Live-Work Rock Island helps people find a place to call home

When Karen Buchanan heard about a program called Live-Work Rock Island that would help her become a homeowner she was nervous about making a big life change from renter to owner. “Home ownership looked way too scary for me. … I wasn’t sure about it,” said Ms. Buchanan, an administrator at Friendship Manor in Rock […]

When Karen Buchanan heard about a program called Live-Work Rock Island that would help her become a homeowner she was nervous about making a big life change from renter to owner. “Home ownership looked way too scary for me. … I wasn’t sure about it,” said Ms. Buchanan, an administrator at Friendship Manor in Rock Island. Eventually, the Rock Island woman got over her fears and – with the help of Live-Work Rock Island – bought a small home some years ago. “We loved that little house. …. We had a garden and chickens,” she added.

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When her family grew and it was time to move, she used the program again last year to move up to a bigger home so everybody in the family had their own bedroom and more bathrooms. Ms. Buchanan was one of several speakers Wednesday, June 18, praising Live-Work Rock Island and encouraging local residents to take part in the innovative homebuyer assistance program. The program helps individuals and families wishing to buy a home within the city limits of Rock Island. About 50 people from the community gathered at Friendship Manor to celebrate Live-Work Rock Island’s start of its latest chapter of helping people, and also to recognize June as National Homeownership Month. Established in 2003, Live-Work Rock Island is a nationally recognized model for employer assisted homeownership that has strengthened Rock Island’s workforce, expanded access to homeownership, and fueled economic investment through a strategic partnership between the Development Association of Rock Island (DARI), Economic Growth Corporation (GROWTH), and Illinois Housing Development Authority (IHDA).  “The hard-working individuals I work with often don’t think homeownership is within reach. Through Live-Work Rock Island and our HUD-Approved Housing Counseling, we not only help open the door to homeownership, we guide buyers through our homebuyer education,” said James Jones, housing manager at GROWTH, and one of the people who oversees Live-Work Rock Island. “They learn what to expect as homeowners, how to budget, and how to plan for the future.” Mr. Jones added that the latest chapter of the program – called Phase 12 – will help more than 54 people buy homes in Rock Island. It will create new homeowners by providing money to help with downpayment and closing costs, and homebuyers classes for people before and after they purchase a home. “This program represents far more than an act or buying a home, it is about creating opportunity for families and employers alike,” Brian Hollenback, GROWTH’s president and CEO, said in a news release before Wednesday’s gathering. “This milestone reminds us that housing is not just an economic priority, it’s a workforce priority, a community priority and a human priority.” Phase 12 does not have a specific deadline date by when to sign up, but it will end when the funding for the program is spent. With that in mind, he suggests people interested in the program apply as soon as possible.  Go here for more information on applying to take part in the program. GROWTH leaders added that Live-Work Rock Island will help people become more financially stable by transforming them from renters to homeowners. “This will offer working families an opportunity to get into houses that fit their families,” said Illinois State Sen. Mike Halpin, D-Rock Island, at the program’s re-launch. Other officials at the news conference pointed out that it also helps out the community by being an economic development driver. The program is a great way for local companies to attract and keep their employees. “We’re always looking for ways to attract and retain quality employees. Live-Work is a powerful recruitment and retention tool that not only benefits our business, but contributes to DARI’s economic development initiatives,” said Troy Green, DARI Board chairman and a manager at the Crawford Company, headquartered in west Rock Island. Here are some of the program details and history:

• Program benefits: It offers up to 5% downpayment assistance based on the home purchase price; up to $1,500 in closing cost assistance; and homebuyer education. The program also offers HUD-approved homebuyer education and housing counseling delivered by GROWTH.
• Who is eligible? The program helps employees of DARI member companies. This program is not limited to first-time buyers, and homes may be purchased anywhere within Rock Island city limits. The homebuyers can earn up to 120% of the area median income. Homebuyers must contribute at least $1,000 to the transaction.
• Program history: To date, the program has helped 463 employees become homebuyers, providing more than $2.6 million in downpayment and closing costs help. It has generated more than $47.5 million in real estate activity in Rock Island. With Phase 12, the program will add more than 54 new homebuyers, including the 500th homebuyer helped by Live-Work Rock Island. Also, Phase 12 will contribute more than $7.3 million in local real estate transactions.
• Statistics: The average downpayment assistance made by the program is $5,800. Homes bought through the program range in costs from $88,000 to $245,000. The average sales price of a home bought through the program is $135,000.

Another Rock Island woman helped by the program said she is impressed with all the Live-Work Rock Island stats. But is more impressed that it helped her find a place to call home. Rehema Niyonzima is a native of Kenya and also an employee at Friendship Manor. On Wednesday, she told the crowd about leaving Kenya a few years ago to find a better life in the U.S.  Like Ms. Buchanan, she was hesitant when she heard about the Live-Work program, but overcame her fears and is now a Rock island homeowner. “I was very nervous to have my own home with my family. … Now, I focus everything on my new home,” she added.