LISC Brings “Heirs' Property” Relief to Under-Resourced Communities in Cincinnati and Cleveland

10.02.2024 - Press Releases

The program is part of affordable housing preservation strategies meant to keep people in their homes and build community wealth 

NEW YORK (Oct. 2, 2024)—The Local Initiatives Support Corporation (LISC) is ramping up work to protect Ohio homeowners from housing speculators and foreclosure with the launch of an “heirs' property” program, which could unlock millions of dollars in equity in under-resourced communities. 

With a new $750,000 multiyear grant from the U.S. Bank Foundation Opportunity Fund, LISC will work with community-based organizations in Cincinnati and Cleveland to help families that have inherited property but do not have clear title to it—largely because of historical discrimination. 

LISC estimates that the program will help 250 families with low- and moderate-incomes by funding estate planning, legal support and financial counseling that can help clear up clouded property titles. The services complement LISC-supported home repair financing programs that are designed to preserve housing assets and support homeownership in economically vulnerable neighborhoods. 

“Safe and stable housing helps children, families and communities thrive. Supporting organizations like LISC to help preserve housing and support homeownership for more people is an investment that will benefit generations to come,” said Erica Opstad, head of community affairs and managing director of the U.S. Bank Foundation.

Heirs' property issues have long been a leading cause of involuntary land loss, particularly among Black families. According to federal research, Black residents owned approximately 15 million acres of land in the 50 years following the Civil War; by 2001, 80 percent of it was lost. 

“An heirs' property threat can turn into an economic catastrophe for families and communities,” said Michael T. Pugh, LISC president and CEO.  “That’s why this grant from the U.S. Bank Foundation is so valuable—it will help keep people in their homes and protect property values, which is especially important in communities that are facing economic headwinds. We’re enormously grateful for this critical support.” 

The effects of heirs' property issues are far-reaching. Owners without clear titles cannot access financing to make home repairs that strengthen their property values. They can’t claim a homestead exemption to reduce their taxes. They can’t access disaster assistance in the wake of terrible storms. And they can’t take advantage of their home equity to send their kids to college or pay for unforeseen expenses. All require a clear title to the property. 

“For some owners, these homes have been in their family for many, many decades,” said Kandis Williams, executive director of LISC Cleveland. “Their home is their largest asset, as is the case for most Americans, and it is a key source of wealth-building for the next generation. With affordable housing becoming scarcer, keeping the family home is one of the most affordable ways to stay housed and preserve wealth. When it is lost, it has a long-term ripple effect on families as well as the financial stability of their communities. Generation after generation, residents, particularly in communities of color where this is more prevalent, are losing wealth to predatory practices.” 

In Ohio, there are nearly 9,000 heirs' properties worth an estimated $313 million—equity that could be unlocked if owners had clear title to their homes. 

“The heirs' property threat is particularly prevalent in communities that have endured long-term, systemic disinvestment and is a key contributor to the racial wealth gap,” said Kristen Baker, executive director of LISC Cincinnati. “And so our heirs' property work is part of our larger housing investment and preservation strategies that help owners finance repairs and upgrades, help insulate at-risk communities from speculators, and help reduce the overall risk of foreclosures. We need to be intentional about how we help people build wealth for the future.” 

The U.S. Bank Foundation created the Opportunity Fund in 2023 to support organizations working to increase wealth-building opportunities for underserved communities, including low- to moderate-income communities, rural communities and communities of color. The fund currently prioritizes grants toward community development financial institutions (CDFIs); small business technical assistance and business incubators; affordable housing development; homeownership and down payment assistance; and digital access and economic development in rural and Native American communities. 

About LISC 

LISC is one of the country's largest community development organizations, helping forge vibrant, resilient communities across America. LISC works with residents and partners to close systemic gaps in health, wealth, and opportunity and advance racial equity so that people and places can thrive. Since its founding in 1979, LISC has invested $32 billion to create more than 506,000 affordable homes and apartments, develop 82.5 million square feet of retail, community, and educational space, and help tens of thousands of people find employment and improve their finances. For more, visit www.lisc.org. 

About U.S. Bancorp 

U.S. Bancorp, with more than 70,000 employees and $680 billion in assets as of June 30, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.