Promoting Homeownership and Employment Among Low-Income Families


                    I.   TOPIC          Jackson Heights and Hillwood
                    Estates Housing Developments
                    
II.    LOCATION  Central Alabama

                    III. SUBJECT        Promoting Homeownership and
                    Employment Among Low-Income Families
                    
IV.    SUMMARY

     The Organized Community Action Program (OCAP), a Community Action Agency
     serving seven counties in south central Alabama, is working with a local developer, First
     Tuskegee Bank, and the Federal Home Loan Bank (FHLB) to build 40 homes for low-income families in Lowndes County, one of Alabama's poorest counties. OCAP and the
     developer, Lan/Mac Development, asked First Tuskegee Bank to apply for an FHLB
     grant to promote homeownership among low-income families. The FHLB approved the
     bank's application for approximately $1 million to subsidize 40 low-income families
     seeking to purchase their own homes. Lan/Mac is providing hands-on assistance to
     families who need help with the application process. In addition, Lan/Mac will employ 10
     percent of the people approved for subsidies in the construction of the homes.
     
V.     SUCCESSFUL PRACTICE

     Created a partnership between a Community Action Agency, a local developer, a local
     bank, and the Federal Home Loan Bank to build 40 homes and subsidize their purchase
     by low-income families. The developer will also employ 10 percent of the eventual
     homeowners in the construction of the homes.
     
VI.    CONTACT

     Gene M. Schroeder, Director
     Kim Livingston, Project Director
     Organized Community Action Program, Inc.
     (A Community Action Agency)
     P.O. Box 908
     507 N. Three Notch Street
     Troy, Alabama 36081
     334-566-1712
     334-566-7417 (FAX)
     VII.   CASE STUDY

     The Problem: In Lowndes County, one of Alabama's poorest counties, 31.7 percent of
     the 4,013 residents are considered poor. Many of the poor are female-headed, single-parent families. Most of these women are unskilled and work at minimum wage jobs in
     Montgomery, Alabama a 20-30 mile commute. A general lack of affordable housing in
     the area further complicates the lives of these families.
     
     The Approach Adopted: The Organized Community Action Program (OCAP) is
     working with Lan/Mac Development to build 40 homes and obtain funds from the
     Federal Home Loan Bank (FHLB) to help subsidize low-income families who seek to
     purchase their own homes. The families themselves will also participate in the
     construction of the homes. The project is modeled after a similar successful
     homeownership program that OCAP previously sponsored in Pike County, Alabama.
     
     How They Implemented The Approach: After OCAP had implemented its
     homeownership project in Pike County, the FHLB used the project as an example of
     successful homeownership programs at various workshops it conducted in Alabama.
     After participating in one of these workshops, Lan/Mac Development, a developer in
     Lowndes County, approached OCAP about pursuing a similar project in that county.
     
     Together, OCAP and Lan/Mac asked First Tuskegee Bank to apply to the FHLB for
     funds to provide subsidies to low-income families so they could purchase homes. The
     bank agreed to apply. The FHLB approved the application and awarded approximately $1
     million to subsidize 40 families. The average subsidy will be more than $23,000.
     
     The developer will employ 10 percent of the low-income people approved for FHLB
     subsidies in the construction of the homes. This will provide training, jobs, and a greater
     stake in the home itself among the target population. The developer is also using local
     merchants and suppliers to further emphasize the community aspect of this program to
     help low-income families.
     
     Many of the low-income families who apply for FHLB subsidies are uneducated or
     otherwise unfamiliar with the application process. Therefore, Lan/Mac will help families
     complete the applications and walk them through the application process with the bank in
     Montgomery, Alabama.
     
     Results: Two separate developments of 20 homes each have been plotted. Transfer of
     the FHLB funds is imminent, and as soon as the funds are available the developer will
     begin construction on the first eight homes. To date, 11 families have been approved for
     subsidies.
     
VIII.  KEY WORDS

     Community Action Agency
     Construction
     Development
     Employment
     Families
     Federal Home Loan Bank
     Female-Headed Families
     Homeownership
     Homes
     Partnerships
     Single-Parent Families
     Subsidies
     









ref:   ocap-al.doc