CHATHAM — Mayor Rahm Emanuel wants to encourage homeownership through a program that could offer thousands of dollars to middle- and low-income families seeking to buy a home.
The program would provide assistance with both a down payment and closing costs.
Emanuel announced the Home Buyers Assistance Program Monday while meeting with business leaders and members of the Chatham Business Association at the organization's headquarters, 806 East 78th St. Ald. Michelle Harris (8th), Ald. Raymond Lopez (15th), Ald. Matthew O'Shea (19th) and Tiffany Hamel Johnson, the Chicago Urban League's senior vice president of strategy and community development were present.
"We can’t have vibrant communities without strong vibrant homeownership," Emanuel said to business leaders Monday. Unlike a similar city-funded program that ended in 2007, this revamped one would help middle-class families, too. This can benefit those families who want to stay in the community, but just need help with refinancing, Emanuel said.
"This will help Chicago and help every Chicagoan ... invest in neighborhoods for the long haul," Emanuel said.
Through the program, prospective homebuyers will receive a grant for up to 5 percent of the total loan amount based on income. The program aims to help both middle- and low-income families. The price of a standard home in Chicago is $250,000, the Mayor's Office said, which means that a family could receive a grant of more than $12,000 to help cover their down payment and closing costs.
"Homeownership is key, and that's how you build up communities," said Glen Fulton, president of the Greater Englewood Community Development Corp.
"We have a foundation for small businesses that's coming back to Englewood," Fulton said. "So now we need to build up some kind of foundation, a support system for people that want to buy a home and come back."
He said that it's difficult for people to own a home right now because of red tape, but the city's program can help them get around those roadblocks. Fulton said he believes the program will help bring young people and first-time homebuyers into Englewood. It'll help shape the community into a more "vibrant" one, he said.
"The whole point is to live, work and shop in the same area, and having everything within walking distance would be great," said the organization's marketing director, Jennipher Adkins.
Harris said that the program is much needed because it'll help bring sustainability to the community.
Households with an annual income of less than $121,000 will qualify. The grants can be used toward the purchase of either a single-family home or a condo. All applicants will be required to take a homebuyer education class.
The mayor will introduce an ordinance next month to the City Council to establish the program. Over the next few months, the city will work with aldermen and nonprofit partners to organize informational workshops about the program across Chicago.
Emanuel briefly addressed relations between police officers after questions from reporters about Laquan McDonald's shooting by a police officer and the long period of time before the dashcam video was released.
"We are all eager for a conclusion," Emanuel said. "We have work to do which is what we’re going to do."
He said the process is ongoing and the city, police, FBI, Cook County State's Attorney's Office and U.S. Justice Department are working together.
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