'First of its type' program aims to increase homeownership in west Louisville
The Louisville Rotary Club announced the start of an initiative aimed at helping low and middle-income families in west Louisville.
"This is the first program of its type in the entire United States," Rotary Club member Luke Schmidt said.
It's called the West Louisville Housing Initiative, and the goal is to increase homeownership in the community.
"When some of the problems in the community surfaced after the tragic Breonna Taylor shooting, and the civil unrest," said Schmidt. "A lot of members in the club got together and said, 'What can we do about some of the problems?'"
Schmidt said the No. 1 problem they identified was a lack of homeownership.
"Due to the now illegal practice of redlining, coupled with current banking regulations, many west Louisville residents have not qualified for conventional bank mortgages, even though they can afford the monthly payments," Schmidt said.
Schmidt said 80% of residents in west Louisville are renters, often paying up to three times more in rent than they would in mortgage payments.
The program will minimize, or eliminate, most all fees that increase the cost of homeownership by giving families who qualify down payment assistance, financial literacy help, and a three-year home warranty insurance policy.
"We're putting ideas, dreams and words into action," said David Shadburne, executive vice president of Park Community Credit Union.
The Rotary Club is partnering with Park Community Credit Union for the initiative.
The company will manage the loan program and is tasked with qualifying potential homebuyers and administering the loans based on a need basis.
Homebuyers will make monthly payments to the park, which will replenish the loan account, creating a revolving fund to ensure this program never diminishes.
"I couldn't be more pleased today to share that we have made an investment of $500,000 into the rotary's loan fund for the initiative," said Kimberly Halbauer, regional president of Fifth Third Bank.
The Rotary Club of Louisville now has almost $1.2 million. Leaders said their initial campaign goal is to get to $5 million. They believe the $5 million will be able to create 60 to 65 new homeowners.