Homes for All: Serving People with Disabilities

By Robert Davies & Merrill Black

I. Overview of a Market: People with Disabilities

Learning Objectives – Gain a Working Knowledge of:• Demographics of this growing market• Why people with disabilities are good prospects• Milestones in policy and practice• Considerations that impact your serving this market• Strategy to grow your business and improve public

perception of the real estate industry

Demographics are in your favor:

• You can serve a growing and significant underserved group

– Estimated 49 million plus Americans with some form of a disability

– 56 % of adults with disabilities ages 21-64 have jobs

– 43% of adults with severe disabilities have jobs

Real Estate Salespersons, Builders, mortgage brokers should not overlook this viable market

• Preparing to reach this market can also help you serve an aging market– The growing need for affordable, accessible housing

• Preparing to serve people with disabilities can connect you to resources and organizations – Access to the network of families, agencies and

organizations supporting people with disabilities helps you expand to a new tier of qualified, motivated buyers.

What do you know about the disability movement?

• Americans with Disabilities Act– What do you know?

• Federal Fair Housing Act– What do you know?

• Independent Living Movement– What do you know?

Implications of the Independent Living Movement for Real Estate• A forty-year old movement

– People with disabilities organizing to have full access to housing, transportation, education and employment

• Agencies mandated to help clients move into the community– Implications for home ownership– Over 200,000 people living in nursing homes actively

seeking community-based alternatives, including home ownership

– Group homes required to have fewer residents’, agencies are looking for homes to accommodate small scale congregate living

Impact of referrals

• Real estate professionals serving this market successfully can expect positive referrals– Who in your community could be referred to you as a

result of a sale?

• Stephen Beard, California real estate licensee says– “With a consistent, methodical approach and a sound

business plan, a real estate professional who truly wants to serve this market can make a successful business doing it.”

People with disabilities are good prospects

• Criteria for qualified prospects– Financial capacity and steady source of income– Ability to make decisions– A clear idea of what he or she wants– Willingness to generate referrals and repeat

business

First Criterion: Financial Capacity and a Steady Source of Income

• While many people derive income from employment, many are eligible for public entitlements such as– Social Security Income (SSI)– Social Security Disability Insurance (SSDI)

• Qualifying people for mortgages based on these “nontraditional sources of income” is called budget-based qualifying.

• Decision is made not on earned income and credit, but on a budget including the person’s monthly benefits

Financial Capacity (continued)

Lenders have created special mortgage products

• Fannie Mae, secondary mortgage market• State and local agencies have additional

programs for down payment, rehabilitation etc.

Second Criterion: Ability to Make Decisions

• Many people with disabilities make home buying decisions the way any of us do; others may have additional people involved in decision making– Representative payees– Guardians– Trustees

Representative Payee

• A person or individual appointed by Social Security to act of behalf of the person receiving benefits– Provide crucial documentation to support

budget-based qualifying– Pay bills on the beneficiary’s behalf– Assist with the down payment or monthly

mortgage payment

Guardian

• Person legally designated to make decisions regarding finances, healthcare and other major issues for the person with a disability

• May be parent, sibling or relative• May also be a professional advocate

appointed by the court

Trustee

• Nontraditional sources of income such as SSI or SSDI have asset-limitations– Beneficiary cannot accrue income or assets of over a set

amount

• Special Needs Trusts are established so the beneficiary can have savings or own property that exceed the asset limitations.– Often an estate attorney, who oversees the special needs

trust is its “trustee” and would be involved in a major purchase such as a home that draws on the trust’s assets.

Self-determination

• A national movement and best practice in supporting people with disabilities– The person and families drive decision-making.– Professional staff’s decisions are subordinate to

the person with a disability.– Has implications for homeownership; people with

disabilities now have more say in how benefits are allocated.

Third Criterion: Clear Idea of What They Want

• People with disabilities may have special needs that dictate a clearer idea of what they want– Accessibility considerations– Proximity to services and support people– Access to shopping and transportation

New MLS Screen

• Need more detail than just “handicapped accessible: y/n”

• Some MLS websites have more detailed fields with information on what homes marked as “accessible” feature.– An accessible database for real estate agents is

now being designed by Stephen Beard, a California REALTOR®

Fourth Criterion: Willingness to Generate Referrals and Repeat Business

• Serving this market

– connects you to a network of motivated and qualified buyers who can refer new business to you

– strengthens your reputation an an involved and caring community member

– prepares you to serve additional markets including an aging population and lower income first time home buyers.

Industry Profile: Peter Staniels, Weichert Realtors, Albany, New York

• Established a small “Special Needs Department” in his agency

• “If every agent did one of these transactions a year, our industry could do more for for housing for people with disabilities than has ever been done before!”

Results of Independent Living Movement

• Network of Independent Living Centers throughout the US

• 1999 Olmstead Decision requiring “most integrated setting” for people with disabilities

• 2001 New Freedom Initiative - more access to homeownership, education, transportation and employment

• 2002 Independence Plus• Money Follows the Person

II. Understanding Disabilities: People First

Learning Objectives – Become well versed in

• Different Types of Disabilities• Common Accommodations• Appropriate Language and Behavior to Communicate with people with disabilities• How individuals are involved in decision-making, and their roles

Definitions

• The “People First” movement asserts people are defined by their humanity first, not by their disability; thus “people with disabilities” rather than “the disabled”.

• ADA definition of disability: “ a physical or mental impairment that substantially limits a major life activity , such as walking, seeing, hearing, learning, breathing, caring for oneself, or working.”

Types of Disability:

• People are either born with a disability, develop it as a young person (onset prior to the age of 22 is a “developmental disability”), or acquire a disability through illness or injury

Accommodation

• The Americans with Disabilities Act enables people with disabilities to “participate more fully in their communities and gain more complete access to the goods and services most Americans take for granted.”

• Accommodation refers to the way a task or physical device or space is modified to over- come a specific limitation imposed by a disability

Category of Disability: Sensory

• Deafness/hard of hearing: Limits access to spoken communication

• Blindness/impaired vision: Limits access to visual information both pictures and printed documents such as listings, mortgage documents and contracts

Category of Disability: Mobility

• Impaired mobility: may necessitate wheelchair, cane, crutches or walker. Physical barriers must be considered such as steps and curbs. Environment may require modification to accommodate a wheelchair.

Category of Disability: Developmental

• May include previously mentioned limitations as well as learning limitations.

Type of Disability: Psychiatric

• Mental illness including, but not limited to clinical depression, schizophrenia, bipolar disorder: may limit understanding or impact interpersonal interactions.

Assistive Technology

• Some accommodations will require the use of a form of assistive technology.

• Assistive technology device is “any item, piece of equipment, or product system used to increase, maintain or improve the functional capabilities of individuals with disabilities.”

People First--Building Relationships

What’s important to building workingrelationships?

• Listen carefully to preferences• Ask what accommodations the person would

like• Clarify anything you don’t understand by

asking• Respect the personal accommodation to the

situation

Etiquette

• To get the attention of a person with impaired hearing, tap the shoulder or wave your hand, speak slowly.

• Identify yourself in addressing a vision- impaired person--use vocal cues but talk in a normal tome of voice.

• When speaking to someone with impaired speech, give undivided attention; ask questions requiring short answers and repeat to clarify that you have understood.

Examples of People First Language

• She uses a wheelchair NOT she is confined to a wheelchair

• He has a cognitive disability NOT he is mentally retarded

• She has a mental health condition NOT she is mentally ill

• He has a diagnosis of Down Syndrome NOT he’s Downs

Etiquette for Communicating

• Don’t lean/hang on someone’s wheelchair• Allow vision-impaired person to take your

arm--don’t lead or propel• Treat adults as adults• Speak directly to the person, not to the

companion• Place yourself at the wheelchair user’s eye-

level in extended conversations

Communication

• Even though you might need an interpreter, address questions and responses to the person with a disability.

• Learn to use TTY devices and relay (dial 711) by contacting local agency serving people with hearing impairments

• May need to repeat and/or simplify remarks for people with cognitive issues--can enlist the help of companions, but continue to address the person directly.

Travel and Mobility

• Many people with disabilities have their own accessible transportation, but it is worthwhile for you to locate resources in your area for accessible transportation.

Don’t Assume, Just Ask

• It is illegal under fair housing laws to ask whether or not a person has a disability or ask for details unless the person raises the issue.

• After you have established a relationship with prospective buyers, you may feel free to ask questions if you are not clear about what accommodations they require.

People around the person

• A number of people may be involved in the viewing and purchase of homes

– Family members– Support staff– Agency staff– Personal Care assistants– Guardians– Trustees

Industry Profile: Paula Gaies, Weichert Northeast Group, Albany, New York

Supporting the Community

• “I believe when you work in the community and take money from the community, you have to give back through community service. Working with people with disabilities has given me an opportunity to do just that--to do something related to my industry, using the skills I have, to serve people with special challenges.”

III. Financing Sources

Learning Objectives

• Identify all income streams of a buyer with disabilities

• Blend all financial of sources to qualify buyers• Know various funding sources for accessibility

modification• Understand the array of funding sources for

homeownership including down payment assistance

Income Sources

• Employment Income - from a regular job or sheltered or supported employment

• Supplemental Security Income (SSI) - benefit to pay for food, shelter and clothing for a person who cannot work due to a disability and has no or little work history

• Social Security Disability Insurance (SSDI) - provides monthly income for people with work history who become disabled and can no longer work

Income Sources (continued)

• Medicaid - benefit program run by federal, state and local governments to meet medical and long-term care needs for persons with low incomes and long-term disabilities.

• Room and board costs for a live-in companion can be paid by Medicaid. Take into consideration when developing a budget for or qualifying the person with disabilities.

Income Sources (continued)

• Special or Supplemental Needs Trust (SNT) - legal, financial tool enabling a person with a disability to supplement government entitlements and benefits. Managed by a third party, the trustee. The SNT can own and dispose of property and investments.

Other Income

• People with disabilities may also derive income from family members, roommates, co-purchasers or live-in support staff who pay rent. This additional income can be used in qualifying a person for a mortgage.

Savings Program

• Individual Development Accounts (IDA’s) - matched saving accounts that many social service agencies use to help low-income people, including people with disabilities accrue assets for special purposes such as home purchase, college or vocational education, accessible transportation and starting a business.

Home Investment Partnership Program

• HOME - pays for down payment and closing costs or moderate rehabilitation for first time homebuyers. Up to $22,500 is available as a forgivable loan if person stays in the home for an agreed upon number of years.

• Money flows from the HUD and administered by local municipalities.

Block Grants

• Community Development Block Grants -used to assist homeowners to purchase, remodel and maintain their homes. These HUD funds are also allocated, administered and awarded through local municipalities.

Low Income Housing Credit

• Low Income Housing Credit - vehicle used by developers to subsidize properties that can be leased for 12-30 years with the option to own. This more complex financing opportunity can be accessed through state housing agencies and cooperating banks.

Federal Home Loan Bank

• Affordable Housing Program gives grants to member banks for down payment and closing costs as well as to buy down interest rates and principal and modest remodeling.

• Community Investment Program provides below market home loans to low and moderate income people through its network of member banks.

Rural Development Services (RDS)

• The RDS, part of the United States Department of Agriculture has a number of programs that assist homeowners, including low-interest mortgages and moderate rehabilitation loans and grants.

Fannie Mae

• Fannie Mae partnered with the National Home of Your Own Alliance to develop a mortgage product that meets the needs of persons with disabilities. As a result of this partnership, Community HomeChoice™ was designed for persons with disabilities and their families.

Community HomeChoice™ Mortgage

•100% financing is available.

•grants and assistance to help with down payment and closing costs; access modifications and property repairs; budget management; support services that include homeownership education.

Community HomeChoice™ Mortgage (continued)

•Eligible borrowers include low- or moderate-income person defined as disabled by the Americans with Disabilities Act of 1990 or defined as handicapped by the Fair Housing Amendments Act of 1988.

•Owner-occupied single-family detached homes, townhouses, and condominiums are eligible.

Community HomeChoice™ Mortgage (continued)

• Co-borrower not living in the home may be part of the transaction, if a family member or legal guardian.

• Check locally, as this varies from state to state.

Community Reinvestment Act (CRA)

• Federal law that requires banks offering services in a neighborhood to make mortgages available to it customers. Most banks have CRA officers or departments to ensure they meet federal requirements for investing in their service areas.

Section 8

•Section 8 program - rental assistance program that works through federally funded, local housing authorities.

•Subsidizes renter’s payment by paying landlord the bulk of the monthly rent. In some areas can be applied to a monthly mortgage payment.

Telephone Lifeline Program

• Offered on a state-by-state basis. Provides financial assistance to low-income residents to help ensure basic telephone services. Programs provide discounts when establishing service, lower monthly service charges and special payment arrangements.

Energy Assistance Programs

• Energy assistance is available at the state level through HUD Low Income Energy Assistance Program (LHEAP).

Tax Abatement Programs

• Many counties and municipalities have tax abatement programs for persons on fixed incomes--seniors, veterans, and persons with disabilities. Your knowledge of these municipalities and their tax policies can be critical in the qualification process.

Working Locally with Agencies

• It is important to know your local agencies.• Many agencies serving persons with

disabilities have funds to assist with housing expenses, utilities, food, case management services, homemaker services, personal care aides, and other supports that help one live independently.

• Some agencies may help with down payment or closing costs.

Agency Caseworkers

• Caseworkers may accompany people to look at houses and assist them with answering questions, interpreting responses, completing mortgage applications, and building bridges between the potential buyer and the real estate agent.

State and Local Programs Vary

• To find out about programs that may be available in your state, contact your state’s Housing Finance Agency. See the National Council of State Housing Agencies to locate the financing agency in your state.

www.ncsha.org/section.cfm/4/39/187.

Representative Payees

• An agency, family member, or friend can act as your client’s representative payee. This person handles paying the person’s bills, including the mortgage payment. A representative payee is appointed by the Social Security Administration for persons not able to make appropriate decisions.

Budget Based Qualifying

• Budget-based qualifying looks at the total of all sources of income-income from families, benefits, entitlements, employment income, trust income, down payment and closing cost assistance programs, and other services to determine qualification for a mortgage.

Blending Sources - Example

•Kathy had a skiing accident that resulted in physical and cognitive disabilities, so she is not able to work full-time and requires assistance with her daily activities.

Blending Sources – Example (continued)

• Kathy receives Social Security Disability Insurance, food stamps, heating assistance, Telephone Lifeline, trust income, and room and board income from a live in-caregiver. Kathy’s monthly income is predictable, and the income is expected to continue for the rest of her life. At times she has some employment income from part-time employment, but that income is not predictable.

• Kathy’s income is based more upon budget-based revenue sources than an income-based situation. If Kathy were to apply for a mortgage, all of the sources discussed must be taken into consideration to determine her actual total income.

Funds for Accessibility Modifications

• Handi-Ramp developed a Home Access program that real estate professionals can join to

provide additional services to those with a need for accessible housing;

network with potential clients as well as other consultants; become a specialist in providing ADA accessible housing; and access a personal ADA advisor.

• See www.homeaccessprogram.org/ for more information.

Funds For Accessibility Modifications (continued)

• Minnesota’s Housing Finance Agency has a comprehensive list of accessibility remodeling funding sources.

www.mhfa.state.mn.us/homes/Access_Financing_Grid.pdf.

IV. Accessibility Issues Learning Objectives

• Distinguish adaptable, accessible and universal design

• Describe concepts of accessibility• List Principles of Universal Design• Match prospective buyers’ needs to homes

in your market• Describe typical types of accommodations

and prepare appropriately to show homes

Reasonable Accommodation

• Federal and state laws require businesses to make reasonable accommodations for employees and customers

• Most accommodations for people with disabilities are reasonable and cost less than $1,000

Accessible Design

Accessible features are permanently fixed inplace and noticeable. Examples:• Wide Doors• Lowered counter tops• Hallway clearance for wheelchairs• Knee space under countertops• Roll-in shower• Lowered switches and controls

Fair Housing’s Seven Requirements for Basic Access

• Accessible entrance on accessible route• Accessible common and public use areas• Doors useable by a person in a wheelchair• Accessible route to and through the dwelling• Accessible light switches, outlets,

thermostats and environmental controls• Reinforced walls in bathroom for installation

of grab bars• Useable kitchen and bathrooms

Adaptable Design

• Adaptable features are generally adjustable and can be easily added or removed in a short time by unskilled labor

• The American National Standards Institute (ANSI) standards specify adaptability criteria, which provide full level accessibility when adjustments are made

Universal Design

• Items and features that can be used by anybody, regardless of ability

• A related term is lifetime homes which allow aging-in-place – living in one’s home safely, independently, and comfortably, regardless of age or ability level.

Principles of Universal Design

• Equitable use• Flexibility in use• Simple and intuitive• Perceptible information• Tolerance for error• Low physical effort• Appropriate size and space for approach and

use

Prepare for the Showing

• Find out what’s important to the prospective buyer in deciding what to show

• Ask what accommodations will help

• Locate state assistive technology office to find where to rent equipment, find an interpreter or to cost out modifications

• (see www.handiramp.com/resources/assistivetech.htm or www.abledata.com)

Accommodations for Hearing Impairment

• Use of interpreters• Telephone relay and TTY• Amplified sound systems• Captioned videos• Advanced written materials for review

Accommodations for Blindness/Low Vision

• Accurate verbal descriptions• Offering your elbow to guide• Different textures of floor surface• Information in Braille or large print• Information on audio tapes• Enhanced lighting; reading information to

client

Accommodations for Intellectual or Speech Impairment

• Careful, simplified conversations• Asking assistance of family members and support

staff• Providing information in advance• Patient listening• Asking for clarification• Communication boards with letters and symbols for

people to communicate by pointing

Accommodations for Physical Disabilities

• Ramps (or temporary ramps), wide doors and hallways

• Family and staff people• Neighborhoods with flat terrain and curb

cuts• Ranch style structures• No-step entrances and elevators or lifts• Accessible transportation

Industry Profile: Tamara Emam, Prudential Georgia Realty, Atlanta GA

Market provides challenge, creativity

• “Because there are few truly accessible homes on the market, in time I found these sales easier and quicker than conventional ones--you’re putting together a small pool of buyers with a small pool of sellers, so it’s more targeted…

• Over 10 years, I’ve probably sold 10-15 accessible homes. I like the mental challenge and creativity involved.”

V. Strategies for Reaching People with Disabilities

• Create strategies for outreach• Determine elements to include in your

materials• Research and become familiar with agencies

and resources in your area and their services

Introduce yourself to local agencies serving people with disabilities

• Become acquainted. Let local agency staff know of your interest in working with them

• Ask someone at a local agencies or independent living center to conduct an accessibility audit of your office

Is your office accessible? Steps to remove barriers• Install ramps and make curb cuts• Reposition shelves• Rearrange furniture, racks etc• Reposition telephones• Add raised markings on elevator buttons• Widen doors and install offset hinges• Install raised seat and grab bars in bathroom• Create and designate accessible parking spaces

Getting to know community resources

• Provider agencies• Independent Living Centers• Developmental Disabilities Planning Council• University Institute on Disability• Organizations serving people with disabilities• Attorneys specializing in trusts and guardianship• Lenders with special mortgage products• Affordable Housing Organizations• Publications that reach people with disabilities

• Make a contact list and keep it handy

Your marketing materials

• Develop a packet to market your services and include:

– Prequalifying sheets– List of lenders with special products– Press releases profiling any sales– TTY number – Hold special seminars or services such as

accessibility audits

Industry Profile: Stephen Beard, Keller Williams Realty, Oakland, CA

Developing a niche market“ I have built my business around service to the

disability community. There are three components to my marketing strategy.– Direct mail and e-mail with consistent focus– Regular public homeowners seminars– Networking with the community

“Business partnerships also make this work. I’ve built relationships with consistent focus, regular homeowner seminars and networking.”

VI Case Studies

• Your Customers– The Davis family– Norman Fredericks– Amy Barrett

Case Studies - continued

Salesperson Alice Greggs’ Customers• Etiquette Issues• First Party Trust• Third Party Trust• Preparing to show homes• Modifications• Marketing

Appendix

Budge-based Qualifying Worksheets

– Joe Johnson-typical customer– Blank worksheets for your customers