Renting Partnerships is an alternative housing choice that overcomes the racial and economic inequities which prevent renters from stabilizing their lives and building financial assets.
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Black households have historically been left out of ownership and black homeowners have not benefited financially as much as white households. Today, as more people of all income levels choose city living, housing prices and rents are rising for everyone. Lower income households, predominantly black, must crowd together or pay more than they can realistically afford. Since this is happening all over the City, there are no neighborhoods left where the average rent is still affordable to a household earning $30,000 per year.
Renting Partnerships is a nonprofit organization that acquires and rehabilitates housing in Cincinnati to keep it affordable and build community wealth. The legal structure is a unique type of community land trust which enables households to own collectively and build financial equity by participating in management. The land trust leases to residents and their leases are perpetual, automatically renewing annually. No one is excluded because they can't make a down payment or qualify for a mortgage loan. The ownership entity will never sell the housing, so rents only rise when necessary to cover expenses. Rental Equity is the operating model our founders developed so that residents can build wealth. Every household commits to stay at least five years and participate in management by paying rent on time, attending meetings and completing work assignments. When these commitments are fulfilled, the property saves money put aside for vacancy and maintenance expense. Each household earns financial credits monthly and, after five years, is vested and can receive payments upon request. The Rental Equity schedule grows to $10,000 in ten years and then starts over from the beginning. Residents have freedom to choose how to use and invest their financial equity. They are able to weather emergencies such as a layoff or pandemic, an illness or death in the family, eliminate debt and save for a long term goal that will improve their lives and the lives of their children. In contrast to homeowners, they have access to their equity without having to sell their home or obtain a loan. |
Income disparities between black and white households: National Urban League, State of Black America Reports
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Compare with Renting & Owning
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Opportunities & Challenges
The Avondale Quality of Life Plan and Housing our Future, the housing plan for Cincinnati and Hamilton County, both include Rental Equity as a key strategy for maintaining affordable housing in existing neighborhoods. However, large developers and corporate investors still receive almost all of the financial subsidy available for affordable housing development. Public agencies and banks are not prioritizing equity related to the racial wealth gap and economic opportunity, anti-displacement, inclusion, and self-determination for residents. In order to expand the Renting Partnerships model on both a local and national level, we need investors aligned with our values. Contact us to learn more.
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