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.

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

Building Neighborhoods and Affordable Homes Program is forgiven after 10 years, so a homebuyer 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.

Building Neighborhoods and Affordable Homes Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Per first-mortgage lender requirements; no separate BNAH FICO floor. A homebuyer education course is required, through DOH-approved HUD-certified housing counseling agency (homebuyer education recommended/required by developer or DOH). Residency requirement: Property must be within the City of Chicago, owner-occupied as primary residence for 10 years. Citizenship or immigration status: U.S. citizen or qualifying non-citizen with eligible immigration status (per HUD CDBG rules where applicable). Property MUST be a newly-constructed single-family residential building (1-4 units) built pursuant to a City of Chicago Land Sale Redevelopment Agreement or City Lots for Working Families Agreement (i.e., on a city-owned lot transferred at below-market price). Buyer must occupy as primary residence for 10 years. Household income at or below 140% Chicago AMI. Income tier dictates funding source: <=80% AMI uses HUD CDBG; 81%-140% AMI uses City AHOF. Available citywide (program expanded city-wide in 2023).

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.

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.

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

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