More potential home buyers in Elgin could be eligible for help with their down payments if the City Council approves a proposal to expand housing assistance.
At a committee of the whole meeting last week, council members agreed to increase the income guidelines for participants in the city’s Neighborhood Housing Service program from $54,000 to $56,000 a year for a two-person household.
The program targets low-income residents who are first-time home buyers and need help with their down payments.
The City Council will consider the proposal when it meets Sept. 14.
The eligibility changes were proposed as officials considered renewal of the Neighborhood Housing Service’s annual contract with the city. The program has helped almost 30 home buyers with down payments since 2002, said Executive Director Rich Jacobs.
Council member Brenda Rodgers, a Realtor, said at Wednesday’s meeting that she has worked with some home buyers who barely missed the financial cutoff for down-payment assistance.
“Last year alone, there were about three people who made about $50 too much and were denied assistance, and in this last month I had two people who inquired about the program and were denied because one made $50 too much and the other $100 too much,” Rodgers said.
Eligibility for the program is based on Federal Housing and Urban Development income guidelines.
Jacobs said the average assistance to home buyers is between $1,200 and $5,000 a household. Most of the buyers purchase homes in neighborhoods where prices range from $120,000 to $250,000, Jacobs said.
The average home sale price in Elgin is just over $241,000, Rodgers said.
The city typically earmarks $75,000 a year for the program from revenue from Elgin’s Grand Victoria Casino. But this year’s budget is $94,000 because unused funds were carried over, Jacobs said.
