In 2019, ELDI partnered with the Bloomfield Garfield Corporation and Open Hand Ministries to launch the Garfield Affordable Homeownership Project. With many turn-of-the-century homes requiring extensive renovations, including the modernization of plumbing and electrical and HVAC systems, the purchase and repair of these homes was out of reach for many residents. Our goal was to rehab eight houses in Garfield to help address this issue and create more affordable housing in the neighborhood.
The funding mechanism
To fund the project, we worked with John and Michelle Connor of Full Quiver Consulting to apply for a Federal Home Loan Bank Housing Program grant and were awarded funds through First Commonwealth Bank. With annual grants and loans for the acquisition, construction, or rehabilitation of affordable housing for low-income households, this program offered us a unique opportunity to subsidize the construction of these affordable units.
The results
Today, three of the initial eight houses have been rehabilitated, all of which were sold to minority, first-time, affordable homeowners (at 80% Area Median Income). Due to unexpected challenges caused by the pandemic, we were forced to scale this project back and redevelop the other five units through another funding source.
The homeowners building generational wealth
Pittsburgh native and long-time Garfield resident Derek Darwin was one of the homeowners who benefitted from this project. When Darwin was forced to move out of his rental, he knew it was finally time to pursue his dream of homeownership. After searching on his own to no avail, he got in touch with ELDI’s affordable homeownership specialist and founder of LifeVenture Real Estate Solutions Mary Hester. Hester showed him one of the homes we were working on through this project on Broad Street in Garfield and connected him to financial support, including a loan of $30,000 and a grant of around $7,500 for closing costs from the Urban Redevelopment Authority of Pittsburgh. On October 14th, Darwin closed on his home, achieving his goal of creating equity and generational wealth for his family.
“Mary was great. She did all of the legwork. I didn’t know anything about homeownership. My landlord gave me a month’s notice that he was selling the house, and I didn’t want to get into that process again of leaving on someone else’s terms. I was at that house for 10 years. He told me in December around Christmas time. So, I went from Christmas to leaving my house on January 1st. It was a blessing in disguise. I’d probably still be there not owning a home, but I didn’t know it at the time.”
– Derek Darwin
As we continue our push to increase affordable and minority homeownership in East Liberty and the East End, we are applying for another round of Federal Home Loan Bank funding for four homes on Mayflower Street in Larimer.