Contract for Deed as a Non-Profit Affordable Housing Tool

New Orleans   Thinking about how to open up a pool of potentially affordable housing to low-and-moderate income families, ACORN’s Home Savers Campaign has spent a lot of time visiting with people in various Midwestern cities trying to figure out a way to link abandoned housing stock in land banks with the potential for rehabilitation with families that need affordable housing.  There seems to be some appetite from certain companies and investors, and there are huge numbers of lower income families that want rent they can afford or even ownership, if they could swing the payments.  Experience with housing counseling has taught us that credit scores can be improved sufficiently to qualify for even conventional mortgages.  The problem is the gap.  The period between when the house is ready and the family is still working to get its finances and credit in shape.   The missing piece in the puzzle is the bridge.

Contract for deeds and other forms of land contracts have been the target of the ACORN Home Savers Campaign because they are little understood and often highly predatory.  Yet, we have found that nonprofit housing groups in Akron and Youngstown, Ohio, and Detroit all use various short-term land contracts to solve this problem in communities where banks are hesitant to take risks in lower income housing markets.  Theoretically, even long-time organizers in the fight against land contracts believe it is possible to devise such instruments in a constructive way, despite their existence in a grey area of few to nonexistent regulations.

Surveying the field, the answer we have found so far is that maybe such contracts might work.  In Youngstown, some housing organizers and advocates claimed that the nonprofit contracts were worse than some of the for-profit operators.  The Housing Authority says that it has lost money on its half-dozen land contracts.  In Akron, there are several nonprofits using land contracts in various forms on rehabbed houses.  In Detroit, United Community Housing Coalition uses a short-term contract for a couple of years successfully to establish a credit record for families trying to regain their foreclosed properties so that they can refinance.

A 2013 case study by the Federal Reserve Bank of Minneapolis on the use of contracts for deed as a bridge for lower income families detailed favorably the experience of the Greater Metropolitan Housing Corporation (GMHC) in the Twin Cities.  Their SHOP program which stands for Sustainable Home Ownership Program started in 2008.  Bridge to Success was the contract for deed program.  A SHOP-approved buyer would find a home and then SHOP would take possession and hold the deed for no longer than ten years, while the buyer would be able to deduct interest and taxes after making a 2% down payment on houses that average $126,000 and could not be priced any higher than $225,000. Once buyers have their credit straight they are assisted in converting to a mortgage.

Sounds good doesn’t it?  In 2013, they had financed more than 60 homes and had a goal of building a loan pool through Bridge to Success of $50 million that would give them the capacity to purchase 400 houses.  Checking now in 2018 on their website, when I hit the section for “contract for deed” under financing, it took me to a page that said the program had been discontinued.

What happened?  The theory was good.  The early experience was solid.  Was it the land purchase or something else?

Meanwhile we continue to search for the right piece to solve this puzzle.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

De-escalating Violence

New Orleans   Getting more experience in hospital emergency and waiting rooms is on no one’s top ten list, but, trust me, you do the time and this comes with the territory.  If you can call it luck, it’s not you personally, though the anger and aggravation when it is family is every bit as bad. People are unhappy, scared, nervous and more.  Voices are raised.  Fists are slammed on counters.  Guards are around.  Sometime police are in and out.  Sirens are blaring outside.  Receptionists know little and say less.  Medical personnel are over worked and understaffed.  Come to think of it, the possibility, if not the prospect, of violence breaking out is ever present.  Reading a piece in The New York Times by Douglas Starr on the ways that medical personnel have learned to de-escalate volatile situations and what police can learn from them and vice versa suddenly resonated with me as an, “Oh, yeah!” moment, because it seemed so obvious and so right.

Let’s admit though from the very beginning that there are big differences from the streets to hospital sheets.  The biggest is that not everyone on one side is armed and possibly everyone on both sides are fully strapped.  That fear and uncertainty undoubtedly moves many a trigger finger.

Nonetheless, if medical staff who unarmed and are not allowed to “attack, shoot or otherwise harm patients” can learn techniques to defuse tense situations, so can police.  Compared to other professions they “report nonfatal violence-related injuries at many times the rate of other occupations including law enforcement” even though police have higher rates of fatalities which is another way of saying that they find themselves in tense and potentially violent situations but have been trained and have created a culture to contain violence.

Ironically, Starr’s examples come from tips they gained from police themselves as well as veterans hospitals that deal with the military in often traumatic situations.  Part of it is reading “body language” and creating a “reactionary space” that allows the health worker to respond, but a lot of it starts with taking a step back to realistically assess the situation in a “tactical pause” without firing first, so to speak, as many policemen seem prone to do.  The rules matter, but so does the person’s humanity. Makes sense.

Other common sense tips were helpful.  Never say “calm down” or “its policy” or refer to something as their “problem,” but to look for a collective solution.  Never point a finger was another great tip.  One that would help all doorknockers on home visits in dealing with a situation that turns uncomfortable or frightening by teaching a person to say, “Let me get right back to you because I need to go get a Form 9.”  There was no Form 9.  Substitute a flyer or survey or petition or anything that changes the space.

The piece notes that seventeen states passed laws mandating de-escalation training for police and some city police shops have acted on their own, some in response to the Ferguson shootings.  Change could be hard, he notes, with 18,000 police departments and no centralized policy making body for police, but Starr ends with the revolutionary notion that police, like doctors, should adopt a policy of doing “no harm.”

What a relief it would be for the rest of us if our dealings with police could be based on an assumption that they meant us no harm, so that we could unlearn the reality now which is an expectation of the opposite.

Facebooktwittergoogle_plusredditpinterestlinkedinmail