Paving the Path to Homeownership for Housing Choice Voucher Holders

Since the mid-20th century, homeownership has been one of the most important vehicles for building wealth in the United States. According to research from the National Association of REALTORS®, homeowners have as much as 40 times the wealth of renters.  

Recognizing the chasm between renting and owning a home, 25 years ago, the U.S. Department of Housing and Urban Development (HUD) sought to find a way for low-income families who otherwise wouldn’t qualify for mortgage products to become homeowners. In 2000, it launched the Housing Choice Voucher (HCV) homeownership program, giving voucher holders the option to use their housing subsidy to buy a home instead of renting in the private market. Participants can also receive assistance for homeowner-related expenses for up to 15 years. With the green light from HUD for local public housing authorities (PHAs) to administer their own programs, the Chicago Housing Authority (CHA) launched Choose to Own in 2002, while the Housing Authority of Cook County started a similar program in 2010. 

“These programs through PHAs are an investment in families,” said Patricia Fron, co-executive director of Chicago Area Fair Housing Alliance (CAFHA), a CHA partner. “Instead of worrying about having to pay a landlord, they can build equity by owning a home.”  

For CAFHA, homeownership programs for voucher holders are critical to the organization’s vision of a Chicago region where affordable, accessible and dignified housing options are available for all. Founded in 1985, the membership organization focuses on research, policy and advocacy, and education and outreach to advance housing equity.  

Since 2016, CAFHA has been leading the Housing Choice Voucher Working Group, a coalition of housing organizations and advocates seeking to research best practices for PHA homeownership programs, identify constraints, and push for expansion. Said Fron, “I don’t think there are any homeownership programs that provide this level of support, so we really want to get the word out.”  

From Mentorship to Homeownership  

While HCV homeownership programs seed opportunities for people who have historically been shut out, they have also struggled to take off. According to a 2021 CAFHA report, funded by the Trust, PHA homeownership programs are often under-resourced and underutilized, with many voucher holders unaware they exist. Further, because voucher holders are more likely to be first-generation homebuyers, these programs do not have the support system and resources to account for their needs. 

One of the key recommendations coming out of the report was the need for a program to help potential homebuyers participating in Choose to Own learn the ins and outs of purchasing a home with the guidance of a mentor. The mentors would be voucher holders who successfully transitioned into homeowners. The program was modeled after community navigator programs that recruit people with lived experience who serve not only as an educational resource but also as emotional support.  

In 2024, in partnership with NHS Chicago and Breakthrough Urban Ministries, CAFHA launched the HCV Mentorship program, beginning with a cohort of 25 mentees paired with five mentors. The program, designed by and for HCV holders, provides training and compensation for mentors to work alongside their mentees to provide how-to advice on topics like applying for a mortgage and improving their credit scores. Fron notes that the experience leads to better outcomes for mentees because they are getting counseling from people who were successful, and more importantly, they are learning from someone they can trust.  

This year, the organization will run a second cohort with four mentors and 25 mentees. 

Kenneth Shaw was a mentee who participated in the inaugural cohort. With help from the program and the mentorship he received, he says he learned to be patient and diligent during the process, including not fretting if his first home choice fell through and paying close attention to the details of his financing options.  

“Having a mentor walk you through it and assure you that it can be done helps you to keep pushing forward. It’s like, don’t give up; it just takes time,” he said. Last September, Shaw became a first-time homeowner when he closed on a home on Chicago’s Southwest Side and moved in a month later.  

The mentorship program received grant support from Connecting Capital and Community (3C), a collaborative initiative housed at the Trust that works in partnership across private, nonprofit and public sectors to support innovative affordable housing solutions in East Garfield Park and Humboldt Park. Choose to Own aligns with 3C’s homebuyer pipeline strategy, which aims to help at least 100 residents become homeowners through financial literacy and homebuyer education programs offered by 3C’s housing agency partners that include CAFHA.  

“First-time homeowners, particularly in Black and Latine communities, have to overcome many obstacles,” said Lynnette McRae, program director for 3C. “The peer mentoring program is a great example of a solution rooted in community experience and wisdom.”  

Strengthening Homeownership Programs  

Beyond the mentorship program, the 2021 CAFHA report also outlines a set of policy recommendations to make PHA homeownership programs more robust, including improving outreach and recruitment, expanding partnerships with land banks and community land trusts, and reforming property tax sales at the state level, among others. Since the report, some of these recommendations have come to fruition: In 2023, the Illinois legislature passed sweeping property tax sale reforms, making it possible for communities to reclaim vacant lots for economic development, including new housing. The Trust worked in coalition with numerous partners to draft this legislation and push for its passage. 

According to CAFHA research highlighted in a 2024 follow-up report, if even just 10 percent of Chicago voucher holders can achieve homeownership through these programs, it would lead to 6,300 new homeowners and over $1.3 billion in assets created for their families. Despite uncertainty about what’s happening at the federal level, Fron still believes now is the time for cross-sector partnerships to create a stronger homeownership pipeline.   

“This is a smart investment because it’s helping the trajectory of a lot of families for generations to come,” she said. “There’s opportunity for philanthropy, for community partners, for lenders, and others to come together and find creative ways to support and grow this program.”