Investing in Black Homeownership in Oakland

Would-be Oakland homebuyers got the chance this year to participate in a unique program OPDC developed with a grant from the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) fund. OPDC is deploying the grant funds to support low- to moderate-income Black, Indigenous, and people of color (BIPOC) families to become Oakland Community Land Trust (CLT) homeowners.

The program aims to address historic disparities in housing. Oakland’s rental market has eroded homeownership here—especially Black homeownership—for decades. OPDC designed the CLT to stabilize our neighborhoods and provide opportunities for wealth-building by securing homes for permanent affordability and owner-occupancy.

We often hear that prices for affordable houses, while below market, are still too high. OPDC has experience working with public and private financing programs to help close that gap and put homeownership within reach.

This grant enables us to go further—to put money directly into the hands of new homeowners, increasing their financial security. Depending on income, participants will receive $21,000 to $31,000 in cash assistance they can use to purchase a CLT home, repair credit, pay down debt, or build savings.

We completed the participant application process and now have seven low/moderate income BIPOC families working towards homeownership.

In addition to financial assistance, OPDC financial coaching staff work closely with participants to prepare them to qualify for a mortgage. Camille Dixon, Community Resources Manager at OPDC, said it starts with understanding their financial picture.

“We do an initial meeting where we obtain all the things the bank is going to want when they purchase a home,” said Dixon. “The focus is on raising the credit score.”

Dixon listens to the expectations of prospective buyers to help them realize their goals. “Is your family growing or is it just you? Do you want to settle down in Oakland or are you looking for a starter home? We want the home to fit their needs.”

For awardees, preparing to join the land trust comes with its own set of responsibilities. “We go over documents that are particular to a CLT, like the lease agreement,” said Dixon. “Understanding how the land is held to preserve permanent affordability is so important. The frame of mind is about investing in the future.”

Working towards owning within the CLT can make homeownership feel more tangible for awardees. “We can show them the homes we have. It’s easy for them to say, ‘This is my goal. This is what I’m working towards,’” said Dixon.

In June 2022, OPDC received a second PHARE grant of $150,000 to support new home construction. This contribution will ensure that we continue to have a supply of homes available for purchase as we address historic disparities in homeownership.