Non-profit Housing Development Case in Cincinnati
Background and context
In an older city such as Cincinnati, abandoned houses could become a source of crime and neighborhood decline. Abandoned houses are heaven for drug dealers, prostitutes, and a perfect spot for illegal dumping. The fate of the neighborhood really depends on neighborhood residents and how they could stand up to develop their own neighborhood.
According to American Housing Survey in Cincinnati in 1998, 9% or all Hamilton County housing units have either severe physical problems or moderate physical problems. The prevalence of physical problems is much higher in the City than in the Hamilton County suburbs, and is lowest in the surrounding counties.
Many initiatives in the jurisdiction level has been initiated by the Hamilton County Regional Planning Commission, Community COMPASS (Comprehensive Master Plan and Strategies), such as Community Revitalization, and the First Suburbs Consortium of Southwest Ohio. This includes target to create clean, safe, walkable communities that attract new residents with a variety of new and rehabilitated housing, transportation choices, parks and excellent schools, streamlined development-redevelopment processes and up to date infrastructure.
Facts of the case
Since 1960s, a movement of community development corporations have altered the hype of community development in all aspects including housing and social services. These organizations have worked individually with a focus to a particular community that enabled them to help themselves. This movement is encouraged by the low income housing policy in the local level.
National and local policies have also became catalyst to the quantities of community development corporations around the country. The Community Reinvestment Act of 1977 provides a framework for a major effort to persuade lenders to remove articificial bariers to financing low-income housing and neighborhood revitalization initiatives.
The City of Cincinnati, for example, recognized barriers to affordable housing and has been conducting the following policies to remove obstacles to affordable housing, such as Reduction in Lot Size and Density Requirements to reduce the minimujm lot size requirements in low and medium density residential zones, and faster service to developers of residential buildings with 20 dwelling units or less are guaranteed to receive approval or disapproval of plans with explanation within 8-10 days from its submission.
Working In Neighborhoods, a non-profit organization in community development has been successfull in developing homeownership rates in several neighborhoods in Cincinnati. In 1997, Cumminsville’s neighborhood homeownership was 25%, lower than 37% of the City of Cincinnati’s homeownership rate. Last year, South Cumminsville has 220 single-camily homes, 55% are owner-occupied, making the neighborhood one of the largest homeowned minority communities in Cincinnati.
Working in Neighborhoods (WIN) was established in 1978 as a non-profit organization for the purpose of assisting low-income residents in Cincinnati with housing, leadership development and community organization. WIN’s neighborhood service area has been primarily the Millcreek Valley, from Hartwell to Lower Price Hill. WIN is governed by a board of directors composed of 22 members. Sister Barbara Busch, S.C. is the Executive Director and Don Barker is the current Board President
Cumminsville community is consisting of South Cumminsville and Northside, two neighborhoods in Working In Neighborhoods service areas. Both Northside and South Cumminsville are suffered from vacant houses that attracted illegal dumping, drug-dealling, and prostitutions. In South Cumminsville, of 3,914 residents, 94% are African-American, 60% live at or below the poverty level. South Cumminsville is among the neighborhoods that are isolated by interstate highways and industrial areas that make it difficult to access other communities or to have more amenities in the area. In this neighborhood, single family homes, public housing, market rate rental units, business, and industry exists side-by-side. Although South Cumminsville has become homes for thousands residents, it has been struggling to maintain their areas zoned as residential areas, due to the expansion plans of the industries. Therefore, community has received direct and indirect impact of industrial and transportation pollution, and it has become site for illegal dumping, high litter, and industrial dumping.
Through Working In Neighborhoods activities in the area, South Cumminsville has a wealth of community leaders that has been working to enhance the quality of life of the neighborhood primarily through the South Cumminsville Community Council. Over the years, the Council has achieved a numerous achievements that improved the neighborhood.
Through Working In Neighborhoods’ leadership training, residents become leaders in their own communities in fighting crime and drugs, developing programs for youth, cleaning up the environment in and surrounding their community, developing partnerships with businesses to create job opportunities, advocating for and developing program which help keep seniors in their own homes, and educating seniors and consumers about options for accessing health care..
In 1980, WIN worked with local community to fight a plan of an interstate highway expansion project that could isolate the neighborhood, decrease quality of life from the traffic and noise of the highway. In 1990, with a partnership with local banks such as PNC, Provident Bank, the City of Cincinnati, and the Ohio Department of Development and Transportation, WIN developed nine homes on Anthony Avenue in the Anthony Knoll section of Northside. The 23 houses built in the first and second phases of the program are priced from $55,000 to $60,000. Firtree Court Homes was new construction pproject of 14 single family homes completed in 1993. Anthony Knoll Homes was a new development of nine single family houses completed in January 1996.
WIN achieved this effort through a double sword, effort: expanding homeownership opportunities through rehabbing/building new homes and by developing leadership in the community to negotiate with lenders to flow more capital in this neighborhood. WIN’s holistic approach is through creating jobs, increase safety, and increase homeownership rates. WIN assist community group to develop their leadership skills, providing training for self-help oriented community groups, and community organizing. Working in research support that affordable housing is one of the factors that can retain population.
Working In Neighborhoods mission is to build strong communities through homeownership and assisting residents in Greater Cincinnati area to take ownership of their communities. WIN achieved this effort through leadership development, community organizing, providing housing opportunities and developing self-help neighborhood residents. WIN has educated over 7,000 prospective first time homeowners that enables them to establish roots, build equity, and have control of the place where they live. Through homeownership, families build equity and their quality of life. Once a homeowner, residents are more likely to get involved and work with their neighbors to make their community a better place to live. In addition to that, WIN also educated consumers as to how they can save on their energy usage and save money to make buying a home and keeping a home more of a reality.
WIN counselor have provided housing counseling and homebuyers education to Cincinnati residents since 1985. During that time WIN has been contracted by the City of Cincinnati, Fannie Mae, Firstar Bank, Northside Bank and Trust, Freddie Mac, Provident Bank, and Fifth Third Bank to perform these services.
WIN providing home ownership through rehabbed and built over 105 units of housing which were sold to first-time homebuyers. To access capital, WIN work in partnership with local banks to lend more in low and moderate income communities. These efforts have resulted in commitments from local banks of over $330 million for home mortgages. WIN also developed programs which increase home ownership opportunities, such as Pre-purchase Counseling, Post-purchase Counseling, Homebuyers Classes, Celebrate Housing, WIN Financial Literacy Program, Cincinnati Anti Predatory Refinance Initiative (CAPRI)
WIN have rehabbed or built over 115 homes for homeownership. WIN has assisted 7000 families to own their own homes, by making use of the special mortgage loan products developed by WIN, in partnership with five major lenders in the Cincinnati area. WIN does rehab and provide new housing also, so it will give a variety of choices in housing stock. Maintaining high-quality, desirable neighborhoods that assure housing opportunity for all residents. Encourage residential development projects that include a percentage of affordable units.
Working In Neighborhoods values the benefits of home ownership not only for the individual families, but also for the neighborhood as a whole. Crime goes down and property values go up. Working In Neighborhoods priorities buyers in a family that has lived in this community. It is Working In Neighborhoods’ belief that homeownership results in stability and revitalization of a neighborhood. For the individual/family it improves one’s opportunities for the future. Economically, it is one of the best ways to acquire wealth; socially, it provides a stake in the community; and personally, it gives a unique sense of pride and accomplishment.Many times the only obstacle(s) standing between renting and homeownership are the basic “how-to’s” of budgeting, financial management, savings, the mortgage application process and the knowledge that financial options exist to help them realize the dream of owning their own home.
WIN counseling programs helps people to obtain their first house and to prepare them to buy a house. By participating in the housing counseling, it opened up opportunities to options for providing public down payment assistance for qualified hbuyers in targeted aredevelopment areas. In their housing counseling, 98% of WIN’s clients have been first-time homebuyers that have been living in their neighborhood as renters. WIN has educated over 7500 prospective first time homeowners
WIN Encourage residential development projects that include a percentage of affordable units. Promote participation in existing home ownership education programs covering topics such as home maintenance, repair, budgeting, safety, energy savings, consumer issues, mortgage loan qualifi cation and options, legal aspects of buying and owning a home, appraisal, credit reports, homeowner’s insurance, and home inspection. To date WIN has developed, rehabbed, and constructed over 115 homes. All of these homes have been sold to first time homebuyers.
Counseling prospective new homebuyers called “Yes – You Can Own a Home”. WIN also developed Housing Counseling and Homebuyers Education: Post-purchase Counseling, Pre-purchased Counseling, Celebrate Housing, Cincinnati Anti Predatory Refinance Initiative (CAPRI)
Conclusions and outcomes
A holistic approach toward neighborhood revitalization can turn a place around and retain the place as homes for neighborhood residents. Working In Neighborhoods as a non-profit organization approach neighborhood revitalization through many strategies, such as providing housing opportunities for residents, leadership development that encourage residents to work with lenders in order to access more investment in their neighborhoods and to work with other agencies or local government to voice their concerns and ideas. Leadership development will also creates a stronger community relation.
WIN’s long list of achievements is backed up by community involvement and community development beyond that. WIN also has become an arm of federal and local funders that support housing development, such as Fannie Mae and HUD.
Lessons learned
Housing Counseling
Hirad and Zorn, 2002, mentioned that housing counseling is an integral part of community education to better prepares homeowners to recognize and to accept the responsibilities of owning a home. It is also concluded as a part of a broader initiative to increase homeownership opportunities. Moreover, Hirad and Zorn, 2002, also mentioned that classroom and home-study counseling reduces deliquency rates at 26 percent and 21 percent, respectively.By participating in the housing counseling openned up opportunities to options for providing public downpayment assistance for qualified homebuyers in targetted development areas.
WIN counselor have provided housing counseling and homebuyers education to Cincinnati residents since 1985. During that time WIN has been contracted by the City of Cincinnati, Fannie Mae, Firstar Bank, Northside Bank and Trust, Freddie Mac, Provident Bank, and Fifth Third Bank to perform these services.
Working In Neighborhoods provides both classrom and home-study counselings, depending on the needs and accesibility of clients. In addition to classroom counselings, Working In Neighborhoods also provides home-study counselings if necessary with an appointment with a counselor. Working In Neighborhoods’ target for counseling is not only first-time homebuyers but also existing homeowners by providing education programs covering topics such as home maintenance, repair, budgeting, safety, energy savings, consumer issues, mortgage loan qualifi cation and options, legal aspects of buying and owning a home, appraisal, credit reports, homeowner’s insurance, and home inspection. To date, Working In Neighborhoods already educate 7,500 homeowners in Hamilton County and surrounding areas.
Since 1985, Working In Neighborhood has developed a user-friendly method of educating and counseling prospective for first-time homebuyers called “Yes – You Can Own a Home” that provides edication and preparation for every aspect of homeownership. Currently, Working In Neighborhoods also provides one-on-one counselings such as Pre-purchase Counseling, Post-purchase Counseling, classroom counseling such as Homebuyers Classes, WIN Financial Literacy Program, and Celebrate Housing, an annual workshop on budgeting, home maintenance and home ownership preparation classes.
Affordable Housing Myth and Facts
According to HUD, affordable housing consumers no more than 30 of income. Housing expenses
include rent and mortgage payments, property taxes, and utilities. HUD defined low-income as a ration of household income to area median family income of 80% or less. In 2002, the Cincinnati area family median income was $64,200. For a four-person household, low-income is having an annual income of $51,440 or less.It is natural to cringe at the complexity of these definitions. But they have value, including comparability over time. It must be emphasized that the term low-income encompasses many American households, including not just people who live in poverty, but many, many working adults and retired citizens.
There are pros and cons of afforable housing in the City of Cincinnati and Hamilton County. Promoting affordable houses might exacerbate the regional growth pattern that threatens to erode the tax bases of the County and the City. But promoting affordable houses might be the only solution to revitalize neighborhood and to provide more housing opportunities in the inner city.
Affordable housing myth mentioned that affordable housing gives a negative impact to neighborhood rather than a positive. It is undesirable that it will lower the property values in the neighborhood. But in a declining neighborhood where vacant houses are eyesores and become sources of crime, a good quality of affordable housing will help to improve property values in the neighborhood.
Vacant buildings are a major problem in a neighborhood that will attract illegal dumping, prostitutions, and drug-dealing activities. In the City of Cincinnati, vacancy rate has raised from 8.72 percent in 1990 to 10.79 percent in 2000. The City of Cincinnati spends about $500,000 annually to demolish condemned buildings.
In its neighborhood revitalization strategy, Working In Neighborhoods works with residents to identify these source of eyesores and crimes. Through collaborations with community councils that identifies the vacant buildings, Working In Neighborhood also identifies potential project for rehab or new development, depending on the condition of the house, and ready for the market. Working In Neighborhood’s first priority is first-time homebuyers.
In 1986-7, Working In Neighborhoods worked with the South Cumminsville Community United For Better Housing to build their new construction project. Elmore Park Homes is located on Elmore Street, the main gateway to the community. A total of eleven single family homes were built with total construction budget of $658,000. Working In Neighborhood and the South Cumminsville United for Better Housing formed a partnership with Aetna Life and Causalty Insurance Company to commit over $0.5 million for permanent financing. The City of Cincinnati commited grant funds, the Ohio Housing Finance Agency commited to a zero interest compensating loan to offset the construction interest. The homes were sold to low-moderate incomed families for $50,000.
WIN has proven that affordable housing can be a good quality housing that can enhance the character of neighborhood. Many of WIN’s houses are rehabbed houses that otherwise would be eyesores that take the neighborhood goes down the hill.
Neighborhood Revitalization
In the City of Cincinnati, 60 percent of total housing stock was built before 1960s. Older housing stock can be both an asset and a challenge for redevelopment. Older homes can have architectural character and construction quality that is not available in similarly-priced houses in newer suburbs. But these older housing stock would also become eyesores once its vacant and abandoned that later will lead to neighborhood decline.
One of strategies of neighborhood revitalization is to rehab vacant houses and to provide housing opportunities for families who would like to live in the area. Homeownership will give a sense of belonging of community surrounding the neighborhood, and encourage community participation in the effort of neighborhood revitalization. Occupied housing will also deter crime and other illegal activities in the presents of families there.
Collaborations with Community Organizations.
Alexis de Tocqueville, 1830 mentioned that Americans penchant for innovative civic association, belief that individuals can bring about change; opennes to risk taking and to bridging lines of class, ideological party. Community councils are among the civic associations that promotes individual strengths as a voice that can make a difference in their neighborhood.
Working In Neighborhood has been working with the South Cumminsville Community Council (SCCC) for more than 20 years. This organization has supported SCCC and has been working together with SCCC to motivate residents to become leaders in their neighborhood and to be able to solve neighborhood issues as a group. WIN held a capital campaign to buy and renovate a church that otherwise became vacant and become a source of neighborhood decline. With a $2 million capital campaign, WIN renovated St. Pius Church and turned them into WIN Economic Learning Center that hosts a public computer room for South Cumminsville residents, Community Room that hosts Youth After School Programs, and many of South Cumminsville Community Council meetings.
Through regular monthly meeting with residents where they voiced concerns, ideas, problems, and random observations, the Council has accomplished the following victories:
1. Organized and Funded Rotary Leadership Park beautification: trimmed bushes, mowed, and plant flowers and shrubs.
2. Partnered with the City of Cincinnati Recreation Department to improve the Wayne Field Park
3. Established Summer Youth Enrichment Program, started in 1982 that offers: education, field trips, organized games, arts and crafts, nutritious lunches
4. Collaborated with Working In Neighborhoods to provide community computer lab
5. Developed an after-school tutoring and enrichment program serving 20 children in grades 1st through 8th.
6. Developed Future Leaders in Progress, a social enrichment and leadership training programs for teens
7. Sponsor a Youth Job Training Program serving 25 teens annually
8. Collaborated with the City of Cincinnati Police Department in establishing 18 Block Captain/Neighborhood Advocates. Block Club Captains/Neighborhood Advocates is a creative way to keep the general community informed about what is happening in the neighborhood, to develop leadership on a block level to work on issues that concern people on that block club level to work on issues that concern people on that block.
WIN also helped South Cumminsville to develop a Community Improvement Plan in 2001 that helped SCCC to keep focus on their priorities to enhance the quality of life of the community. Community Improvement Plan, and several projects are undergoing such as community signage, gateway mural, housing redevelopments. Every year since 2003, the Community has done several community retreat to re-evaluate and to identify priorities of neighborhood development in the coming year. At the Community Retreat in 2004, SCCC identifies safety and development of vacant houses as the main issues.
Leadership development as one of the arms of Working In Neighborhoods to enhance the quality of life in a neighborhood is crucial. Working In Neighborhoods values residents as leaders and experts in their own community.
Sources:
City of Cincinnati, Ohio, 1999., Consolidated Plan: 2000 – 2004, Final version.
Retsinas, Nicholas P, and Belsky, Eric S., 2002., Low Income Homeownership: Examining the Unexamined Goal. Joint Center for Housing Studies and Brookings Institution Press.
Boger, John Charles, and Wegner, Judith Welch, 1996., Race, Poverty, and American Cities. Chapel Hill: The University of North Carolina Press.
