Category Archives: Goal IV: Assistance and Counseling

Develop monthly series of pre-purchase and credit counseling workshops to make marginal gains and introduce service-providers to residents

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Because foreclosure and other financial obstacles have damaged consumer credit, pre-purchase counseling may not be sufficient. Many post-foreclosure households are renting in Woodlawn with the intention of purchasing in the future. Others have been unable to purchase homes in Woodlawn, similarly because of impairments to their credit. Both groups require long-term credit repair in order to (re)join the ranks of homeownership. The people-based approach of credit repair, combined with place-based efforts such as rent-to-own strategies discussed later in this chapter, will also be valuable local wealth-building efforts.

Perform outreach to two- to four-unit building landlords to get training;

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Many other landlords will not be covered under these requirements and should be encouraged through other means. Free courses in Woodlawn with a proof of membership in the Homeowner Association or Block Club can be offered to those landlords who sign a code of conduct and/or participate in no-fee rental registration program with the Small Building Initiative. Despite the lack of explicit enforcement, this will create public information about available rental housing and provide standards for enforcing community norms.

Note on Implementation of Counseling and Training Activities

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A host of providers for housing counseling, credit counseling and landlord training exist in Chicago, if not close to Woodlawn. As a result, the challenge of implementation rests on developing partnerships to bring the existing opportunities to beneficiaries in Woodlawn and those who may look to relocate Woodlawn. This can be done by advertising the counseling opportunities on Choice Neighborhoods materials and in those of supportive services coordinator Metropolitan Family Services. The Small Building Initiative could also develop an online presence or a regular distribution list of non-profit staff members, residents and officials. The message can be successfully distributed through existing organizational networks. Lastly, the Initiative could sponsor a series of ÒteaserÓ workshops with the Network of Woodlawn, Homeowners Association or the Metropolitan Planning Council that educate the community on issues such as repairing credit and landlord practices, but also introduce existing service providers to the community.

Hire construction manager for start-up assistance to home-owners;

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The Small Building Initiative could hire a part- or full-time construction manager to provide in-housing consulting services to homeowners. This staff member should either already be a certified 203(k) consultant, or would do so upon hiring, which would allow him earn compensation for the Small Building Initiative in the form of the 203(k) consulting fee.

Sponsor landlord education seminars for landlords who join homeowner association or who sign code of conduct and register rental apartments with Small Building Initiative

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Many other landlords will not be covered under these requirements and should be encouraged through other means. Free courses in Woodlawn with a proof of membership in the Homeowner Association or Block Club can be offered to those landlords who sign a code of conduct and/or participate in no-fee rental registration program with the Small Building Initiative. Despite the lack of explicit enforcement, this will create public information about available rental housing and provide standards for enforcing community norms.

Retain several 203(k) consultants to provide services to home buyers on a fee basis or revenue-sharing agreement

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As an alternative, The Small Building Initiative could retain a series of existing 203(k) consultants to perform services for homeowners under the program on behalf of the Initiative, with payments passing through to the Initiative. This could introduce more competition for the work, reduce the overhead of the Initiative and also spread the work among a series of consultants (not one salaried employee) in a manner that is more conducive to how they already operate, taking the amount of business they can handle at any time. This may also take the form of a revenue-sharing agreement whereby 203(k) consultants provide a portion of their fee to the Small Building Initiative for brokering the relationship.

Require all purchases of two- to four-unit buildings affiliated with the Small Building Initiative to get landlord training certification

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A third form of technical assistance is landlord education and training for landlords of two- to four-unit buildings in Woodlawn. This training is important because margins can be very tight with this type of housing. Community Investment Corporation provides such landlord education and certification, which applies to landlords of both multifamily and two- to four-unit buildings. Certification for completing this program is required by the Neighborhood Housing Services of Chicago for their CityLIFT program to assist homeowners in purchasing two- to four-unit buildings (NHS of Chicago, 2013c). In line with this practice, the Initiative should have the blanket requirement that any homebuyer or landlord that is assisted with funds from the Small Building Initiative must successfully obtain a certificate of completion from CICÕs landlord training.

Partner with NHS or other nearby pre-purchase assistance to advertise services in Woodlawn

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The most basic assistance that prospective homeowners need is pre-purchase counseling, a requirement of the more effective first-time homeownership programs and an important method of reducing the incidence of foreclosure. A network of providers associated with NSP serves as a resource for this work, including Agora Community Services, Genesis Housing Development, Greater Southwest Development Corporation, and the downtown-based Neighborhood Housing Services of Chicago.

Develop approved list of 203(k) consultants, providing workshops to promote more capable consultants to become certified

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Another critical form of technical assistance would help prospective homebuyers, who are not construction experts, but who are open to acquisition and renovation of two- to four-unit buildings. Low-cost finished homes in the market are in large supply, so acquisition and rehabilitation must provide value that cannot be found elsewhere with as little burden as possible. Hopefully, these homes are less costly than finished homes and provide a homebuyer the added value of being able to design a home to suit oneÕs particular needs. This process, however, hinges on competent and trustworthy general contracting. There are three approaches considered that could provide this form of technical assistance to potential homeowners in Woodlawn.

The Small Building Initiative could take on the role of passive intermediary (and perhaps incubator), taking no direct business interest in the 203(k) consulting process. The Initiative could host workshops for successful contractors to become 203(k) consultants and establish a list of Òpreferred consultantsÓ based on quality control that it would use for directing homebuyers. This strategy does not involve a source of revenues for the Initiative, but it also involves very little financial expense and risk beyond administrative overhead.

Based on the expressed preferences for supporting local developers and the need for flexibility, it is advised that a construction manager be hired than can serve as a 203(k) consultant to assist several homes through the construction process during start-up phase. This manager will also perform general administrative functions and transition the Initiative to serving as a more indirect intermediary ÒsponsorÓ of local 203(k) consultants.