(The Center Square) – Both sides of the aisle in the state legislature have agreed home affordability is an issue for Illinois residents in recent weeks. A new program to help first-time home buyers with down payments was announced by Gov. J.B. Pritzker earlier this week.
The IHDAccess Home program, overseen by the Illinois Housing Development Authority, is part of a larger expenditure program proposed by Pritzker, called Building Up Illinois Developments. The proposed 2027 budget would allocate an additional $50 million to the program.
The plan is for the state to support the housing market through incentives for new construction and financial assistance to home buyers, reallocating funds from previous programs and bond proceeds.
The program will provide new home buyers with 6% of the purchase price, up to $15,000, as a 30-year fixed-rate mortgage. The mortgage is only available to residents who make under specific income thresholds, varying by county.
Additional programs by the department have been utilized by 34,000 residents in the past five years, with 87% of borrowers being first-time buyers, according to the department.
Pritzker highlighted homeownership is important to building wealth, saying high entry costs limit access for many working families.
State Sen. Erica Harriss, R-Edwardsville, has a bill that would similarly address issues of affordability for first time home buyers.
“This bill provides a $500 non-refundable tax credit to first-time home buyers. It can be carried forward up to five years,” Harriss said. “We know that the early years of the mortgage are sometimes the hardest, so this will help directly during those times.”
Discussing SB 3959, which she calls the ‘Welcome Home Illinois’ bill, Harriss said that last year the average home buyer was 40 years old, with only 21% of all homes bought by first time buyers.
In response to the governor’s budget address last month, state Republicans in the Freedom Caucus were highly critical of additional taxation and spending, tying it back to issues of home affordability.
“Young families are struggling to buy their first home. Yet year after year, meaningful reform is avoided while governments continue to tax and spend,” state Rep. Brad Hallbrook, R-Effingham, said.
