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OFFICE OF THE GOVERNOR NEWS ROD R. BLAGOJEVICH - GOVERNOR FOR

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									              OFFICE OF THE GOVERNOR                              NEWS
              ROD R. BLAGOJEVICH - GOVERNOR




FOR IMMEDIATE RELEASE:                                 CONTACT:
June 19, 2006                                          Cheryle Jackson          312/814-3158
                                                       Abby Ottenhoff           312/814-3158
                                                       Rebecca Rausch           217/782-7355
                                                       Gerardo Cardenas         312/814-3158
                                                       Man Yee Lee (IHDA)       312/836-5234


Gov. Blagojevich announces $200 million commitment
    to help working families buy their own homes

      More than 100 families in Sangamon County will participate in the
                          homeownership program

CHATHAM, IL – Building on Gov. Rod R. Blagojevich's commitment to help around 2,000
families and individuals a year share the benefits and security of homeownership, Executive
Director of the Illinois Housing Development Authority, Kelly King Dibble announced today the
Governor’s commitment of $200 million to homeownership. On the front lawn of Chatham
homebuyer Colby Vail, a single mother of two, Dibble joined with local officials and community
leaders to declare Governor Blagojevich’s latest commitment to the state-sponsored I-LOAN
Mortgage program in FY2007.

Three jobs were still not enough for Colby Vail, a single mother of two, to achieve what she
never had in her own childhood — the security and stability of homeownership for her family.
Six months ago, however, Vail found out that she qualified for the I-LOAN Mortgage program
with below market loans and down payment assistance that allowed the 27-year-old mom to buy
a home for the first time for herself, her eight-year-old son Tyler and five-year-old daughter
Jaelyn.
―Every hard working family in Illinois, regardless of their socio-economic background, should
have a safe and secure place to live for themselves and their children,‖ said Gov. Blagojevich.
―Programs such as the I-Loan Mortgage play an integral part in helping families such as the
Vail’s achieve their homeownership dreams. I am proud today to instruct the Illinois Housing
Development Authority to expand the program to allow more working families to achieve the
American dream of homeownership.‖

―Having moved around from rental apartment to rental apartment all my life, it was always a
dream of mine to be able to provide a stable home for my children to grow up in,‖ said Colby
Vail. ―I want my kids to be able to make lifelong friends from the neighborhood and be able to
show their kids the home they grew up in – things I never had. This program has already helped
my dream come true. There is just no way I could’ve done this on my own. I want to be here
forever.‖

The Vail Family moved into their new three-bedroom, one bathroom home in March 2006, four
months after the Illinois National Bank directed them to the Illinois Association of Realtors’
Partnership for Homeownership. The non-profit suggested they apply for a loan under the Rural
Housing Initiative program. The Vail Family received a $95,500 30-year fixed loan from IHDA
at 5.7% interest rate to purchase the $99,500 house. The Federal Home Loan Bank’s League of
Financial Institutions also gave the family a $5,000 grant to pay for closing costs.

Gov. Blagojevich is the first Governor in Illinois history to require a coordinated system of
spending for funds earmarked for affordable housing at several state agencies that have
affordable housing programs. Under the Governor’s direction, a 35-member Housing Task
Force consisting of advocates, developers, lenders, and state agency representatives developed
the 2005 Building for Success: Illinois Comprehensive Housing Plan. This first statewide plan
set forth a concrete working plan to increase affordable housing options and strategically target
spending to help six priority populations: very low income households and families; low income
seniors; low income people with disabilities; homeless people and those at risk of becoming
homeless; low and moderate income families and people unable to find affordable housing near
jobs or transportation; and low income families and people living in existing affordable housing
in danger of becoming unaffordable. The Task Force recently developed ―On the Road to
Success: Illinois Comprehensive Housing Plan 2006” which continues to build on the
coordinated success of the 2005 Comprehensive Housing Plan.

―Governor Blagojevich understands that to help hard working people and their families to
become homeowners and to provide them with an opportunity to create stability and investment
also helps invigorate community development,‖ said Kelly King Dibble, Illinois Housing
Department Authority’s (IHDA) executive director. ―The economic impacts of homeownership
are vast. In addition to providing families with a safe, secure home of their own, homeownership
serves as an economic engine for local and state growth.‖
A $200 million investment in homeownership is predicted to create around 1,455 full-time jobs,
yield $57 million in taxes and fees, and generate $113.5 million in economic activity for the
state.

The I-Loan Mortgage program offers a below market, safe 30-year fixed rate mortgage to help
low and moderate-income families and individuals become first-time homebuyers. IHDA funds
the program by selling tax-exempt bonds based on its own good credit to finance affordable
housing across the state. Some I-Loan approved homebuyers may also be eligible for cash grants
to help pay for down payment and closing costs. Since 2003, IHDA has helped more than 5,820
first-time homebuyers in 96 counties throughout the state become homeowners with a total of
$577 million in I-Loan Mortgage loans. This includes helping nearly 270 families and
individuals in Sangamon County, with more than $20.3 million in loans. In 2005 alone, IHDA
helped 1,990 people to buy their first homes with more than $201 million in financing. 89 of
these homebuyers live in Sangamon County and received more than $7 million in loans.

The Rural Housing Initiative program is under the I-Loan Mortgage and was started to serve
low-income first-time homebuyers in the rural counties of Illinois with a city population of less
than 20,000. Since the program began in 1996, IHDA has helped 1,149 homebuyers under the
program receive $76 million in below market, fixed rate mortgage funds. The United States
Department of Agriculture Rural Development guarantees the loans and applicants are required
to complete a pre-purchase homebuyer counseling class provided by the Partnership for
Homeownership.

Homebuyers interested in the I-Loan Mortgage should visit IHDA’s website at www.ihda.org for
more details and to find a list of IHDA’s approved lenders to help them apply for the program.
Information is also available by calling IHDA’s homeownership hotline at 1-877-I-LOAN-56 (1-
877-456-2656). To learn more about the Rural Housing Initiative program, please visit
www.pfho.org.


About the Illinois Housing Development Authority
IHDA (www.ihda.org) is a self-supporting state agency that finances the creation and the
preservation of affordable housing across Illinois. Since its creation by an act of the Illinois
legislature in 1967, IHDA has allocated more than $7.27 billion and financed more than 174,000
units of affordable housing across the state. IHDA accomplishes its mission through a number of
federal and state funding sources, including the Illinois Affordable Housing Trust Fund, the
Illinois Affordable Housing Tax Credits Fund, the allocation of federal Low Income Housing
Tax Credits, HOME Investment Partnership funds and others. IHDA is also a bonding authority,
and independently sells bonds, based on its own good credit, to finance affordable housing across
the state.

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