HomeBoost Down Payment Assistance Program returns with $5 million allocation

last updated on Friday, July 19, 2024 in Affordable Housing

After exhausting $2.5 million in just two months in 2023, the Federal Home Loan Bank of Indianapolis is relaunching the HomeBoost Down Payment Assistance Program with double the allocation this year - $5 million to help with down payment, closing and counseling costs for minority and first-generation first-time homebuyers.

Launched in 2023, the special purpose credit program helped 159 households in Indiana and Michigan to become first-time homebuyers, results that underscored the widespread need for such aid across the Bank's district.

This year, HomeBoost has more money available and features expanded eligibility criteria and maximum funding amounts. HomeBoost will provide up to $25,000 in down payment and closing and counseling costs assistance to first-time homebuyers who identify as Black or African American, Asian, Hispanic, Indian American or Alaska Native, and/or Native Hawaiian or Other Pacific Islander, or who qualify as a first-generation homeowner. Eligible households must have a total household income at or below 120% of the local Area Median Income and intend to purchase a primary residence in Indiana or Michigan.

According to HUD's Office of Fair Housing and Equal Opportunity on Dec. 7, 2021, "the Black-White homeownership gap is wider today than it was in 1968 when the Fair Housing Act became law." The Bank's district of Indiana and Michigan is no different than the national trends.

Additionally, mounting research has shown the stark effect that parental homeownership status can have on young adults. Researchers for a 2018 study on intergenerational homeownership by the Urban Institute found that parental homeownership had a significant correlating effect on young adult homeownership: even when controlling for income, gender, race, marital status and other common factors known to affect homeownership rates, young adults whose parents owned a home were found to be statistically more likely to own homes or prioritize homeownership themselves.

"The success of last year's pilot round clearly demonstrates the need and desire for programs like this across Indiana and Michigan," said MaryBeth Wott, SVP Community Investment and Strategic Planning Officer. "This program is a vital tool our members can use to help address homeownership gaps in their communities and across our district. The Bank is thrilled to play our part in helping eligible households achieve their homeownership goals."

Community Investment staff will host a program introduction and training webinar to member financial institutions and related community stakeholders on July 24, 2024. Interested parties may register for the webinar on the Bank's website.

The program launches in full Aug. 14, 2024. Households will be assisted on a first-come, first-served basis until funds are exhausted. Only participating FHLBank Indianapolis member financial institutions may submit HomeBoost grant applications on behalf of eligible households.

Learn more about HomeBoost and other community and housing programs offered by the Bank at www.fhlbi.com.

Story by Katherine Marshall, Corporate Communications Specialist. For more information, contact the Corporate Communications department at [email protected].

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