June 4, 1999
Contact: Chris Curran
513-556-1806
chris.curran@uc.edu

Cincinnati -- Very few people dream about renting a 3-story walkup flat, even if all the utilities are included.

Perhaps that's why we never use the word "house-owner." Homeowners do more than than invest in their own property; they've invested in their neighborhood and their community. And that's why UC is working with Neighborhood Housing Services and Greater Cincinnati Mortgage Counseling Services in cooperation with Fifth Third Bank to make home-ownership a reality for more UC employees.

Cincinnati has one of the lowest rates of home-ownership for cities its size in the Midwest. Only about one out of three people live in their own home. Neighborhood Housing Services and the Greater Cincinnati Mortgage Counseling Service are two nonprofit agencies working to change that. They help low to moderate income families develop savings plans, get qualified for mortgages, and buy homes.

UC has just joined with those agencies to develop a unique benefits program for university employees. Informally known as the "Walk to Work" program, employees will be able to borrow up to $2500 at 6 percent interest to help cover closing costs or down payments on homes in the uptown neighborhoods surrounding the campus. Additional financial support is provided by the two nonprofit agencies.

"It's an initiative to help our employees who have never owned a home a way to build their financial secuirty," said Thomas Hadley, associate vice president for student services and human resources. "We want to create an opportunity for as many of our employees as possible to become homeowners.

"What I really like about this program is that we're targeting our hourly wage employees...the bread and butter of this institution. Many of those folks do live in the uptown and pay substantial rents. If they only had an additional bit of help putting together a downpayment or improving their credit worthiness, they could become homeowners."

The $2500 loans would be modeled after the current Rowe Loan program which is not available to hourly workers. The loans would be repaid through payroll deductions over a period of two years. Initial funding would come from unrestricted monies in UC's endowment and would support 20 loans in the first year of the program. Hadley said the return on that investment is well worth the effort.

"If we can get more of our employees to own a home in the adjoining neighborhood, everyone gains here. They get to become homeowners. It provides those individuals solid, financial security for the future. It stabilizes uptown neighborhoods. You have a stronger tax base, more invested in the city....everyone wins."

Each of UC's partners will contribute in a slightly different way, depending on an individual's income and needs. Those with a solid credit history might only need help coming up with the cash for a down payment or closing costs. Neighborhood Housing Services (NHS) can help those families. NHS has funding from its national association to provide up to $3,000 in no-interest loans to those individuals. In addition, the loans do not have to be paid back until the home is sold.

The Greater Cincinnati Mortgage Counseling Service helps individuals and families establish good credit and a savings plan which can lead to homeownership in the long run. Over a period of months, individuals participate in a homebuyers club to learn about homeownership, establish a savings plan and improve their credit worthiness. UC in cooperation with Greater Cincinnati Mortgage Counseling Service will establish a new homebuyers club right on campus. When homebuyers club members reach their goal of saving $1,000, Fifth Third Bank will match that amount.

"An employee who participates in the homebuyers club will have their savings matched dollar for dollar by Fifth Third Bank. If the same employee buys a home in the uptown, they also have access to the $2,500 Walk-to-Work loan. With both resources, homeownership becomes something very real. That is exciting," said Hadley.

Both nonprofit agenices will work with employees to find the program that best meets their needs. Most of the counseling and support will come directly from Neighborhood Housing Services or the Greater Cincinnati Mortgage Counseling Service. Orientation/information programs for those interested in taking part in the program will be held this month.

Employees interested in learning more about this program should contact Ruth Durbin, UC Benefits Office, at 556-3729 to reserve a spot at one the four scheduled sessions. Those information sessions are scheduled for: