By Dustin Tyler Joyce
May 5, 2008

Financial literacy is essential in helping citizens achieve homeownership and stay in their homes, especially in these trying economic times. That’s a key premise behind Mayor David Coss’s affordable-housing efforts in Santa Fe (NM).

The Mayors’ National Dollar Wi$e Campaign presented a check for $25,000 to Coss and his city on April 17 at a ceremony in the home of Jeff and Mercie Lebow, who were able to purchase a home through support from the city’s homeownership initiative. The funds, awarded through the Dollar Wi$e Capacity Grants Program, will support, enhance and expand local financial-education efforts that help Santa Feans achieve homeownership in an expensive local housing market. The grants are funded by Countrywide Financial Corporation, founding sponsor of the Dollar Wi$e Campaign.

“I am so pleased to be able to make this announcement in the home of a family that has benefited from Santa Fe’s affordable-housing efforts,” said Coss. “Standing here is proof that this work is worthwhile. It’s proof that our community’s affordable-housing efforts really do work. It’s proof that when you stand up as a community and do the right thing you will succeed.”

The city coordinates its efforts through Homewise, a local nonprofit. Homewise provides financial education and counseling to potential homeowners and guides them through every step of the process of purchasing a home. The group even assists new homeowners in making repairs to their homes—repairs that could otherwise become a major financial obstacle to families trying to stay in their homes.

Santa Fe’s affordable-housing program was also named by the Ash Institute for Democratic Governance and Innovation at Harvard University’s Kennedy School of Government as one of the top 50 programs in the 2008 Innovations in American Government Awards competition. According to the Ash Institute, these top 50 were “selected from a pool of nearly 1,000 applicants” and “represent the best in government innovation from local, county, city, tribal, state and federal levels.”

Affordable housing is a major issue in New Mexico’s capital. The city’s 2007 housing needs assessment found that, because of the lack of affordable housing, over 9,000 workers had moved out of Santa Fe and now commute into the city for work. These workers represent $301.6 million in annual spending lost to the city, equivalent to six percent of all local spending. Capturing this lost spending would generate an additional $5.7 million in yearly revenue for the city.

Referring to the number of Santa Fe residents who have moved to a nearby community for affordable housing, city council member Rebecca Wurzburger joked, “We’re Rio Rancho’s greatest economic growth engine.”

The Lebows spoke of their own feelings that they would never be able to afford to buy a home in Santa Fe. The couple decided the only way they could afford to buy their own home was to leave the city and move to Rio Rancho. That realization was heartbreaking for Mercie, a Santa Fe native who had lived in the city most of her life.

But they gained a glimmer of hope when they heard of Homewise. The Lebows used financial education provided by Homewise to get their finances in order, build their credit, and save up money for a downpayment.

Now they are the proud owners of a home at Santa Fe’s western edge, built through the city’s affordable-housing initiative. When they learned of the Dollar Wi$e grant to the city, they eagerly opened their home to host the check presentation.

Fellow Homewise “poster child” Patsy Camp likewise spoke of doubting that she could ever buy a house in the city she called home. As a single woman, she felt she would never be in a position to afford anything where everything costs so much. “A lot of people think it’s just not possible,” Camp said, “but yes! Yes, you can do it!”

Camp explained that she first had to change her own attitudes about money. “I didn’t used to think a lot about money, because I either had it or I didn’t,” she said. Once she realized that taking a longer-term view of her finances could help her build assets and, perhaps, even own her own place, she began changing how she handled her budgeting, spending, and saving.

Homewise and the city helped her find a place to call her own. “I’m so proud to show it off to visitors.” It may be small, Camp says, “but it’s mine.”