‘Homes create wealth’ By John O. Faherty
Port’s Laura Brunner has a big plan to spread ownership Photo by Tina G utierrez for Movers & Makers
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aura Brunner has a goal that is perfectly reasonable, but history has proven it to be achingly elusive. Her plan is simple, elegant, and big. Very big. She wants every person in our city to have a reasonable chance at a good job, and a decent home. “Jobs provide financial stability,” Brunner said. “Homes create wealth.” That’s very nice, says everybody who hears this idyllic vision, but how? In December, with one bold move, Brunner showed us exactly how it could be done. Brunner is the president and CEO of The Port of Greater Cincinnati Development Authority, an agency dedicated to making real estate work for people. Just before last Christmas, Brunner and The Port saw an opportunity to make a radical change, so the agency spent $14.5 million to purchase 194 run-down homes across the city that had belonged to a California investor. This was already unheard of. Then The Port told the residents of those homes that their rent would not increase. That was even more shocking. But wait, there is more. Lastly, the residents were told they would be given every opportunity to buy these homes, and that The Port would keep them affordable. It was like an early Christmas present for these people and our city. Suddenly, people would be able to invest in their own homes, many for the first time. They could also invest in their own neighborhoods. Nobody saw this coming. There were other investors interested in 30
MAY 2022
Movers & Makers
[Laura’s] always held the belief that building individual wealth is one of society’s great equalizers and she’s making that happen, one homeowner at a time. – Molly North, CEO of Al Neyer buying all the homes, and some of those potential buyers had already communicated to renters that they could expect rents to increase, or they could be evicted. This would not have been a new disaster for these residents or this city. No, it would have been more of the same. More people would feel disenfranchised or marginalized. More neighborhoods would miss out on the benefits of homes being owned by people who live in and care about their neighborhoods. More children who lived in those homes would find themselves displaced again, probably switching schools and losing ties to family and friends. These misfortunes do not tear at the fabric of a neighborhood with one big rip. No, these
are events that happen without attention and lead to quiet, difficult discussions late at night about where a family could live. It is a death by a thousand cuts. Some residents were ready to buy and only needed the opportunity. For the others, The Port enlisted the help of outside nonprofit agencies to provide homeownership training, to help with credit scores, and to learn about places that can help with a down payment. Suddenly, all of these homes can become dreams. The benefits for the occupants of these homes can be vast and generational. The Port was formed in 2001 to grow the regional economy. Partnering with the City of Cincinnati and Hamilton County, the agency works to redevelop manufacturing and residential communities to build the foundation of job creation and livable, viable communities. If it still seems complicated, Brunner can put it very succinctly: “The Port fixes broken real estate.” This city is filled with broken real estate. In distressed neighborhoods, homes can be purchased at reasonable rates, but rents remain unreasonably high. So what happens is people or developers with ready access to cash buy those homes. Then they make money renting them at high prices to people who live in the neighborhood and who may not have the resources or banking acumen to compete. Those homes begin to decay. The renters feel unsettled and unheard, and the investors get rich. Brunner knows that a higher rate of homeownership means people invest in their community. They mow the lawn and trim the bushes.