Purpose

Blue Valley Community Action's Lease-to-Own housing program enables families to rent a new home with the option to purchase after a compliance period.
 

Description

Blue Valley Community Action (BVCA) developed the Lease-to-Own Project.  The agency has 4 CROWN programs that are located in 4 different communities.  Single-family homes were constructed that range from 1,110-1,200 square feet each.  Each home has either 1½ or two full baths, attached garage and 3 or 4 bedrooms. Most have full basements.

As a certified Community Housing Development Organization (CHDO), BVCA was able to obtain HOME funding and incorporated tax credits and bank loans to complete financing of the project.  This project helps complete the continuum of care process by taking homeless families into permanent housing and eventually to homeownership. *BVCA has also tapped State Housing Trust Funds and eagerly awaits appropriations of the Federal Trust Fund legislation.

BVCA has struggled to move families from homeless to rental situations and on to homeownership.  Families are referred to the CROWN projects as a stepping-stone to homeownership.  An agreement is signed by the family indicating the areas of compliance to qualify for purchase of the unit.  Customers are required to attend support classes concerning maintenance, budgeting and numerous other topics.  A portion of each customer’s rent is placed in escrow to provide down payment assistance to either purchase a different home or purchase the existing unit after the compliance period.

BVCA also offers a Home Opportunity Program, which provides down payment assistance to income eligible families.  Applicant must be first-time homebuyers who have not had an ownership interest in their principal residence at anytime during the last there years.

Potential homebuyers may purchase existing properties, which must meet the Uniform Housing Codes to insure all health and safety standards are met.  This program will provide up to 20% of the purchase price of their home with a maximum of $10,000.  Families wishing to participate in this program must be in the 80% income category for their respective county and must be able to secure a first mortgage.

Applicants are required to complete the Homeownership Opportunity Education program that includes the following areas:

• Understanding Credit
• Budgeting/Goal Setting/ Money Management
• Pre-Qualifying vs. Pre Approval
• Upfront cost/Moving-Insurance-Closing
• Pros and Cons of Homeownership
• Choosing the Right Home
• Rights and Responsibilities
• Negotiating and Handling Conflict
• Understand the Professions Involved
• Foreclosure Prevention
• Housing Loans, Applications
• Making an Offer/Earnest Money

The Homeownership Education program is available in all of BVCA’s service area with no income restrictions or eligibility requirements.

Outcomes

60 single-family homes have been constructed.