Achieve affordable homeownership with Habitat LA

Affordable housing and homelessness

Expand existing project, program, or initiative (expanding and continuing ongoing, successful work)

Los Angeles ranks as one of the least affordable housing areas in the U.S., and challenges up and down the housing continuum, from emergency shelter to homeownership, have plagued us for decades. Barriers to homeownership is a national issue; but the problem is particularly persistent in LA County where the cost of buying a home continues to rise. Many families are being priced out of homeownership, and low-income communities of color are disproportionately affected due to historical housing discrimination practices and systemic residential segregation. Inequitable concentration of wealth and opportunity are not the only barriers to homeownership that many low-income families face; access to resources and education surrounding homeownership are also scarce. Creating a community with sustainable access to equitable housing goes beyond owning or maintaining a home; education surrounding homeownership is essential to eliminating barriers to adequate, affordable housing in the long term.

Habitat LA is a general contractor, lender, real estate broker, and a U.S. Department of Housing and Urban Development (HUD)-certified counseling agency. Through this model, we sell homes at no profit with affordable loans and connect families with education and resources to ensure they provide a down payment of just 1% and their monthly housing expenses do not exceed 30% of their income. Through our Homeownership Program, Habitat LA is working to make owning a home an achievable dream for Los Angeles County residents with low to moderate incomes and families of color. Our Homeownership Program will serve 600 individuals over the next year and includes pre- and post-purchase workshops, titled Pathways to Homeownership and Family Investment Program, with courses on managing credit, obtaining a mortgage loan, growing savings, managing taxes, resources for homeowners, and more. These courses, along with individualized one-on-one housing counseling, are provided at no cost to low-income residents. Further, our real estate professionals connect our partner homeowners with favorable lending options and other financial resources. Maintaining homeownership allows the benefits of owning a home to sustain for generations, and Habitat LA partners with our Habitat families during the entire cycle of homeownership: from preparing to purchase, building and moving into a new home, and remaining in that home for years to come.

The Homeownership Program changes the housing landscape in Los Angeles County as it provides opportunity for historically marginalized communities, such as low-income residents and people of color, to become homeowners. Census data for LA County shows a deficit in homeownership rates amongst BIPOC residents compared to white residents, and an overall increase of renters year over year as housing costs rise. Success in this program will mean closing the gap across racial and income-based homeownership rates by putting families and individuals on the path to long-term homeownership. As part of our long-term strategic plan, by 2032 we will be building 100 new affordable homes, preserving 100 existing homes, and connecting 100 additional low-income and BIPOC households to affordable homeownership each year. Affordable homeownership prevents family displacement and makes Los Angeles County a more equitable and livable community by offering the benefits of homeownership to all residents.

We measure the success of our Homeownership Program by the number of participants that attend orientation meetings and apply to become homeowners, the number of households that complete their partner homebuyer requirements, and the number of households that purchase a home through our affordable homeownership programs annually. We also determine the efficacy of the Homeownership Program through pre-and post-course surveys. Our most recent surveys have shown that, after completing the program: 88% of participants have a comprehensive understanding of the homebuying process, 80% garnered tools to help build savings, and 83% know how to establish and build a strong credit history. We also measure the success of this program by the long-term success of our partner families. For over 30 years, fewer than 1% of Habitat LA homeowners have experienced foreclosure. We will track their long-term success by their ability to pay their mortgage, property taxes, and insurance payments on time.