Tawanna Donahue had friends who had gone through the Indianapolis Neighborhood Housing Partnership’s (INHP) home-buying programs, but didn’t realize how they could help her.
She did, in fact, buy a home but it eventually went into foreclosure.
“I went in completely blindsided. I didn’t know the proper way to purchase a home,” said Donahue.
After losing her home she moved her four children into a rental property. Donahue said that not only was her rent more than her previous mortgage, but in the four years she was living in the rental, she was never late with a payment.
“I woke up one day and said ‘wait a minute! You’re paying rent on someone else’s house for four years? This could be my own home,’” Donahue said. “If I could do this every month, I could pay a mortgage. This time I planned to do it the right way.”
Donahue moved her family out of the rental and into an apartment so that she could save money. One afternoon, INHP was at her apartment complex clubhouse. She saw that as a sign.
She met with an INHP advisor and enrolled in their home-buying program, which included learning money management, a debt reduction plan and everything she needed to know about purchasing a house.
“(My advisor) went through what I made and after bills I saw what I could save. When we were done, I was saving close to $500 a month. You don’t realize you have that. I was going shopping and going out to eat and had nothing to show for it. I wanted this home, so I did everything my advisor told me to do,” said Donahue. “They equipped me with so much information that when I went to buy my home, they couldn’t pull one over on me.”
Donahue finished the program in 10 months and was able to purchase her dream home on the Northeastside of Indianapolis.
“I got a deal that was out of sight. There’s no way I would have gotten this deal had I not gone to those classes,” said Donahue.
Donahue is just one success story out of thousands that have gone through INHP’s programs over the past 25 years. Thomas Burns, managing director of the Urban Ventures Group in Philadelphia was there during INHP’s beginnings and is thrilled to see it not only grow, but thrive and fulfill its original mission.
“I am surprised at INHP’s durability. I’ve seen similar organizations not do well or do well, and fail to sustain funding,” said Burns.
In the late 1980s, Indianapolis was similar to other older, industrial cities such as Cleveland and Pittsburgh, in that its residents were having difficulties gaining access to quality, affordable housing. Burns said in 1986, the federal government encouraged housing revitalization, which drove many cities to rethink how they were bringing public and private resources together to tackle the housing issue.
Indianapolis government found that over 100,000 families were living below the poverty line. There were also thousands of homes available.
“The scale was significant, therefore, it brought attention to the need to create a plan to better Indianapolis’ housing situation,” said Burns.
He went on to say that Indy was also looking to increase jobs and companies were asking, “where would our employees live?”
A bipartisan mayoral task force was formed. They wanted a program that wasn’t just about bricks and mortar, but about people and finance, an institutionalized approach to providing a long-term plan and the development and revitalization of neighborhoods.
From that idea, INHP was formed. It had a three-pronged approach: Creating a model non-profit; INHP having the authority to borrow money for affordable home mortgages and re-lend it or provide financing for building a home; and homeownership and financial counseling.
Despite its visionary plan, Burns said it took a few years for residents to take full advantage of what INHP had to offer. Eventually people caught wind of their programs. Moira Carlstedt president of INHP said today, the organization has refined its programs and has proven itself as a sustainable, trusted nonprofit that produces results.
For example, INHP assisted 215 families in obtaining a mortgage loan to purchase a home in 2012. In addition to lending services, they provided homebuyer and financial/credit education to more than 3,000 individuals. Also in 2012, families paid off more than $188,000 in judgments, collections and past due accounts.
“You may have the desire all day long, but if you’re not prepared to qualify for a loan or make decisions, then what? We work one-on-one with families to help them manage money, help them understand choices, how to read a credit report or how to qualify for a mortgage. These are not easy things, but we are here to teach you these things,” said Carlstedt.
In addition to providing education and financial planning, INHP has relationships with 16 financial institutions with a diverse array of mortgage options. Rachel Faulkner, director of marketing and communications at INHP added that not every family goes through their educational programs or debt management. Those with good credit can go straight to lending and choose mortgage options.
INHP predominantly serves low to moderate-income families with diverse educational backgrounds and race. African-Americans comprise 56 percent of their client base while about 40 percent are non-Hispanic whites.
INHP’s programs are solid, but Carlstedt said what truly makes INHP successful, is client’s determination to complete the programs and achieve their goals of purchasing a home for reasons such as independence, wanting a backyard for their children or simply using INHP’s resources to find a good mortgage. Most importantly, clients are able to keep their home. She said clients who qualify and close through INHP are more successful at maintaining their mortgages long term compared to homeowners who don’t go through their program.
Carlstedt added that throughout the home foreclosure crisis, a diverse array of people sought INHP’s services and clients were able to take advantage of the “buyers market” of low interest rates and an abundance of homes to choose from.
INHP’s mission to increase the affordable and sustainable housing opportunities benefits individuals and families, but also spills over to neighborhoods. She tells the story of a client who received a loan to repair his home.
“It doesn’t even look like the same home today. So what do you think his neighbors are going to do now? Do something to their home,” she said. “That investment will eventually boost value in that entire neighborhood.”
Although there is unlimited access to financial and home-buying resources, many believe INHP is still needed. The organization is happy to be celebrating its 25th anniversary this year and are commemorating the occasion with a breakfast where Burns will be the keynote speaker. Carlstedt said over the next 25 years, INHP plans to remain a trusted fixture in the Indianapolis community and help more people achieve the American dream of buying a home.
“Recognize that you live in a city with one of the most unique and capable systems that create a path to homeownership. You’ve got some of the best resources here that people in other cities don’t have,” said Burns.
For more information, call (317) 610-HOME or visit INHP.org.
INHP Community Breakfast
– Date: June 19
– Place: Indianapolis Marriott Downtown
– Time: 7:30 to 8:30 a.m. networking; 8:30 to 10 a.m. breakfast and program
– Keynote: Thomas Burns, managing director of Urban Ventures Group
– Price: $25 for government or student; $50 per person; $450 for nonprofit table of 10; $500 for table of 10
– Note: Tables of 10 (eight tickets for sponsor use, two tickets gifted to INHP homeowners)
– Info: (317) 610-HOME;
INHP.org
