CINCINNATI (WKRC) – A local nonprofit is bringing more affordable housing to Cincinnati.
Renting Partnerships is renovating an Avondale apartment building to make this possible. One- and three-bedroom units will be available for rent on Jan. 10. A one-bedroom apartment will cost $800 a month, and a three-bedroom apartment will cost $1,300. The co-founders of Renting Partnerships said that’s $400 less than the current market rate.
The nonprofit is looking for people to participate in its co-op program. It’s neither traditional renting nor ownership. Rather, it’s viewed as a third option.
The program’s rental equity model allows you to build credit while you live in the property. Instead of owners paying people to do maintenance, tenants do it themselves, such as mowing the lawn and cleaning the building. Tenants also build credit by paying rent on time and attending monthly meetings to discuss budgets and other matters for each property.
“How much of that potential is earned depends on whether residents meet their monthly obligations,” said co-founder Margery Spinney. “So they don’t earn credits in months when they don’t come to the resident meeting, for example. So they have some control over how much they earn.”
Renting Partnerships also saves money by not having to worry about the costs associated with turnover and vacancy. The program’s co-founders said it’s the only one of its kind in Cincinnati.
“We’re really trying to make rent affordable for people and create an opportunity to build equity or financial credit for people who otherwise spend most of their income on rent and utilities and have no way to save anything because they don’t have excess cash,” Spinney said.
Renters must participate in the program for five years. The guidelines are all laid out in the lease and contract for the program. Renters can build up to $1,000 in credit per year and start using the money they’ve earned after five years. They can also continue saving for as long as they participate in the program, which can be a lifetime, according to Spinney and her co-founder, Carol Smith.
“I think one of the real blessings that comes out of this is that people have a fund of money that they can draw on,” Smith said. “We’ve had people use it for a co-pay for a health issue, and (we had) a mother who needed transportation because she couldn’t go to work and take her kids to daycare at the same time.”
The program has proven to be a success; three semi-detached houses are already in operation according to this model.
“We have proven over the last 20 years that truly engaged residents can literally save money in the operating budget that would otherwise be spent on turnover, vacancy, maintenance and administrative costs,” Spinney said.
Spinney said for one of their tenants, rent has only gone up $50 in 10 years. Spinney also said they kept rent affordable by keeping their mortgage low. The City of Cincinnati has invested in their previous properties and is investing $440,000 in the new building. Spinney said their long-term, low-interest 30-year loan will also help keep the mortgage on the building low.
They are looking for 10 tenants to reserve the units in the building, but if there is a lot of interest, they plan to acquire additional properties.
“If we can create more and have a waiting list, which we hope, then we will go ahead and work on developing more properties. We want to see the demand from the community and the people. This is what they need and this is what they want to be successful,” Spinney said.
Renting Partnerships thanks a city-funded Boots on the Ground grant that allowed them to hire a community manager to handle outreach and build a waiting list.
Renting Partnerships is hosting an open house at the Walnut Hills Library on August 29th at 7 p.m. for anyone interested in learning more. Orientation sessions are offered regularly. Potential renters can also call Brandy Monday through Friday between 10 a.m. and 2 p.m. at (513)-409-4053.
If you would like to learn more about the program, click here.
