HOME PROGRAM READY FOR LAUNCH By JERRY COSENTINO, Illinois State Treasurer

The great American Dream has long been the opportunity to own a piece of this great land of ours to place upon that land a roof, four walls and a hearth.

This month, the Treasurer's Office took a giant step toward making that dream a reality when we launched our Home Ownership Made Easy (HOME) program. Under HOME, first-time home-buyers are given the opportunity to take advantage of the Treasurer's pooled resources to save for a down payment on that first home and hearth.

The economic pressures of the last decade of the 20th Century have made it increasingly difficult for young people to take that first step into the housing market. Skyrocketing real estate prices, uncertain interest rates and the crush for affordable housing has made it tougher for young families to purchase that first home.

We have attempted to alleviate those pressures with the establishment of the HOME program, a plan approved last year, at my urging, by the General Assembly.

Under HOME, those who have not owned real estate in the last two years are eligible to participate in a unique program, which will be administered by the Treasurer's Office. With a minimum deposit of $250, a potential home-buyer can establish an account in the HOME Mutual Fund — a fund which will be shared by thousands of other investors.

HOME program participants will be able to make deposits at anytime and in amounts which reflect their ability to save. Because HOME will be administered by the Treasurer, participants are assured a secure, competitive savings program which will accumulate— free of state income tax — until such time as a down payment accrues.

At that point, if the account holder qualifies with Illinois Housing Development Authority (IHDA) standards, he/she will be given priority in IHDA's first-time home buyer's program. Through IHDA, eligible applicants will be able to get mortgage loans at an interest rate lower than market levels. Additionally, HOME account holders will receive a payment of the state portion of their real estate transfer tax upon purchase of a principle residence.

So the program offers three important benefits; first, the opportunity to invest in an interest-generating money market mutual fund with a relatively low minimum deposit and dividends earned state income tax-free. Second, if eligible, priority listing for a low-interest first-time buyers mortgage through IHDA. And third, a rebate of the state portion of the real estate transfer tax.

I anticipate the HOME program will prove to be immensely popular in the years to come. As the size of the HOME fund grows, so will the number of individuals who will be able to buy their first homes.

And, as we all know, a healthy home-buying economy is critical to the health of our overall economy. People who buy homes also buy appliances, furniture and other household goods. The potential is virtually unlimited.

Hopefully, the day will come soon when we can all say that home ownership is no longer a dream, but a reality. And that day will indeed be a great day for Illinois. •

September 1990 / Illinois Municipal Review / Page 5