In three New England states, Home Of Your Own (HOYO) programs have helped developmentally and physically disabled people make a successful transition to homeownership. The Federal Home Loan Bank of Boston has awarded Affordable Housing Program (AHP) grants to seven such initiatives, including two approved during its most recent funding round.

The Administration on Developmental Disabilities, a division of the U.S. Department of Health and Human Services, formed the Home Of Your Own alliance eight years ago to help organizations launch state HOYO programs. More than 20 states are now home to such programs, which are independently run and funded.

HOYO's ultimate goal is to provide developmentally and physically disabled buyers with both stability and a say in where they live, notes Sharon Drake, director of the New Hampshire Home of Your Own program. "We pay close attention to the needs and desires of the potential buyer to ensure we find [a property that is] a good match," she says.

Prospective buyers each meet with a HOYO representative to talk about where they want to live and how close they need to be to their friends, family, and support network. They also discuss their current and long-term health needs, so that HOYO can help address any accessibility issues while funding is available to do so. Then, HOYO helps buyers create a budget, apply for a mortgage, and prepare for the responsibilities of homeownership.

Next, participants begin house hunting with the aid of counselors. Depending on the real-estate market, the process can take from six months to several years. After the buyer moves in, HOYO and various social agencies provide ongoing support, such as help with budgeting and transportation.

"Putting together such initiatives is hard work, and making them work is even harder," says John T. Eller, first vice president / housing and community investment. "Sharon and her colleagues deserve high praise for the work they've done to change people's lives for the better. They also haven't missed a required report, and their AHP documentation is exceptional."

The Bank funded its first HOYO initiative in 1996, when it awarded a $99,000 grant to the Massachusetts HOYO program run by the Citizens' Housing and Planning Association (CHAPA) in Boston. Member Fleet National Bank applied for the grant, which was used to provide down-payment and closing-cost assistance to 17 first-time buyers.

Most recently, the Bank awarded a $150,000 AHP grant to the second phase of the CHAPA's HOYO program. The nonprofit will use the funds to provide down-payment assistance to another 15 low-income first-time buyers.

In New Hampshire, AHP funds have helped the New Hampshire Community Loan Fund (NHCLF) proceed with four phases of its Single Family Special Initiative. To date, the initiative has sponsored 45 HOYO purchases, as well as purchases by homeless people, people with a range of other disabilities, families with a disabled child, and adults who work with the disabled or homeless. Bank of New Hampshire applied for each of the NHCLF's AHP grants.

During the second funding round of 2000, the NHCLF won a $250,000 grant for its HOYO program, which will help an additional 20 buyers. Member Bank of New Hampshire will also provide mortgages for some of the buyers. The grant will help pay down-payment, closing, and rehabilitation costs.

The Bank awarded NHCLF a $120,000 grant in 1995 to fund rehabilitation of 10 single-family homes. In 1997, the NHCLF won a $240,000 grant to provide down-payment and closing-cost assistance for 20 buyers. The following year, the Bank awarded NHCLF a $250,000 grant, which it used for down-payment and closing-cost assistance for another 20 buyers.

A similar HOYO program in Connecticut won AHP funding in 1998. Hartford-based Co-op Initiatives, Inc., used a $105,000 AHP grant to help 10 buyers purchase existing homes or condominiums, which were then upgraded for accessibility and ease of use. People's Bank of Bridgeport applied for the funding, which helped the buyers pay for down payments, closing costs, and home improvements.

Although CHAPA receives about 1,000 calls a year from interested people, homeownership is infeasible for many of them. "Many do not have enough income to pay a mortgage, even with the help of the AHP grants and other subsidies," says Aaron Gornstein, executive director of CHAPA.

However, Mr. Gornstein says the HOYO programs' growing list of success stories proves that, with some creative financing and local efforts, this "vastly underserved population can live in stable and affordable housing."

This article originally appeared in the Bank's Tools for Housing and Community Economic Development newsletter (issue 16, Winter 2001).