2017 Homeownership Supplement

Homeownership Supplement 2017

ADVANCING HOMEOWNERSHIP – A HOME FOR ALL PRESENTED BY TITLE SPONSOR

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Happy Homeownership Month!

It’s indeed an honor for Wells Fargo to be the title sponsor of the Washington Infomer’s Homeownership Month supplement. We are proud to partner with this wonderful community newspaper on this effort to share information about owning a home.

We are into another homebuying season and I’m excited that the outlook for homeownership is positive.

Among Americans the desire to own a home remains strong and many are taking that journey to homeownership. In fact, a Wells Fargo Securities housing report notes that the Census Bureau’s Vacancy survey shows that 1.2 million households have been formed over the past year. And for the first time since 2006, the growth in the number of homeowner houseCerita Battles, SVP, Head of Retail Diverse holds has eclipsed the number of rental Segments, Wells Fargo Home Mortgage households.

African American aspiring homeowners are important to the future of homeownership in this country. According to the 2010 Census Bureau, of the 14 million new households expected by 2024, 75 percent of those will be diverse and African Americans will be the third largest demographic at 17 percent.

However, the current homeownership rate for African Americans is about 42 percent and the lowest among ethnic minorities. That needs to change. Wells Fargo is proud to be the top lender to African Americans and feels it’s important that we take a leadership role in increasing homeownership among this demographic. Our commitment, announced in February 2017, does just that. There are three components to this 10-year commitment: $60 billion in home purchase lending to African Americans, an increase in our African American sales force and $15 million toward initiatives focused on homebuyer education and counseling. We are excited about this initiative and hope other lenders will join us in the important work of raising the African American homeownership rate.

Our commitment to increase African American homeownership is part of Wells Fargo’s overall Advancing HomeownershipSM effort, which brings together people, partners and resources to create new opportunities for long-term, successful homeownership. In addition to the African American lending commitment, this effort “It takes some work, includes programs like Neighborhood SM LIFT , which helps families achieve some strategizing homeownership with homebuyer educaand becoming better tion and downpayment assistance.

Homeownership is a source of pride educated – but and is considered essential to building homeownership for wealth and a solid family foundation.

Therefore, as the nation’s leading mortBlacks,and others, gage lender, Wells Fargo wants to be is not an impossible there to support and guide our customers through the process of reaching the dream,” goal of owning a home.

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www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017

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Homebuyers Prefer Technology with Personal Guidance

By Donna Greene, Regional Diverse Segments Manager, Wells Fargo Home Mortgage In the digital age, the way people find the home they want to buy is changing. Instead of driving around in search of “For Sale” signs in front yards, more and more consumers are picking up gadgets to start their search.

According to research by Zillow, 87 percent of homebuyers use online resources to search for a home, with two-thirds of Millennials searching on mobile devices.

The digital shift applies to how

tain a mortgage. The most preferred method by far is to meet with someone in person (52 percent). “Finding information online” trails behind at only 19 percent.

And when it’s time to dive into the mortgage process, most people want a combination of online convenience and human guidance. While more than three-quarters of survey respondents agree that completing the mortgage process online would be convenient, 81 percent say they prefer to have a personal connection with their lender, knowing that someone is there to answer questions and walk them through things.

So while today’s homebuyers appreciate the convenience of digital tools, ultimately, they want guidance from a professional they can trust. They are asking lenders for the best of both worlds.

Wells Fargo strives to answer that demand by combining online tools with personal support.

For example, Wells Fargo’s yourLoanTrackerSM lets eligible customers to track the status of their home loan application and exchange information electronically, all while working closely with a home mortgage consultant.

On a computer or mobile device, a customer can track completed tasks and see a “to do” list

8,000 home mortgage consultants, in local communities nationwide and available by phone, providing the personal service and support consumers want.

According to consumers’

feedback, technology shouldn’t replace human guidance – it should enhance it. By combining digital convenience with personal service, lenders are helping consumers take care of their home fi-

nancing needs when, where and how they want to.

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Make “the perfect new home for us” happen New neighborhood. Bigger house. Closer commute. Whatever your reason for buying your first or next home, we’re here to help you every step of the way.

You’ll have personal support, low down payment options, and online resources to help you find the right loan — and enjoy your new home for years to come.

buyers explore financing after they’ve found their dream home, too. More than half of homebuyers who seek preapproval for a mortgage do so online, according to findings from mortgage software provider Ellie Mae. With these trends, it may be surprising that when it comes to understanding and navigating the mortgage process, most people actually want to work with a real live person.

Wells Fargo’s 2016 survey “How America Views Homeownership” asked consumers what they would do if they needed help figuring out how to ob-

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of their next steps; securely upload files or photos of financial documents; view disclosures and approve documents digitally; and get email or text-message alerts with progress updates. Today’s customers expect a more transparent, faster process – digital tools like yourLoanTracker make it possible.

At the same time, survey results clearly show that consumers don’t want to be left on their own to navigate the process. That’s why Wells Fargo customers using yourLoanTracker work with a home mortgage consultant every step of the way. Wells Fargo has

4926 Wisconsin Ave. N.W. Washington, D.C. 20016 202-895-5150 www.wfhm.com/dc-washingtondcbranch-washington

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2017 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS3484879 Expires 8/2017

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

Wells Fargo Commits $60B to Jumpstart Black Homeownership Ten-year Goal Targets Segment in Lowest Percentile of Owners

By D. Kevin McNeir WI Editor @dkevinmcneir It’s easy for today’s consumers to proclaim homeownership as something they’re determined to achieve among their long-term goals – but that’s often before potential homebuyers take into account the list of requirements and financial thresholds that they’ll need to eventually face and meet.

However, before throwing up your hands because of the complexities associated with the home loan process or due to that unsettling fear that you may not qualify, you’d be wise to take a look at some of the new nitiatives generated by nationwide financial lending institutions developed in order to enable more first-time homebuyers and low- to moderate-income consumers to successfully participate in the American dream of homeownership.

And just in case you need a hint on where to begin, we suggest you visit Wells Fargo & Company, long respected for its history of responsible lending and who, earlier this year, announced plans to commit $60 billion in lending over a 10-year period targeting African-American consumers – America’s lowest segment of homeowners.

In addition, and as part of the same newly-announced initiative, Wells Fargo has set its sights on increasing

the diversity of its sales team with respect to African Americans, particularly because the mortgage industry has so few Blacks within its ranks.

Cerita Battles, Wells Fargo Home Mortgage Senior Vice President and Head of Retail Diverse Segments, advises consumers to take advantage of homebuyer education opportunities like those offered by her company so that they can make more informed decisions.

She says that while she’s excited about the new plan, she and other company executives realize that it’s going to take hard work, the willingness to forge partnerships with others and a well-devised and frequently reviewed game plan.

“This commitment will impact about 250,000 African-American households if we are able to reach our goal in 10 years – it’s a precedent we’ve set that we hope other lenders will follow in their efforts to increase or advance African-American homeownership.

And it really holds us accountable as a lender too,” Battles said.

A veteran in the financial industry for over 27 years, 20 specifically

dedicated to mortgage, Battles says current statistics of homeownership serve as one of several reasons why Wells Fargo made such a noteworthy commitment.

“The average rate of ownership in the U.S., 63.5 percent, is below the average rate for whites, 77 percent, but significantly higher than the rates

happen.”

“Homeownership remains among those critical pillars that help us establish wealth in our communities and over generations. And we believe our plan, based on four key components, will help us achieve a real increase in the number of Black homeowners.

“We are reaching out to various community stakeholders including leadIt’s easy for ers,churches, groups, today’s consumers advocacy real estate agents and non profit to proclaim organizations. homeownership as We’re going to the entire something they’re need village to become involved,” Battles determined to added. achieve among their Battles, always a realist, long-term goals... emphasizes that “no silver bullet” exists that would help the Black for Asians, Hispanics and Blacks, 53, community make up the differential 45 and 42 percent, respectively,” she in terms of homeownership rates for said. “We’re committed to increasing Blacks and whites. But she says Wells the rate for those segments like Blacks Fargo remains confident that their who have been at the bottom for far plan will yield significant results – too long. However, we know that we especially with the assistance of the must first instill greater confidence in entire community. the Black community in relationship “Our four-pillared strategy is to 1) to homeownership. They have to Mirror the communities we serve; 2) trust us. We’re going to make that Be present in the markets we serve;

3) Build and enhance relationships with key referral sources like real estate agents and; 4) Expand access to credit by providing products and programs, education and processes that enable sustainable homeownership,” Battles said.

“We cannot allow any delays. It’s also critical for us to continue working toward changing some of the housing policies that make it more difficult to increase and expand credit.”

“There are already down payment assistance programs out there that make it possible for someone with a credit score as low as 620 to get a loan rate as low as 3 percent – people simply need to know where to look.”

“Just last year we launched yourFirst MortgageSM, a low down payment loan program to help more first-time homebuyers and low- to moderate-income families become homeowners, and the numbers tht have been impressive. As of the first quarter of 2017, we recorded an increase of 22,000 homebuyers. Sixty percent of those new homeowners participated in homebuyer education courses, realizing the importance of being prepared before one sets out to purchase a home.”

“It takes some work, some strategizing and becoming better educated – but homeownership for Blacks, and others, is not an impossible dream,” Battles said. HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017

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Dedicated to advancing homeownership

Homeownership is an important step in creating financial stability for individuals and communities.

We’re committed to enabling and advancing sustainable homeownership through financing more homes, supporting and providing financial education, and ensuring our team reflects the communities we serve.

Count on us to provide:

Contact us today.

4926 Wisconsin Ave. N.W. Washington, D.C. 20016 202-895-5150 www.wfhm.com/dc-washingtondcbranch-washington

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

Extensive home financing options to meet the needs of more homebuyers Homebuyer education resources both online or in-person Career opportunities to expand skills and advance careers

Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N. A. © 2017 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS3485280 Expires 08/2017

African Americans Passionate About Homeownership Despite Some Barriers

By Rob Robertson, Regional Manager, Wells Fargo Home Mortgage More than any other demographic group, African-Americans perceive homeownership as an integral component of the American Dream, and a way to build security and wealth for their families, according to a recent survey.

The Wells Fargo How America Views Homeownership poll, conducted by Ipsos Public Affairs, found

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that 90 percent of African-Americans said homeownership would be a dream come true and more than half were considering buying a home within the next two years.

Like many Americans, African-Americans want to own homes, but are often challenged by barriers that are factual and perceived. Lack of inventory and affordability remain key reasons for keeping aspiring homeowners on the fence. And even though we have seen improvements in the economy, underemployment and unemployment are factors in the inability to own a home.

Misconceptions about homeownership and lack of knowledge about the process lead to perceived barriers to owning a home. For example, in the Wells Fargo survey, nearly half of African-Americans that responded believed a 20 percent down payment is necessary to buy a home. However, many home loans do not require a

20 percent downpayment. Some are as low as 3 percent.

Required employment for mortgage approval is another misconception. Mortgage approval is not contingent on full-time employment. Homebuyers need only be able to demonstrate their ability to repay their mortgage loan. However, 54 percent of African-Americans believed homebuyers must have full-time jobs in order to qualify for a mortgage. In some loan programs, income from others who will live in the home, such as family members or renters, can also be considered.

The survey also highlighted the possibility that some credit education could help aspiring African-American homebuyers. Eighteen percent weren’t sure what constitutes a good credit score, 35 percent didn’t know what minimum score they would need to qualify for a mortgage, and 20 percent didn’t know their own

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yourFirst Mortgage

SM

A better way to buy a home, with a 3% down payment and other unique features.

If you’re looking to buy a home of your own, look into yourFirst Mortgage. Our low down payment, fixed‑rate mortgage could help you become a homeowner sooner than you think. Talk to us about loan amount, loan type, and type of property to ensure eligibility.

Keep in mind — with a low down payment, mortgage insurance will be required which increases the cost of the loan and will increase your monthly payment. A home mortgage consultant will explain the options available, so you can choose what works for you.

Even if you’re not a first-time homebuyer, this program is available to you.

So when you’re ready, let’s talk.

4926 Wisconsin Ave. N.W. Washington, DC 20016

202-895-5150

wfhm.com/dc-washingtondcbranch-washington

Make sure to ask your home mortgage consultant about an opportunity that comes with completing a homebuyer education course!

Information is accurate as of date of printing and is subject to change without notice.

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2017 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801.

AS3485279 Expires 08/2017

credit score range. While lenders do consider credit scores in making mortgage decisions, credit scores are only one factor, and minimum credit scores vary based on the type of mortgage and loan amount. Homebuyer education and credit counseling could provide key information about the elements of a good credit score or how to develop a good credit profile.

According to the National Association of Realtors only 5 percent of homeowners are African-American.

Wells Fargo believes that’s too low and we are committed to positively impacting the declining homeownership rate among African Americans in this country.

In February of this year, Wells Fargo announced an African American homeownership commitment that includes a projected $60 billion in lending to qualified African-American consumers to create at least 250,000 homeowners by 2027. We also will stay focused on increasing the diversity of our sales team by hiring more African-American home mortgage consultants, and we will dedicate $15 million to support a variety of initiatives that promote financial education and counseling.

We can’t do this important work alone. We are proud to be joined by the National Association of Real Estate Brokers, the NAACP and the National Urban League in our efforts to advance homeownership within the African American community.

For those who are interested in becoming a homeowner, here are some tips to help you get prepared for the process of getting mortgage approval: • Monitor your credit — Your credit report and score can affect your ability to qualify for a mortgage, how much you can borrow, and the interest rate and terms you’ll be of-

fered. Review your credit report and score at least once a year. You can get an annual free credit report from all three national credit bureaus at www. annualcreditreport.com.

• Control other debt — Debt-toincome (DTI) ratio compares your total monthly debt to your monthly income and is an important factor lenders consider in mortgage applications. A good tip is to keep your DTI below 36 percent by paying down debt that can include credit cards, auto loans and student debt.

• Save for a downpayment — Even though you don’t always need 20 percent down in order to qualify for a mortgage, most loans require some type of downpayment. Some financing programs allow qualified homebuyers to secure a mortgage with as little as 3 percent. Or, you may qualify for programs that benefit veterans if you’ve served in the military.

• Be able to prove income — All borrowers must be able to demonstrate their ability to repay their mortgage loan as part of the approval process. Although you don’t need a high income to qualify for a mortgage, you will need to be able to document your income with W2s, tax returns and other paperwork.

• Build up an emergency fund — Unexpected expenses are a reality of homeownership. An emergency fund can help you cover costs such as repairing a leaky roof or replacing a broken-down appliance. Lenders are also likely to view you as more financially responsible if you have six months’ worth of expenses saved up.

To learn more about homebuying and to find a mortgage professional near you, visit www.wellsfargo.com. HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017

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DCHFA: A Resource for Homeownership in the District

By Todd A. Lee Most of the headlines about homeownership in Washington, D.C. focus on rising home prices, the competitive seller’s market with homes selling within days and the low inventory of homes for sale. After reading and hearing these stories many may feel that owning a home in the District is an unattainable dream.

However, there is another part of the narrative in the homeownership story.

Under Mayor Muriel Bowser’s administration resources are available to assist those dreaming of owning a home to actually become homeowners. The District of Columbia Housing Finance Agency (DCHFA) is helping to write this narrative and is a resource for people in the District that feel stranded on the path to homeownership. Since 1979, our Agency has been working to fulfil its mission of expanding homeownership opportunities in D.C. Homeownership Month is the precise time to introduce potential homebuyers to the Agency’s slate of homeownership resources and to invite you to visit DCHFA on June 17th for our annual House Crawl. During the House Crawl participants will receive an overview of the Agency’s homeownership programs, have the opportunity to meet with lenders and tour properties that are currently on the market in D.C. I invite you to visit www.DCHFA.org and register for this free homeownership month event.

This month DCHFA began offering $1,500 Closing Cost Grants. Homebuyer qualifications include income at 80 percent or less of area median income, close between June 1st and September 1st, 2017 and use one of the DC Open Doors HFA Preferred loan programs. Visit the Participating Lenders page of our website, then contact one of the DC Open Doors lending partners to apply for a mortgage and a Closing Cost Grant.

When you visit the Agency’s website you will also find information and guidelines for the DC Open Doors mort-

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gage loan assistance and the Mortgage Credit Certificate programs as well as the Home Purchase Assistance Program (HPAP). Since its launch in May 2013, DC Open Doors has helped to finance 788 home purchases across the District in every Ward, with $232.6 million in total mortgage loans. DC Open Doors is not limited to first-time homebuyers and may be combined with other homebuyer programs such as HPAP. On March 1st of this year DCHFA became the co-administrator of HPAP, the DC Department of Housing and Community Development’s first time home buyer program. HPAP provides interest free deferred loans for down payment and closing costs assistance up to $84,000 combined. DCHFA administers HPAP applications for households meeting very low to low income criteria. DCHFA’s Mortgage Credit Certificate (MCC) provides an additional incentive for first-time homebuyers to purchase a home. An MCC provides qualified borrowers the ability to claim a Federal Tax Credit of 20 percent of the mortgage interest paid during each calendar year.

MCC’s maybe purchased with or without DC Open Doors mortgage products.

Retaining homeownership is critical once you have purchased a home. DCHFA offers the HomeSaver Program, a foreclosure prevention resource for unemployed, underemployed or District homeowners who may have suffered a qualified financial hardship and are at risk of losing their homes due to foreclosure or delinquent real property taxes.

If you do not have the opportunity to attend the House Crawl, DC Open Doors hosts Home Buyers’ Informational Sessions on the first and third Wednesday of each month at DCHFA (815 Florida Avenue, NW, Washington, D.C. 20011) 6:30-8:00 p.m. I invite you to join us for the next session on June 21st.

Todd A. Lee is the Executive Director of the DC Housing Finance Agency and a D. C. resident.

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Retaining homeownership is critical once you have purchased a home.

5 Todd A. Lee /Photo courtesy of DCHFA /Photographer: Christopher Spielmann

DC OPEN DOORS 2017 HOUSE CRAWL SATURDAY, JUNE 17 10:00AM-2:00PM -Come out to meet lenders and learn how you can become a homeowner using the DC Open Doors, HPAP and/or the Mortgage Credit Certificate Programs.

-Tour Properties throughout the District that are for sale This is a FREE Homeownership Month Event at The District of Columbia Housing Finance Agency 815 Florida Ave, NW Washington, DC 20001

Register at www.DCHFA.org

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

Two DHCD Properties Will Be Transformed Into 40 Affordable Townhomes in Wards 7 and 8

9th Annual DC Housing Expo & Home Show Saturday June 24, 2017 10 am - 3 pm

Walter E. Washington Convention Center 801 Mt. Vernon Place NW 



 

Find out about Home Purchase Assistance.

Research Affordable Housing Options.

Re-imagine Your Home on a Budget.

Get Quick Design and Decorating Tips.

This ONE STOP SHOP also offers resources for homeowners, homebuyers, small businesses, tenants and landlords.

Two DHCD Properties Will Be Transformed Into 40 Affordable Townhomes in Wards 7 and 8 The DC Department of Housing and Community Development (DHCD) announces it has awarded two District-owned properties to two local development companies for the construction of 40 new townhomes, capable of housing over 100 residents, located in Wards 7 and 8.

“We are making good on our promise to aggressively put vacant and blighted properties into productive use,” said DHCD Director Polly Donaldson. “With these awards, the Ward 7 and Ward 8 properties will be transformed into affordable housing geared toward families.”

In Ward 8, Flywheel Development LLC was selected for its proposal to construct 16 affordable townhomes at 3401 13th St. SE that will consume Zero Net Energy, and meet the Passive Housing and Living Building Challenge Petal standards.

Fourteen units will be sold to households earning at or below 80 percent of the area median income (AMI) and two units will be sold at 50 percent AMI. All units will include three bedrooms, two bathrooms, a parking space and total approximately 1,400 square feet of living space. Each home will be zero net energy compliant, which means it will produce the same amount of energy it consumes. Each home also will be built to passive housing standards that will rely on energy and cost efficient architecture and construction.

“Flywheel is thrilled to work with DHCD to bring 16 affordable net zero energy homes to Congress

DHCD Director Polly Donaldson

For more details call 202-442-7200 or visit dhcd.dc.gov/2017expo.

Register at dchousingexpo2017.eventbrite.com.

Sponsored by DC Department of Housing and Community Development Greater Washington Urban League

#DCHousingExpo2017

Polly Donaldson has served as the Director of the DC Department of Housing and Community Development (DHCD) since January 2, 2015. As Director, she oversees 180+ employees, 14 program areas and manages an operating budget of over $250 million to preserve and produce rental and homeownership opportunities for District residents while leading the charge of revitalizing underserved neighborhoods.

Heights,” said John Miller, who along with co-principal Jessica Lawrence started the firm in 2013. “In addition to achieving affordable prices, these net zero energy homes have the potential to save homeowners thousands on their energy bills, build stronger households and help the District meet its sustainability goals,” Lawrence said.

In Ward 7, Neighborhood Development Company (NDC) was selected to lead the development of a parcel of land located at Minnesota Avenue and 27th Street SE to produce 24 townhome units with a minimum of 1,300 square feet of living space. The townhomes will have at least two bedrooms and two bathrooms. Twelve of the properties will be sold to households earning at or below 50 percent AMI. Since January 2015, the Bowser Administration has produced and preserved over 3,100 units of affordable housing units in the District with more to come. More than 3,700 affordable housing units—capable of housing more than 9,250 District residents—are in the development pipeline.

Additionally, in her March 30 State-of-the-District address, the mayor announced as part of her inclusive prosperity platform a new initiative of $10 million dedicated solely to a new public-private housing preservation fund.

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DHCD Housing Resource Center - One-Stop-Shop for Housing Information The DHCD Housing Resource Center is open Monday – Friday from 8:30 am – 3:30 pm. In addition, residents can access DCHousingSearch.org, a FREE listing service that provides easy access to information about housing opportunities within the District of Columbia, from the DHCD Housing Resource Center.

Residents can also visit the DHCD Housing Resource Center, located on the first floor at 1800 Martin Luther King, Jr. Avenue, SE, Washington, DC 20020. The DHCD Housing Resource Center can be reached via phone by calling (202) 442-9505.

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017

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NINTH ANNUAL

DC HOUSING EXPO AND HOME SHOW Saturday, June 24, 2017 10am – 3pm

Walter E. Washington Convention Center 801 Mount Vernon Place NW

For more information call (202) 442-7200 or visit dchousingexpo2017.eventbrite.com for early registration.

Assistance to Buy Your First Home

Tools for Tenants and Landlords

Find Affordable Housing Options

Stay Safe and Mobile at Home

Develop Your Small Business

Re-imagine Your Home on a Budget

Quick Design and Decorating Tips

Financial Fitness for Kids & Teens

THIS FREE EVENT FEATURES: Over 150 Exhibitors • Prizes and Giveaways • Access to Affordable Rentals

Over 30 Workshops • Free Credit Reports • Credit and Foreclosure Counseling

For a reasonable accommodation or interpretation, please contact 202-442-7251 or pamela.hillsman@dc.gov 7 days before the event.

BROUGHT TO YOU BY:

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

GOVERNMENT OF THE DISTRICT OF COLUMBIA MURIEL BOWSER, MAYOR

Make Sure that Your Home is Insured for at Least 100% of its Estimated Replacement Cost Source: State Farm Insurance www.statefarm.com To determine your amount of homeowners insurance coverage: 1. Get an estimate of the replacement cost of your home.

2. Select the home insurance coverage amount that best fits your needs.

We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Determining your home’s estimated replacement cost is important because this will ultimately determine which policy options are available to you. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it’s important to have enough coverage to account for unforeseen circumstances.

MARKET VALUE VS. REPLACEMENT COST

Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to replace the entire home.

Replacement cost IS NOT: 1. The market value of the home.

2. The home’s purchase price or the cost of the land.

3. The outstanding amount of any mortgage loan.

BE SURE TO OBTAIN A REPLACEMENT COST ESTIMATE

Before you purchase a new home, make sure that you determine the appropriate amount of coverage needed. Here’s how: 1. Ask if a replacement cost estimate is available when you have the home appraised.

2. Or, consult with your local builder association or a reputable builder for an estimate.

3. You can also check with your State Farm™ agent to help you with this process.

BE AWARE OF ANY FACTORS THAT MAY AFFECT YOUR ESTIMATED REPLACEMENT COST, SUCH AS:

1. Upgraded bathrooms or kitchens (including cabinets).

2. Finished or partially finished basement.

3. Additional rooms or living space.

4. Custom molding or arched windows.

5. Other unique features

COST

Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost of your home. Estimates from these sources should reflect your home’s features, like those mentioned above. If you are unable to obtain a detailed estimate from these sources, your State Farm agent can discuss other options for estimating the replacement cost of your home.

REVIEW YOUR HOMEOWNERS INSURANCE COVERAGE ANNUALLY

A CONTRACTOR OR APPRAISER CAN Have you recently remodeled HELP ESTIMATE YOUR or improved your home?

HOME’S REPLACEMENT

When you upgrade or improve your home, you may increase your home’s estimated replacement cost.

Your State Farm agent will then help you adjust your policy to meet your coverage needs. As part of your policy’s provisions, you have 90 days to notify us of any remodeling or additions to your home that increases its value by $5,000 or more.

Has the rate of inflation risen since your last appraisal?

State Farm provides coverage that automatically adjusts each year in an effort to compensate for increases in construction costs in your area.

However, certain conditions such as severe weather can increase the demand for labor and materials, and raise costs beyond normal inflation.

It is important to update your coverage amount each year to keep up with the changing economy.

What influences the building costs in your area?

Market conditions in your area may impact the amount it will cost to rebuild your home if you experience a loss. Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials.

Keeping up with the current market conditions in your area and changing your coverage amount accordingly, will help you maintain coverage at least equal to 100 percent of the estimated replacement cost coverage for your home.

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Protecting your home and belongings.

Whether you are a homeowner or a renter, having your own place is one of the biggest financial decisions you will make in a lifetime.

The Department of Insurance, Securities and Banking (DISB) understands the importance of sorting through all of the factors before making that final choice.

As the District’s Financial Services Regulator and Consumer Advocate, DISB offers programs, financial education resources, tips and other consumer services to help residents understand the products and services offered by financial service providers.

Get answers to your home-related financial concerns – DISB can help connect you to the right resources for: • Homeownership • Late mortgage payments • Renters insurance • Reverse mortgages • Benefits in homeowners insurance policies • Tips for selecting a contractor for home improvements 810 First Street, NE | Washington, DC 20002 (202) 727-8000 | disb.dc.gov | @DCDISB

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What Is Homeowners Insurance?

Source: INSURANCE INFORMATION INSTITUTE Homeowners insurance provides financial protection against disasters.

A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This includes damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions.

The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.

WHAT IS COVERED

BY STANDARD HOMEOWNERS INSURANCE?

Save Money and Trouble by Knowing the Ins and Outs of Your Homeowners Policy Most standard homeowners insurance policies include four essential types of coverage: 1. Coverage for the structure of your home 2. Coverage for your personal belongings 3. Liability protection 4. Additional living expenses if you are temporarily unable to live in your home because of an insured disaster

THE STRUCTURE OF YOUR HOUSE

Your homeowners policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disasters listed in your policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear.

When purchasing coverage for the structure of your home, remember this simple guideline: Purchase enough coverage to rebuild your home.

Most policies also cover detached structures such as a garage, tool shed or gazebo—generally for about 10 percent of the amount of insurance you have on the structure of your home.

YOUR PERSONAL BELONGINGS

Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other

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insured disasters. The coverage is generally 50 to 70 percent of the insurance on the structure of your home. The best way to determine if this is enough coverage is to conduct a home inventory.

The I.I.I. offers a free home inventory tool that lets you create, maintain a photo home inventory, and store it safely in the cloud. To learn more, visit www.knowyourstuff.org.

Personal belongings coverage includes items stored off-premises— this means you are covered anywhere in the world. Some companies limit the amount to 10 percent of the amount of insurance you have for your possessions. You also have up to $500 of coverage for unauthorized use of your credit cards.

Expensive items like jewelry, furs, art, collectibles and silverware are covered, but there are usually dollar limits if they are stolen. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for its officially appraised value.

Trees, plants and shrubs are also covered under standard homeowners insurance—generally for about $500 per item. Trees and plants are not covered for damage by wind or disease.

with your insurance professional. If you have significant assets and want more coverage than is available under your homeowners policy, consider purchasing an umbrella or excess liability policy, which provides broader coverage, including claims against you for libel and slander, as well as higher liability limits.

Your policy also provides no-fault medical coverage, so if a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company.

This way, expenses are paid without a liability claim being filed against you.

It does not, however, pay the medical bills for your own family or your pet.

ADDITIONAL LIVING EXPENSES (ALE)

ALE pays the additional costs of living away from home if you cannot live there due to damage from a an insured disaster. It covers hotel bills, restaurant meals and other costs, over and above your usual living expenses, incurred while your home is

being rebuilt.

Keep in mind that the ALE coverage in your homeowners policy has limits—and some policies include a time limitation. However, you can generally increase the amount of ALE coverage for an additional premium.

Your ALE coverage limit is separate from the amount available to rebuild or repair your home. Even if you use up your ALE your insurance company will still pay the full cost of rebuilding your home up to the policy limit.

If you rent out part of your house, ALE also covers you for the rent that you would have collected from your tenant if your home had not been destroyed.

INSURANCE INFORMATION INSTITUTE http://www.iii.org/ 110 William Street New York, NY 10038 212-346-5500 The mission of the Insurance Information Institute (I.I.I.) is to improve public understanding of insurance—what it does and how it works. HS

Homeownership is important.

LIABILITY PROTECTION

Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins a neighbor’s expensive rug, you are covered. (However, if they destroy your rug, you’re out of luck.)

The liability portion of your policy pays for both the cost of defending you in court and any court awards— up to the limit stated in your policy documents.

Liability limits generally start at about $100,000, however, it’s a good idea to discuss whether you should purchase a higher level of protection

We’re here to help first-time homebuyers navigate the mortgage process and make buying a home affordable, even if you have: • Little money for a downpayment • Little or “less-than-perfect” credit history • A recent job change To get started, call 1-888-253-0993 or visit mtb.com/mortgage.

Equal Housing Lender.

This is not a commitment to make a mortgage loan. Certain restrictions apply. Subject to credit and property approval. ©2017 M&T Bank. Member FDIC. NMLS# 381076 Washington Informer: 5.65” x 6.1” - 4/2017

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

We Can’t Ignore Suburban Poverty

In their 2014 book “Confronting Suburban Poverty in America,” Elizabeth Kneebone and Alan Berube look at an issue that appears as incongruous as the title itself: a rising trend of rampant poverty in the suburbs around America’s cities.

Most astonishing is that there are now more poor Americans living in the suburbs than in cities, a disturbing fact that flies in the face of our assumptions about picket-fence enclaves versus gritty inner-cities. It’s now the suburbs that are places with higher concentrations of low-income individuals and families, as well as struggling, working residents who are barely living from paycheck-to-paycheck.

“For decades, the poor population in America’s suburbs has grown faster than anywhere else in the country,” say Kneebone and Berube at their website created by Brookings Institution for the book. “During the 2000s, the number of poor people living in the suburbs grew by 64 percent— more than twice the growth rate in cities (29 percent). Today, more poor people live in the suburbs than in America’s big cities or rural areas. Suburbia is home to almost 16.4 million poor people, compared to 13.4 million in big cities and 7.3 million in rural areas. Throughout the 2000s,

rates have been among the highest in the nation during the Great Recession.

This also becomes a pressing Catch-22 for historically disadvantaged populations in the Washington, D.C. region. Living in the city could grant greater access to cultural and economic amenities, but it’s too expensive and economically unsustain-

able to maintain a home there.

Yet, moving out to the suburbs now presents a grim set of realities, especially for low-income residents. In places like Prince George’s County, a low-income resident must have a car or they are economically out-of-luck.

No car means extremely limited transportation options, particularly if you live outside the

That move to the suburbs, where housing is cheaper, is not so much by choice as it is by circumstance: with the median price of a house in the District of Columbia at more than $500,000 (that’s just the median)...

Beltway as opposed to within it. Lack of mobility or lack of access to reliable transportation options means fewer job opportunities are available. That dilemma is contributing to a rather untenable situation for suburban residents. That also presents challenges in terms of access to other resources, from schools to daycare to grocery stores.

Policymakers in the suburban edges must think creatively about how they can make their jurisdictions much more accessible and accommodating to the needs of vulnerable residents. At the moment, area governments have been aggressive in implementing more effective foreclosure mitigation programs, an important tool to decrease poverty and to prevent a shrinking tax base. But, not everyone in the suburbs is living in a single family home.

Area governments will need to collaborate on such issues as transportation, mobility and economic opportunity gaps in the suburbs. Every challenge is linked in some way. Recognizing the full scope of those challenges is the big first step towards reversing the quiet, but dangerous, trend of suburban poverty. HS

Nationally, suburbs are home to the largest and fastest growing poor population 18,000

Cities

16,000 Poor Population (Thousands)

By George H. Lambert, Jr. President & CEO | Greater Washington Urban League

the suburban poor population grew significantly in 85 of the nation’s 95 largest metropolitan areas. Rising poverty has touched all kinds of suburbs—even places that once seemed immune to these challenges.”

We’re no stranger to this trend at the Greater Washington Urban League. In fact, we’ve been watching it with an increased sense of urgency for quite some time, particularly over the latter part of the nearly 80 years we’ve been in existence. Back in 2010, Kneebone even captured much of what’s been happening in a major suburb of Washington, D.C., Prince George’s County, MD, in a revealing study of steadily rising poverty in the majority-Black jurisdiction. At that point of the study, “Prince George’s County saw the poor population increase slightly over the decade, while the number living under 200% of poverty grew by almost 8,000,” Kneebone pointed out. “Of DC’s suburban counties for which there was data in 2009, Prince George’s County was home to the second largest poor population after Montgomery County.”

Naturally, and tragically, it’s the rising cost of housing which keeps pushing residents deeper into the suburban rings of metropolitan centers. At one point, nearly 50 years ago, we witnessed “white flight” or the very fast exodus of residential whites from America’s cities in a bid to shorten commutes, reach greener lawns and disassociate themselves from the discomfort of social disruptions and growing Black populations in urban locations.

Today, particularly in cities like Washington, D.C., there is the noticeable and systemic displacement of many low-income, working class and even middle class Black residents from those very neighborhoods that have become too expensive to live in.

That move to the suburbs, where housing is cheaper, is not so much by choice as it is by circumstance: with the median price of a house in the District of Columbia at more than $500,000 (that’s just the median), families in vulnerable communities of color are finding it more difficult to live in cities.

It’s also becoming difficult to live in suburbs, where foreclosure

Suburbs

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

1970

1980

1990

2000

2013

Source: Brookings analysis of U.S. Census Bureau data

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WE ARE STILL HERE. Standing since 1938.

APPROACHING TH OUR 80 YEAR OF SERVICE. CONTACT US TO LEARN MORE ABOUT OUR PROGRAMS AND SERVICES. 202-265-8200 | gwulinfo@gwul.org www.gwul.org

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As a community servant, we’ve impacted 2 million people of all ages. And service the community through a variety of programs: • Entrepreneurship Center Program • Health and Wellness Programs • Housing and Community Development Programs • Utility and Food Assistance Programs • Workforce Development Programs

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GWUL365

An Affordable Housing Gap in D.C. is not Something We Should be Proud Of

By George H. Lambert, Jr. President & CEO | Greater Washington Urban League We are faced with undeniable evidence that Washington, D.C. is rapidly becoming less of an affordable place for certain families along the socio-economic scale including long standing residents. Disconcerting is that there’s seemingly no end in sight to the trend.

The reasons for this affordability gap are myriad. A big culprit -- the ongoing process of “gentrification” – lacks the needed acknowledgement and attention

to its human impact and cost.

American University’s Derek Hyra looks into this phenomenon in his recent “Race, Class and Politics in the Cappucino City”. Hyra uses the beverage reference as a metaphor in capturing the dramatic reshaping of a city that was once overwhelmingly majority Black to one that is now just half-Black.

As Hyra points out, the city is becoming much more diverse but such diversity is not necessarily benefiting existing residents.

Instead of collective problem solving, what we’re seeing is micro-level segregation. The diversity along race, class, sexual orientation you see overall is not visible in the neighborhoods’ segregated community gathering places — churches, recreation centers, coffee shops.

It’s not just micro-level segregation, but an unyielding displacement of vulnerable communities that’s made the District one of the most unaffordable places to live in the nation. That displacement is caused by increasingly expensive housing and a rising cost of living. Day by day it’s becoming that much harder to

reside in the nations’ Capital for an increasingly larger number of residents including our veterans, senior citizens and young professionals.

Current rental prices tell us: affordable rental property, a quality-of-life necessity in any major city, is fast disintegrating for lower to middle income residents. This effect is compounded by costly housing prices. Recent Zillow reports reveal that D.C. home values have risen 9.1 percent since 2015. The real estate tracker is predicting a 3.0 percent rise this year alone.

The median value of a home in the District: $550,200.

At the same time, the District is one of the fastest growing and prosperous cities in the nation.

Many struggling individuals and families find little comfort in that prosperity. In the culturally eclectic and gentrifying Adam’s Morgan neighborhood, a one bedroom apartment can run as high as $2100 per month. Nested.com’s recent 2017 index on affordability shows a family would need to earn over $100,000 in order to live in the city. That survey also placed the District as the

4th most expensive city for renters; the 7th most expensive in the world.

As a consequence, the District’s homeless population is on the rise. A recent survey by the U.S. Conference of Mayors determined that the District has the largest concentration of homeless individuals for a city of its size. There are 124 homeless people for every 10,000 residents as compared to Witchita, Kansas, with 11 per 10,000.

The compounding downside – chronic homelessness festers into an unsustainable economic model for the District and surround-

ing jurisdictions. That leads to a number of grave social and public safety consequences.

There’s a real need and purpose for reversing this trajectory.

D.C. Mayor Muriel Bowser has increased the number of shelters and in partnership members of City Council has been hard at work in taking action to increase the supply of affordable housing.

Still, the ongoing crisis born from unaffordable living space, screams for everyone, from non-profit and private sector to policymakers and residents to collectively act to address the state of housing in the District. HS

Life Happens.

Foreclosure Counseling for ALL. Aid is what we supply.

Counseling is what we do.

We provide FREE assistance to homeowners in Washington, DC, Prince George’s County and Montgomery County who need help navigating the foreclosure process.

Contact us to learn more about our housing services: 202-265-8200 x268 | dthomas@gwul.org | www.gwul.org

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Build An Energy Efficiency Home From the Ground Up Make the Home of Your Dreams a Reality with Pepco’s ENERGY STAR® New Homes Program

A new home is one of the biggest investments you’ll ever make, so be sure it’s built to last.

That’s the confidence you’ll get when you purchase an ENERGY STAR certified new home in Maryland from a participating builder in Pepco’s ENERGY STAR New Homes Program.

An ENERGY STAR certified home meets stricter requirements that make it at least 15 percent more energy efficient than homes built to standard building codes. And saving energy saves you money – approximately 20 percent on annual utility bills. Over the years, you also can save thousands of dollars on maintenance costs. But savings are just the beginning.

If you’re in the market for a new home in Maryland, Pepco can help you find a builder who is committed to constructing energy-efficient homes. Pepco’s ENERGY STAR New Homes program offers builders financial incentives to encourage them to build homes with energy-efficient features that help homeowners save energy and money.

“At Pepco, we’re committed to advancing technologies that empower our customers, promote sustainable solutions, and drive a 21st century economy” said Karen Parham, program manager, Pepco. “Being a local sponsor of programs like the U.S. Environmental Protection Agency’s ENERGY STAR for New Homes is part of that commitment,” she added. As a result, Pepco was awarded the EPA 2017 ENERGY STAR Partner of the Year Sustained Excellence Award and has won EPA’s Market Leader Awards for its contribution to energy-efficient construction. Pepco also recently recognized its top builders and raters that contributed to its ENERGY STAR New Homes Program in 2016, with several companies earning recognition for building homes that can save you money and that are built to last.

BETTER HOMES, GREATER VALUE

Compared to standard construction, ENERGY STAR certified new homes are simply

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built better. Comfort is ensured with consistent temperatures between and across rooms. Indoor air quality is enhanced by reducing dust, pollen, bugs, and excessive humidity. Durability is improved with comprehensive water protection and higher quality equipment throughout.

Plus, a recent study indicated that 75 percent of consumers are interested in owning an energy-efficient home. So if you sell your home in the future, you can set it apart by highlighting that it has earned the trusted ENERGY STAR label, making your decision to build an ENERGY STAR home a good investment now and for tomorrow too.

Each ENERGY STAR certified home includes energy-efficient features that deliver improved performance, greater comfort, and a healthier indoor environment. From the moment you walk in the door, you’ll see, feel, and hear the difference thanks to: More insulation Increased insulation means your home can stand up to winter’s chill and summer’s heat.

Tighter shell Air leaks around pipes and air ducts can make a home uncomfortable and increase energy costs. In an ENERGY STAR certified home, better sealing makes your home at least 20 percent tighter than building code requirements.

Better HVAC ducts Your new home will have heating, ventilation, and air conditioning duct systems that work about 33 percent more efficiently to deliver the right amount of air to every room in your home.

High-efficiency windows A special invisible coating on windows helps keep your home cool in summer and warm in winter. Plus, the coating helps protect carpets, drapes, and furnishings from the fading effects of sunlight.

If you’re ready to invest in lasting quality, find a participating homebuilder at pepco.com/ newhomes. For more information on Pepco’s other energy efficiency programs, visit pepco. com/saveenergy. HS

5 Inside the Pepco WaterShed Sustainability Center /Photo courtesy of pepco

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The District of Columbia Office on Aging Safe at Home program provides home safety and security adaptations in and around the homes of qualifying seniors and adults with disabilities.

In-home Safety

Safe at Home provides in-home preventative adaptations to reduce the risk of falls. ¡

Handrails

¡

Shower seat

¡

Grab bars

¡

Furniture risers

¡

Bathtub cuts

¡

Chair lift

Home Security

Enables eligible DC seniors and residents with disabilities, to receive a private security camera system without cost. Restrictions apply. Visit: https://dcoa.dc.gov/safe-home.

For More Information Call Home Care Partners at 202-638-0050 for more information on how you can apply for the Safe at Home Program.

Applicants who do not qualify for the Safe at Home program may receive referrals to other programs better suited for their specific needs.* * Referrals to other programs are not a guarantee of eligibility.

THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

Prince George’s Hosts Annual Housing Fair Market Rebounds ...Good Deals in the County

By William J. Ford WI Staff Writer @jabariwill Like other communities in the U.S., homeownership has become one of the most important subjects for residents in Prince George’s County.

Housing experts and financial analysts say owning property not only contributes to the local economy, but also provides benefits such as tax credits to the owner.

One major goal for this fiscal year in Prince George’s will be helping between 100 and 150 new homeowners purchase a home, said Eric Brown, director of the county’s Department of Housing and Community Development.

Another goal will be to provide “workforce housing,” or residential property affordable to those with a job such as a police officer, firefighter, or teacher.

He said the county has invested over $5 million in those two initiatives.

Free and open to the public, the 6th annual free housing fair takes

place Saturday, June 10 at the Sports and Learning Complex in Landover.

Brown anticipates at least 3,500 people to attend, the average attendance figure since its inception under the Rushern L. Baker III administration.

“The fair stresses the importance of homeownership and the county’s commitment to homeownership,” Brown said. “It also provides a venue for resources that are related to homeownership and financial literacy.”

Unlike in previous years, the county’s median household income of nearly $77,000 experienced its highest increase since 2010. The median household sales price at $265,000 remains the most affordable in the Washington Metropolitan area.

And while the county has one of the highest foreclosure rate in the region, Brown said housing has improved.

For instance, he said property values increased by 3 percent from last month. During this same timeframe last year, the median housing price had increased by 13 percent.

“The best weapon we have against foreclosures is getting people educated about their financing and how to

EN E R F OPE

stay in their homes,” he said. “Then we direct them to reach out to capable housing counseling agencies. Those are the real resources that we’re putting into play.”

About 60 banks, realtors and homeownership and financial counselors are scheduled to participate in the fair providing advice on how to maintain a home and well as guiding those who want to downsize and may require help with fiscal management.

According to the housing fair information at http:// www.princegeorgescountymd. gov/1000/County-Housing-Fair, three lucky first-time homeowners will be chosen to receive up to $10,000 toward the down payment or closing cost of their new home.

For seniors wanting to keep their homes, Brown said the county has offered low-interest loans to conduct property upgrades.

Additional money could be provided in the near future.

“That’s been a targeted opportunity for seniors to stay in the homes that they know and love,” Brown said.

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ANDTHE PU TO

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THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017 / www.washingtoninformer.com

Gentrification Often Leaves Blacks Forced out of Familiar Digs

By Tatyana Hopkins WI Staff Writer

The Shaw neighborhood in Northwest experienced its first wave of newcomers and “gentrifiers” nearly a decade before the District’s other now gentrified areas, yet residents still feel its effects.

Gentrification, a process in which low-income urban areas see significant growth in things like home values and education attainment, has become a topic that elicits both celebration and controversy.

Detractors see the renewal process as one that displaces low-income families from where they have sewn their roots by high-income newcomers while proponents see it as the rebirth of economically depressed neighborhoods.

According to “Governing” magazine, 51.9 percent of D.C.’s census tracts have gentrified between 2000 and 2010. The magazine defines a gentrified area as one in which the median household income and median home value fall within the metro area’s 40th percentile, one that recorded increases in the top third percentile for inflation-adjusted median home value and in the percentage of adults with bachelor’s degree.

It marks identified the U Street corridor in Shaw as one of the earliest gentrified areas.

In the early 20th century, the U Street Corridor, known then as “Black Broadway,” acted as a cultural and commercial hub for African Americans. Future Black luminaries including Duke Ellington, Langston Hughes and Thurgood Marshal walked the streets of the neighborhood adjacent to Howard University where hundreds of Black-owned businesses clustered and Black culture thrived within the walls of its many historic nightclubs and theaters But in 1968, the flourishing Black neighborhood became the epicenter of violence and rioting following the assassination Martin Luther King, Jr. In the decades that followed the neighborhood fell into decline; in the 1990s the area would quickly become gentrified. Poverty and crime rates in the area dropped as did the number of African-American residents – but the population began to soar.

Compare one 40-year period and the decline of Black residents: in 1970, African Americans made up 90 percent of the neighborhood; Blacks made up less than 30 percent

by 2010.

Along the way, property values began to rise to unprecedented levels. In the 90s, the median home price in Shaw was $147,000 compared to today’s asking price of $781,000 – something that some attribute to the rapid change in demographics.

American University Professor 5 The high cost of many new properties in the District is forcing a growing number of longtime Derek S. Hyra, residents to seek housing outside of D.C. /Courtesy photo segregated,” Hyra said, pointing to a for decades, expressed feeling like authored of the recently-released “Race, Class and Pol- six-year study of the Shaw/U Street “outsiders” as their influence in civic organizations declines and their itics in the Cappuccino City,” says area that he recently conducted.

“So, you’re not getting a mean- priorities took the backseat to the gentrification can cause real friction between new and long-standing ingful interaction across race, class, new majority who favor amenities residents – that is, white newcom- and difference. If we think that like bike lanes and dog parks over ers and African Americans whose mixed-income and mixed-race recreation centers.

This trend has been replicated families have lived in the area for communities are the panacea for poverty, they’re not,” he added. around the District as home prices generations.

One NPR report released last continue to skyrocket forcing offi“You see diversity along race, class and sexual orientation overall, but January also points to growing ten- cials, housing advocates and resiwhen you get into the civic institu- sion in the Shaw area between long- dents alike, to think critically about ways to redevelop an area without tions – the churches, the recreation term residents and newcomers.

Long-term residents, some of displacing the residents who have centers, the restaurants, the clubs, the coffee shops – most of them are whom had called the area home long called it home. HS

www.washingtoninformer.com / THE WASHINGTON INFORMER HOMEOWNERSHIP SUPPLEMENT – JUNE 2017

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Housing Trust Fund Approved in Prince George’s

By William J. Ford WI Staff Writer @jabariwill When Prince George’s County Council recently approved a $3.8 billion budget, affordable housing snagged a significant portion of the funds.

Approximately $5.1 million will be made available in the county’s Housing Trust Fund when fiscal year 2018 begins July 1.

The fund will be allocated to two programs – $2.6 million for workforce housing and $2.5 million for Pathway to Purchase – to compliment current federal and state plans to increase affordable housing.

“This is something we are all excited about,” Councilman Todd Turner (D-District 4) of Bowie said after council unanimously approved the budget.

He added it will be the first time since 2012 that the county has had a substantial amount of

money in the trust fund.

The Pathway to Purchase plan allows qualified first-time homeowners to borrow up to $10,000 for a down payment and closing cost with a zero-percent interest loan. Because council approved the budget, an additional $5,000 will be available and offered to the first 150 eligible buyers.

Unlike previous housing programs that designated borrowers in certain locations in the county, Pathway to Purchase allows applicants to seek a home anywhere.

One of program’s requirements (see: http://www.princegeorgescountymd.gov/2598/ Pathway-to-Purchase )include a person must participate in a minimum eight-hour housing counseling course. All perspective homebuyers need to use one of the county’s approved counseling agencies that include United Communities Against Poverty of Capitol Heights,

Housing Initiative Partnerships of Hyattsville and Greater Washington Urban League in Northwest.

Other requirements: Income must fall between 51 percent to 80 percent of the area median income; and loans will be forgiven after 10 years.

Eric Brown, director of the county’s Department of Housing and Community Development, said the workforce housing program assists those making 50 percent to 80 percent of the median income.

According to the department’s announcement on the program in March, developers will be informed to provide construction and rehabilitation to some homes.

Brown said as the homeownership rate rises, the county’s tax base also increases.

“What we’re doing is increasing the housing stock in Prince George’s County,” he said.

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First Time Homebuyer

Assistance Program If you are a first-time home buyer, you could be eligible for up to $10,000 in down payment and closing cost toward the purchase of your first home.

Eligible Properties: Any residential property including: 

Resale

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Pathway to Purchase is a 0% interest, deferred payment loan. The loan is forgiven after 10 Years!

L o a n Te r m s :

Purchaser must pay back the loan in full when the home is sold, transferred or ceases to be the primary residence of the buyer(s) within the 10-year affordability period.

Purchase Price Limits: $307,000 for resale or new construction

For More Information Call: 301-883-5456 Or Visit the Website: www.princegeorgescountymd.gov/865

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www.princegeorgescountymd.gov/865

MANNA: Still Making Dreams Come True Advocacy Group Provides Tools for Hopeful Homebuyers

By D. Kevin McNeir WI Editor @dkevinmcneir Once upon a time, owning a home ranked at the top of the list of dreams for Americans – a goal for everyone from war veterans and newly-married couples to college graduates and blue-collar workers.

And while reaching that “promised land” may be more challenging today than in year’s past, one District-based nonprofit advocacy group continues to help those truly serious about homeownership to cross the finish line.

For over 30 years, the mission of MANNA, Inc. has remained the same: to help low- and moderate-income persons acquire quality housing, build assets for families through homeownership, revitalize distressed neighborhoods and preserve racial and ethnic diversity in the District.

And based on their track record, they’ve become pretty good at what they do.

“With the many kinds of programs available today, particularly for first-time buyers, it’s not only achievable but can be cheaper to buy a home instead of renting.

Homeownership is still a good investment and it’s also a great way to actually save money,” said Jonathan Nisly, an outreach intern for MANNA’s Housing Advocacy Team.

“For many first-time homebuyers, the fear of coming up with the down payment and the anxiety over whether their credit score will measure up can be overwhelming,” he said. “That’s why we want people to understand that we’re here to assist them in the process, to simplify the steps they need to take and to help them become more aware of the many resources that D.C. and District-based nonprofits have at their disposal and which can make the difference.”

“And because of expansions to the District’s Housing Production Trust Fund and HPAP both for which we’ve advocated in recent years, we’re seeing more citizens get that home that they’ve desired for so long,” he said.

Nisly points to events like MANNA’s first Homeownership Town Hall held last June in Ward 1 which attracted over 150 people as proof that helping citizens through the process can yield positive results. MANNA held its second town hall on Saturday, June 3, this time targeting potential homebuyers in Ward 8 and which provided resource tables and workshops on subject that included: credit build-

ing, home maintenance, D.C. property tax programs, down payment assistance, legal estate planning and more.

The organization even has a citywide homebuyers club with some parts of the District hold their own meetings and workshops including Ward 8, led

by D.C native T.C. Caviness.

“We should have close to 40 firsttime homebuyers closing on homes within the next several weeks with the majority of them from Ward 8.

We have also secured a grant that allows us to hold monthly workshops for the ward which allows us to provide financial literacy, credit education, budgeting and other tools that prepare them for homeownership,” Caviness said.

“People are excited even though they’re at the starting block. We don’t care what part of the city you live in – if you want to know about homeownership, you start with us.

We know what’s available whether it’s builders from for profit or nonprofit companies or from the regular market.”

“But here’s the challenge, especially for millennials: there’s no real inventory in D.C. So, most livable properties start at a minimum of $300K. The dream is still within one’s reach – it’s just a little harder to achieve. That means you have to work at it,” Caviness added.

For more about MANNA, go to www.mannadc.org. HS Eager participants gain valuable information about affordable homeownership during MANNA, Inc.’s 2016 Homeownership Town Hall. /Photos courtesy Jonathan Nisly

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What Minorities Should Look for in Fair Housing

By Stacy M. Brown WI Senior Writer

In the District of Columbia there are three key laws that protect residents and applicants from discrimination, including unfair actions based on race, color, national origin, religion, sex, disability and against families that have children and pregnant women.

The Fair Housing Act, applicable to just about all housing transactions – rentals, purchasing a home, getting a loan and homeowners insurance – applies to the treatment of individuals and families while they are tenants, said Sara Pratt, an attorney with the D.C. law firm of Relman, Dane & Colfax in Northwest.

Pratt formerly served as deputy assistant secretary for enforcement and programs and senior advisor to the assistant secretary at the Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity, then responsible for overseeing HUD’s enforcement of the Fair Housing Act, Title VI of the Civil Rights Act of 1964 and other laws.

“The Fair Housing Act is en-

forced by the Department of Housing and Urban Development which conducts investigations, attempts settlements and issues findings all litigated by the U.S Department of Justice or by lawyers for HUD at no charge,” Pratt said.

“A fair housing act case can also be brought directly in federal court by victims of discrimination. One local group, the Equal Rights Center, is funded to help individuals and landlords by providing education and advocacy for them and to help find lawyers and develop cases,” she said.

The District has a local law that covers many additional types of illegal discrimination and it’s enforced by the DC office of Human Rights.

If housing is funded by HUD, or any other federal agency, like Health and Human Services for shelters, there are other civil rights requirements that come with the funding including Title VI of the 1964 Civil Rights Act which applies to race and national origin and Section 504 of the 1973 Rehabilitation Act which applies to disability.

Residents should know that the FHA requires accessible routs to be safe and without hazard, said

Michael Schneider, a principal at Endelman & Associates, an FHA consultant and accessibility expert located in Washington state.

“Public housing has more rigorous requirements for accessibility in quantity and features for both mobility and communication units per ADA,” Schneider said.

David Reiss, who writes and teaches about housing policy at the Brooklyn Law School in New York, said homeownership rates peaked right before the financial crisis, but the long term prognosis for homeownership does not look good, especially for households of color.

“Homeownership took a nosedive during the financial crisis, but homeownership among African-American and Hispanic households was hit particularly hard. The overall homeownership rate is about 64 percent currently, but it is about 43 percent for African Americans and about 47 percent for Hispanic households,” Reiss said, quoting a recent Census Bureau report.

According to research by the Urban Institute, the homeownership rate will likely remain low for quite some time, particularly among African-American households.

“The most important things are to know the law and your rights,” Reiss said. “Federal and state laws offer protection against many forms of housing discrimination on the basis of race, color, national origin, familial status, among others. At the federal level, HUD can investigate alleged fair housing violations and states have agencies that are dedicated to fair housing,” he said.

Pratt notes that in the District, because low income individuals are predominantly Black and Latino, the civil rights laws often apply to them, either because certain treatment of low-income persons – like only building affordable housing in Anacostia – can be discriminatory and segregates, or because housing occupied by low-income individuals is being torn down with people of color primarily being those who become displaced. Treatment of those of low-income can also amount to discrimination based on race or national origin.

“If people think that they are being discriminated against I would encourage them to check in with the Equal Rights Center. They can help focus in whether it could be discrimination,” she said.

“Sometimes, of course, it’s not discrimination, it’s just unfair or unpleasant. The Equal Rights Center helps people figure it out.”

It’s also important to note that individuals can still be pleasant and still discriminate, Pratt cautioned.

And, there are times when someone might believe they are the victim of discrimination but in some cases it could simply be about personalities or qualifications, Pratt said.

“Fair housing laws are often applied in surprising ways like turning someone down because they have a long-resolved conviction of a crime can be illegal racial discrimination or national origin discrimination because our justice system often treats Blacks and Latinos worse, so they’re more likely to have a conviction than a white person is for the same thing,” she said.

“Discrimination against a woman trying to get a loan to buy a house because she’s pregnant can be illegal discrimination and discrimination by telling someone that they have too many children to live in an apartment can be illegal discrimination as long as the unit would not be overcrowded,” Pratt said. HS

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Bank of America, N.A., Member FDIC l Equal Housing Lender © 2017 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.

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Are Millennials’ Attitudes Changing on Homeownership?

Bank of America Report Suggests ‘Yes’

By Sarafina Wright WI Staff Writer A new study finds that millennials are changing their attitudes toward homeownership, now viewing it as a positive step for their financial future.

For the second year Bank of America released its Homebuyer Insights Report which explores the trending attitudes, behaviors and preferences of the modern homebuyer, especially millennials.

“If there’s one thing to take away from our report this year, it’s that forward-thinking millennials are buying homes – and they’re happy with their choice,” Consumer Lending Executive D. Steve Boland said.

“This growing group of millennials is seeing the value of getting into a home. In fact, nearly 80 percent who bought homes report that homeownership has had a positive long-term impact on their financial picture,” Bo-

land said.

“Clearly, the millennial generation is coming of age and realizing it might not make sense to wait anymore to purchase their first home,” he added.

While millennial homeowners are seeing the value in buying early, many realize it may mean putting the purchase of their dream home on hold, at least for a while.

The report concludes that 68 percent of the sample groups said their current home serves as a stepping stone to their dream house.

“While ‘dreamers’ told us last year that they want to skip the starter home in favor of a house that suits their needs over the long term, the overwhelming majority of millennial homeowners say their current home is a ‘stepping stone’ to their forever home,” Boland said.

“These millennial owners strongly believe owning a home is more affordable than renting,” he noted.

5 Today’s millennials hope that they too can participate in the American dream of owning their own home one day. /Photo courtesy of ThinkGlink

The report also indicates that millennial homeowners are more likely to recognize the financial benefits of purchasing a home than prospective first-time buyers from among other age groups.

Boland asserts that some prospective first-time homebuyers believe their personal circumstances should line up perfectly

before buying a home, but with millennials it appears to be different.

Out of the Baby Boomers and Generation X, millennials are 41 percent least-likely to seek a move-in ready home. Millennials are also the second least-likely to define homeownership as success and last in seeing it as permanent.

“The reality is that, with proper help, homebuyers can very often achieve homeownership in a way that is both sustainable and rewarding,” Boland said.

“We’re encouraged to see homeowners continuing to find the deep benefits – both financial and emotional – of homeownership.” HS

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