Newark renters become homeowners converting Section 8 vouchers into mortgage subsidies

newark renters become homeowners converting section 8 vouchers into mortgage subsidies

Patricia Hobbs in front of her new house on Peshine Street in Newark on Tuesday. She converted her federal Section 8 voucher from a rental subsidy to mortgage assistance. Mayor Ras Baraka, at right, launched the conversion program to encourage home ownership.

With homeownership being the most common way families accumulate inter-generational wealth, experts say Newark’s low rate of owner-occupancy is a challenge to the long-term economic well-being and stability of the state’s largest city and its residents.

So in July, city officials announced a program encouraging residents to use their federal Section 8 vouchers to subsidize the mortgage on a home purchase instead of rent.

This week, Patricia Hobbs became one of the first beneficiaries of the Newark Land Bank Section 8 Homeownership Conversion Program, moving into a 3-bedroom house she purchased on Peshine Street in Newark’s South Ward.

Under the program, Hobbs will use her $300-a-month Section 8 voucher toward her $1,500 monthly mortgage payment — she pays the remaining $1,200 — and begin building equity.

“It’s wonderful,” Hobbs, 46, a senior customer service representative with Newark-based Audible, who had been using her Section-8 voucher toward rent on the first floor of a two-family house in the West Ward.

During a ceremony outside her new house Tuesday morning Hobbs was introduced by Marcus Randolph, president and CEO of Invest Newark, the city’s economic development agency, which sold Hobbs the house, an abandoned property acquired by the city and rehabilitated by a local non-profit.

“The next person I’m going to introduce is a dreamer,” Randolph told the gathering. “Please help me introduce the newest homeowner in the great City of Newark…”

“And the South Ward!” added South Ward Councilman Patrick Council, one of several council members in attendance along with Mayor Ras Baraka.

Hobbs told the gathering that she had “manifested” the house or brought it about by envisioning it and then taking the steps necessary to make it a reality. That meant applying to the program, which granted her application and made her one of the program’s first four new homebuyers, announced Tuesday.

“Two years ago, I woke up and started writing that I wanted a 3-bedroom, 2-bathroom, driveway, backyard with a pool!” Hobbs told the gathering, later conceding that there’s no pool. “I knew that I wanted it, but I did not know that I would get it through the City of Newark.”

Hobbs moved in last weekend with her two adult daughters after she bought the house from the city for $190,000, using a mortgage arranged by the Neighborhood Assistance Corporation of America, or NACA. The Boston-based non-profit specializes in low-cost and no-deposit mortgages.

The program is funded by a $125,000 grant from San- Francisco-based Wells Fargo, a $1.2 million low-cost loan from the Manhattan-based Local Initiatives Support Corporation, and additional financing from the Newark-based Victoria Foundation.

The city launched the program last summer in conjunction with the Newark Housing Authority, taking advantage of a federal Department of Housing and Urban Development rule allowing Section 8 vouchers to subsidize monthly mortgage payments rather than rent.

Newark’s conversion program is one of several city initiatives launched under Baraka to address a variety of housing challenges faced by many of Newark’s 310,000 residents, including a shortage of affordable housing and its low rate of homeownership.

Just under a quarter of Newark’s condominiums, townhouses and single-family homes are owned by their occupants, compared to a statewide rate of 64%. A recent Rutgers-Newark report revealed that Newark’s already low owner-occupancy rate is further threatened by a trend toward corporate acquisition of single and multi-family houses as Newark becomes more attractive to residents, driving up rents and purchase prices.

The mayor congratulated Hobbs and the three other new homeowners, Laura Narvaez, Marlene Wiley and Araselys Maldonado, who attended the event but did not speak.

“This is our own little ‘Miracle on 34th Street,’” Baraka said, referring to the 1947 film and 1994 remake set between Thanksgiving and Christmas when a department store Santa Claus claims to be the real thing.

Baraka said Newark is one of 250 cities across the nation that have created land banks and the only one in New Jersey, giving the city greater flexibility to transfer city-owned properties.

“We can be very creative and innovative with these properties,” Baraka said. “What we’re doing today is the absolute right thing to do.”

To restore the formerly rundown house on Peshine Avenue before selling it to Hobbs, Invest Newark hired a local non-profit organization, YouthBuild Newark, which trains at-risk teens and young adults in construction, including through the curriculum of the LEAD Charter School, which the organization operates.

A team of two instructors and a half-dozen LEAD students spent six months restoring the house from top to bottom.

“Building is cool,” said Malachi Mason, 18, a senior at the school who was at Tuesday’s event. “It’s a good feeling overall to see a homeowner smiling about a house you helped build. It makes you want to do it again.”

Nobody knows Jersey better than Sign up to get breaking news alerts straight to your inbox.

Steve Strunsky may be reached at

©2022 Advance Local Media LLC. Visit Distributed by Tribune Content Agency, LLC.

News Related


Man accused of shooting two Puyallup officers held on more than $2 million bail

Man accused of shooting two Puyallup officers held on more than $2 million bail A judge at the Pierce County Courthouse in Tacoma ordered that a man accused of shooting ... Read more »

If I’d invested £10k in easyJet shares 3 months ago, here’s how much I’d have now

Mature friends at a dinner party When I covered easyJet (LSE: EZJ) shares in October last year, they were very much out of favour with investors and, consequently, the share ... Read more »

Camila Mendes opens up about dealing with eating disorder while filming Riverdale

Camila Mendes attends the special screening of Netflix’s “Do Revenge” at TUDUM Theater on September 14, 2022 (Getty Images) Camila Mendes has spoken candidly about her experience of dealing with ... Read more »

Netflix subscribers are in hysterics over CEO’s claim that they ‘have never cancelled a successful show’

The CEO of Netflix has said that the streaming giant has never “cancelled a successful show” – leaving many subscribers incredulous. Earlier this week, co-CEOs Ted Sarandos and Greg Peters ... Read more »

Rory McIlroy and Patrick Reed neck and neck in Dubai after spectacular finish

Rory McIlroy produced a spectacular finish to the disrupted first round of the Hero Dubai Desert Classic to share the clubhouse lead with ‘teegate’ rival Patrick Reed. The pre-tournament build-up ... Read more »

NHS Trust fined after death of baby 23 minutes after birth

(Scala) An NHS trust hit by what could be the largest ever maternity scandal has been given a six-figure fine over the death of a baby. Nottingham University Hospitals Foundation ... Read more »

Most bosses 'secretly' want all of their staff back in the office 'but it's not going to happen overnight,' CBI boss Tony Danker says

The Confederation of British Industry (CBI) represents 190,000 UK businesses Danker told BBC radio that the world of work has 'gone crazy' since pandemic He also said the discussion over home working will be going on 'for a few years' Read more »

Student nurse accused of planning terror attack on RAF base

Mohammad Farooq was arrested outside St James’s Hospital last week (PA) A student nurse allegedly found with a pressure cooker bomb outside the maternity ward of a Leeds hospital has ... Read more »

Sky F1 axe popular presenters ahead of 2023 season

Sky Sports have confirmed that they will be axing popular F1 pundit Johnny Herbert, as well as Paul di Resta, from their coverage ahead of the 2023 season. Three-time Grand ... Read more »

'I love you all': Rita Ora sends temperatures soaring as she poses TOPLESS and thanks for their support following the release of her new single

She recently returned from a 16-hour whirlwind Paris trip for the city’s annual Fashion Week. And Rita Ora stripped off her designer outfits to send temperatures soaring as she posed topless ... Read more »

Germany hopes to get 'green hydrogen' from Australia by 2030

Germany hopes to get 'green hydrogen' from Australia by 2030 A senior German official says she hopes her country will receive hydrogen made with renewable energy from Australia by 2030 ... Read more »

Retired Oxford don, 87, and his wife are conned out of £77,000 for roof repairs that should have cost £1,000 - as cowboy builder, 25, found guilty of money-laundering charges

An 87-year-old retired professor paid nearly 80 times the value for roof repairsCowboy builder Douglas Dawson's work was worth 'barely more than £1,000'  Read more »

Letters to the Editor: Just like other Americans, Asians can be sports stars and mass killers

To the editor: In recent issues of The Times, the newspaper has inadvertently introduced the broader community to the diverse (ethnically and socioeconomically) Asian American community. (“In Monterey Park and ... Read more »

Wanna bet? Texas Legislature to reconsider legalizing casinos and sports betting

Given the stiff headwinds to getting any expansion in gambling passed, sports betting and casino advocates may be competing against each other, rather than working in tandem. Read more »

Commentary: Why are school districts still using dress codes to discriminate against girls?

A few months ago, someone scrawled this provocative message on the wall of a girls’ bathroom stall at a high school in Corona: “I can get sent home for a ... Read more »

Column: Will 19 dead in California alter the balance between your right to a gun and my right to live?

Individualism has been a defining and admirable American trait throughout this nation’s history on a vast, varied continent. But so has its opposite: communitarianism, collectivism — a focus on the ... Read more »

School librarians vilified as the ‘arm of Satan’ in book-banning wars

In her time as a Texas school librarian, Carolyn Foote watched the image of her profession veer from “shrinking violets behind spectacles” cataloging titles to “pedophiles and groomers” out to ... Read more »

Op-Ed: The ‘deaths of despair’ narrative focused on white men. Whom did it leave out?

In 2015, two economists introduced a social theory that would become one of the most famous of the era: deaths of despair. They speculated that rising rates of deaths among ... Read more »

GP surgery gadget shows waiting times for face-to-face appointments across Birmingham

Scores of GP surgeries in Birmingham are seeing less than half of their patients for face-to-face appointments. While in one case there was just a four percent chance of seeing ... Read more »

The pros and cons of a reverse mortgage to help pay off your debts

A reverse mortgage is a loan that allows you to access the equity in your principal residence without having to sell it and without having to make payments until you ... Read more »

Letters to the Editor: Dangerous driving is everywhere. Are red-light cameras a solution?

To the editor: My daily bicycle commute includes crossing one busy road at a signal. As I wait for the green, my hobby is to guess whether someone will run ... Read more »

A proposal on the horizon this year? Here are 5 things you should know before going down on one knee

The time has come. You’ve found the one. Now the question is on your lips, and you need everything to be perfect and that includes the centrepiece – the ring. ... Read more »

CBC News launches permanent bureau in Nanaimo, B.C., to share more stories from Vancouver Island

CBC News is in the Harbour City. The corporation has officially launched its permanent bureau in Nanaimo, which will focus on telling stories from the mid-and-north Vancouver Island region. The new ... Read more »

'I came up when it was difficult for young actors': Sarah Michelle Gellar says she wants to create a 'safe work environment' after allegations of 'toxic behaviour' on Buffy set

Sarah Michelle Gellar has said she rose to fame during a time when it was ‘difficult’ for young actors on set. The actress, 45, has recently returned to the limelight ... Read more »

Video: 'I'm nervous about going public with this': Emily Atack says constant online sexual harassment makes her 'feel sick' in first trailer for her documentary Asking For It?

Read more »

Here's How Much Warren Buffett Has Earned From Coca-Cola's Dividend

Here’s How Much Warren Buffett Has Earned From Coca-Cola’s Dividend One of the more notable investments in acclaimed investor Warren Buffett’s career was Coca-Cola (NYSE: KO). Buffett is a longtime ... Read more »

Radioactive Capsule Goes Missing After Falling Off a Truck

Caspar Benson/Getty A major public health warning was issued in Australia on Friday after a radioactive capsule apparently fell off a truck while in transit. The tiny radioactive gauge—which is ... Read more »

Musk huddles with McCarthy, speaks briefly with Jeffries in quick Capitol visit

Musk huddles with McCarthy, speaks briefly with Jeffries in quick Capitol visit Twitter CEO Elon Musk met with Speaker Kevin McCarthy (R-Calif.) in the Capitol on Thursday, a meeting that ... Read more »

Shoppers are 'hooked' on a hydrating face mask that makes skin 'glow'

Shoppers are ‘hooked’ on hydrating face mask t Shoppers are loving a hydrating face mask that soothes skin and ‘adds a lovely glow’ and one women insists that her skin ... Read more »

Woman, 42, who beat up a 13-year-old boy who 'pointed an air rifle at her boyfriend's face' weeps as she walks free from court

Lavinia Pinner punched, kicked and scratched the boy in the 'abhorrent attack' The Macclesfield mother apologised, saying: 'What I have done is unforgivable.' Read more »

Mexico finds 57 adolescent migrants crammed into a truck near the U.S. border

MEXICO CITY —  Mexican immigration authorities said they found 57 Guatemalan adolescents packed into a trailer on a highway near the U.S. border Thursday. The National Immigration Institute said the 43 ... Read more »

Cowboys Coach McCarthy Reacts to Quinn, Kellen News

Dallas Cowboys coach Mike McCarthy addresses the media on Thursday and Cowboys Country will update you as it happens. FRISCO – The Dallas Cowboys are at a crossroads of sorts ... Read more »

Nottingham University Hospitals NHS Trust fined for failing to give safe care to Wynter Andrews who died 23 minutes after birth

The baby's mother, Sarah Andrews, says she was "failed in the most cruel way" by Nottingham University Hospitals NHS Trust and that management was warned about safety but "failed to act". Read more »

Fabio Fognini shows off his TENNIS COURT themed toilet - minus the net - as the Italian doubles star brings his work home with him after crashing out of the Australian Open in the first round

Fabio Fognini shared a hilarious picture to his 648k followers on InstagramItalian has remodeled his toilet to include a miniature tennis court on the floorFognini even utilised the red clay that he has enjoyed much of his success on35-year-old doubles star crashed out the Australian Open first round last week  Read more »

Is It Too Late to Buy Nvidia Stock?

Is It Too Late to Buy Nvidia Stock? Shares of Nvidia (NASDAQ: NVDA) have been in red-hot form over the past three months, with the chipmaker’s stock rising 50% as ... Read more »

7 Reasons I Wouldn't Buy Tesla Stock With Free Money

Over the trailing-10-year period, few S&P 500 components have delivered for shareholders quite like electric-vehicle (EV) manufacturer Tesla (NASDAQ: TSLA). Even after a pullback that’s seen Tesla stock lose close ... Read more »

Video: 'I've never given up': Katie Price dreams of falling in love again after split from Carl Woods and reveals her plans on becoming a paramedic

Read more »

BREAKING NEWS: Sean Dyche expected to be Everton's new manager after positive, fast-moving talks over replacing Frank Lampard, as Marcelo Bielsa says NO despite flying in from Brazil to discuss it

Sean Dyche is edging closer to being appointed as Everton's new manager The ex-Burnley boss has held positive conversations with the club's hierarchy  Marcelo Bielsa informed the club he didn't want the role despite positive talks  Read more »

How a good teacher can boost your child's future INCOME: Kids in the most effective reception class earn up to £7,500 more, study finds

Study suggests future earnings are influenced by teachers when kids are just 4 Pupils in the most effective classes earn £2,000-£7,500 more on average It comes as research found strict teachers are worse at inspiring pupils Read more »

Netflix to charge users for password sharing from March

For those sneakily using their ex’s Netflix account — the game will soon be up. Netflix subscribers will have to pay an additional fee from late March if they want ... Read more »
Kênh kiến thức kỹ năng, phát triển bản thân, hướng nghiệp, blog nhân sự