Building Neighborhoods and Affordable Homes Program

What is Building Neighborhoods and Affordable Homes Program?

Building Neighborhoods and Affordable Homes Program is a forgivable loan for homebuyers in Chicago, Illinois.

• The Building Neighborhoods and Affordable Homes (BNAH) Program is the City of Chicago Department of Housing's flagship gap-financing program for buyers of newly-built homes constructed on previously city-owned lots transferred via Land Sale Redevelopment Agreements or City Lots for Working Families Agreements. Provides up to $100,000 as a 10-year, 0% interest deferred forgivable second mortgage. Buyer must occupy as primary residence; loan is fully forgiven after 10 years. CDBG-funded for <=80% AMI; AHOF-funded for 81%-140% AMI. Expanded citywide in 2023.
• Up to $100,000 in purchase-price gap-financing assistance for the purchase of a primary, owner-occupied newly-constructed single-family residential building (1-4 dwelling units) built pursuant to a City of Chicago Land Sale Redevelopment Agreement or City Lots for Working Families Agreement. Structured as a 10-year, 0% interest deferred forgivable loan (forgivable note conditioned on continued owner-occupancy for the 10-year term). No monthly payments. Loan is forgiven at the end of the 10-year occupancy period.
• sale/refi/non-occupancy before maturity triggers a prorated payback to the City. Funded through CDBG (for buyers <=80% AMI) and the City's Affordable Housing Opportunity Fund (AHOF) (for buyers 81%-140% AMI).
• Funding comes from Local, Federal, CDBG, and AHOF.

How much assistance does it provide?

Building Neighborhoods and Affordable Homes Program offers up to $100,000 in assistance.

• Buyer contribution: Per first-mortgage product.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Building Neighborhoods and Affordable Homes Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Deferred (no monthly payments) and fully forgiven at end of 10-year owner-occupancy term. Prorated unforgiven balance due if home is sold, refinanced with cash-out, transferred, or ceases to be primary residence before 10 years.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Building Neighborhoods and Affordable Homes Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Building Neighborhoods and Affordable Homes Program limits household income to 140% of the area median income, which varies by county and household size.

• Household income at or below 140% of Chicago-Naperville-Elgin MSA AMI per HUD/Chicago annual chart. Seed range $109,900-$207,200 reflects 80%-140% AMI by household size.
• The limit applies to total household income, not only the borrower&rsquo;s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Building Neighborhoods and Affordable Homes Program caps the purchase price as follows: Per BNAH-approved newly-constructed home (purchase price set per the underlying City Land Sale Redevelopment Agreement or City Lots for Working Families Agreement).

• Eligible property types include Newly-constructed single-family residential building (1-4 dwelling units) built pursuant to a City Land Sale Redevelopment Agreement or City Lots for Working Families Agreement.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Building Neighborhoods and Affordable Homes Program serves buyers purchasing in Chicago, Illinois.

How do you apply?

Applications for Building Neighborhoods and Affordable Homes Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through DOH-approved HUD-certified housing counseling agency (homebuyer education recommended/required by developer or DOH)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application via the BNAH home developer at time of purchase contract; subject to City DOH approval and annual CDBG/AHOF allocation., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.