According to Cierra Frye, Housing Counseling Program Manager at Southside Community Development and Housing Corporation (SCDHC), as soon as they received their Wealth Opportunity Realized Through Homeownership (WORTH) funds in June 2023, the program gained significant traction.
“The minute we announced it, it was super popular. We were able to exhaust our first round of money within three months,” said Frye. Out of 72 clients that went through pre-purchase counseling, 11 families have become “mortgage ready” and received downpayment assistance.
As part of a $60 million national initiative from Wells Fargo, LISC Virginia won a $7.5 million grant to develop a regional WORTH program. Locally, LISC Virginia works with several partners, who together form the “WORTH Collaborative.” The effort intends to address racial disparities in homeownership.
With this funding, members of the Collaborative implement regional plans catered to their communities. These plans center grassroots outreach and housing counseling for families in underserved areas that have historically experienced systemic barriers to homeownership. In addition to housing counseling, the initiative provides downpayment assistance to eligible families based on their need.
One of these clients, Mr. Darby, is one of the oldest residents receiving downpayment assistance. “He was able to receive $10,000 to help him buy his very first home…Due to his restricted income, it was important for us to get him as much grant assistance as possible,” noted Frye. As he approaches 70 years old, Mr. Darby closed on his first home last month.
Nationally, Black, indigenous, and people of color (BIPOC) communities have lower homeownership rates than white families. “Especially with today’s market, without this grant opportunity, it wouldn’t be possible for some of our BIPOC clients to even have the opportunity to achieve homeownership,” said Frye. According to Census data from 2020, non-white families make up only about 27 percent of homeowners in the United States. This racial disparity in homeownership nationally is reflected in Virginia, with non-white families making up only 28 percent of homeowners.
“We provide one-on-one counseling to make sure each family’s needs are met,” says Brenda Hicks, Deputy Director of Counseling and Education at Housing Opportunities Made Equal of Virginia (HOME of VA). Around 96% of families remain in their homes for at least five years, demonstrating how downpayment assistance and housing counseling work hand-in-hand for sustainable solutions.
Combining downpayment assistance with homeownership counseling, the WORTH project supplements housing services and resources provided by partner organizations. For example, the Better Housing Coalition (BHC) will establish 16 “Homebuyer Clubs” that will provide classes to residents interested in learning more about making the shift from renting to owning.
Jonathan Adkins-Taswell, LISC Virginia’s Housing Program Officer, often checks in with housing counselors from our partnered organizations. Although Jonathan provides overarching management for the program, he is still deeply connected to the on-the-ground housing counseling work. He regularly meets with members of the Collaborative to eliminate redundancy, align goals, and provide space for questions.
In its first year, the WORTH initiative has helped over 100 families get into new homes.
“It is no secret that Richmond and the south have a long history of racial divide. The housing market and the homeownership gap are clear evidence of historic discriminatory practices that we are still striving to correct today,” said Adkins-Taswell. “The WORTH initiative's goals are to identify barriers to homeownership and support equitable housing resources in central Virginia. Being intentional and assisting disadvantaged communities are core values of LISC and the WORTH initiative.”
Homeownership is key to building generational wealth and economic mobility. This truth has been the foundation of LISC’s housing work, and it remains a priority for the LISC Virginia office. A safe, affordable home is one of the basic requisites of life — a key to individual health and well-being, and the foundation for sustainable, economically vibrant, and diverse neighborhoods. LISC Virginia is proud to support this work and is excited about all the opportunities that the WORTH initiative will generate in the future.
About LISC Virginia
As a local office of the largest Community Development Financial Institution (CDFI) in the United States, our reach is national, and our impact is local. Since 1990, LISC has invested over $165 million in grants and loans, leveraging more than $800 million of investment in neighborhoods throughout the region. By leveraging private and public resources, we have supported the development of more than 3,800 affordable homes, 300,000 square feet of retail and community facilities, 45,000 square feet of library space, two childcare centers, six football fields, 60+ small businesses on neighborhood commercial corridors, and one community health center. LISC Virginia has also provided more than 10,000 hours of management assistance and training to our community development partners.
About the WORTH Collaborative
The Collaborative consists of multiple members under the leadership of LISC Virginia. Since 2021, this group has met bi-monthly and engaged directly with BIPOC homebuyers and the larger stakeholder community via a series of focus groups and meetings. This research formed the basis of the interventions established for this plan. Core members include Better Housing Coalition, Chamber RVA, Crater Planning Commission, HDAdvisors, HOME, Partnership for Housing Affordability, PlanRVA, project:HOMES, Richmond Metropolitan Habitat for Humanity, Richmond Redevelopment and Housing Authority, Southside Community Development and Housing Corporation, Virginia Dept. of Housing and Community Development, and Virginia Housing.
Note: Clients’ names have been changed in this article for purposes of privacy.