Newark partnership helps 4 families become first-time homeowners
NEWARK, N.J. -- Officials in New Jersey's largest city are trying to expand opportunities for low- and moderate-income families to become homeowners.
On Tuesday, four families saw their American dream come true, CBS2's Christina Fan reported.
Patricia Hobbs is still on a high after receiving the keys to her three-bedroom home. A renter for the last 15 years, homeownership always felt out of reach until she learned of a recent Newark partnership dedicated to help.
"I stalked them until they were ready to take my information. I made sure I got everything in on time, and then I stalked them until the closing,' Hobbs said with a laugh.
The Section 8 Home Ownership Conversion Program began in 2021 and allows voucher holders to convert their rental voucher into a mortgage voucher to use to purchase a home from the Newark Land Bank.
"If you have a Section 8 voucher, it's hard for you to purchase a home any other way. We sell the homes at affordable, at below-market rates," said Martha Baez, senior VP of Newark Land Bank.
This year, the program helped four residents become first-time homebuyers, enabling minority families who lived in public housing for generations to start building generational wealth.
"Our ability to be able to put homes in people's hands attacks that wealth gap and gives it to people who need it the most," Newark Mayor Ras Baraka said.
The homes are newly renovated and transformed from blighted properties. Homeowners must retain ownership for at least 15 years.
Hobbs was able to purchase hers for $190,000, and she says the value has already appreciated by 100 percent.
"I didn't know the home would bring the wealth, but everything started to coincide with each other," Hobbs said.
Each home is also helping to revive the immediate neighborhood, bringing life back to dilapidated communities.
So far, the program has helped seven families. Next year, it is aiming for 10.