Building Neighborhoods and Affordable Homes Program
The Building Neighborhoods and Affordable Homes Program (BNAH) encourages homebuyers to move into five targeted neighborhood areas: Englewood Square, North Lawndale, South Lawndale, Humboldt Park/Garfield Park and Woodlawn. Program Requirements
|
|
Target Areas | Target Area Boundaries | Ward |
Englewood |
59th St., Stewart Ave., Marquette Road. Morgan St. | 16 |
North Lawndale | Roosevelt Road, Albany, Ogden, Homan avenues | 24 |
South Lawndale | 18th St., Sacramento Ave., 27th St., Kostner Ave. | 12, 22, 24 |
Humboldt Park/Garfield Park | Division St./Grand Ave., Kedzie Ave., I-290, Keeler Ave. | 27, 28, 37 |
Woodlawn | 61st St., Harper Ave., 69th Place, St. Lawrence Ave. | 20 |
Program Features
The program is funded with $5 million from the Affordable Housing Opportunity Fund ($1 million per target area).
Grant funds can be used as follows:
- To fill an appraisal gap (difference between sales price and appraised value); and
- If the appraisal gap is less than $60,000, any remaining amount may be used for:
- Closing costs
- Down payment
- Senior loan principal reduction
- Appraisals, inspections, pre-paid interest/points, 1 year pre-paid insurance.
There is a cap of $15,000 for non-neighborhood residents, $20,000 for current neighborhood residents (as defined by program regulations,) for the non-appraisal gap assistance.
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.