Helping current owners stay in their homes is key to increasing Black homeownership in the St. Louis region.
Midwest BankCentre and the Rising Together Foundation have launched an affordable home repair initiative backed by an $865,000 grant from the James S. McDonnell Foundation. The program is designed to help homeowners pay for major repairs without relying on high-cost borrowing options.
“Some homeowners don’t have the equity required for traditional lines of credit,” said Orvin Kimbrough, chair and CEO of Midwest BankCentre. “In many cases, the loan amounts needed for repairs fall into an underserved range that is too large for charitable assistance but too small or too complex for conventional lending products.”
The program offers what organizers describe as lower-cost, credit-building loans to help homeowners address repair needs while maintaining long-term housing stability.
Researchers at the University of Missouri–St. Louis have found that the region has one of the nation’s oldest housing stocks. Repairs for roofs, plumbing or HVAC systems can exceed $10,000, and average repair needs at many homes top $13,000.
For some homeowners, those costs can lead to higher-risk borrowing. Payday loans can carry annual percentage rates approaching 400%, while credit card rates often exceed 20%, increasing financial strain.
Access to traditional credit can also be limited. Homes in majority-Black neighborhoods are valued about 23% lower than comparable homes in non-Black neighborhoods, according to the Brookings Institution, which can reduce access to equity-based lending.
“Even homeowners with steady incomes and long histories of paying their bills can struggle to qualify for traditional lending products,” said Jason Purnell, president and CEO of the foundation. “With many families facing increasing repair needs across the region, we saw an opportunity to support a more sustainable solution.”
Housing advocates say delayed repairs can affect more than individual households.
“Delayed repairs at multiple households in a neighborhood can contribute to declining property conditions, loss of household wealth and increased housing instability,” said Gigi MacMullan, the foundation’s director.
Program details
The Affordable Home Repair Program offers loans of up to $20,000, with terms of up to five years.
It is aimed at homeowners who may lack sufficient equity, comparable property values or strong credit histories — factors that often limit access to conventional financing despite stable income.
Eligible households include those earning below 80% of the area median income or living in low- to moderate-income census tracts.
The program also includes support services such as financial coaching, contractor referrals and homeowner education. Midwest BankCentre will originate and service the loans.
Organizers say the model is intended to be repayable and scalable, allowing funds to be reused over time rather than relying solely on one-time subsidies.
Similar efforts elsewhere have shown potential neighborhood-level impact. In Philadelphia, a city home repair initiative was associated with lower crime rates on blocks where homes were repaired, according to research from the University of Pennsylvania.