First Things First
New carpeting or new windows? A car or a home? Keep this job or find a new one? Choices like these are new for Donna Leisinger. But, until the long-time resident of public housing in Cuyahoga County, Ohio, learned about Individual Development Accounts and the Assets for Independence initiative, she could only fume. "I was tired of not having a driveway, a basketball hoop, or a backyard." Fed up with "throwing money away" on rent, and "remodeling someone else's home," Donna jumped when a friend told her about a new program the Cuyahoga County Metropolitan Housing Authority had developed to help Section 8 recipients save money to buy houses.
Donna contacted the housing authority's partner, WECO Fund, Inc. a nonprofit, community-based organization in Cleveland. Any money she saved could be matched four to one. She was thrilled.
"When I started in the program, I started packing for my new home," remembers Donna. Her home was the big prize, of course, but she also says the financial education, a program requirement, was "the best thing." Donna learned to improve her credit score and to prioritize expenses. Every day brought new choices for the family: they stopped ordering pizza and started cutting back on Christmas presents.
"I knew I wanted to get a house, and I let the kids know. Once they saw I wasn't going to bend, it wasn't hard to get them to buy in," Donna says. The older children also pitched in by caring for their younger siblings so their mother could attend the classes and appointments necessary to complete the IDA program.
Some choices were more difficult. When Donna started her IDA, she had other goals, such as a new car. "But they told me I had to wait until I had my home" she says. Whether to seek a new job presented another tough choice. WECO staff, however, emphasized the need for stable employment to get a mortgage and maintain payments. So, Donna recommitted herself to her position as an administrative assistant to ensure she had regular income.
Every step in the IDA program brought new knowledge, as well as new choices. In homebuyer training, for example, Donna learned how to choose among different kinds of financing. She says, "I knew nothing about buying a home before. They mapped it out for us: seven steps to homeownership."
Now Donna and her children live in a quieter, safer place. There are no run-down properties, and neighbors regularly commune about yard work over weekends. "We care because we own, and it shows," Donna says with pride. Jumping into neighborhood issues, she has circulated a petition to make the street one-way to cut down on traffic. Living only a few miles from her former apartment, Donna feels as if she is in a totally different world.
The monthly total for her mortgage, interest, taxes and insurance is less than her previous rent in Section 8 housing, and Donna now has something to show for her money. When asked how this experience has changed her life, she says, "I've been independent my whole life, but now I feel like a successful individual because I can say we own a home."
In July 2004, Donna and her children celebrated one year in their new place. She's now able to turn to goals she had deferred. She has already purchased a new car—her first ever—and has started saving for a new garage.
In addition to a home, Donna feels she has given her children something even greater. "Now they know you can achieve a goal if you set your mind to it."