Openings Available in First Time Homebuyer Program
A second round of grant funding for the Racine Individual Development Account (IDA) was received in September, 2011. This matching grant program for first-time homebuyers, Racine IDA, is part of a larger national asset building initiative. Racine Neighborhood Watch, Inc. is the subgrantee to the City of Racine for the Racine IDA, and the point of contact for applicants interested in enrolling in the Racine IDA program.
The Racine IDA grant, from Assets for Independence (AFI), a program of the U.S. Department of Health and Human Services, funds approximately 15% ($28,750) of costs for this program. The remaining 85% ($182,500) is funded through non-Federal sources. These funds will allow 25 homebuyers to receive matching funds for their down payments over the next 5 years.
Eligible applicants for the IDA program in Racine are employed, have household adjusted gross income at 200% or less of the federal poverty level, and $10,000 or less of net worth, excluding one vehicle. If qualified, an individual can save $1000 and combine it with $3000 in IDA matching funds for down payment on a first home. Other grants can be leveraged with IDA matching funds for an even greater down payment.
The savings period ranges from 6 months to four years depending on individual circumstances. During the savings process, savers take financial and homebuyer training in order to be well prepared to achieve and sustain home ownership. The home must be purchased in the City of Racine.
Strong local support has made the Racine IDA possible. As with many federally funded programs, a local match is required in order to receive federal funds. The City of Racine, Guaranty Bank FSB, Johnson Bank, North Shore Bank, Tri City National Bank and Wells Fargo have provided financial support. They and other partners have also provided valuable in-kind support including training for savers and guidance at monthly meetings of the IDA Partner Board. The Partner Board is composed of representatives from the City of Racine, Racine Neighborhood Watch, Inc., GreenPath Debt Solutions, Inc., Housing Resources, Inc., Money Management International, Guaranty Bank, Johnson Bank, North Shore Bank, Tri City National Bank, Wells Fargo, Habitat for Humanity, Housing Authority of Racine County, and Racine/Kenosha Community Action Agency.
Applicants interested in the Racine IDA can contact Mary McIlvaine: firstname.lastname@example.org or 262.636.9574 for further information.
For general information about IDAs throughout the country, and about helping families to build assets, visit the AFI Resource Center website: www.idaresources.org.