CARE Ownership started as a vision of an alternative to the cycle of decay and gentrification that leaves low-income stakeholders at the mercy of slum landlords on the downhill side, and without ability to benefit from gentrification as rents rise beyond their reach.
Reinterpreting the stewardship of property so that all stakeholders benefit, a business model approach was developed and launched in 2007 that visualizes renters who become property owners, empowering themselves to benefit from a vested interest in improvement of their building and the neighborhoods around them.
A $25,000 donation allowed the purchase of our first building for $10,000 in 2008 and we began renovation work with the help of our first apprentice. The property we purchased had sustained significant water damage from vandals who had torn copper pipes out of the foreclosed building. Our demolition phase of rebuilding has been completed, as we removed moldy and water damaged surfaces, improperly installed and neglected bathrooms and kitchens. Roof leaks and crumbling foundations are being repaired, paving the way for restoration and transformation – of individuals, property and neighborhoods.
Mission
The Coalition to Affirm Real Estate Ownership seeks to provide economic safety nets to disenfranchised individuals, while benefiting low-income neighborhoods and renters by:
a) Purchasing foreclosed, vacant, or distressed multi-family properties in low- income inner city neighborhoods
b) Selecting low-income individuals to receive 3 years free training in renovation, personal & communication skills, tenant management, and entrepreneurial strategic business development.
c) Providing the low-income individuals (whom we call apprentices) with an apartment at no charge (free rent) during the course of their training.
d) Providing the low-income individual who completes our training with assistance in purchasing one of our renovated properties at 25%-30% below market value and providing 5 years of follow-up mentoring.
Frequently Asked Questions
How are you different than Habitat for Humanity? How is your focus different?
CARE Ownership is about relationships. We mentor people who are on the fringes of society, individuals who are coming back into the norm from alcoholism, drug abuse, prison… click for more
Explain the acronym CARE?
Coalition Affirming Real Estate. When combined with the word “Ownership” we get Coalition Affirming Real Estate Ownership….CARE Ownership
Where do you get your support?
We receive financial support from donors – individuals and groups who want to assist us in achieving our vision. We do not receive any governmental funds. Donors may provide… click for more
How did the organization start?
Our founder and board president saw in the 1970s that people who did not have the resources available to the middle class often ended up “stuck” in blighted neighborhoods and… click for more
Can I join?
While CARE Ownership is not a membership organization, we welcome you to join with us in serving others, in partnership with us through volunteer work, financial support, and… click for more
How do I sign up to become an apprentice?
Review the qualifications required of a prospective apprentice found elsewhere on this website. If you feel you qualify and are willing to commit the time and effort that would be needed… click for more
How many apprentices do you pick a year?
We currently are only taking 1 apprentice per year. As we build our organization, it is hoped that additional apprentices per year can be added to the program.
Where can I get more information?
Send an inquiry to info@careownership.org with your contact info and one of our board members will contact you to answer questions or discuss any issue. In your email, please… click for more
How do you decide who can become an apprentice?
We have established objective criteria that represent the characteristics of a person who is most likely to succeed at this program. Please see the criteria list on our training page.
Cycle of Property Decline
I. Neighborhoods and communities go through cycles of building, decline, and restoration (often gentrification)
II. When homes are first built, value is likely at its highest (in inflation adjusted terms). Buyers are prosperous enough to finance purchase of a home (except in manipulated mortgage markets). Minimal repairs are needed.
III. Initial buyers expect to sell home at future point for value of purchase price, plus the cost repairs or construction upgrades or improvements
IV. If future value will not equal purchase price plus repairs/improvements, often owner determines not to make repairs, or cannot obtain financing to make the repairs
V. Tipping point arrives where current owner sells to recoup purchase without having invested in repairs. New buyer often obtains house at lower, more affordable price but in unable to finance repairs. Deterioration continues.
VI. Next buyer purchases house at even greater discount; however, needed repairs are more extensive and buyer even less likely to be able to afford repairs.
VII. Once economic interest becomes sole motivation, property transitions in to rentals. Renters have a) little incentive to maintain properties or b) if they do maintain property, have little support from surroundings. Renters, those without any equity stake, have limited abilities to enter into real estate ownership with long-term success. There are many programs to assist individuals who are trying to move from renter to owner; our program seeks to fill in one of the gaps that other programs can’t address: the long-term neglect of the neighborhood.
VIII. Without equity interest on the part of owner/occupants, eventually the property deteriorates to the point that the purchase price is minimal and future sales value is able to compensate for sweat-labor equity. New buyers have skills or financing to make repairs, hold property long enough for prices to compensate for the renovations. This process is generally referred to as gentrification.
IX. As neighborhood gentrifies, the residents with the least resources are pushed out because of rising rental costs. Responsible renters who have been conscientious about maintaining property, do not benefit as rental properties are flipped and eventually rents increase.
X. If residents are given opportunity to benefit from improving equity, restoration of community is supported and those with the least income are able to obtain long-lasting foundation for family uplift. So CARE Ownership tries to intervene between steps VI and VII to allow those who have been renters to benefit from neighborhood turnaround, while assisting in that turnaround at the same time.
