CHN's flagship program helps over 2,100 low-income
families achieve the American Dream of homeownership.
Cleveland Housing Network’s (CHN) nationally modeled Lease Purchase program is assisting nearly 2,100 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 $140 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 |
$306 per month |
| |
|
| Annual Household Income (percentage of families) |
|
| Under $10,000 |
33% |
| $10,000 - $15,000 |
13% |
| $15,001 - $20,000 |
17% |
| $20,001 - $25,000 |
15% |
| Over $25,000 |
22% |
| Area Median Income: $59,900 |
|
| |
|
| Percent Female Headed Households |
78% |
| Percent of Families Receiving Section 8 Rent Subsidies |
19% |
| 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
102 homes developed in 1987-89*
Financed by the Low Income Housing Tax Credit |
| Total Number of Homes Developed: 1987-89 |
102 |
| Date Eligible for Sale to Residents |
2003 and 2004 |
| Homes Sold through 12/31/04 (title transferred) |
92 |
| Sales Pending |
2 |
| Range of Sale Prices |
$6,500 - $16,500 |
| Range of Appraised Value |
$35,000 - $85,000 |
Become a Lease-Purchase Resident
