Mitzi Johnson sits on her newly renovated front porch in North Omaha, which was made possible by a zero-interest home improvement loan from the Greenlining Fund of Front Porch Investments. The fund aims to assist counteract the harmful impacts of historical redlining and racially biased financial practices.
OMAHA — The yellow house on Pinkney Street has a rich 125-year history that has influenced Mitzi Johnson’s whole life, as well as generations of family members who have lived there before her.
Some of the past was horrible. Redlining and discriminatory lending practices dating back to the Great Depression plagued the North Omaha neighborhood, where the 1.5-story mansion was built in 1899.
While fair housing rules in the 1960s outlawed racially motivated redlining, the detrimental effects of channeling investment elsewhere lasted in ways that analysts say stifled economic growth and wealth creation in the area. Several residents fled.
What is redlining?
The Federal Reserve defines redlining as the practice of denying people access to financial services based on where they live, even if they are individually suitable for loans.
The word refers to government homeownership and mortgage financing schemes established during the 1930s New Deal. Color-coded maps were utilized to determine the riskiness of neighborhoods.
Historically, mortgage lenders heavily redlined core metropolitan neighborhoods populated primarily by people of color, effectively targeting those regions for disinvestment and deterioration.
Johnson, 49, persevered and finally purchased the home that has served as her family’s base since her great-grandparents, John and Annie Carter, moved there over 50 years ago.
The household is now part of a turnaround project called the Greenlining Fund, which is operated by the organization Front Porch Investments and aims to reverse the negative impacts of prior redlining tactics in North and South Omaha.
Reinvesting in disinvested areas
The fund, which is funded by philanthropic donations, is intended to “reinvest” approximately $1 million every year in order to promote homeownership and wealth creation in Nebraska’s most impoverished communities.
In the Johnsons’ example, Mitzi and her husband Corey were awarded zero-interest financing through a selection procedure to renovate the property, which was initially built with two bedrooms. 1623 Pinkney now features a restored front door, a new kitchen, and updated heating and air conditioning systems.
Johnson is beaming.
“My family’s history is in this house,” she was saying. “The memories I had growing up. The conversations within these walls. The individuals who have passed through those doors. Hopefully, it will one day be a place for my grandchildren’s children to come see me when I am a great grandmother.”
Home sweet home for the Johnsons. (Courtesy Mitzi Johnson)
The Greenlining Fund’s pilot year focused on offering qualified homeowners zero-interest loans of up to $50,000, with loan repayments remitted to the fund.
So far, nine households, including the Johnsons, have undergone loan-covered repairs to ensure their properties remain in the family and develop generational wealth, according to Jody Holston, executive director of Front Porch.
“It’s been overwhelmingly positive,” Holston explained.
For the second year of programming, which begins in 2025, the fund’s community advisory group suggested granting $999,480 to three agencies that will distribute funds to customers and initiatives.
Launching in 2025.
The three recipients of financing are:
Project Houseworks won $580,000 to provide free home repairs and modifications to low-income families and elderly residents in North and South Omaha.
Canopy South was awarded $350,000 to establish a home rehabilitation initiative that will restore properties in previously designated “hazardous” and redlined neighborhoods of South Omaha.
Volunteers Assisting Seniors got $69,480 to promote awareness about Nebraska’s Homestead Exemption program. This program assists older, low-income, and other eligible homeowners in previously redlined neighborhoods in receiving property tax relief and avoiding being forced to relocate.
According to Yolanda Williams, Front Porch’s housing justice and grants manager, the advisory group is a critical component of the program because it is made up of people who have been harmed by historical redlining and systematic disinvestment and thus understand the issues faced by affected neighborhoods.
That committee, as well as the Greenlining Fund and Front Porch, were formed in response to the findings of a 105-page housing affordability and needs assessment study completed in 2021.
Nine local philanthropic groups commissioned the study to better understand the area’s demand for affordable housing.
Front Porch was founded to lead housing initiatives that arose from private and public seed money.
A stark contrast
Stephanie Finklea, a member of the Greenlining advisory committee, grew up near 24th and Sprague Streets in North Omaha with her grandmother. Finklea, the current owner and operator of Black Chick Farm, couldn’t help but observe as a child the striking disparity between investment in grandmother’s neighborhood and others in the metro area.
“My experiences have led me to understand how important homeownership is in connection with financial wellbeing and generational wealth,” says Finklea. “The history of redlining and disinvestment has denied oppressed people access to economic stability.”
The advisory board member has recently noticed a “increase in pride and hope” among those who have received fund assistance.
This house holds my family’s heritage. My childhood recollections. The conversations within these walls. The individuals who have passed through those doors. Hopefully, it will one day be a place for my grandchildren’s children to come see me when I am a great grandmother.
Mitzi Johnson from North Omaha.
Johnson, whose IT career allows her to work primarily from home, said the loan helped launch upgrades she had planned for years but had put off due to credit issues.
Historically, redlining has restricted access to finance, opportunities, and investments in largely Black and Latino communities. According to experts, affected communities and families continue to face unequal playing fields.
The Pinkney Street house was taxed at $57,000 last year and is now worth approximately $68,000. Johnson explained that it never lost sentimental importance for her.
Her mother and her six siblings were reared in the area by their grandparents, who relocated to Omaha from Mississippi. Johnson’s great grandparents purchased the house in 1972.
After Johnson graduated from high school and her great grandparents died, she and a few cousins and a close friend moved into the house. Over time, third and fourth bedrooms were built to the attic and basement.
Many of Johnson’s family and friends had moved on and out of the area, but she remained on Pinkney Street throughout her marriage and raising two children.
She drives her grandson to school a few times a week and is pleased that he attends the same Lothrop Elementary School she did.
Neighbor’s curiosity
Her home modifications have attracted interest among neighbors, who have inquired about the changes.
The rope that had roped off hazardous, soft carpeting on the Johnsons’ front porch has been removed.
“Now we don’t have to fear our grandkids are going to fall through it,” Mr. Johnson added.
She enjoys her new kitchen and looks forward to preparing for large family gatherings.
“It was so dark and gloomy before,” she explained.
Another aspect of the project that Johnson valued was working with Blair Freeman, a Black female-owned local construction company. She saw the Greenlining subcontractor as a symbol of development in the town.
Holston stated that the fund’s top candidates are long-term community members who profit from the opportunity to improve land and pass money down to their children.
“Families that haven’t received the investment they deserved,” she told the crowd.
Johnson stated that there is “definitely still work to be done” to improve the social and economic conditions in her childhood and adult neighborhoods, but she sees progress.
“This is personal for me — to be and stay part of this community,” she told the audience.
Front Porch prizes total $40 million.
The Greenlining Fund is distinct from Front Porch Investment’s larger “preservation and development fund,” which has provided developers and nonprofits with approximately $40 million in low-interest loans and grants since 2022, resulting in the creation of 1,508 affordable housing units in the Omaha metro area.
The City of Omaha charged Front Porch with distributing federal American Rescue Plan Act funding to improve low- to moderate-income housing options, and half, $20 million, came from those funds.
Front Porch leaders hope that the preservation and development fund, which is mostly funded by private philanthropic organizations, will continue to grow and contribute to the development of affordable housing and homeownership options.
The preservation and development fund continues to grow through fundraising efforts. Moving forward, Executive Director Jody Holston stated that the goal is to invest $24 million per year in affordable housing development and $1 million in grants to promote field innovation.