Opinion Editorials
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Helping homeowners
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Published: February 6, 2009
Programs to increase homeownership are all the more important in a recession. Two local efforts should do that. If they're successful, they could become models for the future.
Last week, the Winston-Salem City Council voted unanimously to pay $360,000 to prepare lots in the old Cherry Street neighborhood for the construction of Habitat for Humanity houses.
In another project, the council and Forsyth County commissioners have voted to apply for a federal grant to get foreclosed houses back on the market by giving new buyers financial assistance. Habitat for Humanity of Forsyth County will also play a role in that effort by building houses on some foreclosed lots.
The work of Habitat, which uses volunteer time and donated dollars, continues to change lives. It is all the more welcome these days.
The Old Cherry Street Historic District, near Joel Coliseum, may be one of the city's last remaining neighborhoods started by black working-class residents, the Journal's Laura Graff reported. Its proximity to Kimberly Park Elementary School and other neighborhoods containing Habitat houses are other reasons that this neighborhood is a good one for revitalization.
The city mapped out a plan in 2003 to renovate and improve the neighborhood, and authorized $1.7 million for the work. The city bought houses, apartment buildings and vacant lots, and demolished buildings that couldn't be renovated. The work slowed over debates about whether the historic value of some of the houses in the neighborhood outweighed safe housing. Ultimately, some of the houses in question were preserved, and others were destroyed. The council's vote last week ensures that the program can finally move forward.
Habitat has purchased houses and vacant land in the neighborhood and plans to build as many as 13 new homes by year's end. It has raised more than $800,000 for the effort. Developers are needed in the neighborhood to renovate existing houses.
For the project involving foreclosures, the city and county have applied for a $5.2-million grant from the federal Neighborhood Stabilization Program. Through the program, eligible homeowners would get financial assistance to help them close deals on foreclosed houses. We need more programs to help original owners stay in their houses, but to maintain strong neighborhoods, cities and counties must work to put new residents in houses that have been vacated.
Habitat for Humanity has applied to the NSP for $2 million in additional funds and would use that money with Partners for Homeownership to buy foreclosed houses and renovate them for sale to low- and moderate-income people.
Much of the foreclosure problem has been caused by ill-prepared buyers, many of whom were easy targets for predatory lenders. The local stabilization programs would confront that problem by requiring participants to have homeowner education and not get involved in subprime lending or adjustable-rate mortgages.
These two local efforts could put more people into their own homes. If that happens, they'll take more pride in their houses. That benefits the neighborhoods, and healthy neighborhoods mean a healthy local economy.
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