| | | By State Stature, the Village of Arlington Heights must utilize, reserve, or cede its 2023 Home Rule Volume Cap by May 1, 2023, or the authority to allocate this bonding cap will revert to the State of Illinois. At this time, the Village has no uses for the 2023 Home Rule Volume Cap other than the opportunity described below and has no requests for purchase of our 2023 Home rule Volume Cap.
The Village has the opportunity to participate in collaboration with other Illinois municipalities in offering the Assist Homeownership Program. Through the Assist Homeownership Program, income-eligible, credit-worthy home buyers may receive assistance with their closing costs and down payments. They may also qualify for the Mortgage Credit Certificate (MCC) program through which program participants may receive an annual federal income tax credit for the life of the mortgage thereby reducing the annualized cost of debt service.
A year ago, the Village ceded 2022 Home Rule Volume Cap for this program, and 14 Arlington Heights homebuyers utilized the Assist Program during calendar year 2022. The average mortgage loan made to these Arlington Heights home owners was $163,510 and the total in mortgage loans was $2,289,145.
Only the ceding of the 2023 Home Rule Volume Cap is required for Village residents to participate in the Assist Program. There are no costs to the Village, and the program is administered by private home mortgage lenders.
RECOMMENDATION
It is recommended that An Ordinance Approving the Transfer of Volume Cap in Connection with Private Activity Bond Issues, and Related Matters, be approved.
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