40 Yazoo City families celebrate innovative pathway to homeownership
JANS – Forty families at Roberts Estates in Yazoo City are on the path to owning the homes they have rented for more than 19 years. The transition to homeownership for the families was made possible through an innovative partnership between Hope Enterprise Corporation (HOPE), Gateway Community Development Corporation, Mississippi Home Corporation, and a $3 million grant provided by the U.S. Department of Housing & Urban Development (HUD) secured with the support of Congressman Bennie Thompson.
HOPE and Gateway celebrated the families’ path to homeownership Oct. 14 at Roberts Estates. Residents were joined by U.S. Rep. Bennie Thompson, who championed the $3 million U.S. Department of Housing and Urban Development (HUD) grant supporting the initiative, along with Shaun Donovan, CEO of Enterprise Community Partners, and Scott Spivey, executive director of Mississippi Home Corporation. Enterprise Community Partners provided funding to cover the research, development, and legal costs of the project. Mississippi Home Corporation approved the transaction earlier this month.
Gateway Community Development Corporation developed Roberts Estates 19 years ago with resources garnered through the Low-Income Housing Tax Credit (LIHTC) program. Through the LIHTC program, developers receive tax credits through a competitive process managed by the state housing authority and sell them to investors. Developers use the cash to build affordable housing and must keep rents affordable for 15 years following the construction of the property.
As a condition of receiving the tax credits to build Roberts Estates, Gateway was required to give residents the first option to purchase the homes for a maximum out-of-pocket cost of $15,000 at the end of the 15-year compliance period.
As the end of the compliance period approached, a challenge emerged: the below-market sale prices would not cover Gateway’s outstanding debt on the development. Gateway CEO Alpresteon “Sabrina” Billings turned to HOPE to address this challenge.
HOPE worked with Congressman Thompson to secure funding from HUD to overcome the financing obstacle. Armed with the HUD grant, HOPE acquired Roberts Estates and, as owner, seller, and lender, layered grants and forgivable loans to make the purchases possible.
“Helping renters become homeowners is a priority for HOPE,” said Bill Bynum, CEO of HOPE. “A home is the largest asset most American families will ever own. After paying rent for 19 years, these families are on the path to building wealth they can pass on to their children. That transforms lives, stabilizes their community, and strengthens Yazoo City’s tax base. We’re grateful to all our partners for helping these families secure a piece of the American dream.”
“I am glad to see the families of Roberts Estates have the opportunity to become homeowners,” said Congressman Thompson. “Homeownership gives families the chance to build wealth and create something they can pass down to future generations. I commend Gateway Community Development Corporation and HOPE for working together to overcome the challenges that stood in the way and help make this opportunity possible for families in Yazoo City.”
Of the 40 homes, 38 are occupied by original residents and two by their descendants.
“We have lived in the Roberts Estates community for many years, and it has always felt like home. Our faith and family are central to our lives, and we know the importance of having a place to call your own. Becoming first-time homeowners is truly a blessing, and we are grateful to finally own the home where we have made so many memories,” said Pastor John Jackson, a Roberts Estates resident, speaking on behalf of himself and his wife Linda.
Gateway is now developing Roberts Estates Phase 2, which will add 30 single-family homes under the same lease-to-own model.
“Homeownership was just so out of reach for so many people here in Yazoo County, and these families held on to the promise of owning their homes for 19 years,” said Alpresteon “Sabrina” Billings, CEO of Gateway Community Development Corporation. “We’re creating generational wealth through this project. We have people in Roberts Estates who have never before seen homeownership in their families. Now they’re building something they can leave to their children and grandchildren. This is transformational.”
The partnership addresses both the development’s financing gap and residents’ need for small mortgages, making Roberts Estates a blueprint for communities across the country with lease to-own commitments coming due.
