Local organizations look to alleviate affordable homeownership concerns

LIMA - Henry Owens rolled through the wooden hallways of his home hobbled, but hardly lacking enthusiasm. He was a week removed from rotator cuff surgery and his right arm was in a sling, but his pride was palpable as he gave the grand tour.

The pitch of his voice reached a little higher and his pace was a little quicker as he showed each room. The living room, with a ring of leather couches and chairs, was accented in white and purple flowers. The kitchen, clean and organized, had appliances plugged into every available socket.

But it was the first room on the right in the hallway that was the main attraction. Flipping on the light, a scarlet carpet with the block "O" of The Ohio State University became illuminated on the floor. On each wall were autographed photographs of Buckeye legends from the past. Archie Griffin. Micheal Nugent. Ted Ginn Jr.. Owens finally had his very own "Buckeye Room." Owens finally had his own home.

"This process [of owning a home] has been amazing," said the 37-year-old Owens of his one-story North Summit street residence. "It has been unbelievable at times to see where I'm at now to where I was. To control my own destiny is what I always wanted to do and I feel like I've done that now."

Affordable homeownership is a national problem. While the median cost of a home in Lima ranks among the cheapest in the country, the city is by no means exempt from the crisis. Credit card and medical debt are rendering the prospect of loans impossible for many. For those who can afford to initially finance their home, foreclosures have reached astronomical levels during the past year.

Through all the negatives however, there are a number of organizations throughout Allen County that are reaching out to make owning a home an attainable dream for people willing to put in the effort. Henry Owens was one of those people.

It was quite a journey for Owens. The lifetime Lima resident was born with cerebral palsy and has spent his life in a wheelchair. Just three years ago he was living in a government-subsidized apartment that was barely handicapped-accessible, something he likened to "living in a prison." He was in debt over his head and unsure of where to go. That is when his mother, Grace, mentioned that he should call the Lima branch of Habitat for Humanity.

Habitat: Helping Yourself (With a little help from others)

Habitat for Humanity, an international nonprofit organization, has built more than 200,000 homes throughout the world. The Lima branch was established in 1991 and has built 35 homes throughout Allen County. Habitat works with people who make 30 percent to 50 percent of the Lima median income per year.

For Habitat Lima, which has seen its home production rise on an almost yearly basis, the goal is not only to help families, but to also help local development.

"We build homes where local developers won't even go," Vice President Mel Hathaway said. "We want to add economic value to the community wherever we build."

Prospective homeowners who get involved with the Habitat program cannot expect to sit back and watch as their future home is built. A certain amount of sweat equity is expected - at least 350 work hours of work for a single person and 450 hours per couple.

"That eliminates a lot of people right off the bat," Hathaway said. "The people who don't truly want to earn their home; those are the ones who won't advance in our program. Those, and the people with serious debt."

Debt.

It is the No. 1 deterrent to homeownership. Credit card and medical debt are the two biggest offenders. They eliminate a majority of prospective homeowners before they get the chance to begin the process.

"We only work with people who would not be able to get a bank loan without our help," Hathaway said. "But a lot of our applicants are just too far in a hole for us to begin the process with them."

Habitat Lima estimates they find one serious candidate for the program out of every 15 applications they receive.

"With the need for affordable housing, you would think we would be flooded," Executive Director Lavon Welty said. "But there just aren't a lot of people who qualify."

That is not to say organizations are not willing to help if the participant is in debt. Habitat recommends Consumer Credit Counseling and is willing to keep prospects in mind as they work to cut their debt. This is what happened with Owens.

"He came to us with a ton of debt and, as a low-income person, that can be a terrible place to be," Welty said. "But he just never stopped working to pay it down. He was delightful to work with."

Two years after coming to Habitat, Owens' application was approved and construction crews broke ground on his lot. Within four months, he and his girlfriend, Holli, moved into their first home.

"I wanted to achieve this to show other people what they could do, so I guess I've done my goal," said Owens. "Other people that are disabled just like me; who feel like they are stuck in the system and what to get out and find their own place to live; I think I've shown them what is possible."

LACCA: Teaching as a Way of Saving

Foreclosures have hit record numbers during the past two years. In Allen County, the number of mortgage cancellations in January through March jumped 7.86 percent, according to figures from the Allen County Recorder's Office. That meant a jump from 1,361 in the first three months of 2007 to 1,468 during the same period in 2008.

It is an epidemic, but Larry Goodman and the Lima Allen Council on Community Affairs think they have found a way to help through education. LACCA runs homeownership classes 10 times a year to teach prospective homeowners the ins and outs of a confusing process.

Homeownership classes are gaining momentum nationally. Last year, the U.S. House of Representatives approved a measue that would increase the budget for federal housing counseling by $6.76 million during the coming year.

LACCA uses a grant form the Ohio Department of Development, Office of Housing and Community Research for its community assistance. It works with people in the 50 percent to 80 percent of the median income who are looking to purchase their first home. The organization provides 12 hours of homeownership counseling and families who qualify can earn up to $3,000 toward the down payment and closing costs of their new homes.

When Veronica Hyde-McLauren took the classes in 2000, she knew she wanted to purchase her own home; she just had no idea how.

"I didn't know much about budgeting or what I was supposed to look for," Hyde-McLauren said. "Then you take the classes and they bring in bankers and Realtors to speak - the type of people who can tell you different methods to budget and how to inspect a home."

Hyde-McLauren bought her first home in 2004.

"I knew what to look for when it came to little things like the paint, the windows," she said. "When it was time to make the final decision, I felt like I was more prepared."

"The $3,000 won't make that much a difference in the overall cost, but it's a good start," said Goodman, the LACCA Housing Director. "It is the classes that will have the lasting effect."

Goodman estimated about 300 families have gone through the LACCA program during the last 10 years.

Allen Metropolitan Housing Authority: Federal Homeownership Programs

The notice from the Lima Correctional Institution informing Rachel Meeks of her impending layoff could not have come at a worse time. The single mother of an 8-year-old boy, Meeks was attending school at Rhodes State College and would have no way of paying her $550-a-month rent on unemployment. At the suggestion of a friend, Meeks, 27, contacted the Allen Metropolitan Housing Authority. One month before the layoff, she got a call that she refers to as "a blessing from God." She was not only going to get rental assistance, but she was on the path to buying her first home.

AMHA is a public housing agency that is federally funded. Its main focus is providing rental assistance to eligible low-income families, but recently the organization has developed programs to provide families with the opportunity to purchase a home. So far, the programs have produced 20 new homeowners.

"People don't always know how many families are a paycheck away from having financial problems," Executive Director Cindi Ring said. "What we try and do is stabilize that situation; try and give people the tools to succeed."

To start, Meeks entered the Family Self-Sufficiency program. Combined with homeownership classes, the program sets participants up with a caseworker and begins setting goals in regard to budgeting and life advancement. Everything from identity theft to opening a bank account is covered in the programs.

"They are ideas most people take for granted," Ring said, "But they can be some of the most difficult for low-income homebuyers."

For Meeks, it was an opportunity to focus on her future.

"I actually got to sit down and look at my life," she said. "It helped me realize what I wanted and what I needed to do to get there."

Meeks used the programs to obtain her phlebotomy license, her real-estate license, and her nursing certification. She now sells real estate during the week and works as a nurse on weekends.

"It is so difficult being a single parent and trying to achieve," Meeks said. "You've got work and school; you've got sports practices and school events. Met [AMHA] just helped me every step of the way."

As she progressed through the programs and began accumulating the equity offered by AMHA, Meeks realized she was on track to purchase her own home. While showing a client homes throughout the area at work one day, Meeks walked into her dream house.

"I told them that they could move into the next house because this house was all mine," Meeks said laughing. She contacted her caseworker, Tiffany Wright, and set the wheels in motion to buy the home.

Meeks credits Wright for keeping her going when times got tough.

"I've never looked at her like a caseworker because she is more like family," Meeks said. "She was always there, helping me, encouraging me to keep going."

Wright even showed up at the closing of Meeks' home, just to make sure everything went smoothly.

"I know a lot of people who don't want to try these programs because they have too much pride," Meeks said. "But they have to understand how much they can help. Without Met, I don't think I would've made it through my situation."