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By: Ben
Wiederholt
Central Illinois Organizing Project
Springfield, IL
During this holiday sea- son, one of the stories we remember is
that some 2,000 years ago a man and a young, pregnant woman betrothed
to him traveled from Nazareth to Bethlehem, only to be turned away
as they sought shelter.
Although we are now many years removed from this narrative this
story repeats itself time and time again as mothers, fathers, and
families seek shelter via homeownership and they are too, turned
away. However, thanks to efforts by the Central Illinois Organizing
Project (CIOP) and the National Training and Information Center
(NTIC), the story has a happier ending for families in Central Illinois.
Just a couple weeks before Christmas an initiative was announced
in Peoria, Ill that will enable individuals and families with low
and moderate incomes to purchase a home with as little as $500,
or 1% of the home purchase price (whichever is less). The program
operates through a partnership with Fannie Mae, and CIOP’s
community reinvestment agreement with National City Bank.
The Low Down Payment Home Mortgage includes financing options for:
- One-family
homes with $500 or 1 percent down.
- One-family
homes with a renovation feature.
- Two-family
homes (two-family properties must represent at least 25 percent
of the housing stock in the community; participating lenders can
deliver no more than 25 percent of these properties within their
dollar allocation).
This is
the first time the program is available in a rural area. The availability
of the program spans approximately 15,000 square miles in the Central
Illinois region and includes the communities of Bloomington-Normal,
Champaign-Urbana, Danville, Decatur, Peoria, Rantoul, Springfield
and surrounding rural counties.
The agreement resulted from the hard work of CIOP leaders Rev. Robert
Freeman and Rev. Tony Pierce, Rev. Eugene Barnes, Jack Porter, and
Phyllis Washington.
Along with remarks from Rev. Freeman and Rev. Pierce, the press
conference held at a CIOP member church in early December. It included
comments from the Catholic Bishop of the Peoria Diocese, Most Rev.
Daniel Jenky, CSC., NTIC executive director Joe Mariano, representatives
from National City and Fannie Mae, Congressman Ray Lahood’s
chief of staff, and a member of the Peoria City Council. These speakers
addressed a room full of reporters and community members.
“This new collaborative effort between the organized faith
community and the private sector is going to help move the American
dream of homeownership into the reality of families owning and taking
pride in their own home in Central Illinois,” Freeman said.
“The joy of this day is not the talk of hope, but the harvest
of action to create change for our families and neighborhoods.”
Jenky said that he was ecstatic about the press conference and the
work of CIOP.
“Homeownership may now be a reality for many in the Peoria
area who otherwise couldn’t afford the down payment and all
the other costs associated with buying a home,” he said.
Based on the response, people in the community are excited as well.
In the first week, CIOP offices received calls from 90 potential
home buyers and National City received over 120 inquiries. Already,
between eight and 10 families are in the process of owning their
own home for the first time.
Thanks to this program, today in Central Illinois there are fewer
“Mary” and “Joseph’s” who are turned
away in their pursuit for shelter, and families have more to celebrate
this holiday season knowing they are on their way to being homeowners.
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