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.  The program provides up to $60,000 in purchase assistance to buyers of single-family homes constructed under the City Lots for Working Families program within the boundaries detailed below. 

Program Requirements

• Homes must have been built through the City Lots for Working Families program and located within one of the target areas.
• Household income cannot exceed 140% of the area median income (AMI).
• Buyers must use the homes as their primary residences for a minimum 10-year occupancy period, or the home must be sold to an income-qualified homebuyer. 

 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.