IHDA Grant

This program provides grants to owners of HCBA-Certified Bungalows who have restricted incomes. These funds, provided by the Illinois Housing Development Authority (IHDA), may be used for code compliant rehab work.

Apply for the certification of your Historic Chicago Bungalow. Only owners that have certified their bungalow with the Historic Chicago Bungalow Association are eligible for the funding incentives.

ALL of your EXTERIOR rehabilitation plans must conform to the Historic Chicago Bungalow DESIGN GUIDELINES. Your entire project must receive design approval from the Historic Chicago Bungalow Association BEFORE WORK BEGINS. Materials & labor qualify for funding.

Eligible Improvements

Rehabilitation or restoration work that brings the home up to code may be eligible for the grant. The projects listed below must be executed on existing structures only, not as part of a new addition.

• New roof and roof repairs
• Soffit and facia repairs and replacement with new roof and roof repairs
• Gutter repair and replacement
• Electrical work to bring the system up to code
• Plumbing work to bring the system up to code
• Stoop and masonry repair
• New furnace or boiler installation
• Water heater replacement
• Solar energy collector for heating systems
• Insulation
• Deteriorated window and door repair or replacement

Please note: Interior remodeling is NOT eligible for the grant.

Homeowner Eligibility

To be eligible for the Illinois Housing Development Authority (IHDA) Rehab Grant an applicant must:

• Own a certified Historic Chicago Bungalow
• Reside in it as a his or her primary residence
• Have a household income that does not exceed Federal definitions of "low" or "very low" as outlined below

Maximum Household Income Area Median	Household Size
	1	2	3	4	5	6	7	8
50%	$26,400	$30,150	$33,950	$37,700	$40,700	$43,750	$46,750	$49,750
80%	$42,200	$48,250	$54,250	$60,300	$65,100	$69,950	$74,750	$79,600

If you meet these conditions fill out the Preliminary Application Form and mail it to:

Historic Chicago Bungalow Association
One North LaSalle, 12th Floor,
Chicago, IL 60602
Attn: IHDA Grant Program

Approval Process

After receiving notice of eligibility you will also receive a Certification of Income Form. The completed Certification of Income Form must be returned to the HCBA with:

• The two most recent check stubs from all current employers of each employed member of the household and/or unemployment statements, social security statements, pension statements, and interest on assets
• Last year's W-2 form(s) for each member of the household if you don't have check stubs
• Current picture of the front of the home (taken within the last 30 days)
• Rehab plan
• Cover letter detailing your project.
• Scope of work, including contractor quotes and specifications.
• Name of contractor representative and phone number.
• Return all above materials to the HCBA at the address above.
  

Failure to include all of the requested information will result in a delay of grant approval.After information is obtained by the HCBA, you will receive notification of design approval, in writing, within approximately 10 business days.

Reimbursment Process

Upon completion of your approved rehabilitation project submit:

• A copy of your contract marked paid in full and/or copies of all receipts
• Two photographs of each completed project and one photo of the front façade. (Include your name and address on the back of each photograph)

Mail to:
Historic Chicago Bungalow Association
One North LaSalle, 12th Floor,
Chicago, IL 60602
Attn: IHDA Grant Program

Inspection

A building inspector from the Department of Housing will conduct an audit to ensure that the work was done according to code and the approved contract. An appointment will be scheduled for interior work or work not visible from the street. (There will not be a formal Department of Buildings inspection unless a permit was required for the work done.)

Receipt of Funds

After HCBA receives the inspector's report and it is approved by IHDA, HCBA will schedule an appointment for you to pick up the funds and sign a Recapture Agreement to record a lien against your property. A $250 processing fee will be deducted from the total amount that you will receive from the IHDA grant.

* No applicant is eligible to receive more funds from the combined grant programs than is spent.

Frequently Asked Questions for the IHDA Grant

Q: What is a legal resident in the house?
A: Legal residers in the house are defined as a combination of persons residing in the house at the time of the application. Persons that are temporarily staying with you should not be counted. However, extended family, including aunts, grandchildren, or others who call your house home should be counted.

Q: What is annual household income and what should be included?
A: Annual household income is the combined gross income of all the persons over 18 year of age who reside in the house at the time of application. Social security, disability payments, alimony, and pensions are considered income. However, there is not a limit on the assets or net worth of the combined household members. For example, a senior citizen who owns the home free and clear of a mortgage and received only a social security check may be eligible according to the in
come guidelines.

Q: What is considered “low” and “very low” income?
A: The standard for low and very low are set by the Department of Housing and Urban Development for the Chicago area. For example, if a household of five persons has two income earners with a combined income of $65,100 the household would be considered low income and would be eligible to receive a grant of up to $3,000. A household of five persons with an income of $40,700 would be considered very low income and would be eligible for a grant of up to $5,000. See above table to determine eligibility.

Q: What if I sell my house? Will I be required to pay back the grant? Why is there a lien?
A: When you receive an IHDA Rehab Grant through the Historic Chicago Bungalow Association, you will sign a Recapture Agreement and a lien will be recorded against your property for the amount of the grant. If you sell your house within 5 years of receiving the grant, you will have to repay the full grant amount. If you reside in the house for 5 years after receiving the grant, the lien will be removed. In no way does the lien affect your ability to sell the house.

Q: What if I want to refinance my home?
A: When you receive an IHDA Rehab Grant you may refinance your home. HOWEVER, you will have to repay the grant if the amount you borrow is for a larger amount of money than your present mortgage loan. You may refinance your mortgage loan to secure a lower rate. In this instance, you will be required to provide information and documentation on the terms of the new loan in order to have the Recapture Agreement subordinated to the new loan. This provision will last for the term of the Recapture Agreement, or 5 years. Please note, if you have an existing line of credit, this will not be affected.

If you have questions about the IHDA grant please call Mr. Adrian Cerda, Project Director at (312) 642.9900.

Important Notes

Rehabilitation work executed before the home is certified as a Historic Chicago Bungalow is not eligible for grant funds. Work executed without design approval from the HCBA is not eligible for the IHDA grant.

Certified Bungalow Owners can now apply for and receive both the Energy Savers “1” and Energy Savers “2” Grants. If you have applied for and received one of these grants, the other grant is now open to you. However, please note that these grants are not retroactive.

All street-facing exterior improvements completed after certification must meet the Association's DESIGN GUIDELINES, regardless of whether those projects are grant funded, in order for the homeowner to remain eligible for HCBA financial incentives.