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CHN's Homeward Program began in 1989 to strengthen real estate markets in Cleveland's neighborhoods through increased owner occupancy. To date, the Homeward Program has generated more than $60 million in direct capital investment in Cleveland's neighborhoods, resulting in the complete rehabilitation and sale of more than 1000 houses. The program was created with support from the Cleveland Foundation and LISC and is built on partnerships with several local banks, the City of Cleveland, and the State of Ohio. This combination of highly leveraged resources, second mortgage financing through the City of Cleveland, reduced mortgage interest rates and closing costs from local lenders, and down payment assistance grants from the State of Ohio has resulted in a dynamic production center for community revitalization and increased homeownership in the neighborhoods of Cleveland.

The Homeward program has become an effective partner with the Lease Purchase program by enabling CHN member organizations to rehabilitate more vacant housing. The combination of these programs offers homeownership to both very low-income families through the Lease Purchase program, and low to moderate-income buyers through the Homeward program.

CHN has negotiated discounted first mortgage financing from local lenders at interest rates that are significantly below the market. First mortgage loans average about $80,000. In addition, CHN offers a deferred second mortgage financed by the City of Cleveland. The amount of the second mortgage is determined by a family's income and currently averages about $5,000. This combination of affordable financing and a soft second mortgage has greatly increased the capacity for homeownership among low-income families; nearly 45% of recent Homeward buyers have incomes below 60% of Area Median Income. The Homeward program is also an equal opportunity housing provider; 75% of Homeward buyers are minority families.

CHN and the staff at our member groups assist families in pre-qualifying for mortgage financing by reviewing employment history, income, savings, credit history, and current debt. Houses are sold to financially qualified families on a first come-first served basis. The average sales price for a Homeward house is $85,000, with an average monthly payment - including taxes and insurance - of $650, allowing the program to serve credit-worthy families with annual incomes as low as $19,000. Families must have at least $1,500 in savings for a down payment and closing costs. Each year CHN is granted funds from the Ohio Housing Trust Fund to assist low-income buyers with the cost of their down payment. The Homeward program has an excellent track record for maintaining home ownership. The foreclosure rate of the CHN Homeward Program is 1%.

The Homeward program acquires and sells more than 150 houses a year; acquisition and construction capital for the program totals more than $13 million. LISC, the Enterprise Foundation, and Neighborhood Progress, Inc. contribute a total of $3 million in a revolving fund used for acquisition and construction. KeyBank, Fifth Third Bank, Dollar Bank and National City Bank contribute private construction lines of credit totaling $10 million.

The Homeward program was also created to build the value of declining real estate markets in targeted Cleveland neighborhoods. Since it's inception, while average real estate values in Homeward markets have increased by 160% - demonstrated by the increased appraisal values of Homeward projects over time in those communities - some real estate values have more than doubled in several Homeward markets. These dramatic increases demonstrate that the principles of the Homeward program, strategic capital investments (spurring private investment) and increased owner occupancy, are key to building communities that appreciate in value. As predicted by the Homeward model, CHN's role has in fact decreased over time in those markets that have shown the greatest appreciation.

CHN's Homeward Program is one of 12 programs across the country having developed partnerships with the Fannie Mae Foundation and the National Basketball Association's HomeTeam Program. Begun nationally in 1993 with CHN and the Cleveland Cavaliers as one of the original partnerships, this initiative has completed the acquisition and sale of 150 houses, with an additional 32 homes underway in 2002.

Homeward is designed to support homebuyers through a combination of affordable financing, effective housing counseling and buyer education, and a fully rehabilitated home.

Affordable Finacncing

Homeward offers the homebuyers the most affordable financing available. Strategically designed financing includes a first mortgage with a discounted interest rate, reduced closing costs, a deferred second mortgage, capital write down grants and down payment assistance to keep payments low and affordable. The average sales price for a Homeward house is $85,000 with an average monthly payment of $600 (including taxes and insurance).

Effective Housing Counseling And Buyer Education

CHN and the staff at our member CDCs assist families in pre-qualifying for mortgage financing by reviewing employment history, income, savings, credit history, and current debt. All CHN homebuyers participate in comprehensive, individual homebuyer counseling to best prepare families for the responsibilities of homeownership.

Fully Rehabilitated Home

All Homeward houses (except our new construction product) undergo extensive and complete rehabilitation carefully designed to ensure that new homebuyers avoid costly, unexpected repairs. The Homeward program has caused a dramatic increase of market values in the neighborhoods that the program serves - the average market has increased by 160% and four markets have more than doubled.

For more information about how to buy a Homeward house, please call (216) 774-2424. If you have a house located in the City of Cleveland that you would like to sell or donate to CHN, please call Ken Tench, (216) 774-2406.

To view CHN Homeward houses currently for sale, please visit www.clevehomes.com.