FOR IMMEDIATE RELEASE: August 2, 2023

CONTACT: Rania Dalloul at dalloul@uhab.org, (212) 479-3324

New York, NY – HomeOwnership Lending has made it possible for over 50 New Yorkers buy homes in affordable co-ops! HomeOwnership Lending LLC, a subsidiary of UHAB, is a New York State licensed lender and certified CDFI making loans exclusively to New Yorkers purchasing apartments in affordable cooperatives. In today’s challenging market for first-time buyers, we look forward to ramping up our loan services to get New Yorkers into the stable, affordable homeownership they need.

“HomeOwnership Lending was just fabulous at guiding us through this process,” said Kathleen, a recent home loan recipient. “We were both in our 60’s, without ever owning a home before, and they were as dogged as they were kind and supportive.”

Affordable co-op homes have been an essential element of New York City’s affordable housing landscape for decades. These co-ops, including Mitchell-Lama co-ops, HDFC (Housing Development Fund Corporation) co-ops, and Mutual Redevelopment Houses, have income restrictions and caps on resale to ensure that they remain affordable for future generations. New York City is home to over 100,000 affordable co-op homes and counting, with a proud history of community control and union labor.

Although these co-ops are some of the most deeply affordable in New York City, without the right loan product they remain inaccessible to low-income families. Conventional lenders typically do not offer loans appropriately sized or priced for affordable cooperative homes. UHAB saw that gap and bridged it by creating our own CDFI. HomeOwnership Lending is one of the few places low income New Yorkers can get a small loan with low closing costs and a reasonable interest rate to purchase a deeply affordable home. HomeOwnership Lending makes homeownership possible for groups that have historically been denied it: people of color, low-income people, and those without the financial resources to make an all-cash purchase. As interest rates continue to rise and the housing crisis squeezes low- and middle-income families, HomeOwnership Lending is working to make homeownership accessible to all. 

Our 50th share loan represents the success of our program, and the high demand for affordable home loans. In Fiscal Year 2023, we made $1,055,786 in loans to new homeowners. Most were between 40% and 80% of AMI. 

“In New York City, rates of homeownership among Black and Latino New Yorkers lag 50% behind those of white households, and rising costs and high interest rates threaten to heighten those disparities,” said Margy Brown, UHAB’s Executive Director. “Affordable loans are crucial to challenge the legacy of redlining and housing discrimination. HomeOwnership Lending is an essential bridge to make sure this affordable housing is going to the low-income New Yorkers it’s meant for.”

Since its inception in 2018, the lending program has been supported by a private foundation and the generous and creative support of the National Cooperative Bank (NCB). A new partnership with BankUnited is raising our capacity to bring homeownership to even more New Yorkers. Thanks to the $1.1m revolving line of credit made available through BankUnited, UHAB’s CDFI Subsidiary HomeOwnership Lending is able to make more affordable loans to low-income purchasers.

“We are pleased with the collaborative effort between the Bank and UHAB. UHAB is a great organization and we think our efforts, though modest, provides a template of how financial firms and non-profits can work together to try and solve the housing issue,” said Eric Hibbert, EVP and MSCO/Residential & Consumer Risk Director at BankUnited.

“We aim to keep the process simple, and keep costs and fees as low as possible working with borrowers to overcome obstacles that can often stand in the way of them becoming homeowners,” said Anya Irons, UHAB’s Deputy Executive Director and General Counsel. “We consider it a privilege to help people through the door and find that once they are there, success is boundless with no defaults to date.”

About UHAB:

UHAB is a nonprofit working to stabilize and expand resident-controlled housing across New York City. Since 1973, UHAB has empowered low- to moderate-income residents to take control of their housing and enhance communities by creating strong tenant associations and lasting affordable co-ops.

To learn more about UHAB’s CDFI subsidiary, HomeOwnership Lending, click here.