[blindlaw] Making Homeownership a Reality for People with Disabilities

[Claire Spector]

This is an older reference but may lead you to where you need to go.

http://www.wid.org/publications/new-beginnings-making-homeownership-a-realit
y-for-people-with-disabilities

(November/December 2003)
Dede Leydorf (info at wid.org)
former Training and Public Education Manager
World Institute on Disability
510 16th St., Suite 100, Oakland, CA 94612
Tel: 510-763-4100

Reprinted from Shelterforce Online, issue #132 November/December 2003

When Barbara Pesante lost her sight five years ago after a staph infection
injured her optic nerve, she tried unsuccessfully to obtain assistance in
her homeland, Puerto Rico. Only after moving to Florida did she begin
receiving Supplemental Security Income (SSI) benefits, which qualified her
for job search assistance through Vocational Rehabilitation (VR).

However, Barbara was still too sick to work, and she requested a computer
with assistive software from VR so she could explore career opportunities.
Her request was denied because she was not considered "goal-oriented."
Barbara, an experienced fundraiser, proved them wrong: She raised $15,000
dollars from friends and family members to purchase the equipment on her
own. Ready for a new beginning, she headed for California.

Once settled, Barbara again contacted VR, this time receiving job training
and job placement services. She also contacted the World Institute on
Disability (WID), where she learned about an Individual Development Account
(IDA) homeownership program and other resources. (See Shelterforce #127.)
"I'm so excited that I touched upon these programs, with all of the
resources," says Barbara, who is participating in a Northern
California-based IDA program to purchase a home. "The connection to WID has
spread out so wide, it is wonderful."

She is optimistic that she will own a home in five years.

"This is important to me, because I want my life back," says Barbara. "I
want to take control of my life. I also want to live the way I am accustomed
to living."

People with disabilities have among the highest poverty levels in the U.S.
In 2002, the general poverty rate increased from 11.7 percent to 12.1
percent. According to the 2000 National Health Interview Survey, which
narrowly defined disability on activity limitation, 20.1 percent of people
living in poverty have disabilities.

Finding affordable housing is an especially difficult task. In a 2001 study
the National Council on Disability found that "Shortages of affordable
housing are widely recognized as representing one of the major problems
facing people of moderate and low incomes in our country today. For people
with disabilities, the problem is even more acute because affordability is
also conditioned by inaccessibility, availability and discrimination."

In Going It Alone: The Struggle to Expand Housing Opportunities for People
with Disabilities, the Technical Assistance Collaborative, Inc. and the
Consortium for Citizens with Disabilities Housing Task Force found that
discrimination remains a barrier, despite progress made with the Americans
with Disabilities Act. Other reasons are also cited: the low priority of
housing for the disabled among state and local housing officials; the lack
of collaboration between most public housing agencies (PHAs) and disability
organizations; the failure of disability organizations to establish
relationships with affordable housing providers and funders; the lack of
awareness in the disability community about federal programs and policies
that can help them buy a home; and a complex housing system that is
difficult to navigate.

Despite these and other barriers, there are programs that can help the
disabled become homeowners. Community organizations may be familiar with
some of the following programs, but may not be aware of how they can be used
singly or jointly to provide the greatest benefit to a prospective homeowner
who is disabled.

Fannie Mae, the largest source of mortgage funds in the nation, offers
HomeChoice mortgages through homeownership coalitions for people with
disabilities whose incomes do not exceed 100 percent of the Area Median
Income (AMI). HomeChoice mortgages require only three-percent down payment,
have higher debt-to-income ratios, accept nontraditional credit histories,
and recognize nontraditional sources of income and support including public
disability benefits. The loan limit for a 15- or 30-year fixed rate mortgage
is $275,000.

The Section 8 Housing Voucher Program, administered through public housing
authorities nationwide, is the largest federal program for low-income
households seeking to secure rental properties or to purchase a home.
Applicants must earn below 50 percent of the AMI, be a citizen (or a
non-citizen with eligible immigration status) and be in good standing with
federal housing programs.

Those buying their first home have additional requirements, although there
is more flexibility for people with disabilities. For example, the qualified
annual income of the prospective homeowner must not be less than the federal
minimum hourly wage multiplied by 2,000 hours, which is currently $10,300.
But for a disabled applicant, the qualified annual income can be as low as -
but not lower than - the monthly SSI benefit for an individual living alone
multiplied by 12, currently $6,624. The local PHA may also have a higher
minimum income requirement for both types of families. For the disabled
applicant, welfare assistance is not counted in determining the minimum
income requirement and employment is not required.

In 1992 the National Affordable Housing Act established the Family
Self-Sufficiency Program (FSS) requiring that all PHAs wishing to expand
their services develop self-sufficiency programs.

When a family receiving Section 8 benefits enters the FSS Program through a
participating state or local nonprofit agency, they agree to a set of
five-year contractual goals. As the family income increases, deposits are
made toward the purchase of a home. For example, the family rents an
apartment for $500 per month, paying $100 per month with HUD covering the
other $400. When the family income rises and they are able to pay $200 per
month, HUD continues to pay $400, putting the $100 difference into an escrow
account.

Individual Development Accounts (IDAs) are savings accounts in which
depositors receive a savings match of up to three times the original
deposit. In most cases, IDAs are used for starting a business, first home
purchase or post-secondary education. Each IDA program may have different
requirements to participate. Most common guidelines include employment
earnings, net worth, earned-income level and participation in financial
education training. A general rule of thumb is that the participant be at
least within the household income guideline of 200 percent of poverty (as
defined by the federal government). Programs may also require qualification
for Temporary Assistance for Needy Families (TANF) or the Earned Income Tax
Credit.

Supplemental Security Income (SSI) is designed to help people with
disabilities who have little or no income. SSI beneficiaries can participate
in any asset-building program as long as they meet the program
qualifications and are mindful of asset limits that can jeopardize benefits.
They cannot have more than $2,000 in assets as an individual or $3,000 if
married. (Assets include any readily available cash such as a savings
account.)

There are IDA programs that allow savings to accrue without assets being
considered for any public benefit eligibility. It is very important for
people with disabilities to get into one of these IDA programs if they want
to exceed the imposed asset limits. Only federally funded IDA programs under
the Assets for Independence Act (AFIA) or under TANF allow people who
receive SSI to participate and disregard the assets in IDA savings without
losing benefits.

To help clients provide documentation for the SSI caseworker, the
community-based organization (CBO) staff worker should write a letter on the
CBO letterhead stating that the client can participate in the IDA program
without losing his or her SSI benefits. This letter should specifically cite
the "Exclusions Under Other Federal Statutes" clause.

Social Security Disability Insurance (SSDI) pays benefits to disabled
individuals who have paid sufficiently into Social Security. There are no
restrictions for SSDI recipients who want to accumulate assets. However,
earnings levels will affect their benefits. The "earnings threshold" is
fixed nationally, not by state. In 2002 the earnings threshold for
self-employment for an individual was $780 per month and $1,300 for blind
individuals.

In Los Angeles, the Westside Regional Center created the Homeownership Made
Easy (HOME) program to navigate the bureaucracy on behalf of its disabled
constituents. HOME's operations may serve as a model for other CBOs.

HOME administers two programs: the rental program for people who have
developmental disabilities and a homeownership program that includes an IDA
option for people with disabilities. Sixty clients have successfully become
homeowners through their Fannie Mae HomeChoice program.

HOME also created a successful collaborative model bringing together the
PHA, financial institutions and CBOs. "You've got this kind of triangle,"
says David Silva, HOME's executive director. "The housing authority does
prescreening, we provide the homeownership education and the bank works with
us and the City of Los Angeles PHA, providing the subsidies that are
involved."

HOME uses a flowchart and works with dedicated staff at PHA, which screens
the initial candidates for pre-qualification and refers them to HOME. In
turn, HOME identifies down payment assistance, provides 8-12 hours of
home-buyer education and home loan counseling services, identifies qualified
realtors and works with an array of lenders and cities in helping consumers
secure mortgages. Finally, the financial institution administers the down
payment assistance to complete the triangle.

"Traditionally this population has not only been underserved, but it also
has not been given the opportunity to participate in homeownership or the
asset building process," says Silva. "This is because programs were never
focused or designed to accommodate their needs."

HOME incorporates all of the components for a successful homeownership
coalition as identified in Going It Alone: leadership and dedication,
knowledge of housing systems and resources, assistance with the costs
associated with buying and maintaining a home and counseling.

"Getting the word out is most important," says Silva. He advises
organizations to ask for in-kind support. HOME receives donations from his
partners. And Fannie Mae, financial institutions and the Braille Institute
give him documents in accessible formats and other materials for his
clients.

An accessible program is one that enables a person with a disability to
participate equally with other participants. For example, HOME has its
training facilities on the first floor for wheelchair users and even clients
on gurneys have been served. Counseling is done in the home and over the
phone, and a video is in the works. "If the person cannot come to our site,
they can watch the video, take a quiz at the end and then call in for
one-on-one counseling and a certificate," says Silva. "It is really about
one-on-one interaction. We always find a way to communicate with people."

Organizations can improve accessibility by asking participants if they need
accommodations, by training staff on disability awareness issues, regularly
marketing their services to the disability community and by partnering with
disability organizations. Reasonable accommodations, generally associated
with the Americans with Disabilities Act, are services supporting the needs
of people with disabilities; most are surprisingly inexpensive and easy to
provide. For example, a client may request materials in large print, on
audiotape or on computer disk. Other requests may include special seating
arrangements at workshops, flexibility in scheduling, meeting reminders and
one-on-one follow-up support.

Communication between CBO staff and the client is important, especially to
avoid assumptions about preferences. For example, an individual with visual
impairment may request information on a computer disk and another client
with the same disability may prefer audiotape. Also, if one particular
accommodation is cost prohibitive, there may be an alternative that is
acceptable to the individual.

For Barbara Pesante, the obstacles she faced in obtaining services and
assistance were not enough to deter her from the goal of restoring dignity
and independence to her life. "When you become disabled, you lose your job
and you lose everything to pay for everything," she says. "You are humbled.
You are set back like a child. You have to start all over again. I want what
I had before. I want to travel, to enjoy life the way I should. I shouldn't
have to be struggling all the time."

For Barbara and others living with disabilities, David Silva's vision is a
source of hope and encouragement. "We can do this," he says. According to
Silva, helping people with disabilities build assets is part of a natural
evolution. "In the 1950s people with disabilities were basically living at
institutions," Silva recalls. "In the 1960s they were living in facilities
like nursing homes. In the 1970s and 1980s they were living in group homes.
Now, people are mainstreaming."

Dede Leydorf is training and public education manager for the World
Institute on Disability, 510 16th St., Suite 100, Oakland, CA 94612.
510-251-4340, TTY: 510-208-9493.
Resources:

Consortium for Citizens with Disabilities Housing Task Force
1331 H St., NW, Suite 301
Washington, DC 20005
202-783-2229
www.c-c-d.org/task_forces/housing/tf-housing.htm

Homeownership Made Easy (HOME)
5901 Green Valley Cir., Suite 170
Culver City, CA 90230
888-346-9700
http://homechoices.org

Technical Assistance Collaborative, Inc.
535 Boylston St., Suite 1301
Boston, MA 02116
617-266-5657 (also TTY)
www.tacinc.org/

Opening Doors: A Housing Initiative for the Disability Community

Section 8 Made Simple: Using the Housing Choice Voucher Program to Assist
People with Disabilities (2nd ed.), by Ann O'Hara and Emily Cooper. 2003.
(PDF)

What Does 'Fair Housing' Mean for People with Disabilities, and Digest of
Cases and Other Resources in Fair Housing for People with Disabilities (both
2003, revised eds.). Bazelon Center for Mental Health Law. 202-467-5730,
X110. www.bazelon.org.

The Job Accommodations Network
PO Box 6080
Morgantown, WV 26506-6080
800-526-7234 (also TTY) in the U.S.
800-ADA-WORK (also TTY) in the U.S.
304-293-7186 (also TTY) worldwide
jan at jan.wvu.edu
http://janweb.icdi.wvu.edu

National Council on Independent Living
1916 Wilson Blvd., Suite 209
Arlington, VA 22201
703-525-3406
703-525-4153 (TTY)
www.ncil.org

National Disability Institute
1725 Eye St., NW, Suite 600
Washington, DC 20006
202-336-7680

Welfare Information Network
1401 New York Ave., NW, Suite 800
Washington, DC 20005
202-587-1000
www.financeprojectinfo.org
Claire G. Spector, J.D.
NY Atty. Reg. #1883024
707.545.5594
415.806.0721 mobile
c.spector at sbcglobal.net

-----Original Message-----
From: blindlaw-bounces at nfbnet.org [mailto:blindlaw-bounces at nfbnet.org] On
Behalf Of Mazen
Sent: Wednesday, January 09, 2008 12:53 PM
To: blindlaw at nfbnet.org
Subject: [blindlaw] Home buying help

I was wondering if anyone new of any federal or state (in my case
California) programs for persons with disabilities to help purchase a home?

Thanks,
M~