HB 1519

Bill Subjects

Agencies; Housing And Community Development Authority (Ihcda) Financial Services; Loans And Mortgages Property; Housing Social Services; Housing

Abstract

Establishes the workforce housing assistance program (program). Establishes the workforce housing assistance revolving fund (fund) and continuously appropriates money in the fund to provide loans to eligible borrowers in connection with the purchase of residential property to be used for any combination of the following expenses: (1) Down payment assistance. (2) Payment of closing costs. (3) Payment for renovations. (4) Funding a permanent interest rate buydown. Provides that the Indiana housing and community development authority (IHCDA) shall administer the program and the fund. Defines an "eligible borrower" as a first time home buyer whose household income does not exceed 160% of the county's area median income in which the eligible borrower intends to purchase residential property. Defines a "first time home buyer" as an individual who has not, at any time during the three years preceding the date of the mortgage loan closing, had a present ownership interest in residential property. Defines "residential property" as the real property, including a single family dwelling together with any other improvements on the real property, sought to be purchased, in part, with the proceeds of a loan made from the fund by an eligible borrower for use as the eligible borrower's principal residence. Allows the IHCDA to determine the amount of the loan that may be made from the fund to an eligible borrower. Specifies the criteria that the IHCDA must use in making loans from the fund to eligible borrowers, including the term of the loan, the loan's status as a second mortgage secured by a lien in favor of the IHCDA, and the maximum rate of interest for the loan. Requires the executive director of the IHCDA to prepare an annual report on the fund's activities for the legislative council and the budget committee. Defines "community development financial institution". Provides that at least 5% of the money in the workforce housing assistance revolving fund must be set aside to be used for down payment assistance by a person accessing a first mortgage from an Indiana based community development financial institution.