Habitat for Humanity asks McHenry County to join subordinate mortgages for 6-unit Trinity Trail request; commission backs funding recommendation

Joel Williams, president and CEO of Lake McHenry Habitat for Humanity, asked the McHenry County Community Development and Housing Grant Commission on April 15 to support two HOME-program requests: down-payment assistance for six additional units at the Trinity Trail subdivision and funding for critical home repairs to preserve affordable housing stock.

Williams said Habitat acquired the Trinity Trail site last year and previously received developer-subsidy funding for four units. The new request would finish the site by funding down-payment assistance for the remaining six homes; Habitat estimated the full project will yield 10 owner-occupied units and said the build is scheduled to be occupied by late 2027 or early 2028.

"Building homes, building community, building hope," Williams said, summarizing Habitat’s mission and the local benefit of clustering first-time homebuyers in one subdivision. He explained Habitat sells houses at appraised value and uses subordinate, forgivable mortgages and layered financing so buyers’ monthly payments remain affordable while protecting neighborhood property values.

Williams asked the county to be a party to the subordinate mortgage so the county’s investment is recorded and protected against resale or flipping. He said such subordinated instruments are commonly recorded at closing and that, in this program, forgiveness of the subordinate mortgage is tied to continued primary-occupancy by the homeowner. Under questioning, Williams said Habitat’s approach includes mechanisms to recover title if a homeowner defaults and to re-sell the unit to another eligible buyer.

Commissioners pressed on program mechanics. Staff and Williams clarified eligibility rules: beneficiaries must occupy the property as their primary residence and generally fall at or below 80 percent of area median income (with some layered funding requiring 60 percent AMI); underwriting and lender products used by Habitat typically target a credit threshold near 640 but can be flexible based on underwriting and counseling. Williams said WindTrust and Federal Home Loan Bank of Chicago programs are among lender products Habitat uses.

On recapture and term length, the record in the hearing shows a 15-year recapture period for the down-payment assistance in this context. Williams also said the usual county protections include a home-buyer agreement and a recorded mortgage that protects the public investment.

After the presentation and questions, a motion to recommend funding for Habitat’s home and repair requests was made and recorded by roll call; members present indicated support in the roll call recorded in the transcript.

What happens next: the commission’s recommendation will be incorporated into the HOME/CDBG allocations to be finalized by staff and forwarded to relevant county offices for execution and recorded mortgage documentation.