A new program announced Wednesday is designed to give teachers in the Poway Unified and San Diego Unified districts a better chance to become homeowners.
The H.O.P.E. — Housing Opportunities for Public Educators — Program would provide teachers who qualify with $40,000 toward the down payment of their first home, said San Diego City Councilmember Marni von Wilpert.
The District 5 councilmember said she secured a $1 million contribution from Lennar home builders for the program when it developed The Trails, a new community of townhomes in Carmel Mountain Ranch.
“These are private funds, these are not taxpayer dollars,” said von Wilpert during a Feb. 19 press conference outside San Diego Unified School District’s office.
The grants are needed due to the region’s high cost of living, von Wilpert said.
“One of the biggest challenges that we find here in San Diego is the incredibly high cost of housing and we know that our public servants, such as our teachers and our educators are really struggling to get by,” she said.
The program — which will start accepting applications on March 1 — is open to certified teachers at Poway and San Diego Unified campuses within San Diego City Council District 5’s boundaries.
For Poway Unified, this means campuses in Rancho Bernardo, Carmel Mountain Ranch, Sabre Springs, Rancho Peñasquitos, Torrey Highlands and Black Mountain Ranch (Del Sur and Santaluz). San Diego Unified School District’s eligible campuses include those in Scripps Ranch.
Working with von Wilpert to launch the H.O.P.E. Program are the nonprofit organizations LISC San Diego and the Urban League of San Diego County, whom von Wilpert said “already run excellent first-time homebuyer assistance programs.”
With $1 million available, up to 25 educators could receive a $40,000 grant for their down payment on a first-come basis, pending eligibility. The homes can be located anywhere in San Diego County. Buyers will go through the typical homebuying selection process with any real estate agent.
The final amount teachers receive could actually be higher, according to Ricardo Flores, executive director of LISC San Diego, because four banking partners have agreed to give some who qualify additional funds, ranging from around $9,000 and up to $20,000 on top of the $40,000, if their banks issue the mortgages.
“A key element of this program is that it can encom teachers who have an income of 160% of AMI (area median income) or below that way we are able to include them,” von Wilpert said. “They often make too much to get any type of assistance, but not enough to purchase a home. We are going to hit that sweet spot to make sure that they are eligible.”
Flores said 160% of the AMI equates to an annual income of around $143,400 for a family of four. The actual income amount for eligibility varies based on family size.
“We know overcoming the initial financial barrier is one of the biggest hurdles to home ownership,” Flores said.
In addition to the “no strings attached” grant to buy their first home, those selected will receive education on the homebuying process and financial counseling, according to von Wilpert.
“This is about more than just financial for teachers,” she said. “It is about giving an opportunity for our public educators to make a difference in our communities by living where they are teaching. Too often we are seeing educators having to travel long, long distances just to get to work.”
Ginger Couvrette, president of Poway Unified School District’s board, said that as a real estate broker she knows a program like this is much needed.
“This initiative is not just about housing. It is about investing in the educators who shape the future of our communities,” Couvrette said. “While our district provides our educators with the resources for professional development needed to excel in their roles, programs like H.O.P.E. go above and beyond by providing additional so that teachers establish deeper roots in the communities that they serve.
“Rising costs have made it increasingly difficult for many to achieve their dream of owning a home,” she said. “That is why the H.O.P.E. Program is such a game changer. My hope is that this grant continues to grow in funding and implementation.”
Everyone benefits when teachers live in the communities in which they teach, she said.
“It strengthens both their schools and their neighborhoods in profound ways,” she said. “A teacher who is part of the same community as their students doesn’t just educate. They become a vital thread in the fabric of that community. Teachers can gain a deeper understanding of a day in the life of their students and families and they become more invested in the success of their schools because they are not just teachers, but neighbors, mentors and role models.”
Al Abdallah, president and CEO of Urban League of San Diego County, agreed.
“We believe that economic empowerment and stability are the foundation of thriving communities,” Abdallah said. “Who better to be at the heart of our neighborhoods than the educators who shape our future? Yet for too long our educators have faced the harsh reality that home ownership in the communities they serve is simply out of reach. That changes today.”
He called the H.O.P.E. Program “a promise … that they can live where they work, build equity and strengthen the communities that they serve.”
Abdallah also praised the fact that the program is a public-private partnership.
“Together we are setting a new standard for how public and private partnerships can create meaningful, lasting change. That is extremely important,” he said.
Von Wilpert said she hopes the program is just a beginning, and that other housing developers will be willing to set up similar ones throughout San Diego.
“We are truly hoping this will be the first of many (such partnerships),” she said.
One of the benefits of the program is that recipients will never need to pay back the money, because it is a grant, she said. That is in contrast to zero-interest loans where recipients have to pay the money back when they sell.
“This is a program to help teachers actually build equity and wealth in their families as well,” von Wilpert said.”
Those interested in applying can visit tinyurl.com/HOPE-grants. For questions, they can the Urban League of San Diego at [email protected] or 619-266-6237.
