CHN's flagship program helps over 2,400 low-income
families achieve the American Dream of homeownership.

Cleveland Housing Network’s (CHN) nationally modeled Lease Purchase program is assisting nearly 2,400 low-income families as they move up and out of poverty through employment and homeownership. In 1987, CHN was the first program of its kind to link the Low Income Housing Tax Credit with a lease to purchase option and continues as one of the nation’s most deeply income-targeted, non-profit homeownership programs. The program is built upon a longstanding public-private partnership and is a “hand-up” strategy that promises immediate equity following a 15-year residency term. Lease purchase residents purchase their homes for approximately one-third of market value.

The program has generated over $180 million in direct capital investment in Cleveland’s neighborhoods. The program is specifically designed to keep monthly payments as low as possible, and includes a 72% equity contribution from the syndication of the Tax Credit, leveraging 28% in private and public investment.

2004 LEASE PURCHASE HOMES INVENTORY
Average Rent	$332 per month
Annual Household Income (percentage of families)
Under $10,000	26%
$10,000 - $15,000	15%
$15,001 - $20,000	16%
$20,001 - $25,000	17%
Over $25,000	26%
Area Median Income: $59,900
Percent Female Headed Households	83%
Percent of Families Receiving Section 8 Rent Subsidies	24%
Average Family Size	3

In 2003, CHN began selling the first homes financed by the Low Income Housing Tax Credit to lease purchase residents. These buyers have ownership costs (principal, interest, taxes and insurance) that are lower than what these residents had been paying in rent.

In the words of one new homeowner, “Without the lease purchase program, I would definitely not be a homeowner today, and I have no doubt that I will succeed as a homeowner. I’ve been on my job for 24 years, and I feel confident that I am well set to succeed as a homeowner. The Lease Purchase program has provided homeownership that I can afford".

LIVING THE DREAM The Sale of Lease Purchase Homes Financed by the Low Income Housing Tax Credit
Total Number of Single-Fanily Homes Developed(through CHN partnerships 3-6, between 1987-90): 1987-90	147
Date Eligible for Sale to Residents	2003, 2004, 2005
Homes Sold through to Lease Purchase Families (thru 2006)	132
Percent of Single Family Homes Sold to Lease Purchase Families	90%
Range of Sale Prices	$6,500 - $22,000
Range of Appraised Value	$35,000 - $85,000
"No other program has used the Low Income Housing Tax Credit more effectively to promote homeownership for poor families." -Nicolas Retsinas, Executive Director, Joint Center for Housing Studies, Harvard University

 

Become a Lease-Purchase Resident