Building Neighborhoods and Affordable Homes Program
The Building Neighborhoods and Affordable Homes Program (BNAH) provides forgivable grants to qualifying buyers to assist in their purchase of primary, owner-occupied residences that are newly constructed single-family residential buildings, containing no more than four dwelling units, built pursuant to a City of Chicago land sale redevelopment agreement. The program provides up to $100,000 in purchase price assistance to qualifying buyers.
Program Requirements
- Homes must have been built pursuant to a City of Chicago land sale redevelopment agreement and located in a city-wide area
- Household income cannot exceed 140% of the area median income (AMI) (see the City's Area Median Income Chart here)
- Buyers must dwell within one of the dwelling units as their primary residence for a minimum of 10-year occupancy period
Program Features
The program is funded with $10 million ($5M AHOF & $5M CDBG). Grants funded with CDBG will be limited to eligible household buyers at or below 80% AMI. Grants funded with AHOF will be limited to eligible household buyers at 81% AMI and below 140% AMI. Grants will be provided to eligible buyers on a scale based on AMI and neighborhood residency:
|
Neighborhood Area Residents |
Grant Amount | Non-Neighborhood Area Residents Household Income Limits |
Grant Amount |
|
Below 80% of AMI |
$100,000 |
Below 80% of AMI |
$90,000 |
|
81 - 90% of AMI |
$90,000 |
81 - 90% of AMI |
$80,000 |
|
91 - 100% of AMI |
$80,000 |
91 - 100% of AMI |
$70,000 |
|
101 - 120% of AMI |
$70,000 |
101 - 120% of AMI |
$60,000 |
|
121 - 140% of AMI |
$60,000 |
121 - 140% of AMI |
$50,000 |
- To fill an appraisal gap (difference between sales price and appraised value); and
- Closing Costs
- Down Payment
- Senior loan principal reduction
- Appraisals, inspections, pre-paid interest/points, 1 year pre-paid insurance
The Department of Housing administers the program from the application stage through closing, and then monitors the property for 10 years to verify owner occupancy.
For more information on how to apply for the BNAH grant, please contact destiny.durham@cityofchicago.org.
Note: The use of BNAH grant funds for private developments triggering the Affordable Requirements Ordinance is not permitted.