affordable housing columbus ga Archives - NeighborWorks Columbus, GA

Creating a budget for crisis

We talk a lot around here about budgets. But what about unexpected financial hits? How do you plan for those?

While you can’t account for every potential scenario, there are ways to prepare for the unknown without knowing exactly what that is. This is what experts call a crisis budget.

Before we dive in, this advice really is for the person who has already gotten the hang of budgeting under normal circumstances. If you need help with those skills, you may find our Third Thursday financial courses a great start!

Think of a crisis budget like a fire drill–you want to know your escape route before the fire strikes. It’s not meant to be a doom-and-gloom outlook but rather just a way to be as prepared as you can be for something that hopefully won’t happen.

The first step of being prepared for disaster is to have an emergency fund. Experts recommend a savings for this of $1,000 to $3,000, but obviously, the higher this fund is the longer you could last on limited or no income. Here are some tips for building your savings if you don’t have this yet.

As part of basic budgeting, you have a list of your income and your expenses each month. As part of crisis budgeting, you really zero in on your priorities. If your income was drastically cut for whatever reason, what is essential to your budget?

Under normal circumstances, maybe you can afford streaming services and unlimited data on your phone plan. But in a crisis, perhaps those are things you can do without.

Perhaps your monthly budget allows for so much in groceries each month, but in a crisis, how could you simplify your meal planning to something more basic?

These are the things that are helpful to consider before you really need to. If you are really clear on your priorities, and have done the math to see that you will be able to financially float for a bit, that is one less thing to worry about if you do take a financial hit for some reason.

All About Credit

Last month we talked to you about debt and how you can manage it to improve your credit score. Now let’s take a deeper look at credit.

Credit overview

Credit is a contract where a borrower owes money to a lender. These can be things like a mortgage, car note, student loan, or credit card. What likely comes to mind when thinking of credit is the credit score or ranking.

Credit Score Basics

A credit score is a measurement system where lenders can determine how risky it is to loan you money based on how well you are managing your money and paying your debts on time. The score ranges from 300 to 850, and the higher the number the more likely you are to get approved for a loan at the most favorable interest rate.

There are several things the scoring agencies take into account when calculating your credit score:

35% of your score is determined by your payment history (whether you pay your bills on time).
30% takes into account how much of the credit you have available that you are using. Basically, the less you are spending on your credit maximum, the better.
15% is based on how long you have had credit. So a 30-year-old who has had a credit card and paid it faithfully for 10 years will have a higher score than an 18-year-old with a credit card they have been paying for a few months.
10% is determined by your recently opened credits and inquiries. Every time you apply for a new line of credit (i.e. credit card), a lender will run an inquiry on your credit history. This will stay on your report for two years. At NeighborWorks Columbus we will run an initial credit history with a “soft inquiry” meaning it will not affect your credit score.
10% is from the types and mix of credit, meaning that its more favorable to have a variety of credit, like student loans, a car payment, and a mortgage. Of course, this is a low indicator in terms of affecting your score, so it’s far more important to be a good manager of your money than to take out multiple loans.

While it’s not necessary to memorize all the details of how your credit score is calculated, these give you a good idea of areas to work on if you are aiming to improve your credit score.

Since most of your credit score is determined by your money management, budgeting and tracking your spending is the best place to start. Here’s an article with some tips.

Next, you want to work on paying off debt and lowering your DTI, which you can read about here.

If you fall in the boat of being good at managing your money, but you have limited credit history established, this is the time to consider getting a credit card. You will want to use it cautiously and wisely and pay it off on time or else it will have a negative impact on your overall score.

All this information comes from the Freddie Mac CreditSmart Essentials program, which we are working through on our Third Thursday classes. If you’d like to join us, please sign up here.

25 years of NeighborWorks Columbus

NeighborWorks Columbus is officially 25 years old this year! We are proud to be part of a community of supporters who value safe, fit, and affordable housing. From day 1, we have had a great team, and in the past quarter of a century, with your support, we have been able to make big strides in expanding affordable housing. We hope you’ll enjoy this look back at the milestones you have made possible in our community’s history:

Seeds planted

Two years before NeighborWorks Columbus was formed as an organization, our CEO Cathy Williams was invited to a Chamber of Commerce inner city tour. This trip is done annually and typically takes community leaders to another city to gain new ideas and insights. But in 1997, Councilwoman Evelyn Turner Pugh suggested the Chamber tour Columbus, and thus, “The Good, The Bad, and The Ugly Tour” took place around our city.

As part of that, the group went on a bus tour of what was then known as the “South Lawyers Lane neighborhood.” It was bad–so bad that in 1989 Dateline NBC dubbed the corner of 9th and Benner Street as the “most dangerous corner in the country.” This was quite an eye-opening experience, Cathy said.

Seeds watered

After this experience, the City Manager asked Cathy and Amy (Carroll) Moore to co-chair a housing focus group and study the issues. After one year, they presented their recommendations:

Start a nonprofit
Establish a consortium line of credit
Draft a message that it is unacceptable to have substandard housing in our city.

The City Manager then said, “Go do it.” Thus, Cathy left her job at the Homebuilders Association and formed the Columbus Housing Initiative (which became NeighborWorks Columbus in 2004).

Garden is in bloom!

With generous funding from an anonymous donor, our work began in 1999.

The first task the city asked the nonprofit to do was to revitalize South Lawyers Lane. In surveying residents for that work, one of the first things we learned was that residents called their neighborhood East Wynnton Park.

East Wynnton Park

We rebranded it. We worked individually with an architect and residents to design the look of their homes and created a community garden. The work of NeighborWorks Columbus really started in East Wynnton Park. Over the course of time spent there, we built 51 homes! EWP was no longer defined by its deficiencies; rather it was a place of opportunity and hope. In December of 2003, the U.S. Department of Housing and Urban Development (HUD) named East Wynnton Park a “Best in American Living” neighborhood. It had become a Neighborhood of Choice.

Milestone Moments

It is worth noting that from the start, our homeownership model, Avenues to Homeownership, has stayed the same at its heart: we walk with individuals seeking homes through each step of the process. This includes financial counseling, homeownership education, securing affordable loans, down payment assistance options where possible, and a relationship that even extends beyond the closing table. The goal is not just putting people in a house–but creating successful lifelong homeowners. This is the core of what NeighborWorks Columbus does each day.

Columbus Cottage Program

From the beginning of our history, NeighborWorks Columbus has had a version of the Columbus Cottage Program. Began as a partnership with Jordan Vocational High School’s Construction Program, Students Housing Seniors, this life-changing program has given back to senior citizens in our community by taking substandard homes they already owned and building them a new home in its place. This has given 9 senior citizens in our community the ability to age in place with dignity in their own homes.

Beallwood

In 2005, we transitioned out of working in East Wynnton Park and moved into the Beallwood community. Over the years, NeighborWorks Columbus worked closely with the community to build several single family, duplexes, and cottages for our residents. Many of the homes that were originally built to be sold, had to be rented when the housing market crashed in 2008. Over time, we have sold all these rental properties to homeowners in a neighborhood that is truly a unique and wonderful place to call home.

Hallock Soldier’s Fund

In 2007, the Hallock Soldier’s Fund was established in memory of Colonel Richard Hallock to help soldiers and their families achieve the American dream of homeownership. This fund offers down payment assistance, low-interest loans and matching incentives to help soldiers and their families become successful homeowners. Through the years, 142 have benefited from the Hallock Soldiers Fund.

Solstice

In partnership with The Bennett Group, NeighborWorks Columbus built Solstice, a community in Auburn, Alabama for low-income senior citizens. The community features 28 duplex units in a beautiful, ideally located neighborhood.

North Highland Developments

In 2019, we began our third neighborhood revitalization effort in partnership with so many partners. The North Highland community was once a thriving neighborhood, but when the mill shut down, it left its residents impoverished. Our efforts resulted in two big developments in this region: Highland Terrace and Highland Homes.

Highland Terrace

Highland Terrace is a beautiful apartment complex housing 102 low-income senior citizens in North Highland. It is located next to Fox Elementary School, on the site of the former Meritas Mills location.

Highland Homes on 4th

This new subdivision was built along 4th Avenue on the block between 35th and 38th Streets. The 20 new homes have been purchased by former residents of the Ralston Towers, mothers working at Wal-Mart, doctors, and military families. It’s truly a unique and diverse neighborhood in the beautiful Mill District.

Elliott’s Walk

This brings us to today. NeighborWorks Columbus started work on Elliott’s Walk, bringing new affordable housing to South Columbus for the first time in 50 years. Last year, we built 19 new single-family homes, which have all been sold. The second phase of 26 homes is under construction now. Once that is completed, we will build a 130-unit low-income senior housing at Elliott’s Walk called Providence Pointe.

Truly, it’s been an honor to work with this community for the past 25 years.

Cheers to the next quarter of a century! Thank you for helping us give this community safe, fit, and affordable housing for all citizens of low to moderate income.

07/10/2024

Home for the holidays

Christmas came early for Juwan Martin this year when she bought her first home.

Juwan was among the first to enter NeighborWorks Columbus’ Homeownership Earned and Reached Together (HEART) Program in 2019, where she leased her home while working toward the goal of homeownership.

“It’s been such a blessing, and I now have something to leave for my children,” said Juwan, single mother to three children.

Prior to moving into her new home, Juwan and her young children lived in a house by the river, which was a breeding ground for allergens.

“For allergy sufferers like me and my son, it was awful just trying to breathe. I woke up with a headache every day,” said Juwan.

After nearly three years in her home, Juwan is happy to say the two have not had an episode like that since. This is the very definition of healthy housing. Not only has her home brought great physical health benefits—her family has thrived in their new space. Now a grandmother, Juwan says her family loves having a home for family to gather and a yard for her children and grandchildren to enjoy.

Cozy Corner Transformation

The story of Cozy Corner’s transformation will be remembered as one of NWC’s most touching stories. Patricia Tyson walked into NeighborWorks Columbus wanting better for her and her family.

After Cozy Corner’s demolition, we decided to build a two-story blue home to pay homage to the historical site. We showed her the blueprint of the home and asked if she wanted to own this home. Mrs. Tyson was excited and started the program.

After pre-approval she reached out to us requesting something special. Something we have never done here at NeighborWorks Columbus. Mrs.Tyson, a women deeply rooted in her Christian faith, requested that we bury her Bible, given to her by her late father, in the home’s foundation.

“I’m breaking generational curses by being the first homeowner in my family. I thank my lord and savior, Jesus Christ, and the wonderful staff at NeighborWorks Columbus.” Patricia Tyson

Creating a budget for crisis

All About Credit

25 years of NeighborWorks Columbus

Home for the holidays

Cozy Corner Transformation

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