The Department of Community Development is taking action to address the Foreclosure Crisis. 

Some of the programs that the Department offers include the following.

FORECLOSURE PREVENTION

Homeowner Preservation Initiative
The City of Cincinnati has contracted with Working In Neighborhoods (WIN) to provide assistance to residents who are in danger of losing their homes. WIN has entered into agreements with Smart Money, the Home Ownership Center of Greater Cincinnati, and the Better Housing League to also provide these services. Under the program, at least 198 households within Cincinnati will receive up to 10 hours of one-on-one counseling and intervention. The counseling includes:

• An initial assessment to determine the clients current mortgage situation, income and expenses. The counselor will review the client’s loan documents, income documentation, and bills. The counselor will work with the client to develop a realistic spending plan and determine the amount of mortgage they can afford.
• The counselor will contact the lender to determine if loss mitigation is an option for the client. When feasible the counselor will work with the lender to develop a workout plan, reduce fees and/or refinance the terms of the loan.
• The counselor will provide access to alternative lenders to refinance the mortgage at a reasonable rate when feasible.
• The counselor will help the client apply for foreclosure rescue funding. Rescue funds will come from the Ohio Home Rescue Fund program.

For counseling services, contact WIN at (513) 541-4109.

Emergency Mortgage Assistance

The Department also offers Emergency Mortgage Assistance through a contract with the Legal Aid Society. Low and moderate-income homeowners, who face foreclosure due to job loss, illness, death of primary wage earner, or other circumstances beyond their control, can receive special assistance through this program to bring their loan current if they have re-established an income stream to continue future mortgage payments. One-time assistance of up to $2,500 is available. All clients also receive in-depth Emergency Mortgage Assistance counseling services. The goal for 2008 is to serve 45 households. Contact the Legal Aid Society of Greater Cincinnati at (513) 241-9400.

ADDRESSING FORECLOSED/VACANT PROPERTIES IN NEIGHBORHOODS

HUD/FHA Dollar Home Program

HUD's Dollar Homes initiative helps local governments to foster housing opportunities for families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each. Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months. By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.The City partners with local nonprofit homeownership organizations to redevelop the homes.

The City of Cincinnati has purchased 14 homes under this program with HUD. Cincinnati Housing Partners, Homesteading & Urban Redevelopment Corporation, Price Hill Will, and Winton Place Development Corporation have agreed to purchase and rehabilitate the units currently under contract with HUD. The City has committed approximately $20,000 to cover administrative costs such as acquisition/legal expenses. The partnering not-for-profits will be responsible for rehabilitation and sales costs. Upon completion, the homes will be sold to eligible homebuyers. Other local not-for-profits are also eligible to participate.

Carthage Rehaborama 

Since 2004, the City has provided $840,000 to Cincinnati Housing Partners, Inc to acquire a minimum of 24 houses in the Carthage Community and to rehabilitate using private and public financing. Over the past four years, CHP has acquired twelve homes in foreclosure and three that were acquired prior to entering the foreclosure process. Approximately eight were finance using public funding with the remaining homes being rehabilitated using private financing and donations.

Price Hill Will Rehab Program 

Price Hill Will is under contract to acquire eight homes within the Cedar Grove area of Price Hill for rehabilitation into owner-occupied housing. The contract consists of $600,000 CIP funds. All of the homes have been purchased through a foreclosure sale. To date, five have been completed and sold with three additional homes currently under contract.