Presentation by:

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Home Ownership

• Presentation by
• Juli Scalf
• Lauren Lynch
• Zach Ebling

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Why own a home?
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What does home ownership mean to you?
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Its game time!
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Sodid you learn anything?
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Anything (can be defined as)

• Starting conditions can make or break the game
  before it has even begun.
• You cant always get what you want There is a
  general lack of low-income housing available.
• To think that luck plays no role in the game of
  life is naïve.
• There arise many unexpected obstacles that can be
  overcome.

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Permanent Housing vs. Renting IMPLICIT advantages

• Symbol of success
• Better family atmosphere.
• Sign of entry into middle-class.
• Centerpiece of American Dream.

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Permanent Housing vs. Renting EXPLICIT Advantages

• No varying rental rates housing expenses more
  predictable.
• Typically a familys largest investment.
• Source of security can be borrowed against to
  finance
• Education
• Entrepreneurial endeavors
• Crisis situation

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Renting Not the Solution

• If you earn the prevailing minimum wage in the
  U.S., you cant afford rent for the average
  two-bedroom apartment anywhere in many places
  the equivalent of two or three full-time salaries
  are not even enough. http//www.enterprisefoundat
  ion.org/majorinitiatives/affordablehousing/index.a
  sp
• Increasing number of families in poverty,
  decreasing number of affordable rental units.
• The median net wealth of low-income homeowners is
  dramatically higher than the median net wealth of
  low-income renters.

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Why Low Income Housing is Needed

• 5.1 million American families have "worst-case"
  housing needs
• -forced to pay more than half their income for
  housing
• -overcrowded conditions
• -houses with severe physical deficiencies
• -most families who qualify for government
  housing assistance aren't receiving any aid.
• High cost housing means that
• -low-income families have little money for other
  basic necessities like food, clothing or health
  care
• For the 14.8 million U.S. households that make
  10,000 or less per year, a year's rent costs
  about 70 percent of their annual income.

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Keys to successful home ownership

• A good rental history
• Income at least 2,000/mo.
• 2 yrs same job/ 3 yrs. Same field
• App. 1500 for down-payment and other costs
• Commitment to being good homeowner/ neighbor.

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How is affordable housing being generated?

• Federally-funded programs
• NeighborWorks
• Private/ Local contributions
• Habitat for Humanity
• Kalamazoo Neighborhood Housing Services

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Habitat for Humanity Facts

• Habitat has built more than 200,000 houses around
  the world, providing more than 1,000,000 people
  in more than 3,000 communities with safe, decent,
  affordable shelter. HFHI was founded in 1976 by
  Millard Fuller along with his wife Linda.
  http//www.habitat.org/how/factsheet.aspx
• What does a Habitat house cost?Throughout the
  world, the cost of houses varies from as little
  as 800 in some developing countries to an
  average of 59,324 in the United States.Habitat
  houses are affordable for low-income families
  because there is no profit included in the sale
  price and no interest charged on the mortgage.
  Mortgage length varies from seven to 30 years.
• How does Habitat work with the government?Habitat
  for Humanity International is not a
• government agency, nor does it accept
  government
• funds for the construction of houses.
  However,
• Habitat considers all levels of government
  and
• governmental agencies important partners in
• its mission to eliminate poverty housing.

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Habitat for Humanity Goals

• Habitat for Humanity is changing lives. Working
  in partnership with low-income families to build
  decent homes they can afford to buy, Habitat
  helps to break the cycle of poverty and
  hopelessness. By the end of 2005, more than 1
  million people worldwide will live in decent,
  affordable Habitat for Humanity houses.

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Shameless plug
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NeighborWorks
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NeighborWorks
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Racial discrepancies in homeownership.
While homeownership dipped during the 1980s for
all Americans, this table illustrates the
disproportionate decline in homeownership amongst
Blacks and Hispanics compared to Asians and
non-Hispanic Whites.
1980 1990
Change Ages 25-34 Whites, non-Hispanic
57 52 -8 Blacks
30 24
-20 Asians 38 36
-5 Hispanics 35
29 -17 Total
52 46 -12
Statistics taken from http//www.jchs.harvard.edu
/publications/homeownership/masnick_w01-4.pdf
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Kalamazoo Neigborhood Housing Services Goals

• Increase home ownership
• Increase property values
• Encourage budgeting/money management skills to
  prevent foreclosures and delinquencies on
  payments
• Reduce building code violations
• Increase participation in neighborhood
  associations
• Increase middle income homeowners

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KNHS Statistics

• One of 22 programs created by NeighborWorks in
  1999
• Programs in 6 Kalamazoo neighborhoods
• East Side property values have doubled
• Lower crime rates
• Over 550 Kalamazoo residents have become home
  owners since 1991

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KNHS Results
but dont take our word for it
AFTER
BEFORE
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KNHS Results
BEFORE
AFTER
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Home Ownership Strategies

• Try to improve credit
• Savings (IDA account perhaps)
• Elevate level of education on home ownership
• Shop around Look for help, because although
  limited, it is out there.
• Hold onto a steady job/income
• Learn how to be a good neighbor
• Good neighbors make good neighborhoods

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End of Presentation.(applause)