Homeownership: An Option for the Homeless

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Homeownership An Option for the Homeless

• Loucine Hayes
• Habitat for Humanity

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Why homeownership can/should be an issue
Both research and Habitat for Humanitys
programmatic success clearly demonstrates the
possibilities
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What does the research say?

• Financial Benefits (examples)
• Home equity constitutes a significant portion of
  household wealth, and it is especially vital to
  low-income households. In 2001, the median net
  wealth of households with less than 20,000 of
  income was 72,000, but for renters it was only
  900. Belsky, Eric S., Nicolas P. Retsinas, and
  Mark Duda, The Financial Returns to Low-Income
  Homeownership, Harvard University Joint Center
  for Housing Studies, W05-9 (2005)
• Housing wealth is more equitably spread
  throughout society than other forms of wealth.
  Housing formation generates non-housing related
  expenditures that help drive the economy.
  (Kissick, et al 2006)

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What does the research say?

• Social Benefits (examples)
• Communities with transparent systems to meet and
  sustain basic housing needs are more likely to
  build the trust and social cohesiveness.
  (Kissick, et al 2006)
• Homeownership increases intergenerational wealth
  accumulation through improved educational
  achievement in children, which leads to greater
  earnings when these children enter the workforce.
  (Boehm and Schlottmann 2002)

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What does the research say?

• The Intangibles
• Many who own, or want to own are interested in
  taking control of their own lives painting a
  room the color they want, hanging a picture
  without asking permission or having to wait for
  the landlord to repair a light fixture.
• Homeowners in seven out of eight countries are
  more satisfied with their housing situation than
  tenants. Only in Austria do homeowners and
  tenants display a similar level of housing
  satisfaction. (OTB Research Institute for Housing
  Urban and Mobility Studies, Jaffalaan 9, 2628 BX
  Delft, The Netherlands)

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Habitat for Humanity Program Success

• Basic Program Overview
• Habitat for Humanity has been providing a
  homeownership solution to the homeless for 30
  years
• Program success in up to 90 countries proves that
  homeownership can be an option
• 300,000 families served, many through
  homeownership solutions and many of whom fit the
  homeless definition of FEANTSA
• Less than 2 foreclosure rate (U.S. program)

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Habitat for Humanity Family Stories

• Romania
• Before they partnered with Habitat for Humanity,
  Nicoleta and Nicolae Mosutan, together with their
  two children, Andreea, 16, and Nicolae, 13, lived
  in a room about 9 meters, or 97 feet, square. The
  room was obtained from the town government but
  without the right to buy it.
• The food cupboard was outside, and so was the
  toilet. The cramped quarters werent conducive to
  a healthy life it was always extremely damp with
  mold on the walls, despite the familys incessant
  scrubbing. Moreover, We had to insulate the
  floor because rats were coming in from the
  basement, said Nicolae.

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Habitat for Humanity Family Stories

• Poland
• Single mother Jolanta Paczkowska is raising
  her two children, 11-year-old Kinga and
  8-year-old Kamil, in a rented flat in a
  dilapidated building. Because she has no lease,
  she faces the constant threat of eviction. Worse
  yet, humid conditions have led to fungus on the
  walls, a health risk to the entire family.

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Conclusion

• Ultimately, the decision is not ours to make
• HFH strongly supports and understands the need
  for a range of housing solutions for the
  homeless, poor, and vulnerable
• HFH also believes that empowering families to
  make important housing decisions, including the
  option to choose homeownership, is important.
• Ultimately, these decisions should be made by
  those needing housing solutions, and options
  should exist to support those decisions.