Homeownership Dreams Realized for Hartford Families Through New Grant Initiative
Lisa, a 46-year-old single mother and cardiac tech in the Hartford area of Connecticut, embodies the struggle and determination of many first-time homebuyers. Working tirelessly across two jobs, she faced the daunting challenge of saving for a down payment amidst rising housing costs and soaring interest rates. Despite her efforts, the dream of homeownership seemed increasingly elusive.
“For years, I juggled multiple jobs, but the financial burden of caring for my daughter and mother made saving nearly impossible,” Lisa shared. Her story reflects a broader trend highlighted in the National Association of Realtors’ 2023 Profile of Home Buyers and Sellers. The report reveals that the median down payment for U.S. homebuyers is 15%, with first-time buyers typically putting down around 8%. However, 8% of the median existing-home price of $394,300 amounts to $31,544 – a sum far beyond the reach of many, including Lisa.
In her four-year quest for a home, Lisa encountered the harsh realities of a competitive housing market. “Owning a home is more than just an investment; it’s about stability, community, and the freedom to make a space truly your own,” she explained. Yet, the path to achieving this dream was fraught with obstacles, particularly in securing adequate financial support.
Lisa’s breakthrough came with the discovery of the Housing Development Fund’s (HDF) Homeownership Equity Fund. Established in 1989 in Stamford as a nonprofit, HDF offers a range of services including lending programs, down payment assistance, and free homeownership counseling, specifically targeting low and moderate-income families. With over $151 million in funds under management, HDF has become a vital resource for aspiring homeowners.
The Homeownership Equity Fund, launched last year, specifically aims to assist BIPOC first-time homebuyers, offering up to $20,000 in down payment assistance for those earning 80% or less of the area median income. This initiative was a game-changer for Lisa, enabling her to purchase her home. “Owning my home has brought immense joy and a sense of achievement to my family,” she said.
Since its inception, the fund has supported 66 households statewide, including 12 in the Greater Hartford area. It addresses the stark disparities in homeownership rates, as reported in the Greater Hartford Community Wellbeing Index 2023: 77% for white households compared to 42% for Black and 32% for Latino households. Moreover, Black mortgage applicants face a rejection rate of 10%, double that of white applicants.
The fund’s impact is set to expand significantly with a $600,000 grant from the Hartford Foundation for Public Giving. This grant will provide zero-percent loans for down payment and closing costs to 25-35 BIPOC households in the Greater Hartford region. “We’re thrilled with the Hartford Foundation’s support, which aligns perfectly with our mission to empower BIPOC homebuyers,” said Kiley Gosselin, President and CEO of HDF.
The grant is a collaboration involving contributions from various donors and funds, reflecting a community-wide commitment to inclusive housing opportunities. “This initiative is a step towards dismantling the barriers to homeownership for Black and Latino individuals, fostering a legacy of equality and opportunity in Hartford,” stated Elysa Gordon, Vice President of Community Impact at the Hartford Foundation.
For those interested in applying or seeking more information, the Housing Development Fund encourages visits to their website at Homeownership Equity Fund, where they can explore the range of assistance available to make the dream of homeownership a reality.
