The West Elmwood Housing Development Corporation (WEHDC) of Providence, Rhode Island, has created a faith-based initiative with churches and community agencies as a strategy to reach lower-income families and help them achieve homeownership.

Residents founded West Elmwood Housing Development Corporation in the 1970s. As a community-based, resident-led agency, WEHDC has a strong history of community advocacy and liaison activity. WEHDC established an agency that has been anchored in enabling people for homeownership and community building. Over the years WEHDC has organized meetings and activities to involve West End residents in crime prevention, leadership, youth development, economic development, environmental issues, community/police relations, and community pride. The agency also offers homebuyer classes, landlord-tenant training, certified HUD counseling, homebuyer technical assistance, and foreclosure prevention. WEHDC became a certified development financial institution (CDFI) in 2001 and a NeighborWorks HomeOwnership Center in 2003.
 
WEHDC began planning its FaithWorks Homeownership Initiative in 2004 after discussing homeownership with church leaders and learning that many of their congregation members had trouble achieving homeownership. Research conducted by WEHDC at several local churches revealed that a high percentage of church members had lower incomes. Participating families had an average median income of $21,771 in contrast to the state’s median of $53,000. Through FaithWorks, WEHDC offers financial and homebuyer seminars and one-on-one counseling for participating church congregations.

Program Startup.  From WEHDC’s research, it was clear that many city-based congregations were in need of homebuyer education and support services. WEHDC, therefore, reached out to the Rhode Island State Council of Churches as well as nonaffiliated churches, other religious organizations, Citizens Bank, and Fannie Mae to form the FaithWorks Homeownership Initiative. The State Council of Churches helps WEHDC with outreach and Citizens Bank and Fannie Mae provide funding.
 
WEHDC offered a pastor luncheon in November 2004, sponsored by program partners, to highlight goals and recruit pastors. Four local churches in Rhode Island joined the initiative.

Counseling.  WEHDC provides unlimited counseling support to each customer to help them improve their financial profile. Staff help families create personal budgets, remedy credit issues, and navigate specific obstacles to homeownership. All counseling sessions take place at WEHDC’s office.

Homebuyer Orientation.  Homebuyer orientations are offered at each participating church. The one-hour, PowerPoint presentation gives an overview of FaithWorks as well as a summary of WEHDC programs and services.

Homebuyer Classes.  Participating churches may request a standard 10-hour homebuyer education class to be held on-site. Congregations in need of immigration support will be offered an additional class in partnership with the International Institute of Rhode Island, which provides free consultation regarding immigration process and services.

Additional Classes.  WEHDC also offers Financial Fitness classes through FaithWorks as well as postpurchase options and courses for senior citizens on home maintenance and reverse mortgages. Through postpurchase classes, WEHDC hopes to stay connected with customers and help them maintain their homes both physically and financially.
 
All classes and counseling through FaithWorks are free. Participants pay for their credit report ($13 for individuals, $20 for couples) if they receive a personal credit review.

Church Responsibilities.  As churches enter the partnership, pastors are involved as well as a liaison, who is appointed by the church. The pastor and liaison both meet with WEHDC to implement the program, then the liaison maintains the church’s ongoing involvement in FaithWorks activities. Church partners supply meeting space and recruit congregation members through church bulletins and announcements made during weekly services.

Stipends.  WEHDC provides a stipend to each church participating in FaithWorks. The amount is based on the level of participation and ranges from $300 to $900 a year. These funds are unrestricted for the church.

Tri-Annual Luncheons.  WEHDC has begun to offer a pastor and liaison luncheon three times a year to share program information and results. New partners are introduced at this event, and reports are made on program changes and outcomes. WEHDC invites leaders and representatives from all local religious institutions.

Staffing.  Currently, all program duties are covered by existing staff. The HomeOwnership Center Manager spends more than 50 percent of her time on FaithWorks and the agency counselor and loan associate spend between 10 and 20 hours a week. WEHDC plans to hire a full-time employee within the next few months to support the counseling and teaching components.

Costs.  Costs for FaithWorks include materials, refreshments, travel, church stipends, postage, copies, and luncheon expenses. This amounts to about $25,000 a year, excluding staffing costs.

Funding.  Current program funding comes from Citizens Bank and Fannie Mae. In 2004, Citizens Bank gave $30,000 to FaithWorks, and Fannie Mae $5,000.

As of June 2005, two homebuyer classes had been offered through FaithWorks, with 23 participants. One Financial Fitness class has been held, with 17 people attending. In September 2005, WEHDC was to facilitate four homebuyer classes as well as several Financial Fitness trainings.
 
There now are seven churches participating in FaithWorks. All are Christian, but WEHDC hopes to soon recruit other faiths. Statewide expansion is one of the goals of the initiative.

• Connect with local churches and develop a positive relationship with the pastor. This is crucial to a strong partnership. Parishioners are more likely to attend a workshop if it is supported by church leaders or elders. Start with who you know, then increase outreach once the group has formed.
   
• Create a plan. Know what the agency can offer and know how the church can help. Provide a thorough outline of program benefits and responsibilities and present a written copy to all partners. Clarity is essential.
   
• Ask the church to appoint a program liaison. This person must be a good communicator who can facilitate dialogue among the agency, the pastor, and the congregation. It is also important for the agency to have respect for church leadership and be willing to work within the church structure.
   
• Encourage religious leaders to recruit other churches. Provide partners with ideas for outreach and marketing. Help the church decide if it will offer the program exclusively for the congregation or open the classes to the public.
   
• Look for ways to foster ongoing communication with pastors. An annual luncheon is a good way to maintain relationships; it keeps pastors connected and helps them understand program plans and results.

Agency interview on 06-13-05 with: Tara Quinn, HomeOwnership Center Manager