An Opinion

An Affordable Housing Program Which Works

Friday, 01 January 2010 00:00

Hardly a day goes by without a news report about more foreclosures on homes across the country. On Long Island, there is one ray of sunshine – the Long Island Housing Partnership. The Partnership was formed back in 1987 and has built thousands of homes for working families in Nassau and Suffolk. I was privileged to participate in the creation of the Partnership and was the first board chairman. Membership and the board are from the business community, labor unions, religious organizations, and other not-for-profits.

Beyond the development of new housing, the Partnership provides financial counseling for first-time homebuyers and for those who own homes and may have serious concerns about foreclosures. The counseling generally takes around two hours and is free of charge.

For the first-time homebuyer, one of the Partnership’s trained counselors will cover all of the steps in the purchase, from the contract to the closing. Topics which are reviewed, in detail, are credit evaluation, a determination as to what home price is affordable, the funds needed to purchase a home, the roles of real estate agents, the attorney representing the buyer, the engineer, and what mortgage loan products might be available for the purchaser. In addition, there is an examination as to whether the purchaser might be eligible for any grants to assist in the purchase.

Beyond the first-time homebuyer, current homeowners who are struggling with mortgage payments can also seek help from the Partnership. The counselors at the Partnership are trained and certified in Foreclosure Intervention and Default Counseling. The counselors assist with (1) understanding and analyzing a current mortgage, credit, and financial situation; (2) identifying options; (3) establishing a line of communication with the lender; and (4) developing a plan for resolution.

If you know of someone who is a first-time homebuyer or in need of foreclosure counseling, they should call the Partnership Monday through Friday from 9 a.m. to 5 p.m. at (631) 435-4710.

The statistics of success at the Partnership are amazing. In the last two years, 1,800 clients have been counseled before purchasing a home. Interestingly, of the 350 Partnership homes purchased over the last two years, there has only been one foreclosure!

On the default side, some 1,200 families have been counseled. And again, understand that there is no charge for participation in Partnership’s counseling programs. For further information about the Long Island Housing Partnership, you can go to the website: www.LIHP.org.