The Dilemma of Low Income Homeownership: Evaluation of the Conventional System of Lending and Presentation of Neighborhood Development Organizations as an Alternative Source

This study investigates the issue of low income homeownership and alternative methods of homepurchase financing. The study first evaluates the conventional system of lending. A theoretical model of this conventional system is established analyzing how the conventional system operates. The problems existing within conventional lending operations that make it unable to serve low to moderate income people are outlined. Past efforts to increase homeownership are also evaluated to determine the short-comings of these programs to successfully provide increased access to low to moderate income people. Neighborhood development organizations(NDOs) are then presented as an alternative source to homeownership financing. Neighborhood Housing Services is used as an example of an effective NDO. Using this theoretical background it is hypothesized that neighborhood development organizations are a viable alternative source of homepurchase financing for low to moderate income people. Using a case study, the efficacy of Ithaca Neighborhood Housing Services, one NHS organization, is assessed to determine if NHSs and other NDOs are able to increase access to homeownership and do so successfully. Findings from this case study are compared to statistics from other NDOs to determine how applicable the case study findings are to NDOs as a whole. It is concluded that NHS and other NDOs are a viable alternative to conventional homeownership financing