6.0. HRSR 06-24-2002 - Laserfiche WebLink

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• Most of the Habitat programs operate with the same principles such as no government funding; sweat equity by the future homeowners and a lot of volunteer labor and materials to keep the homes affordable. • Most chapters have a pool of funds that they use on projects and these funds are then revolved through the repayment of the loan from the homeowner. They would also look to get donated labor and materials to keep the cost of the home low. Most are pretty set on the number of homes they do per year and this varies by chapter. Smaller chapters may only do 1 to 2 homes a year whereas the larger chapters may do 10 or more. • The Sherburne County chapter may have already tried to find a site in the City or will look to the HRA to provide assistance in locating sites, etc. • If you are looking at new single-family development,it is mainly gap financing which is for the homeowner. This is done based on what their gap is between the cost of the home and what they are eligible for a mortgage. The homeowners do not make payments on this so it is not a second loan that they have to pay on but it is due upon the sale of the home,which by that time they have gained enough equity to pay the loan and also have funds for a down payment on a next house. • There are other features as well that help fill the gaps. The basements are usually unfinished and the homeowner does this to build equity,you also get into some of the smart growth concepts such as smaller lot sizes, street widths, etc. There are also other products out there that homeowners can tap into such as down payment and closing cost assistance and lower rate mortgage products. St. Cloud HRA Seventeen deteriorated residential sites were acquired, cleared, and donated to Habitat for Humanity for the building of single-family housing. Future plans are to assist Habitat in the future as lots become available. The changing real estate market has made it very difficult to find eligible properties that are not being absorbed by the market. Funding— 17 projects • CDBG and MHFA funds Funding—Additional projects • Two additional lots were purchased with Housing Authority funds for another project that did not materialize and were sold to Habitat at a discounted price. • The City of St. Cloud also awarded Habitat a site that had become available as excess property in a street reconstruction. North End Area Revitalization (NEAR),A Neighborhood Group in St. Paul NEAR has completed 12 projects in partnership with Habitat in the last three years. They are beginning a new project with Habitat to construct 10 single-family homes and rehabilitate 3 additional homes in the organization's target area. Funding—Recent Project • • Construction financing from a local bank