First-Time Homeowner Support Matters Now More Than Ever

Authored by Shalonda Bedenfield-Causey and Karen Liu-Yates for FHLBank Chicago

Across the country, prospective homeowners are facing one of the most challenging housing markets in recent history. In particular, Illinois is home to some of the most vulnerable markets in the country, especially in the Chicago metropolitan area, and Wisconsin has seen an increase in median home price in recent years.

For first-time homebuyers, these trends make the prospect of buying a home even more intimidating, but Illinois and Wisconsin are also made up of communities where housing affordability is within reach for many first-time homebuyers. In alignment with our affordable housing mission, our Community Investment team at the Federal Home Loan Bank of Chicago (FHLBank Chicago) believes it is now more important than ever to aid homebuyers on their journey to homeownership.?

That’s why a year ago, FHLBank Chicago launched the Community First? Housing Counseling Resource Program, which provides funding to housing counseling agencies in Illinois and Wisconsin seeking to expand support to minority and low- and moderate-income homebuyers. These agencies guide homebuyers along the entire path to homeownership, with services including education about household budgeting, credit repair, and personalized financial action plans. ?

Providing support to our local communities

FHLBank Chicago housing associates, the Illinois Housing Development Authority (IHDA) and Wisconsin Housing and Economic Development Authority (WHEDA), administer the Community First? Housing Counseling Resource Program for each state and coordinate with 30 local recipient agencies who were awarded grant funding in 2022. Together, the awarded agencies have statewide reach across Illinois and Wisconsin.

To advance the impact within their local communities and build capacity as an organization, the recipient agencies have so far used their funds in a variety of areas, including:?

- Inclusive Marketing: Connecting potential homeowners from underserved populations to down payment assistance programs is one of the biggest priorities for the local agencies. Funding is crucial to support creative outreach efforts, for example:?

• One agency used funds to release a Spanish radio advertisement and immediately received an influx of callers seeking more information about their services.
• Many agencies in both states have led various social media campaigns, such as: digital newsletters, Facebook Live events, digital and print advertising collateral, and participation at resource fairs.
• Another agency collaborated with a local historic Black newspaper, the Chicago Defender, to generate leads for an outreach approach.?
• Some agencies in both states have built upon networks with FHLBank Chicago member institutions that participate in the FHLBank Chicago’s downpayment assistance program.

- Investment in Staff Training: Some agencies used the funds to better equip themselves to more effectively administer their homebuyer programs through trainings, conferences, and U.S. Department of Housing and Urban Development (HUD) certifications.?

- Strengthening of Operational Capacity: Ongoing operating costs, such as technology and equipment, are a large challenge for many housing counseling agencies, and additional funding can be a huge source of relief. Several agencies hired new bilingual counselors to increase outreach into underserved communities.

Embodying our affordable housing mission?

At FHLBank Chicago, we believe these housing counseling programs are crucial to our affordable housing mission because they help individuals overcome systemic barriers that go beyond income. These barriers are exacerbated in our current market, making it even more crucial to equip our communities with the resources they need.?

Shalonda Bedenfield -Causey?

Community Investment Programs Specialist at Federal Home Loan Bank of Chicago

Karen Liu-Yates

Community Investment Programs Specialist at Federal Home Loan Bank of Chicago