Laserfiche WebLink
Black households own their homes, one of <br />the lowest homeownership rates for Blacks <br />in large metropolitan areas." Numerous <br />factors may contribute tothese gaps in <br />homeownership, including differentials <br />in wealth and income, demographics, a <br />lack ofcultural awareness among lending <br />institutions, and discriminatory practices <br />in|ending.Pre-andpoot-purohaoe <br />homeownership counseling can help ensure <br />that hornebuyerounderstand the costs and <br />upkeep responsibilities that accompany <br />homeownership. <br />New alliances are also being formed to tackle this issue, bringing together real estate <br />professionals, housing policy makers and practitioners, lenders, brokers, and advocacy <br />groups. For example, the newly created Homeownership Alliance, led by the Minnesota <br />Homeownership Center, has convened a working group to improve the industry's ability <br />to deliver results. Early sessions have revealed that stakeholders feel the following are <br />* Meaningful short- and long-term strategies to raise diversity in homeownership. <br />* Shared understanding ofthe gap and increased cultural competency. <br />* New financial tools toopen doors tohomeownership. <br />p Unique ownership models (8.g.,community land trusts and tenant -owned co-ops can <br />play a role). <br />* Shared understanding that narrowing the gap benefits everyone. <br />Providing the tools to create successful homeownership should be seen as an economic <br />imperative for the region. <br />Community Land Trusts (CLT)are one model for helping low- and moderate -income <br />households successfully enter homeownership. A CLT is a non prof it -organ ization that <br />typically purchases single-family homes (though multifamily CLlsd08xisA,makes any <br />necessary repairs, and connects a low-income family to a new ownership opportunity. The <br />model is unique in that the land trust continues to own the land, and rather than including <br />that cost in the purchase price enters into a long-term lease with the homebuyer. This <br />reduces the cost to the buyer and makes the home more affordable. When turnover occurs, <br />the land trust is able, through its land ownership and organizing structure, to sell the home <br />and lease the land to another low-income family, providing for long-term affordability. <br />CoUDCilr0le <br />* Participate in regional efforts such as the Homeownership Alliance to promote sustainable <br />homeownership. <br />HOUSING POLICY PLAN "TWo:omwcomq* <br />