Legal Aid helps Northeast Ohioans get ‘Economic Justice’

By Tonya Sams

Money issues can cause an enormous amount of stress and fear. Concerns about money can determine housing choices, whether or not basic needs are met, a person’s quality of life, and more. Money stressors not only include the size of a paycheck or being in debt, but also employment and unemployment issues, foreclosures, estate planning, taxes, and bankruptcy. The Economic Justice group at The Legal Aid Society of Cleveland helps clients navigate the waters of difficult legal financial woes.

“The Economic Justice Group provides direct representation for clients needing legal assistance related to money and advocates for systemic change that will result in greater economic stability for our client community,” said Barbara Barreno-Paschall, senior attorney in the Economic Justice group. “The five legal areas that the Economic Justice group focuses on are employment, consumer, tax, bankruptcy, and estate planning.”

When assisting with employment issues, economic justice attorneys help clients remove barriers to employment such as sealing criminal records or applying for a Certification of Qualification for Employment or CQE (part of an Ohio law that helps people with criminal records obtain employment), sealing and expunging juvenile records, and employment discrimination.

Clients experiencing consumer legal issues are assisted with mortgage and property tax foreclosure, debt collection lawsuits, car repossessions, student loans, payday loans, auto title loans, and medical or nursing home collection.

Economic Justice attorneys also help clients settle disputes with the Internal Revenue Service (IRS) about personal federal income taxes and file for Chapter 7 bankruptcy protection. They also help with estate planning, including helping clients with wills and clearing tangled property titles.

There is one area of law where the Economic Justice group receives the most requests for assistance.

“Historically, we get a huge number of requests for bankruptcy assistance. We saw a drop off during the pandemic when debt collection was paused, but our bankruptcy numbers have been increasing over the last year,” Barreno-Paschall said. “Individuals who have low income often find themselves in financial situations in which they have accumulated debt that they are unable to pay off, no matter how much they would like to do so.”

The state of the economy can have a huge impact on bankruptcy cases.
“As prices have risen due to changing economic conditions, it has become harder for our client community to keep up with increased living expenses.

This would include housing costs, transportation, and food, when their wages are not increasing at the same rate, or when they are on a fixed income such as Social Security,” Barreno-Paschall said. “For many Americans, they are one car accident or health emergency away from not being able to pay their bills each month because they have not been able to save due to increased costs and stagnant wages.”

The Legal Aid Society of Cleveland serves residents of Ashtabula, Cuyahoga, Geauga, Lake, and Lorain counties. To get help with financial legal issues, call Legal Aid’s Economic Justice infoline at 216-861-5899, or seek help online at www.lasclev.org.

Tonya Sams is a Development & Communications Manager at The Legal Aid Society of Cleveland.

California’s $20 Fast Food Wage: Mixed Impact Ohio for Workers and Businesses

By Izzy Aparicio

California’s recent enactment of a new law, establishing a separate minimum wage of $20 specifically for fast-food restaurant employees, has ignited a significant debate. Effective April 1, this wage hike represents a substantial 25% increase for some workers. While many employees welcome the boost in their earnings, business owners are grappling with the accompanying financial strain.

Franchise owners statewide have swiftly implemented measures to counterbalance the heightened labor costs. Reports abound of businesses trimming employee hours and, in some cases, resorting to layoffs, with Pizza Hut announcing plans to eliminate 1,000 delivery driver positions.

Consumers have also felt the reverberations of the wage increase. Nearly all fast-food establishments have adjusted their pricing structures, citing the need to balance operational expenses. Many have preemptively initiated price hikes, with increases ranging from 5%-15% across various menu items. Consequently, customers find themselves confronted with higher costs for familiar products, impacting their purchasing power and household budgets.

Amid these developments, a central question emerges: who benefits from this wage adjustment? Primarily, it remains a positive development for workers. Given California’s status as one of the most expensive places to live in the United States, employees understandably welcome the additional income, which enables them to better afford essential expenses such as groceries and bills. However, for business owners, the situation presents a complex challenge. The looming question is whether they will persist in reducing staff and cutting hours or if they will discover alternative strategies to navigate the financial landscape. Only time will reveal the long-term implications for both workers and businesses in California’s fast-food industry.

While the $20 fast food wage law may benefit workers by increasing their incomes, it could also have negative consequences for businesses, employment opportunities, and economic competitiveness in California.

Potential Negative Effects:

Job Losses: Businesses may respond to increased labor costs by reducing their workforce through layoffs or hiring freezes.
Reduced Hours: Employers may cut back on employee hours to offset higher wages, resulting in reduced income for workers.
Business Closure: Smaller or struggling businesses may find it challenging to absorb higher labor costs and may be forced to close.
Price Inflation: Businesses may raise prices on products and services to cover increased labor costs, impacting consumers’ purchasing power
Reduced Hiring: Higher labor costs may discourage businesses from hiring new employees or expanding operations, hindering job growth
Competitive Disadvantage: Businesses in California may face a competitive disadvantage compared to neighboring states with lower minimum wages.

Potential Positive Effects:

Higher Incomes: The wage increase directly benefits fast-food workers, potentially improving their quality of life.
Reduced Income Inequality: Increasing the minimum wage can help reduce income inequality.
Increased Consumer Spending: Higher wages could lead to increased consumer spending, benefiting local businesses.

Improved Morale and Productivity:

Higher wages can boost employee morale and productivity.

Social Benefits: Higher wages can lead to improved overall well-being for workers.

Potential for Economic Growth:

The wage increase could stimulate economic growth and create demand for goods and services.

While there may be concerns about the negative impacts, higher wages can also bring positive outcomes for workers, businesses, and the economy as a whole. Overall, the adoption of a $20 fast food wage law in Ohio policymakers would need to carefully consider these factors and weigh the potential benefits against the potential drawbacks before implementing such a policy.

Savvy Consumers and Avoiding Scams

By Tonya Sams

With so many ways for consumers to spend their money, it is easy to become a victim of scams. Eric Zell, a supervising attorney in the Economic Justice group at The Legal Aid of Society of Cleveland, offers a few tips to keep your money safe.

One way to avoid being swindled is to conduct research to find out if the person or company you want to do business with is legitimate. This includes understanding the products and services being offered and researching to look for any consumer complaints. Consumers should ask around to find out if others are familiar with the reputation of the people or company that they are planning to do business with.

It is also important for consumers to understand how contracts work. “Read the contract and make sure that you understand what you’re agreeing to,” Zell said. He suggests that if it is hard to understand, find someone who can help you understand the language. “Any person or company that you are interacting with who is offering you a contract should allow you some time to review it,” he said. “It is not a good sign if someone is pressuring you to sign a contract immediately. You should have an opportunity to understand what’s in it and review it, making sure that you understand what you will have to do going forward.” After signing a contract, always keep a copy for your records. This includes keeping copies of documents that are exchanged after the contract has been signed, like payments and receipts. This will be helpful if you have any problems later and need to provide documentation.

This tip also applies when purchasing a vehicle. “Car dealers may try to hide information from you. They will not necessarily tell you everything upfront, so you need to review the paperwork thoroughly to understand what your monthly obligations are going to be,” Zell said. “You need to understand whether there are additional fees or services added.”

Zell said that it is also important not to be fooled by low-cost or free offers. Always read the fine print so you know what you’re agreeing to. If it sounds too good to be true, then it probably is. “People can be scammed when they think they are signing up for a free offer, but their credit information is still collected,” Zell said. “Then down the road, they are charged for other services or fees.”

Keeping your personal information safe is also important. If a company is contacting you, make sure they are who they claim to be. Zell said that financial institutions or government entities like the social security administration or IRS will never reach out to people by phone or email unexpectedly. If you have doubts, hang up the phone and call the number that you know is correct to reach them directly.

Legal Aid offers online resources on consumer issues, bankruptcy, and other money-related issues. Visit lasclev.org, click on the “Services & Resources” tab, click “Legal Resources,” and then select “Money.”

Do you have questions regarding money-related issues? Legal Aid may be able to help! Call Legal Aid at 888-817-3777 during normal business hours or apply online 24/7 at lasclev.org/apply.

Tonya Sams is the Development and Communications Assistant for The Legal Aid Society of Cleveland.

Prepare For Return of Student Loan Payments

By Tonya Sams

With the pause on federal student loan payments expected to come to an end this summer, there are many ways that borrowers can prepare themselves when it is time to resume payments.  

Federal student loan borrowers can go to the Department of Education’s website and apply for repayment plans. One set of repayment options is known as Income-Driven Repayment plans (IDR). These plans set a monthly payment based on a borrower’s income, and are especially beneficial for low-income borrowers.

There are two ways a borrower can enroll in an IDR plan. First, a borrower can ask their loan holder or servicer to put them into the plan with the lowest monthly payment. This is likely the best option for most borrowers seeking IDR. A borrower can also choose their own IDR plan. More details about these plans are available at studentaid.gov/idr/ or www2.ed.gov/fund/grants-college.html?src=rn.

There are also time-limited options available to certain student loan borrowers. The borrower would need to apply over the next year. One such option is the Fresh Start program. This program is good for borrowers who defaulted on their federal student loans before the pandemic. It allows those borrowers to be put back in good standing with their loans without suffering from the consequences of defaulting on their loans. This program gives those borrowers access to federal student aid again and makes them eligible for other federal student loans. It also stops collections and helps to repair credit reports that had been negatively impacted by student loans that were in default. Eligible borrowers can apply for the Fresh Start program by calling the Default Resolution Group at the U.S. Department of Education at 1-800-621-3115. If a borrower has a federal loan that is held by a commercial entity, they can figure out who to contact by visiting studentaid.gov/manage-loans/default#guaranty-agencies.  

Another time-limited option is the Income-Driven Repayment (IDR) Account Adjustment. With this policy, the Department of Education looks at borrowers who were making payments before the pandemic and ensures that those payments count towards their IDR forgiveness.  This includes those borrowers who were in forbearance for over a year, in cumulative forbearance for over three years, and those in deferment including economic hardships and military deferments (except for school deferments before 2013). Borrowers with commercially-held federal loans will need to consolidate those loans to be eligible for the account adjustment.

Legal Aid offers several online student loan resources. Visit lasclev.org, click on the “Services & Resources” tab, and hit “Legal Resources.” Then select “Money” and click on “Student Loans.”

Do you have questions regarding your federal student loans? Legal Aid may be able to help! Call our Economic Justice Information Line at 216-861-5899. You can also call Legal Aid for civil legal matters at 888-817-3777 during normal business hours or apply online 24/7 at  lasclev.org/apply.

Tonya Sams is the Development and Communications Assistant at The Legal Aid Society of Cleveland.

Health is Wealth, and Wealth is Health: Take Charge of Your Health by Securing Your Finances

by Ikenna Okoro

As we celebrate the month of May and Mental Health Awareness Month, let’s talk about how health and wealth are connected and why it’s important to take care of both.

Over 10 years ago, after the financial crisis of 2008, the American Psychological Association found that almost half of all Americans were suffering from moderate to high levels of stress. Unshockingly, the number one reason cited for this stress was money. Now, fast forward to the present day. Worries about money, job stability, and the economy are still at the top of everyone’s minds as we try our best to recover from the aftermath of the pandemic. Folks are stressed more than ever, and that can have adverse effects on their mental and physical health.

Have you ever heard the phrase, stress can kill? If so, have you ever wondered how? Chronic stress can affect you in many ways, but to explain what it can look like, let’s start with the story of John Henry.

During the late 1800s, a Black man named John Henry became famous for his impressive strength and endurance while working on railroads and tunnels in the Ohio River Valley. Due to his abilities, he was known as a “steel-driving man,” one of the most physically demanding roles on the railroad.

In the early 1870s, when the mechanical drill became more popular for companies to use, steel-driving men became obsolete. In an effort to protect his livelihood, however, Henry participated in an intense competition against a mechanical steam drill. Although the contest was close, Henry, who swung a nine-pound hammer, managed to win the race in the final moments.

However, seconds after the competition ended, he dropped dead from complete physical and mental exhaustion, having worked himself to death.

Although his case was extreme, John Henry’s story represents a tale that is all too familiar, especially within the Black community. The pressure that is often put on individuals to provide for themselves or others can become immense, causing neglect of health and well-being in order to fulfill financial needs.

How does stress kill?

When stress becomes too much for our body to handle, hormones are released that increase blood pressure, elevate heart rate, increase blood sugar levels, and depress our immune system—making it easier to get sick. These effects ultimately lead to a higher risk for physical illnesses like hypertension, diabetes, and heart disease, but also mental health issues such as anxiety and depression.

So, if stress can kill, and financial worries are the biggest stressors that people have, it is equally important for individuals to take care of their health as it is to take care of their wealth.

Here are a couple of ways to take care of both:

Talk to a financial expert. Whether it is a financial advisor, a banker, or a local organization, it is important to seek guidance in your financial journey. Organizations such as the Phe’be Foundation offer free personal finance resources and education. Check out our website for more information (https://www.phebefoundation.org/).

Prioritize personal time and make it a habit. Whether it’s taking a stroll, exercising, taking a break from work, or indulging in self-care practices like getting a massage, carve out time for yourself to decompress from undue stress.

Keep your mind on your money, but your money off your mind. Write things down. Bills, needs, and other expenses can take up a lot of mental space, creating unwanted anxiety and stress. To alleviate these feelings and help you remember important dates like credit card payments, write down these items in a journal (physical or virtual), utilize a calendar for reminders, or use budgeting apps like Mint to keep track of expenses.

Build a supportive social network (professional or nonprofessional). The people you surround yourself with can significantly impact your approach to situations and how you interpret them. It’s important to have people who can tell you when you’re overworking yourself.

Schedule regular physical health check-ups, at least once a year. Being proactive and aware of your body’s condition is far better than being reactive when it’s too late.

So the next time you hear someone say you should take some time for yourself, or the next time you think about skipping that doctor’s appointment, re-evaluate your behaviors and ask yourself: What are you doing to best take care of your health, and what can you do to improve it? Finding a balance between your mental, physical, and financial health is key.

PS – Did you know Cleveland will have its own Wealth Wellness Weekend this summer? Mark your calendars for July 21-23! Visit www.phebefoundation.org or follow @thephebefoundation on Instagram to stay up to date!

Ikenna Okoro is a Cleveland native and advisory board member of the Phe’be Foundation. He also serves as the Chair of the Phe’be Foundation’s “Boys to Men with Money” committee, a body dedicated to fighting financial illiteracy for men of all ages.

Save the Dream Ohio – Mortgage and Utilities Assistance

Having Trouble Paying Your Mortgage or Utilities?

Save the Dream Ohio provides assistance to Ohio homeowners facing foreclosure and/or who cannot afford to pay their mortgage payments or other related housing costs as a result of economic hardship caused by the COVID-19 pandemic. The program is administered by the Ohio Housing Finance Agency, and is expected to continue through September 30, 2025 or until the available funding is depleted.

Prequalify Today

Save the Dream Ohio – Mortgage Assistance provides eligible Ohio homeowners with financial assistance to pay delinquent mortgage payments and/or future mortgage payments for up to six months. While the amount of assistance may vary by household, a household may receive up to a combined $25,000 in mortgage assistance.

There is no cost to apply for the program. To qualify for the Save the Dream Ohio program, a household must have their primary residence in Ohio, have experienced financial hardship or loss of income related to the COVID-19 pandemic, and have an income at or below the Save the Dream Ohio income eligibility threshold. (see chart below)

Family Income

1 person income family cannot exceed $103,350 2 person income family cannot exceed $118,200

3 person income family cannot exceed $132,900 4 person income family cannot exceed $147,600

5 person income family cannot exceed $159,450 6 person income family cannot exceed $171,300

7 person income family cannot exceed $183,150 8 person income family cannot exceed $194,850

When completing an application, homeowners will be required to include copies of the following documents:

Mortgage Statement
Most recent tax return or most recent 30 days income for all adult household members. Here are documents you may provide if you do not have a tax return:
- W2 wage jobs paystubs showing employer name, address and phone, employee name, year-to-date gross earnings, gross hourly or salary payment rate for the pay period; and number of hours worked in the pay period.
- Self-employment and Gig Economy Jobs require most recent quarterly profit and loss statement, all pages of statements for all bank accounts (business and personal) for the same three month period, and most recent tax return with all schedules.
- Interest, royalty and dividend income require most recent tax return with all schedules.
- Social Security, SSI, disability, Veteran’s benefits, insurance policies, retirement funds, pensions, death benefits and other annuitized periodic payments (lottery winnings, trust payments, severance payments, settlements, life insurance) require most recent award letters or payment statements. Lump sum payments are excluded.
- Unemployment, disability, worker’s compensation, and severance pay require most recent award letter or payment statement.
- Government cash assistance and housing subsidies require most recent award letter or payment statement.
- Child support, alimony, separate maintenance and gifts require most recent award letter, divorce decree, court document or payment statement.
- Regular, special pay and allowances for members of the Armed Forces require most recent award letter or payment statement.
- Section 8 financial assistance in excess of tuition require most recent award letter or payment statement.
- Rent from roommate requires a lease or proof of payment.

Not all mortgage lenders and servicers are enrolled in the program.

Prequalify Today Help, I don’t qualify.

Save the Dream Ohio – Utility Assistance Plus

Save the Dream Ohio – Utility Assistance Plus provides eligible Ohio homeowners with financial assistance to pay delinquent utility bills, property taxes, and other housing costs not included in the mortgage payment. A household may receive up to combined $10,000 in utility and/or housing cost assistance.

To qualify for the Save the Dream Ohio program, a household must have their primary residence in Ohio, have experienced financial hardship or loss of income related to the COVID-19 pandemic, and have an income at or below the Save the Dream Ohio income eligibility threshold (see chart below).

Persons in Family
1	2	3	4	5	6	7	8
$103,350	$118,200	$132,900	$147,600	$159,450	$171,300	$183,150	$194,850

Utility Assistance Plus Program Guidelines

Utility Assistance Plus Program Guidelines

OHFA is working with Community Action Agencies across the state to administer this component of the program. Ohio homeowners needing assistance through the utility assistance plus, apply through their local Community Action Agency.

Understanding Stock Symbols: Decoding $VOO and Beyond

By Ray’Chel Wilson

When you enter the world of investing, you’ll encounter a variety of symbols that represent different stocks and funds. One such symbol is $VOO. Let’s break it down and explore the broader concepts of stock symbols.

Ticker Symbol Basics:

A ticker symbol is a concise code used to identify and refer to specific stocks or funds. It serves as a unique identifier within the financial market.

The stock symbol $VOO represents the Vanguard S&P 500 ETF. Here’s what each component signifies:

“$” Symbol: The dollar sign denotes that $VOO is publicly traded and available for buying and selling on stock exchanges.
“VOO” Letters: The specific combination of letters represents the unique identifier for the Vanguard S&P 500 ETF.

Vanguard S&P 500 ETF:

The Vanguard S&P 500 ETF is an investment fund provided by Vanguard, a prominent investment management company. An ETF is a type of investment fund that is traded on stock exchanges, similar to individual stocks. The Vanguard S&P 500 ETF specifically aims to track the performance of the S&P 500 index.

Understanding Stocks:

Beyond $VOO, it’s important to grasp the broader concept of stocks. Stocks represent shares of ownership in a company. When you buy stocks, you become a shareholder, entitled to a portion of the company’s profits and potential voting rights. Stocks can be issued by various companies and can be traded on stock exchanges.

Benefits of Investing in ETFs:

Investing in ETFs, like the Vanguard S&P 500 ETF, offers several advantages –

Diversification: ETFs provide exposure to a diversified portfolio of assets, such as stocks, bonds, or commodities. This diversification helps reduce risk by spreading investments across different sectors or industries.
Accessibility: ETFs can be bought and sold on stock exchanges throughout the trading day, making them easily accessible to individual investors.
Cost Efficiency: ETFs often have lower expense ratios compared to mutual funds, making them a cost-effective investment option.

Remember that investing in stocks, including ETFs, carries inherent risks. Factors such as market volatility, economic conditions, and company-specific developments can affect stock prices. It’s crucial to conduct thorough research and consider consulting with a financial advisor before making any investment decisions.

In conclusion, understanding stock symbols is essential when navigating the financial markets. By decoding the stock symbol $VOO and exploring broader concepts, you can gain a clearer understanding of how stocks and ETFs function. Make informed investment choices and seek professional advice to help guide your investment journey.

Happy wealth-building!

Ray’Chel Wilson, CFEI ® , is a Toledo native, author of the Black Wealth Freedom series and CEO of Raise the Bar Investments, all things minority-friendly, personal finance. Ray’Chel is also the founder of an upcoming app, #ForOurLastNames, empowering first-generation investors. After paying off her student loans from cryptocurrency, her mission has been to close the racial & gender wealth gaps through investing.

How I Lived On A $14k Salary

By Anthony Ying

Living on $14k was a challenge I chose to embrace during my gap year because I knew that if I could survive the year on my stipend, without any government support (i.e. food stamps), I would be able to thrive with any salary that I earned in the future. Though many of my coworkers chose to work a second job to earn more, I chose the route of finding ways to spend less so that I could allocate time for self-care and would be at my best for the students I serve.

How did I keep my costs low?

Rent/Utilities: Because our apartment was barely bigger than the size of two classrooms, our utility costs were very low, often around $50 per person. In addition, we were also very vigilant about turning off the lights and altering the thermostat so as to not incur unnecessary utility costs.
Transportation: Instead of owning a car and having to deal with all the liabilities behind it, I opted to buy a monthly RTA pass for use. Fortunately, the apartment I lived in was within a five-minute walking distance from a major connection station which meant I was usually only one bus away from most places in Cleveland.
Groceries: At Aldi’s, I would buy most of my groceries save for starch which I would choose to shop for at Costco in bulk. To save costs but keep nutrition at a reasonable level, I stuck to a simple meal plan routine of one protein, one vegetable, and one starch for most of my meals. Because these meals would get boring, I made sure to store fruit and granola bars in my lunch bag for a quick snack. Last but not least, I would mix Soylent and coffee for a daily breakfast. For me, it was a quick and cost-effective meal to ensure I had enough vitamins and minerals to start my day.
Entertainment: Gym membership was perhaps the most expensive part of my budget, but it came with certain amenities that helped to offset the cost. Complimentary coffee and toiletries made it easy to save on supplies at home. Therefore it was justifiable for me and also represented a productive and cost-effective outlet for relieving stress from working within the schools.

Advice for people living on low income

- Be creative with splitting costs: For instance, not only did my roommates and I sign up for a promotional offer for internet service, but we also split WiFi among six people to reduce the cost further.
- Limit liabilities: By liabilities, I mean services or expenses that exist only to take away from your bank account each month and do not seek to add or prevent loss. Before making a financial decision please consider asking this question “Do I need to have this item or service or is there an alternative that I can afford and manage?” If there is, consider switching. For example, paying for streaming services instead of borrowing movies from the library.
- Reduce meat consumption: This is both for financial and health reasons as protein can come in many forms but does not need to come from only meat. In fact, protein alternatives can afford one the same amount of protein but at a quarter or half the cost.
- Automate savings: Regardless of limiting a budget, there are always instances that will come up and can destroy any sound financial plan. Even if there is not much to save, building for unexpected expenses can save you from further trouble.

Anthony Ying is a Youth Advisory Board Member for The Phe’be Foundation. He wishes to thank his friends and family for their generosity and support during the challenging gap year he had. Without their support he would not have made it through.

Exploring Investment Options In a Shifting Economy

By Ray’Chel Wilson

Investing in today’s economy can be a challenging task, especially if you’re unsure about where to begin. After establishing a budget and an emergency savings fund, it’s natural to think about investing your money. However, in this ever-changing world, it’s crucial to consider how to invest in this economy. One of the most important investment principles, especially as world and US economics shift, is diversification. By spreading your investments across different asset classes, you can help reduce your overall risk and add protection to your assets from market volatility.

Diversification is key, which means the days of investing in only one asset are over. If you want to get ahead of the curve, it’s time to explore different investment options. Here are a few methods to research that can protect your assets against fluctuations in the value of the U.S. dollar (USD):

Consider non-U.S. currencies & companies: Instead of holding all of your investments in USD, you could diversify by investing in non-U.S. assets, such as foreign exchange-traded funds (ETFs), and index funds like $VWO, $EFA, $IXUS, $DLS, or $BWX.
Consider precious metals: Precious metals such as gold, silver, and platinum can provide protection against inflation and currency fluctuations. You can invest in physical metals or through ETFs that track the price of these metals, such as $AAAU, $OUNZ, or $IAUF.
Consider real estate: Real estate can be a good long-term investment option that can provide a steady stream of income through rental payments or appreciation in property value. This can be done through purchasing land or property, or investing in real estate investment trusts (REITs).
Consider cryptocurrency: Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin can provide an alternative investment option to traditional currencies. However, investing in cryptocurrencies can be volatile and should be done with caution.

It’s essential to do your research and consider consulting with a financial advisor before making any investment decisions. These are just a few examples of potential investments on which to educate yourself. For further reading on personal finance & investing, including key terms & phrases needed for your wealth journey, read Personal Finance Crash Course: What They Didn’t Teach You in School.

P.S. – Did you know Cleveland will have its own Wealth Wellness Weekend this summer? Mark your calendars for July 21-23! Visit www.phebefoundation.org or follow @thephebefoundation on Instagram to stay up to date!

Happy wealth-building!

Ray’Chel Wilson, CFEI®, a Toledo native, the author of the Black Wealth Freedom series, and CEO of Raise the Bar Investments. Ray’Chel is also the founder of an upcoming app, #ForOurLastNames, empowering first-generation investors. Her mission is to close the racial & gender wealth gaps through investing.

How About A “Senior Freeze” on Property Tax?

By Ron Calhoun

Senior citizens, along with permanently and totally disabled middle-class Ohioans (Income of $30K+), are unfairly left out of any program that aids them in maintaining their homes. For some elderly people, it is a matter of potentially losing their homes. When Black flight followed redlining and white flight, these residents dug in and stayed put in Cleveland, while others of those middle-class and wealthy Black families moved to the suburbs and rural areas of Greater Cleveland. The list for Black flight includes Solon, Twinsburg, Hudson, and Macedonia.

Although Ohio has the Ohio Homestead Exemption program, it is not enough.

The Ohio Homestead exemption allows low-income senior citizens and permanently and totally disabled Ohioans to reduce their property tax bills by shielding some of the market value of their homes from taxation. The exemption, which takes the form of a credit on property tax bills, allows qualifying homeowners to exempt up to $25,000 of the market value of their homes from all local property taxes. For example, through the homestead exemption, a home with a market value of $100,000 is billed as if it is worth $75,000.

The Ohio Revised Code initially established a maximum Ohio Adjusted Gross Income (OAGI) for the applicant and the applicant’s spouse of $30,000. This maximum is to be indexed for inflation each year. OAGI can be found on line 3 of the Ohio Individual Income Tax return. With indexing, the 2022 income threshold is $34,600. The 2021 income threshold was $34,200, the 2020 income threshold was $33,600, the 2019 was $32,800, 2018 was $32,200, and 2017 was $31,800.

For more information, including the average tax saving, please Check here.

Cleveland also has a new tax abatement initiative for first-time home ownership or new construction development for those who want to purchase or build a home.

Want to know more about the Cleveland Tax Abatement Study? Read here.

The Cleveland / Cuyahoga County Down Payment Assistance (DPA) Program provides up to 10% of the purchase price (or up to $16,600) for Cuyahoga County residents whose income is in the low to moderate range. Click here to read more.

What about those who make over $35,00 but less than $50,000 and have been a resident for 20 years or more? Several other States have Tax or Assessment Freeze programs for senior citizens, along with permanently and totally disabled middle-class homeowners.

Several states have adopted similar programs. See the chart below.

Would you support legislation that would help senior citizens and permanently and totally disabled owners keep their homes?

Call 216-236-8081 and leave a voicemail (No last names please!), or make a comment below.