Community Homeownership
NewCourtland plans to demonstrate a housing concept that addresses health and housing needs in Philadelphia neighborhoods, promoting inclusivity and diversity. We are sharing this concept to initiate conversations and foster collaboration with trusted community partners. We aim to reach a consensus on a practical pilot plan that provides a path to home ownership and enhances access to affordable senior housing and health equity in selected Philadelphia neighborhoods. Through this collective effort, we want to create a model that, if successful, can be expanded to have a broader impact on the community.
We plan to serve the following audience: 1) middle-income individuals who historically faced systemic barriers to home ownership but desire to be homeowners and 2) seniors who want to stay in their neighborhoods but struggle to find affordable housing that meets their needs.
Multiple barriers prevent middle-income families from becoming homeowners1. Those barriers include:
- Lack of capital for down payment and closing costs
- Lack of access to credit and poor credit history
- Lack of understanding and information about the home-buying process
- Regulatory burdens
- Continued housing discrimination
NewCourtland is prepared to finance two and provide construction funding for up to three housing units as a Phase 1 demonstration leveraging funding as a private developer, which will generate 7-8 housing units designed as duplex, triplex, or quadruplex properties. We anticipate a $2M investment is needed for 7-10 units with a 50-60% return of capital by the first mortgage financing. NewCourtland will also facilitate access to a soft mortgage for new homeowners to bridge the gap in loan to market value for new construction in distressed neighborhoods.
If successful, this approach will demonstrate how Philadelphia Developers can support meaningful quantities of attainable housing using a construction cost model that is less expensive than housing routinely subsidized with public sector funding. Individuals can acquire properties by leveraging conventional, FHA, and VA mortgages. The available rental units generated will be master leased by NewCourtland as affordable apartments for seniors.
For this concept to be successful, we must deliver a transformative model that will demonstrate the following:
- a decrease in blighted property within the community
- an increase in home ownership within the community
- an increase in the number of available affordable housing units
- an urban design criterion that supports economic development, including service delivery and retail opportunities
- a decrease in social isolation among residents of all ages
- create jobs in the community
- the feasibility of implementing a new model for inclusive home ownership that can be sustained and replicated in adjacent communities
- a new model for home financing
We plan to benchmark our processes and functions against other housing developments in the marketplace and reduce the impact of gentrification in neighborhoods so that individuals can yield success as homeowners. This demonstration advances our health equity mission through the support of our employees, collaborations in the community, and evidence-based innovations. We want to encourage appropriate legislation and reallocating resources needed for housing essential for equitable health.
1 U.S. Department of Housing and Urban Development
Published 2/2023