City Council looks to help Section 8 voucher holders become homeowners
The Memphis City Council is eyeing a path to homeownership for people who have Section 8 vouchers, and the proposal could bring a steel frame manufacturer to the city.
Section 8 vouchers provide low-income, disabled and elderly people a way to offset housing costs and they typically go toward rental units. If a local public housing authority permits, they can go toward a mortgage rather than a rental property.
The council’s conversation Tuesday centered on NexGen Global Green Housing’s interest in building a local housing stock that accepts Section 8 vouchers.
Council chair Martavius Jones invited representatives of NexGen to speak to the council Tuesday, April 25, a month after meeting at the National League of Cities conference in Washington, D.C. NexGen manufactures energy efficient houses, and at the March conference, the company’s president, Leroy Jackson, pitched his firm’s ability to provide quality, affordable housing for Memphis’ voucher holders.
“If we look at the number of speculators and investors who have come into Memphis, buying up properties, putting on a fresh coat of paint and jacking up the rent by $300,” Jones said, “that’s not beneficial to our community.”
Jackson said the proposal’s benefits are twofold: It would allow people to build equity, and it would lessen the backlog of the city’s renter program. It’s also a win for banks, he said, as it helps them meet community reinvestment requirements.
It would be a win for NexGen, too, which could find a new market in Memphis. Jackson said NexGen is prepared to supply housing for Memphis, but it’s seeking the city’s support.
The value of Memphis’ Section 8 rental vouchers are low compared to those in other cities, meaning NexGen would need to cut costs somewhere. On Tuesday, Jackson said he’s interested in negotiating with the city for properties in the land bank.
“If we look at the number of speculators and investors who have come into Memphis, buying up properties, putting on a fresh coat of paint and jacking up the rent by $300, that’s not beneficial to our community.”
Memphis City Council chair Martavius Jones
What else is in it for the city? A new steel frame plant, potentially.
Because of the volume NexGen would offer to its steel frame manufacturer, Scottsdale, the company has considered locating a plant in the city.
“I’ll just be honest: there’s a lot of business for us to do here, and we want to put our stake in the ground heavily,” Jackson said.
Council member Michalyn Easter-Thomas said a light bulb went off when she learned about the program. At a Monday press conference on the topic, Easter-Thomas said residents living on Section 8 vouchers had the same reaction.
“It’s a win for the whole city,” she said.
Jones said he plans to discuss the proposal with Liberty Bank Wednesday.
“In order for us to have the city that we want to have, we need to have stable neighborhoods, and I think nothing speaks stability like home ownership,” Jones said.
Topics
HUD Section 8 Memphis City Council Martavius JonesKeely Brewer
Keely Brewer is a Report for America corps member covering environmental impacts on communities of color in Memphis. She is working in partnership with the Ag & Water Desk, a sustainable reporting network aimed at telling water and agriculture stories across the Mississippi River Basin.
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