Securing Atlanta’s legacy: Empowering homeowners for lasting community prosperity

By Kaela Hammond, program officer, housing funds

Metro Atlanta continues to grow and thrive, and in many ways, this is an exciting time with opportunity for significant economic growth. As reinvestment comes to many communities within the metro area, it is key to ensure legacy residents are not left behind. As beautiful new homes are built within our historic Atlanta neighborhoods, long-time homeowners nearby must be able to maintain their place in their home community. At the Community Foundation for Greater Atlanta (the Foundation), we understand the value in preserving that sense of community – it drives our place-based work in our three areas of focus. That core value of preserving community drives our work throughout our systems as well, including through our housing work focused on supporting current residents.

Homeownership is a powerful tool to support the generation of wealth. It provides a source of equity for the homeowners, provides a more consistent and controllable monthly expense for homeowners compared to renters, and allows individuals and families to grow deep roots in their community.  Once that initial step of purchasing a home is complete, there are steps homeowners must take to preserve their investment and ensure they are able to realize the full benefit of the equity their investment offers.

Some aspects require only a one-time process, such as the homestead exemption. This reduction in the tax burden on the property must be applied for, but it then carries over for as long as the homeowner continues to reside in the home. Others require ongoing attention, like home maintenance and repairs. Home repairs can become a significant barrier for homeowners to remain in a safe and stable home, as costs rise quickly and issues accumulate over time. One other area rises to the top as an obstacle for successful homeownership which is less well known – the preservation of generational wealth through a clear title. This particular issue can have ramifications for all other areas of home preservation, and is critical to address to enable long-term success for a homeowner.

Many homeowners are familiar with the basic process of estate planning. The homeowners named on the deed of the house create a will indicating who will inherit the property. In some cases this is a very straightforward process, and can be a simple way to ensure future generations of a family benefit from the initial homeowners’ investment. Complications arise, however, when there are multiple beneficiaries of the property named in the will. If done incorrectly, this type of will creates a situation called ‘heirs’ property’, or ‘tangled title’. Since there are now multiple owners of the property, each decision around the home becomes significantly more complicated, requiring approval from all of the heirs. Similarly, if there is no will created in the first place, it can be very difficult for heirs to demonstrate their ownership of the home. Heirs’ property is more common than you may guess, with estimates that more than $47 billion¹ in tax-appraised property value in Georgia is currently covered under a tangled title. Historically, many communities of color have had limited access to the legal system. Where there has been access, in many cases there is a lack of trust, given historic abuses and systemic racism within the United States legal system. As a result, heirs’ property is particularly common within communities of color.

Having a tangled title to a house can lead to a myriad of issues, and creates both formalized barriers and informal complications. Many support systems for homeowners are only accessible to those with a clear title. Home repair programs often require clear title for a homeowner to be eligible for support, as do many tax relief programs, among many other such restrictions. As a logistical hurdle, families often run into issues determining who is responsible for the property’s upkeep. For example, with multiple owners of the property it may be unclear who is responsible for paying property taxes, or paying for maintenance. These misunderstandings can lead to delinquency on property taxes, and a physical deterioration of the home.

Resolving heirs’ property is a complex legal process, generally requiring the support of qualified legal professionals with expertise in this area. The process can take as long as months or even years, and its success is dependent on the dedication of all heirs to resolving the issue. Organizations like Georgia Heirs Property Law Center provide necessary expertise and support in this area, and serve as a critical resource to preserving homeownership.

Once a homeowner holds clear title to their property, there are a number of resources that are focused on allowing legacy homeowners to remain in their home. Homeowners can access support for home repair through organizations like HouseProud Atlanta, Meals on Wheels Atlanta, Rebuilding Together Atlanta, and many of the local Habitat for Humanity affiliates. Invest Atlanta will be launching a property tax relief program later this year, and groups like Gwinnett Housing Corporation and the Solar and Energy Loan Fund can help with weatherization of a home, lowering utility costs and ensuring long-term preservation of the structure. For legal support outside of heirs’ property issues, Atlanta Legal Aid has been providing excellent support for nearly 100 years in Metro Atlanta.

At the Foundation, we believe that supporting affordable homeownership requires a holistic approach. The production of new units and preservation of existing affordable housing stock is essential, as Atlanta is losing more than 1,500 affordable units each year through demolition, renovation, or simply an increase in cost. However, organizations interested in affordable housing must also support policies that enable successful long-term homeownership, as well as programs that provide supports to current homeowners. Our three-pronged approach of production and preservation, policy, and programs, aims to do just that.