Illinois municipalities and counties that have not used all their tax exempt bonding (borrowing) power may cede the entirety or a portion of it to IHDA. This allows IHDA to create a specialized homeownership program in your community at absolutely no cost to you.
The City council or county board must pass a resolution/ordinance stating that this is a good use of the excess “bond cap” and award it to IHDA. Once you have ceded your bond volume cap, IHDA does all the administration and servicing of the program.
· Provides all the necessary documents to assist your community in the ceding process
· Takes in the costs of issuing bonds and managing the lending program
· Advises the governor’s office on bond cap status
· Markets the program to your community
· Files election with the Internal Revenue Service
· Processes and approves mortgage applications
· Compiles information and issues quarterly reports to participating communities
· Gathers information for lenders for their annual IRS report
· Issues and annual report on the program to the IRS
The approved resolution and letter to the Bureau of Budget must be submitted before May 1, 2005.
To learn more, contact Bill Smirniotis of the Single-Family Department.