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Innovations in Homeownership Contest

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CFRC and the Los Angeles Teachers Mortgage Assistance Program
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Information About Innovation:
  Title:  CFRC and the Los Angeles Teachers Mortgage Assistance Program
  Contest Category:  Innovative partnerships to sustain homeownership - 2008
  Summary:  Under our first-time homebuyer program, Community Financial Resource Center has developed a unique and exclusive relationship with Los Angeles Unified School District to provide comprehensive homeownership services and resources to all district staff. The aim is to improve teacher/administration retention in low performing schools while encouraging our partner lenders and other real estate professionals to create more opportunities and incentives for homeownership in asset-deficient communities.
  Description:  One of the most significant recruitment and retention challenges for California's school districts is the skyrocketing costs of housing, especially in urbanized areas like Southern California.

In response to the affordability challenge of homeownership and its impacts on recruiting and retaining education professionals, Community Financial Resource Center (CFRC) launched LATMAP in July 2000. The program was designed in collaboration with Freddie Mac and LAUSD to address the specific needs of teachers and school district employees purchasing homes.

Envisioned as a means of attracting and retaining teachers to LAUSD, the program also serves the secondary purpose of strengthening the community fabric in and around low performing schools by enabling teachers and administrators to become stable permanent residents in the same communities as their students.

As a unique public-private partnership that provides a one-stop shop of homeownership resources, LATMAP offers several services that are designed to address the needs of the first-time home buyer at various stages in the home buying process.

Our eight and twelve-hour biweekly workshops are taught by NeighborWorks trained instructors and are certified by the Los Angeles Housing Department. Workshops are a prerequisite for obtaining government subsidized down payment assistance through the City and County of LA, of which a borrower can receive upwards of 6% of the purchase price as a deferred, below-market interest loan. Our free one-on-one counseling and pre-qualification interviews are strongly encouraged, but not required. Member agents and Realtors additionally offer rebates and other incentives.

In addition, CFRC and LATMAP formed partnership with Opportunity Finance Network (OFN) in 2007, a leading network of private financial intermediaries with a proven track record of working with nonprofit organizations, to develop safe alternative loan products and assistance to qualified, credit deficient borrowers. In light of current market conditions, we promote these loan programs to victims of predatory lending as a low cost, competitive fixed rate refinance product.

LATMAP is concerned with educating home buyers foremost, and encouraging reinvestment into the community via homeownership opportunities tailored for first-time home buyers.

LATMAP counselors regularly visit school sites district-wide to host orientation meetings while LAUSD itself markets the program internally among its staff. Other program exposure comes from creative marketing; such as our first-time home buyer blog, homeownership expos, press releases, as well as "meet-and-greets” with similar organizations. Prospective lender, agents, and Realtor partners must sign and uphold a Memorandum of Understanding as well as show an interest in community development prior to acceptance. Partners are also required to submit quarterly reports and evaluations to measure program successes, highlight opportunities for improvement, and track home purchases.

Projected Annual Operating Cost:
   Primary cost associated with this partnership program is staffing, as time required by staff is significant. Operating expenses include office supplies, travel, staff training, computer maintenance and workshop expenses that amount to about $8,454 annually. All program expenses have been worked into organization's budget.
Specific Outcomes or Results in Calender Year 2008:
   From 2002 to 2007 CFRC has taught 726 workshop attendees with over $300 million in loans dispersed and 1,430 loans closed. This continued success coupled with the active participation and support of our partners has helped LATMAP garner more attention.

Because of our increased visibility and current state of the market LATMAP has seen its number of workshop attendees increase significantly. As home buyers continue to wait out the downturn in home prices, we expect to see more interest from prospective lender and realtor partners - which could potentially bring in additional funding through membership fees.

CFRC was selected to present LATMAP at the Neighborhoods, USA Annual conference as a replication model for community organizations nationwide. We are also excited to receive help with OFN in marketing and developing alternative loan products that reflect the needs of our community demographic. Our partnerships prove to be an invaluable asset to the success of the program.

  Web Site (optional):  http://www.latmap.org
Information About Organization:
  Name:  Community Financial Resource Center
  Address 1:  4060 South Figueroa Street
  City, State, Zip:  Los Angeles, CA  90037
  501c3 Non-Profit:  yes
  Contact Name:  Becky Lynch
  Contact E-Mail:  blynch@cfrc.net
  Contact Phone:  323/233-1900
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