The DuPage Homeownership Center was created in 1991 as both a nonprofit charity and as a public-private partnership of those organizations that have a large stake in affordable housing: namely, financial institutions, realtors, government and social service agencies. To this day, about 90% of client referrals and 65% of our funding comes through this partnership. Our purpose is to provide realistic solutions that will allow individuals and families to purchase homes, and to keep their homes, in the DuPage high-cost housing market.

Why Are Homeownership Services Critical for DuPage County?

Our Programs & Our Clients

View Our Annual Report (pdf format)

DHOC 2006 IRS Form 990 (pdf format)

DHOC FY 2007 Audit (pdf format)

2007 Annual Labor Day Housing Affordability Index

Mission, Vision & Values

Our Mission: The DuPage Homeownership Center is a nonprofit charitable organization that exists to increase accessibility to and preserve homeownership, with an emphasis on serving first-time homebuyers and low- and moderate- income persons.

Our Vision Statement: The DuPage Homeownership Center will be recognized as a leader and a model in the County and in the affordable homeownership industry for making successful homeownership accessible to all individuals through the use of creative, flexible programming and partnerships.

Statement of Values:

Respect: Services must honor the dignity of the individual.

Collaboration: Strategic partnerships, and a sharing of both resources and obligations, will produce the most effective and widespread results.

Empowerment: Clients must invest in their own well-being; helping people help themselves is key to producing long-term behavior change.

Responsibility: Fostering a commitment to financial stability, self-sufficiency and being a good neighbor is integral to creating long-term success among homeowners.

Citizenship: Accessible homeownership creates a diverse and committed citizenry, thus advancing social justice while also strengthening communities, the workforce, the economy, and the County as a whole.

Why Are Homeownership Services Critical for DuPage County?

Homeownership services are critical for individuals and communities. Not only does homeownership provide low-income families the best possible chance to join the economic mainstream, but it is an essential building block in creating strong, healthy communities and a dynamic workforce.

Homeownership is THE key to economic self-sufficiency. Homeownership is the single-most viable means for a family to build wealth, particularly families of modest means whose limited resources often make any type of significant regular savings unrealistic. In fact, the net worth of a low- income homeowner is 12 times greater than that of a low-income renter – and two-thirds of their net worth comes from their home equity. By purchasing a home, families are able to build their savings and reap the many benefits of equity. For example, accessing equity provides the wherewithal to achieve other goals, such as paying for college or building a nest egg for retirement, and also can prevent financial devastation in the event of job loss or medical emergencies.

Homeownership is a vital building block for creating healthy and diverse communities. By nurturing homeownership, the Center is helping DuPage County remain a highly desirable place to live, work, and raise families. Homeowners have an emotional and financial commitment to their community. It has been statistically documented that homeowners (as compared to renters) are more likely to volunteer, vote, and get involved in civic affairs. They are more likely to maintain and upgrade their properties, invest in their schools and patronize local businesses.

People in need of affordable housing are people we all know. First time and lower-income homebuyers represent a variety of indispensable occupations, including police officers and firemen, teachers and daycare workers, retail workers, bankers and healthcare professionals. People who need affordable housing include our aging parents... young adults just starting out… friends who were laid off from their jobs… single parents struggling to get by on one income… and the neighbor with costly medical problems.

There is a disparity between the income level of many working families and housing costs. The average cost of a house in DuPage County in 2002 was $255,000- more than 30% above the national average and well out of reach of families of moderate means. Further, the median monthly rental cost for a 2-bedroom unit is $1,053 and 43% of renters are expending more than 30% of their income toward housing costs. This provides little opportunity to save for a home or to pay debt down, making assistance all the more vital if these families are to escape long-term renting and a perpetual hand-to-mouth existence.

Education and counseling empower individuals and families from all walks of life to achieve the dream of a owning a home. Gaining financial literacy is key. The Center assists clients in becoming financially stable prior to purchase -- building up savings, reducing debt, and repairing past credit issues. Without information and guidance, these obstacles can seem insurmountable or make clients vulnerable to predatory lending practices. Education and counseling empower people to make wise decisions throughout the purchase process and also to flourish as homeowners – as is proven in the Center’s 0% foreclosure rate among our low-income clients.

Our Programs and Our Clients

Our Clients: DHOC has a special emphasis on serving first-time homebuyers as well as those groups that have been historically underrepresented in the housing market; namely, low-income, single parent and minority households. In fiscal year 2004, 83% of our clients were low-income, 50% were minorities, 9% were of Hispanic ethnicity, and 36% were single parents.

Education: Classes that bring more people into the home buying process to help them be informed consumers and responsible homeowners. In addition to general home buyer education, DHOC offers a special series of classes that target the needs of low-income families and of those with significant barriers to homeownership. In FY2004, 853 attended our classes, and about 5,300 have attended since the Center’s inception in 1991.

Counseling with Financial Literacy Training: One-on-one assistance with a housing counselor to identify the financing and purchase choices best for the household and to ensure the buyer is protected from predatory lending practices. Counseling and financial literacy training help buyers overcome barriers to homeownership, such as inadequate savings, limited income, unmanageable debt load or poor credit history. It includes a comprehensive financial assessment, credit analysis, a personalized homeownership action plan, and ongoing support to foster the skills needed by the individual to create financial stability and attain homeownership. 226 new families entered counseling in FY2004, and we have served 2,691 families since the Center’s inception. Our 5-year cumulative purchase rate with all clients is 69%.

Credit Counseling: DHOC provides credit counseling exclusively for clients of local transitional housing programs. This service allows individuals to better understand the impact of their credit history and to learn techniques for credit repair and maintaining a healthy credit rating. In FY2004, 53 individuals received credit counseling, and we have served 456 since the Center’s inception.

Foreclosure Prevention: Confidential counseling to DuPage County homeowners in financial crisis to develop realistic solutions to prevent foreclosure. In FY2004, 94 families came to the Center for help, and we have served 732 families since the Center’s inception. Over the past five years, 75% of our clients have successfully avoided foreclosure.

Annual Home Buyers Fair: This annual daylong outreach event provides exhibits, information and workshops for the first-time home buyer. DHOC has had unprecedented success in attracting home buyers to its Fair, drawing 229 unduplicated households in FY2004.

Individual Development Account (IDA) Program: This 2-year program, completed in FY2004, allows participants to earn a matching grant on dollars they save toward the creation of an asset, in conjunction with 16 hours of financial literacy education and individual counseling. 29 individuals graduated the program, of which 11 purchased a home, 14 purchased a car, and 4 used their savings toward post-secondary education.

The Robert Christ Homeownership Preservation Fund: The Christ Fund was created out of donations that were given to memorialize DHOC’s founding Board President, Bob Christ, a leading affordable housing activist. We use this unique fund to make small 0% interest loans to our Homestead homeowners who are facing a financial strain due to extenuating circumstances, allowing them to maintain financial stability during times of crisis. In FY2004, four new loans were originated.

Making Homeownership Affordable - The DuPage Homestead & Housing Choice Programs: With an average housing cost of $269,000 in DuPage County, more and more working families are being squeezed out of the housing market. DHOC has proven itself as one of the nation’s leader in developing innovative solutions. Homestead makes homeownership affordable through the use of a financing package that significantly reduces interest charges, and thereby increases the purchasing power of low-income households by about 35%. Housing Choice, created exclusively for “Section 8” voucher holders, uses a similar financing mechanism, and also allows buyers to apply their voucher- a subsidy traditionally used strictly for rent - to their mortgage payment. To promote stable finances and successful homeownership, all homebuyers receive comprehensive education, counseling and financial literacy training both before and after they purchase. At the close of FY2004, 337 low-income households had purchased through our programs. There has never been a foreclosure among our clients: a true testament to the effectiveness of quality education and counseling services.

DuPage Homeownership Center Releases

2007 Annual Labor Day Housing Affordability Index

DuPage County Home Prices Rise While Wages Drop

The gap between wages and home costs continues to widen, making it more difficult than ever for average working families to purchase a home in DuPage County, according to a report issued by the DuPage Homeownership Center (DHOC)

DHOC’s Annual Labor Day Housing Affordability Index is 55, indicating that families earning the median income have just 55% of the monthly income needed to afford the median-priced home in DuPage County. (The complete DHOC Annual Labor Day Housing Affordability Index Report is at the end of this document.)

“The median-priced home rose to $360,000, up 4.8% from the same period last year, while median household income dropped to $69,800, down from last year’s $72,400,” said Executive Director Dru Bergman. (Source: Illinois Association of Realtors’ (IAR) sales data and U. S. Department of Housing and Urban Development (HUD) FY07 median income estimate for DuPage County). “Home prices continue to soar in DuPage County despite the slump in the real estate market, putting pressure on working families looking to purchase affordable homes,” Bergman said.

Given the generally accepted rule that a family should pay no more than 30% of monthly income for housing costs, a home buyer in DuPage County would have to earn $126,120 to afford the median-priced home.

“As we approach the Labor Day Holiday, it is disheartening to see that healthcare workers, police officers and other people essential to our economy cannot afford to live in the county where they work,” Bergman said. “ Compared to last year’s Affordability Index of 59, based on a median-priced single-family home of $343,500, and a median income of $72,400, the affordability problem in DuPage County is getting worse.”

The IAR report shows that DuPage County continues to have the highest median sales price for existing single-family homes in the state. Lake County has the second-highest median sales price of $306,700, down 0.7% from the same period last year.

The Affordability Index is based on a concept created by the National Association of Realtors and provides an indication of whether a housing market is in balance or not. “The conventional wisdom is that a family earning the median income for a given area should be able to afford the median-priced home in that area,” Bergman explained. “An index of 100 would mean that the market is in balance. Clearly in DuPage, with an index of just 55, housing prices are far outpacing the incomes of many working families. “

To address this market imbalance, there are a number of initiatives underway to increase the workforce housing stock in DuPage County. Homeownership: Benchmark for a Vital Community is an effort that is uniting the public and private sectors in identifying and breaking down barriers to increasing and preserving the supply of affordable starter homes in DuPage County. H eaded by DuPage County Board Member and DHOC Board President Debra Olson, this groundbreaking initiative includes educating the community on the need for workforce housing, advocating for public policies to encourage the development of affordable starter homes, and providing examples of attractive, quality affordable units. A Steering Committee oversees the day-to-day efforts, co-chaired by Erin Vaughan, Vice President of Government Relations at ARAMARK, and Dave Faganel, President of R.A. Faganel Builders.
The DuPage Housing Action Coalition is a partner with the DuPage Homeownership Center on the Homeownership: Benchmark for a Vital Community effort. Additionally, this network with broad-based grassroots participation advocates for fair and affordable housing in DuPage County and provides a unified voice for the county on legislative and budget issues concerning affordable housing.
DuPage Habitat for Humanity recently announced that their planned 11-home subdivision has been approved for development by the City of West Chicago. The project is anticipated to break ground in 2009 and span until 2011 with phased construction each year. At an estimated cost of $3 million, the project is the largest undertaken by DuPage Habitat to date, and includes extensive infrastructure development. The project will allow 11 families of limited income to achieve the dream of homeownership.

Located in Wheaton, the DuPage Homeownership Center is the only place in DuPage County where working families can obtain a reduced-interest financing package that will significantly boost their home purchasing power. It is certified by the U.S. Department of Housing and Urban Development to provide both pre-purchase and default counseling and by AARP to provide reverse mortgage counseling. For more information, visit www.dhoc.org or call DHOC at (630) 260-2500.

DuPage Homeownership Center Annual Labor Day Housing Affordability Index

2007 Affordability Index: 55

2006 Affordability Index: 59

2005 Affordability Index: 63

Can average working families afford to live in DuPage County?

Median Sales Price – Single-family Home in DuPage County – 2nd Quarter 2007 (Source: Illinois Association of Realtors Quarterly Housing Survey)	$360,000
Median Income (Source: U.S. Dept. of Housing & Urban Development)	$69,800
Downpayment (3% of home price – using typical first-time home buyer lending criteria)	$10,800
Loan Amount (97% of home price)	$349,200
Interest Rate – 30-year fixed-rate loan (Source: Illinois Association of Realtors – based on a composite of closing rates for fixed-rate mortgages on single-family homes as reported by Freddie Mac for the North Central region, which includes Illinois)	6.40%
Monthly principal & interest payment	$2,184
Monthly real estate taxes (estimated at 2% of home price – standard “rule of thumb” in our area)	$600
Monthly homeowners insurance premium (estimated at 0.3% of home price – standard “rule of thumb” in our area)	$90
Monthly private mortgage insurance (estimated at 0.96% of loan amount, based on 3% down and assuming credit score of 660 or higher)	$279
Total housing payment (principal, interest, real estate taxes, homeowners insurance and private mortgage insurance premium)	$3,153
Annual income needed to afford the median-priced home*	$126,120
DuPage median income	$69,800

*Using the U.S. Department of Housing & Urban Development (HUD) standard that a family should spend no more than 30% of their monthly income on housing.

The answer is NO!