“The American Dream is one of success, home ownership, college education for one’s children. and have a secure job to provide these and other goals.”

The words of the late Leonard Boswell, U.S. Representative from Iowa’s 3rd congressional district, ring as true today as the day he first spoke them in 2007,  and CHN Housing Partners is doing what it can to make the dream of home ownership a reality for more Northeast Ohioans.

CHN, Burten, Bell, Carr Development, Ward 6 Cleveland City Council member and Council president Blaine Griffin, and Ward 4 Council member Deborah Gray in September held a ribbon-cutting ceremony to celebrate the completion of CHN’s newest project, Larchmere Homes.

The 30-unit affordable single-family development offers opportunities for home ownership in Cleveland’s Buckeye-Shaker neighborhood.

“Home ownership, I think, is the single most effective way to build generational wealth in this country,” said CHN Housing Partners president and CEO Kevin Nowak at the ribbon cutting. “We really think that home ownership strengthens both families and neighborhoods, and it’s why we get up every day.”

The development consists of scattered-site single-family homes in Wards 4 and 6 and uses the Low-Income Housing Tax Credit (LIHTC). Under a lease-purchase program, the homes rent to those who earn less than 60% of Cuyahoga County’s median income (AMI)—on average, about $760 a month, with the goal of owning their home after 15 years.

“Larchmere Homes was developed utilizing the Low-Income Housing Tax Credit—the single biggest source of capital to develop and preserve affordable housing in our country,” Nowak continued.

To create this latest neighborhood, CHN Housing Partners worked closely with the City of Cleveland and Cuyahoga Land Bank to acquire vacant lots.

Of the 30 houses built in the Larchmere development, 28 of them are two-story, three-bedroom homes. The other two are three-bedroom, single-story units. The homes have full front porches, 1.5-car garages, fencing, and driveway gates for secured backyards.

Larchmere Homes Ribbon Cutting Ceremony on new homes on Cleveland's Southeast Side“We look at neighborhoods like a large mirror that are seeing additional investment that’s happening, and the effect that can have on housing costs and prices,” Nowak says. “By putting these homes into this neighborhood, it helps to ensure affordability both from a rental and then, from a home-ownership perspective in the longer term.”

Laura Boustani, CHN vice president of external affairs, adds that the program is an easier path to home ownership.  “In Cleveland, it's generally cheaper to own than to rent, and that's unusual, but that works in our favor,” says. “The way we're doing it is increasing the supply of affordable housing by building more, and also [offering] with home repairs to improve the asset quality of existing homes.”

CHN’s goal is to make homeownership a possibility for everyone.

Since 1987, CHN Housing Partners has helped convert more than 1,700 families from renters to homeowners. The organization has a 98% success rate of renters who transition to homeowners—defined by those families who remain in the house for at least five years after purchase.

To help clients become successful, CHN Housing Partners uses what it calls “the equivalency principle,” where CHN representatives interact with the renters “as if they’re homeowners-in-training.” CNH helps its clients prioritize rent payments and save for down payments through financial counseling.

Additionally, Boustani says CHN works with the entire family on lifelong budgeting practices.

“This is all about making families stronger,” Boustani says. “The other thing we do is work with their children on summer jobs, on life-skills training, on internship placement. They're going to get so much equity on day one, they can send the kids to college.

“We absolutely are proud of this program,” she continues. “It's been really a game changer and we're asked all over the country to consult on how we do this.”

Igniting a spark

Developments like Larchmere Homes cause a ripple effect in the neighborhood—causing residents to consider the possibility of homeownership or simply investing in their current properties, says Nowak.

Larchmere Homes Ribbon Cutting Ceremony on new homes on Cleveland's Southeast Side“People [who] live in the neighborhoods see that big investment happening in the neighborhood,” he explains. “And then, they start thinking more about investment in their own properties, so it adds a lot of tangible and intangible value in that way.” 

Additionally, it’s a chance for residents to get to know CHN’s programs that make affordable housing an option for many low-income families. For instance, Lease Purchase Flagship Program is nationally known because it provides a 15-year pathway to home ownership for low-income families.

At first, families start out leasing the home for 15 years, and then, have the opportunity to purchase the home. On average, CHN’s homes are rented for around $760. Once the rental period comes to an end, clients have the opportunity to purchase homes for between $20,000 and $30,000.

“When we look at CHN’s mission, we look at leveraging affordable, stable housing to change lives and improve communities, and there’s no greater example in the work that we do than our Lease Purchase Program,” says Nowak.  “Let’s say at market rate, you maybe have a loan that’s 80% of the total capital stack, and then, you have maybe 20 %equity,” Nowak explains. “You’re paying debt service on that entire 80% loan.

“In our deals, 70% to 80% are tax-credit equity, which with the return for the investors for tax credits and losses, we don’t have that same pressure to create debt service coverage that traditional market rate does,” Nowak continues. “Our homes, for example, they’re renting for $760, and then, at the end of the rental period, we’re typically selling them for about $25,000.”

Making it happen

To fulfill its mission of solving major housing challenges for low-income citizens and underserved communities, Nowak says CHN Housing Partners looks at “between 50 and 100 potential parcels” at a time.

By constantly looking at lots and researching Cleveland’s neighborhoods, the organization is able “to develop 30 to 40 housing units every 12 to 16 months,” Nowak says.

“This community and others across the board have really embraced our Lease Purchase Program,” he boasts. “I can say that confidently across Cleveland, people love seeing single-family homes, and they love seeing new construction coming into the neighborhoods.”

But Nowak says investing in neighborhoods can be a balancing act at times.

Larchmere Homes Ribbon Cutting Ceremony on new homes on Cleveland's Southeast Side“Other affordable housing is tougher, particularly when you get into the multi-family space,” he explains. “There’s a lot of common misperceptions that you’ll see in some of our neighborhoods that are really unfortunate—because, whether it’s a neighborhood that has seen significant investment or one that has not, our affordable housing developments can have a stabilizing impact each of those communities.

Nowak explains that when CHN begins one of its development projects, there is immediately a list of people who are interested.

“When we’re developing these projects, you’ll see maybe 30, 40 homes, and we get several hundred inquiries for them,” he says. “People in Cleveland know of our program, and when they see the availability of these homes, word spreads pretty quickly, and you see that immediate outreach by interested residents.”

Help from allies

Along with the administration of Cleveland Mayor Justin Bibb and Cleveland City Council, CHN Housing Partners has support from multiple Community Development Corporations (CDCs) in Cleveland.

Founded by the combined efforts of six CDCs and CHN Housing Partners, together they ensure the new homeowners have the support necessary to be successful.

That work not only makes these projects possible, Nowak says it also helps them come to fruition and makes the dream of home ownership a reality.

“They have boots on the ground, nonprofits focused on community development within our neighborhoods,” Nowak says. “As we do this work, partnering with the CDCs is really important to be able to help identify lots at the right places and micro-markets to place these homes to have the greatest impact.

Nowak says the current working model and alliances set everyone involved up for success.

“I think the partnership that we have across the private and the public sphere, the amount of time that we take to engage the community, is highly impactful,” he says. “It creates more sustainable solutions in terms of the asset, creates more sustainable solutions for the families who have a better opportunity for home ownership, and it helps to mitigate that acceptance of affordable housing within our communities.”