Building Ownership

On Halloween 2022, Magan Hubbard and her daughter Mackenzie, 16, received the biggest treat of all when they moved into their new home in Little Rock, AR. Hubbard’s monthly payments for the brand new house were about the same amount she had been paying to rent an apartment.

After searching for about a year, Hubbard’s realtor told her about seven affordable new homes for low-income buyers being built by the University District Development Corporation (UDDC), an organization operated from the campus of the University of Arkansas at Little Rock. The university established UDDC in 2008 in partnership with the city of Little Rock, Little Rock School District, and local organizations and businesses. UDDC focuses on improving the quality of life in the neighborhoods surrounding the university, including providing safe, decent, and affordable housing.

Hubbard’s priority was to secure a home so she would have an asset to leave her daughter if needed. “I wouldn’t care what I had to pay as long as I could leave her something,” Hubbard said. “I’m very excited about my home. It was a tedious process but the end result was great. I’m very grateful for the opportunity.”

UDDC worked with HOPE to finance the construction of the homes by leveraging a $300,000 HOPE loan to obtain $700,000 from the U.S. Department of Housing and Urban Development managed by the City of Little Rock.

The three-bedroom, two-bath houses averaged about 1,400 square feet and were priced at $150,000 in a community where more than three out of ten of residents lived in poverty. Buyers also needed to meet income eligibility requirements and qualify as a first time or new homeowner.

UDDC directed customers to financial institutions that had the willingness and expertise to provide mortgages to low-income and first-time homebuyers. The organization also provided grants to assist with down payments and closing costs.

Charity Hallman, HOPE’s senior vice president for community and economic development, worked with UDDC on this project. “It hits a couple of HOPE’s mission points. First, it’s increasing access to affordable homeownership. The second is supporting municipal initiatives. We partner with the city of Little Rock. And we are working to close the homeownership gap for people of color,” Hallman said.

Barrett Allen, Executive Director of UDDC, spoke of the disbelief and joy he sees from people who purchase these homes. “Once they walk in, they’re just astonished and can’t believe that they can get this style and caliber of home at this price point in this location,” Allen said. “On sites, we’re about to hand somebody the keys and you see the tears, you see the joy, you just see the looks on their face. It just blows them away. And that’s what it’s about at the end of the day. It comes down to people helping people.”

Allen said that prospective customers say in disbelief, “You’re going to give me a new home or make a new home available for me, you have this mortgage product that’s specifically designed for the home, and I can pick from banks that you’ve worked with over the years to help create these products. And on top of that, you’re going to potentially assist me with down payment and the closing cost. And if I need more, you’re going to point me to some of your other partners to assist on top of that.”

Allen said that HOPE’s mission is critical to getting these homebuyers secured in their new houses. “HOPE is a joy to work with. The staff are accessible and as a community development financial institution, they get it. They align directly with us. So when it comes to working with HOPE, I can pick up the phone and they’re going to be responsive, and they’re going to do all they can to make it happen,” he said.