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Homeownership is key to stabilizing communities. The Goodson family, now homeowners in Rochester, N.Y., are now anchored in their neighborhood. Photo: Harry Connolly |
In the United States, homeownership signals success and security. But not every family has the means to achieve the classic American dream. Enterprise works to increase homeownership among low- and moderate-income people so that more families can accumulate wealth and save for the future–and communities can build safer, more economically sound and desirable places to live, work and play. Careful preparation for prospective buyers is crucial. Enterprise works with its partners to provide pre- and post-purchase classes offering guidance on credit repair, mortgages, maintenance, energy conservation and help preventing the devastating impact of foreclosures.
Enterprise’s homeownership initiatives are market driven, as these examples illustrate:
In 1998, Congress created the ACA program to help stabilize struggling communities and overcome blight through expanded homeownership for low-income families. Under the program, the Federal Housing Authority sells all foreclosed single-family homes in designated revitalization areas to local governments and experienced nonprofits. As an ACA participant, Enterprise created the Enterprise Home Ownership Partners to administer the nation’s first ACA program in Los Angeles. EHOP substantially rehabilitated the homes, made them energy efficient, expanded them to accommodate larger families and partnered with banks to create affordable loan products. As a result, more than 500 households in one of the country’s costliest housing markets became homeowners. A 2004 Innovations in Community Development profile (PDF, 236KB) discusses the need, implementation, partners, financing, accomplishments and lessons learned from the program in Los Angeles.
EHOP’s success has spurred similar efforts in Cleveland, Dallas, New York City and Rochester, N.Y.
In another innovative disposition program, Enterprise partnered with the city of New York and the Community Preservation Corporation to create homeownership for moderate-income families. The city sold properties with tax liens to Enterprise for a nominal fee and provided Enterprise and its partners funds for substantial rehabilitation. Enterprise sold the one-to-four unit buildings to moderate-income families who rented out the buildings’ remaining units. The supplemental income from rent payments, combined with the soft-second loans and special mortgage packages that Enterprise negotiated for the CityHome program, helped the homeowners to afford their mortgage payments. In its 12 years of operation, the CityHome program re-developed more than 500 buildings, creating more than 1,200 units for affordable homeownership.
Enterprise is committed to creating diverse, mixed-income communities that offer a blend of for-sale and rental housing. In Washington, D.C., Enterprise and its public and private partners applied these principles to help transform two blighted public housing sites into the Wheeler Creek Community. Today, this HOPE VI project features homeowner, rental and senior housing in an attractive, safe and thriving community that has brought a wave of redevelopment. In Baltimore, Enterprise and its partners created a similar transformation at Heritage Crossing, another HOPE VI complex. In New Orleans, Enterprise is partnering with HUD, the Housing Authority of New Orleans and Providence Community Housing to create a vibrant new mixed-income development on the site of the dilapidated Lafitte public housing complex and adjacent communities. The new homes will be available for sale and rent to families with a range of moderate, low and extremely low incomes.
In Cleveland, Enterprise and the Cleveland Housing Network pioneered this nationally replicated tool to create affordable homeownership and revitalize struggling communities. Using the Low-Income Housing Tax Credit, the 15-year lease program gives residents the opportunity to purchase their homes in “Year 16” for about one-third of market value. Since 2003, 90 percent of the families participating in the program have taken title to their homes to create 143 homeowners. Moreover, the program has generated more than $180 million in direct capital investment in Cleveland’s neighborhoods. A 2004 Innovations in Community Development profile (PDF, 218KB) discusses the need, implementation, partners, financing, accomplishments and lessons learned from this program.
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