Kristin Faust, IHDA Executive Director, provided an update on two state initiatives that leverage funds from the federal Coronavirus Aid, Relief and Economic Security Act to help tenants and homeowners
By Raymon Troncoso & Capitol News Illinois
• Mar 10, 2021
Credit IHDA.org
The Illinois Housing Development Authority presented their plans for how to use incoming federal COVID-19 assistance during an Illinois House of Representatives Housing Committee hearing Wednesday.
Kristin Faust, IHDA Executive Director, provided an update on two state initiatives that leverage funds from the federal Coronavirus Aid, Relief and Economic Security Act to help tenants and homeowners who experienced a loss of income due to the coronavirus pandemic. Those are the Emergency Rental Assistance Program and Emergency Mortgage Assistance Program.
From the federal CARES Act passed last March, IHDA received around $325 million in funding to give landlords direct back-payments for missing rent and homeowners for delayed mortgage payments.
The housing agency s move to wipe out student debt comes during a national debate over the economic drag that student debt creates and inclusion of student debt forgiveness in the federal stimulus package.
Aspiring home buyers who meet certain income limits can get up to $40,000 in student loan debt wiped out, changing their debt-to-income ratio to something that makes obtaining a mortgage easier. The buyers have to meet certain income standards in Cook County, the individual income limit is about $109,000 and agree to live in the property they buy for three years to get the student loan debt forgiven.
“It’s not about giving people handouts,” Faust said. “It’s about helping these people put down roots in their communities, roots in Illinois.” She noted that college costs and the concomitant level of student borrowing have grown far faster than salaries in recent decades.
Kane County residents can access federal dollars flowing to the county and state to pay for 15 months of rent starting no later than May 1. The county will partner with Illinois Housing Development Authority to administer the program.
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