Target Completion Date:
January 2012
Total Cost to Habitat:
$2.5M fully “rolled up,” including professional skills and services, supervision, training, provision of social services and administrative costs
Homeowner Economics:
Two-Bedroom, Family of Four Three-Bedroom, Family of Five
Approx Sales Price: $187,000 – $226,000
Monthly Mortgage Payment: $ 1,280 – $ 1,455
Alternative FMV Monthly Rent (HUD): $ 1,800 – $ 2,345
Description:
An eight-unit condominium in the City of Stamford, CT
251-275 West Main Street consists of two townhouse-style buildings, each containing four condominiums. The eight-unit project consists of three two-bedroom and five three-bedroom units. One of the three-bedroom units is wheelchair-accessible.
Background:
Reaching Stamford low-income homeowners and investing in the Stamford area community were strategic priorities for Habitat for Humanity of Coastal Fairfield County (Habitat CFC) as early as 2006. Since then, we have collaborated with the City of Stamford, the Department of Housing and Urban Development (HUD) and donors to secure land and design a plan for an affordable multiple-unit condominium project. In 2009, the building permit was issued, and construction began that September. When targeting the families, Habitat CFC takes into account the high cost of living in this area. The Area Median Income (AMI) for a family of four in Stamford is $122,300. Generally, Habitat serves families whose income is 35%-60% of the AMI (e.g., for a family of four, 35%-60% of AMI is $44,310-$75,080). In Stamford, however, Habitat CFC has made a special commitment to sell all units to families earning 50% or less of AMI.
Business Model:
West Main Street Commons uses the unique Habitat business model for developing homeownership opportunities for low-income homebuyers. Homes are purchased by, not given to, the homeowners. Habitat CFC is a capital-raising organization whose diverse funding sources span both the private and public sectors. Its business model includes construction, mortgage banking (Habitat CFC holds the mortgage and provides no-interest, 30-year mortgage loans), real estate development and provision of social services. Habitat CFC sells its homes at cost and then reinvests the mortgage principal repayments into construction of additional homes.
The majority of construction labor is pro bono. Future homeowners provide 500 hours of “sweat equity” in lieu of a down payment. Volunteers build under the leadership and supervision of the Habitat CFC staff. Qualified trade subcontractors are hired for masonry, electrical work, plumbing, etc.
Rationale:
Habitat CFC’s mission to provide simple, decent affordable housing results in improved lives and stronger communities. The benefits are transformational. For example, research documents that children of low-income homeowners are 20% more likely to graduate from high school and 12% more likely to attend college than low-income renters. Some 15% are less likely to become pregnant as teenagers.
Advantages / Results:
Habitat CFC is about more than building houses. Habitat changes lives; it strengthens and empowers communities. Decent housing and homeownership contribute to thriving school systems and community organizations. They are a catalyst for civic activism and a stimulus for community-based organizations. Safe homes and neighborhoods, in which residents are satisfied with housing conditions and public services, help to build social stability and security. By seeding projects and managing the initial risk, Habitat CFC attracts other neighborhood investment, including from other for- and not-for-profit developers, educational institutions and commercial enterprises. Our construction practices also rely on “green” technology and materials.
Project Status:
As of December 31, 2011, Building A (4-units) will be occupied by 4 low-income families. Our target date for completion of building B is March 31, 2012. Habitat Family Services department is still looking for qualified homeowners for a two-bedroom unit and three-bedroom accessible unit. To learn how to apply please click HERE.
Fundraising strategy:
A comprehensive fundraising strategy reaches out to qualified prospects, including corporations, faith-based groups, foundations, individuals and volunteer and other community groups.
• Total project cost, including professional skills and services, supervision, training, provision of social services and administration: $2.5M
• Amount raised to date: $2.3M
• Balance to be raised: $200K
