NHS of Cleveland
$2,500,000 Interim Loan
Purpose: Acquisition LIHTC to Permanent Ownership
Lower-income renters have the chance of a lifetime, thanks to NHS of Greater Cleveland. Through a creative program called the Year 16 Lease Purchase Program, people who have paid their rent on time will have the opportunity to purchase their homes.
Approximately 160 families who have been paying their rent on time consistently for two to 15 years will have the opportunity to purchase their homes. In addition to the financial stability and wealth building opportunity these families will gain, the community also will experience greater stability, as these homeowners maintain their homes and remain involved in civic and school issues.
Although many of the residents have lived in the community for most of their lives, very few of them would have been able to qualify for loans through traditional lenders, according to NHSGC Executive Director Lou Tisler. “This program allows them to move into homeownership with a friendly lender,” he explains. NHS will provide extensive homebuyer education for these soon-to-be homeowners, including financial education, credit counseling and energy conservation education. They will be able to own the house in 5 years making the same monthly payment they have been paying in rent. 18K loans for 5 years.
“Things have been risk averse, and credit standards are much higher than they were before, keeping people from accessing the American dream. We’re able to make it happen, with in-depth services to prepare them for homeownership,” says Tisler.
“It was the innovation of CHC that allowed NHS of Greater Cleveland to put together this pool of funds to allow those that cannot typically access capital, the opportunity to realize the American dream of homeownership,” he says.
“In discussions with CHC, together, we were able to develop a program that took into account many different variables, many different partners, with one goal, making home matter. CHC differs from other lenders in terms of flexibility, the ability to tailor a program to our and our clients’ needs and to create an environment of access to all.”
Other partners in the project include the Cleveland Housing Network, Enterprise Community Partners, the city of Cleveland and various CDCs. “If not for CHC, NHS of Greater Cleveland would not have been able to bring as flexible, inexpensive and accessible funds to the table,” says Tisler.