Status of Activity - This activity is fully implemented and will be ongoing with modifications described below. 

Changes or Modifications – This activity was modified as described above in the 2015 Plan. In 2018, HACC will modify this activity as follows:

  1. HACC will provide a second mortgage to eligible households to purchase other homes anywhere in Champaign County. The second mortgage is available to cover closing costs, down payment assistance or to write down the price of the home. The second mortgage will be limited to $40,000 per household; 50% of the total amount will be forgiven at 10% per year over 10 years. The remaining 50% of the second mortgage shall become due and payable to HACC upon transfer of title to anyone other the original head(s) of household at the time of the home purchase.
  2. Eligible households will be limited to those households who have annual gross earned income of $40,000 or more per year; have a continuous employment history of 3 years or more, have a credit score of 650 or more; and, are fully compliant with all other MTW LSS requirements. Households with no earned income shall not be eligible for the MTW Homeownership Program.
  3. Eligible households must attend pre-purchase and post-purchase counseling programs and be pre-approved by a lending institution located in Champaign County.
  4. Units to be purchased are limited to a single unit such as a single family home; townhome or condominium. No multi-family structures shall be eligible.
  5. The unit to be purchased must be no more than 15 years old or must have been substantially rehabilitated within the past 10 years and must pass a preliminary inspection by HACC prior to execution of a purchase contract.
  6. HACC will determine on a annual basis the amount of MTW Block Grant funds that will allocated to the MTW Homeownership Program based on prescreened applicants that meet all eligibility criteria above.