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TIF Purchase Rehab

Program Overview

The Tax Increment Finance Purchase Rehab (TIFPR) program is a City of Chicago initiative which uses Tax Increment Finance (TIF) funding as a forgivable loan to purchase and rehab vacant 1-4 unit residential properties within active TIF districts that have allocated money to be used for this purpose. The TIFPR is NOT to be used to fund investment, commercial or mixed use properties.
The TIFPR “grant” can be used for up to 25% of the total project cost which includes the purchase price plus the rehab cost and closing costs. The vacant properties must require a minimum of $25,000 per unit.
The buyer must have a household income of 120% or less of the area median income (AMI) and intend to occupy the property.
The active TIF districts currently eligible for purchase rehab assistance are:

  • 119th/Halsted
  • 79th/Vincennes TIF
  • 63rd/Ashland TIF
  • Englewood TIF
  • Midwest TIF
  • Chicago/Central Park TIF

Potential homebuyers will be required to attend homebuyer education workshops, including an 8 hour HUD certified homebuyer education workshop, a two part rehab workshop series; property tax, insurance and estate planning; and for those purchasing 2-4 unit properties-a property management workshop.

 

General Eligibility Requirements

To qualify, you must at minimum:

  • Provide a government issued ID for buyer and co-buyer.
  • Demonstrate and certify that your total household income is at 120% or below the Area Median Income (AMI). See below income chart
  • Attend free one hour housing consultation to determine mortgage readiness
  • Attend homebuyer education workshops, including an 8 hour HUD certified homebuyer education workshop, a two part rehab workshop series; property tax, insurance and estate planning; and for those purchasing 2-4 unit properties-a property management workshop.
  • Be able to obtain a mortgage from a participating lender
  • Not owe money to the City of Chicago or be willing and able to enter into a repayment agreement and a make the first payment of such an agreement
  • Select an eligible property
    • Located in a participating TIF
    • Vacant for at least 3 months
    • Needs “substantial rehabilitation” of $25,000 or more per unit
  • Project must be completed (occupied by owner) 180 days after closing
  • Be willing to live in the property for 10-15 years based on amount of assistance or assistance will be recaptured when sold

 

Income Eligibility

Tax Increment Finance Purchase Rehab (TIFPR) program is available to low and moderate-income households earning up to 120% of the Area Median Income (AMI) for the Chicago Metropolitan Area as determined by the U.S. Department of Housing and Urban Development. Please see table below to determine if you meet the income eligibility requirement.


HH Size1 Person2 Person3 Person4 Person5 Person6 Person7 Person8 Person
120% AMI
$78,360$89,520$100,680$111,840$120,840$129,840$138,720$147,720

 

Required Documents

Identification
Copy Illinois driver’s license or State of Illinois photo identification card for both borrower and co-borrower
Proof of Household Income
For each household member over 18
Copy of the most recent Federal Income Tax return & all schedules; AND three most recent consecutive months’ pay stubs (showing year-to-date earnings)
     OR copy of Social Security award letter;
     AND/OR copy of IRS 1099 form for Social Security or pension benefits;
     AND/OR public assistance award letter (if applicable).
Income Certification
Signed Household Size and Income Affidavit
Additional Information required to check for outstanding City debt
(Required for program eligibility. Those with outstanding debt will have the opportunity to clear the debt)
License plate number(s) for borrower and co-borrowers
Last 4 numbers of social security number

 

 

How to start the application process

Please click here to view the TIF purchase/rehab areas and confirm your interest in purchasing a vacant property requiring substantial rehab within one of the eligible TIF districts. Please then proceed to fill out and submit the online form to start the application process.

 

The entire NHS staff is fully equipped to provide a full range of services including financial counseling. We can help you identify other resources and options to buy, fix and keep your home.

For any information or questions related to this program, please call us at 773-329-4111, or email TIFPRAssistance@NHSChicago.org.