For years, Community Housing Solutions (CHS) has been on the front lines of the battle to keep low- and moderate-income homeowners out of foreclosure. However, recently the battleground has shifted.

As the economy has worsened, it has threatened the economic stability of working-class and middle-class families, leaving many more in danger of losing their homes.

To combat the mounting threat, CHS launched the Family Stability Initiative (FSI), a comprehensive new program aimed at keeping at-risk families out of foreclosure. It provides intensive counseling to families with school-age children. The program, housed in a Shaker Square storefront, was launched last fall and is the first of its kind in Cleveland.

"Our goal is to enhance the self-sufficiency of the families we work with," says Andy Nikiforovs, CHS Executive Director. "We try to keep families in their homes by addressing the core problems they're facing -- such as job loss, medical bills or substance abuse."

Prior to launching this initiative, CHS housing counselors focused on helping homeowners to achieve loan workouts with banks. These workouts consist of reductions in interest rates or loan principal, which in turn reduce payment amounts. Yet in recent years, as the foreclosure wave in Northeast Ohio reached tidal proportions, Nikiforovs knew CHS could do more.

"For years, our housing counselors listened to family members talk about the problems they faced, but we just never had the resources to address them," he says. "As a result of this program, we hired two social workers who connect families with resources."

Traditional loan workouts, while a crucial measure in keeping families from foreclosure, are only effective if the family is able to achieve economic stability. By the time many families reach foreclosure, it's often too late for a workout. "There is a very high recidivism rate among families that get workouts," says Nikiforovs. "Within six months, more than fifty percent are back in trouble."

That's where the Family Stability Initiative comes in. Social workers help at-risk families with finding and keeping jobs, obtaining new skills and training, and addressing financial problems such as medical bills. Though the level of support is resource-intensive, Nikiforus says it's necessary to get them back on their feet. "This is a one-stop-shopping approach," he says.

The Family Stability Initiative is a three-year pilot project partially funded by the Siemer Family Foundation, which is based in Columbus, and the United Way of Greater Cleveland. Nikiforovs estimates that the effort will assist about 200 families in its first year of operation.

Source: Andy Nikiforovs
Writer: Lee Chilcote