On a recent Monday night at the Grove Hall Community Center, about 50 hopeful home-buyers came to hear a presentation about city-sponsored programs that could help them achieve their dream of ownership. Each person had a different story, but they all shared a common goal: to own a home.
Lisa Franklin of Dorchester says she and her husband already took the “Homebuyer 101” class offered by the city and want to keep working toward their goal of buying their first house.
“This is our first step,” says Franklin, who works as a medical assistant. “We haven’t done the research on home prices yet – we’re just here trying to get a better understanding of things.”
Others were looking to build on the assets they already had. Felicia Valentine, a teacher at the Henderson School in Dorchester, said she owned a condominium in the city, but was interested in learning more about city-sponsored incentives that might help her sell it and purchase a single-family unit. A native of Hyde Park, she says she is interested in staying in the neighborhood or nearby, like West Roxbury or Roslindale.
Another man who declined to give his name said he and his family hoped to purchase their first property soon. He arrived in the United States from West Africa in 2001 and, after working many long hours, was able to bring his wife here to join him.
They now have two young children and are looking to expand their dwelling. He said the city’s assistance would help because even though he makes “fairly good money” from his job in IT and has good credit, things are always more expensive when raising a family.
“When you have kids, you don’t have cash,” he laughed.
Still, he had a tentative plan in place.
“If I keep working, I think I can come up with the down payment in about 16 months,” he said.
On the Web
To learn more about the city’s homebuyer programs, visit: http://dnd.cityofboston.gov/#page/BostonHomeCenter
One-stop shop
Rob Consalvo, Deputy Director for the Department of Neighborhood Development’s homeownership programs, explained the variety of programs offered by the Boston Home Center, housed within the DND, on ownership. “We’re a one-stop shop for all your home ownership needs,” he summarized. “We’re the city department that helps people obtain, retain and maintain their homes.”
To that end, the city offers programs to educate people on homeownership and affordability.
The Center’s Financial Assistance Program provides eligible first-time homebuyers with a subsidy to help cover the down payment and closing cost. It program offers up to 3 percent of the purchase price for 1- and 2- unit properties and condos, and up to 5 percent of the purchase price for 3-unit properties. To be eligible, households must earn less than 120 percent of the Area Median Income ($118,200 for a family of four) and have less than $75,000 in assets. The program is offered through a partnership between the city and 11 approved mortgage lenders.
According to city data, last fiscal year (July 1, 2013 – June 30, 2014) FAP issued subsidy loans for 99 new homebuyers at a total cost of $835,000, leveraging a combined $27 million in mortgage investment from participating lenders. To date, this fiscal year (which will end on June 30) the program has assisted 105 new homebuyers.
When asked how much of a dent it can make in the displacement crisis facing many Bostonians who are finding it increasingly difficult to afford life in their hometown, Consalvo sounds a hopeful note.
“It can make a huge dent,” he says. “Without financial assistance, plenty more people would not be able to be homeowners – we help close that gap.”
Fighting foreclosures
The city also provides programs to help families avoid foreclosure – an ongoing concern in many neighborhoods.
The city’s Foreclosure Prevention & Intervention Program offers financial counseling to residents, as well as connections to hardship assistance programs. The program works with lenders on behalf of homeowners who have fallen behind on mortgage payments, helping to modify their loans and avoid foreclosure. The counselors also help residents develop and implement financial plans for better long-term outcomes.
Carline Chery, a foreclosure prevention counselor at partner organization Nuestra Comunidad, described a fluid relationship between the city’s programs and nonprofits like NC.
“We partner with [the city],” she said. “If people reach out to the city, they will refer them to us. … We all get the same training. It’s the same service [at both places].”
She said that a significant part of the service provided by groups such as Nuestra Comunidad was a helping hand from someone with a “trained eye” to guide people through what often is an overwhelming and confusing bureaucratic process.
“Homeowners get frustrated,” she said. “They might think the bank is asking them for the same [document] over and over again, but there is some underlying issue they aren’t aware of. … People sometimes give up, because it’s very time-consuming.”
In addition, Chery said, the organization will help negotiate with lenders on behalf of homeowners to achieve a loan modification where possible, and, if not, a short sale. In short sales, residents cannot stay in the building, but they at least get out from under their crushing debt to the bank.
Maureen Flynn, executive director of the Coalition for Occupied Homes in Foreclosure, said the city’s foreclosure prevention program was a vital part of the network of services for people in danger of losing their homes.
“Those programs are very, very helpful for people in foreclosure or at risk,” she said. “The more those programs help, the less people are coming to COHIF.”
She said the city’s help in stemming the stream of people to nonprofits like COHIF meant an overall decrease in the number of homeowners facing real trouble.
“When we see former homeowners, the bank has usually taken the home, [or] bought it back at an auction, [and] people are being evicted by the bank for small infractions,” she said. “We’re the program of absolute last resort – that’s why we’re glad [the city programs] are there.”
Nuestra Comunidad’s Chery underscored the importance of proper financial education as a means to prevent foreclosure in the first place.
“One of the ways to prevent homeowner crisis is to make sure they have the right [mortgage] product when they sign those lines,” she said.
To that end, the city and its partners offer homebuyer classes to ensure potential buyers are properly prepared.
