Aurora expands program offering financial assistance to homebuyers

The Aurora City Council has again expanded funding for a city program that offers grants and loans to eligible homebuyers.

The Choose Aurora Homebuyer Assistance Program looks to make the homebuying process more affordable and attract new residents to the city, officials announced in a news release earlier this year.

The approved funding increase, totaling $370,000, aims to expand access to the program by 15 to 20 households, city officials said. The city has received 34 applications for the program and approved 15 applicants this year, according to the resolution approved by the city council on Sept. 22.

“It’s been a very effective tool for first-time buyers,” said Ald. Mike Saville, 6th Ward, who said he’s seen versions of the program operate in the city since the mid-1990s.

Most of the funds approved by the council Sept. 22 were already allocated to address housing issues in the city, said Aurora Chief Community Services Officer Nicole Mullins. But implementation of the project the funds were dedicated to, The Neighbor Project’s Infill Construction Project, is running behind, so staff recommended shifting the funds to the Homebuyer Assistance Program due to its popularity, said Mullins.

The city is also using funds from its Affordable Housing Solutions Fund, which is funded by the city’s gaming tax, for the program.

“Since this Choose Aurora program is being heavily utilized currently, staff felt it made sense to reallocate those funds to this initiative to expand the program for this year,” Mullins said.

Mullins also said the reallocation marks a shift towards funding an under-resourced priority for the city. She said that while home ownership has been a city priority since the City Council adopted a plan in 2020 aimed at providing more affordable housing, the city’s major investments ended up mostly supporting rental housing.

“This reallocation is an intentional shift towards funding what’s already been identified by the city staff and council as a priority to help with making home ownership attainable for residents,” she said.

Mullins also said the program uses a repayable deferred loan model where loans are less forgivable, which she said protects taxpayer dollars.

Previously, the program, which she said has been in existence since 2014, gave out forgivable loans. The city shifted these loans to deferred loans, which are less forgivable, in the last year, she said.

Mullins said that under the new type of loan, program participants have to pay their loan back if they sell their home or transfer the title of their home, among other conditions.

At last week’s council meeting, Ald. Carl Franco, 5th Ward, said he took issue with a portion of the funds for the program coming from the city’s gaming tax revenue. He said he would like to see increased tax revenue from the new Aurora Hollywood Casino go to paying off existing city debt.

“It’s not going to look pretty when these people get a tax increase, but we’re helping other people start a home,” Franco said. “I think we’ve got to take a look at our priorities going forward and don’t use that as a piggy bank for these funds, these projects.”

Under the Choose Aurora program, homebuyers who qualify for the program can get up to $20,000 through a no-interest deferred loan, up to a $5,000 grant to pay for closing costs and up to a $2,000 grant for minor repairs needed to the home, according to the approved resolution.

That no-interest deferred loan would not need to be paid back until the house is sold or until it is no longer the person’s primary residence, city officials have previously said.

To qualify, those looking to buy a home would need to meet certain income requirements, be looking to purchase a house affordable for their level of income and be willing to go through a homebuyer education course, which the city would pay for.

Specifically, a household would need to make no more than 120% of the area’s median income, which city officials previously said was about $144,000 per year for a family of four, to qualify for the program.

But the program will set aside some of its allocated funds specifically for those making at most 80% of the area’s median income, or roughly $96,000 per year for a family of four, to make sure money is always available for likely first-time homebuyers, officials have said.

The purchase of existing and newly-constructed houses, townhouses and condos within city limits are all eligible for the program, the city’s news release from earlier this year stated.

Before they can apply, homebuyers must pre-qualify for a 30-year fixed FHA or Conventional Mortgage Loan and have their purchase offer accepted, according to the news release earlier this year. Officials said that the application process will take about four weeks before the anticipated closing date.

Those looking for more information about the program can go to its page on the city of Aurora’s website at aurora.il.us/ChooseAurora.

awright@chicagotribune.com