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Summer 2000 Issue Fall 2001 Issue
FALL 2001 PUBLICATION OF HOMESTRETCH
COLLECTIVE EFFORTS ON CROSS-TOWN HOMES
This past year, Rotary Camps and Services purchased ten parcels, located between Fern and Barlow Streets, from the City of Traverse City, Rotary then resold six of the lots to HomeStretch at a discounted price making the development of affordable housing possible. The lots are located alongside the Traverse Area Recreation Trail (TART.) Six attractive, three bedroom, single family homes are currently under construction.
Over the past 50 years the City acquired the lots for a possible cross-town transit route. Last year it was decided to relinquish the idea in order to make way for affordable housing. City Manager, Richard Lewis stated, “The City is very happy to be able to work with nonprofit organizations such as HomeStretch, Rotary Charities, and Habitat for Humanity. We are very pleased we could play a small part in providing affordable housing for the community by making the lots available.”
Grants were obtained from the Michigan State Housing Development Authority (MSHDA) and Michigan Capital Fund for Housing (MCFH) for pre construction and development costs. A loan from Michigan Housing Trust Fund (MHTF) was used to purchase the land and an equity investment from National City Community Development Corporations is being used for construction costs. HomeStretch selected Mark Salgat of S & S Contractors to build the homes.
“Rotary Camps & Services is pleased to be able to partner with HomeStretch, Michigan State Housing Trust Fund, National City Community Development Corporation, and Michigan Capital Fund for Housing to build affordable homes. We hope these homes will safely and affordably house six families and be a welcome addition to the neighborhood. While this development makes only a small dent in the demand for affordable housing in our region, we believe it is an important first step and hope it serves as a partnership model for future developments.” Marsha Smith, Executive Director, Rotary Camps & Services of Traverse City
“We are very proud of the Cross-Town homes and thank all of our partners for their collective efforts in making this project possible.” William Merry, President of HomeStretch
HOMESTRETCH BREAKS GROUND ON BAY OAKS TOWNHOUSES
Last year HomeStretch purchased a lot on Three Mile Road and Aero Park Drive from the City of Traverse City for the development of eight townhouses. The project commenced during the first week of August with Eastwood Custom Homes, Inc. as the General Contractor. The two “quad-plexes” will be rental units for income eligible families and will be leased for less than the market rate. This venture is made possible largely through grants from the Michigan State Housing Development Authority, Michigan Capital Fund for Housing, and Michigan Housing Trust Fund. A construction loan from Fifth Third Bank was also obtained. “As an organization we are very pleased to support this critical need in our community for affordable housing,” commented John E. Pelizzari, President and CEO of Fifth Third Bank. “We see this as a compelling and continuous need.”
Each unit will have a large living room, kitchen, two bedrooms, and 1.5 baths with additional outside storage space. Each have the same floor plan and will be offered at the same price.
HOMESTRETCH FEATURED IN RURAL MATTERS
The Summer 2001 Edition of Rural Matters, a publication of CEDAM, featured HomeStretch for their “Member Profile” cover story. The article applauded the efforts that have been made in response to the 1996 Housing Needs Study for the Traverse City Region. It described how HomeStretch has worked collaboratively with nonprofit partners and organizations in all of the five counties that we serve. Rotary Charities of Traverse City was also recognized for helping HomeStretch acquire the Cross-Town lots. A problem HomeStretch continually faces is the steep price of acquiring land for development. We are grateful to CEDAM for the news coverage and ongoing support.
MERRY COMPLETES DTI TRAINING
William Merry, President of HomeStretch, completed a yearlong training program sponsored by the Community Economic Development Association of Michigan (CEDAM) and the Michigan State Housing Development Authority this last spring. The course, titled The Michigan Project Development Program, was a pilot program designed to provide comprehensive real estate development training to selected nonprofit housing development executives.
The extensive curriculum included strategic planning, organizational capacity building, the development process, market analysis, site control and land acquisition, project feasibility, financial packaging, including Low-Income Housing Tax Credits, presentation and negotiating skills, project management and marketing.
THANKS TO HOMESTRETCH
Over the last year, HomeStretch has purchased, renovated, and sold three homes to income eligible families with a MSHDA HOME Grant.
The renovation of the house in Frankfort was completed by Tom Hirsch, Renaissance Development. Sold in February, the purchasers expressed their gratitude: “Everyone knows affordable housing is almost impossible to find. HomeStretch made it possible for us. Thank you to everyone that helped us.”
The house in Benzonia was renovated by Kris Hawkins, Brant Builders, during the fall of 2000 and was sold in July 2001. “I know that in our new home we will be making memories that will last a lifetime. Again, thank you for helping our family” was the response from the purchaser
The Mancelona house was rehabilitated by Daryl Walden, D & W Builders.
HomeStretch would like to thank all of our partners. It has been a productive year and without your help, it would not have been possible. We have come a long way....THANK YOU!
HOUSING NEEDS ASSESSMENT AND DEVELOPMENT STRATEGY
HomeStretch is in the process of completing a comprehensive Housing Needs Assessment and Development Strategy that county and regional housing organizations can utilize to develop affordable housing. The Housing Need Study - Traverse City Region, conducted by Carolyn Shah in 1996, is outdated. With the availability of the 2000 census data, HomeStretch felt the time was ripe to conduct a new study. The Housing Assessment/Strategy Committee has created a comprehensive scope of work. “We hope this document will furnish an important tool to enable housing providers and other community leaders to adequately assess and respond to regional housing needs,” stated Megan Olds, Committee Chairperson.
The scope of work is divided into the following areas: Economic Activity, Housing Supply, Housing Demand, Government and Policy Issues, and Housing Delivery System. The consultant will analyze information from the recent U. S. census and other public sources, including qualitative data from interviews. With HomeStretch as the lead agency for project management, the following organizations have pledged support and will provide assistance for gathering date a presenting the completed assessment/strategy to their community
- Antrim County Housing Commission
- Antrim County Affordable Housing Task Force
- Benzie Housing Council
- Grand Traverse Community Living Management Corporation
- Grand Traverse/Benzie Supportive Housing Consortium
- Grand Traverse Family Independence Agency
- Grand Traverse Housing Task Force
- Kalkaska County Housing Commission
- Leelanau County Housing Commission
- Michigan State Housing Development Authority
- MSU Cooperative Extension - Grand Traverse County
- Northwest Michigan Council of Governments
- Northwest Michigan Human Services Agency
- Traverse City Housing commission
- USDA Rural Development
- Women’s Resource Center
Each organization has appointed a representative to serve on the Housing Assessment/Strategy Committee to facilitate and monitor the process.
A Request for Proposal will be sent to consultants in September, Consultant interviews and selection should be completed by the end of November. The Assessment/Strategy will be finished next spring, and will be presented in late spring of 2002.
AMERICORPS*VISTA EXPANDS HOUSING SUPPORT
Since 1996 the Michigan AmeriCorps*VISTA program has provided staff for HomeStretch to assist with the development of affordable housing, and in 1999 added a person to work at the Grand Traverse-Leelanau Foundation for Mental Health.
This year, members of the Grand Traverse Continuum of Care Committee asked HomeStretch to request four members to work on housing projects and programs being sponsored by the following organizations: Grand Traverse-Leelanau Foundation for Mental Health, Community Living Management Corporation, Northwest Michigan Human Services Agency, Grand Traverse County Family Independence Agency, Madeleine’s House, and the Traverse City Area Public Schools.
AmeriCorps*VISTA personnel will be working on a variety of programs, including the creation of a Housing Locator/Advocate program, expanding the Individual Development Account and HomeLINKS programs, expanding the Youth Shelter Initiative, improving services as Madeleine’s House, and assisting with the development of Supportive Housing.
Fall 2001 Issue Back to Top Summer 2000 Issue
SUMMER 2000 PUBLICATION OF HOMESTRETCH
HOMESTRETCH RESPONDS TO REGIONAL HOUSING “CRISIS”
In 1996, Rotary Camps and Services funded a comprehensive Housing Needs Study for the Traverse City area. The study revealed a region-wide shortage of low-cost housing and characterized the situation as an “affordable housing crisis.” In response, the Affordable Housing Task Force, which had been formed by the Basic Needs Committee of the Traverse Bay Area Human Services Coordinating Council, organized and incorporated HomeStretch to “serve as a clearinghouse for ideas and develop solutions to the crisis.”
HomeStretch is a 501 (c)(3) Nonprofit Housing Corporation that serves the counties of Antrim, Benzie, Grand Traverse, Kalkaska, and Leelanau. It is governed by a 21-member board of directors representing banking, construction, real estate and property management, social service agencies, government, and low-income families. HomeStretch is faced with the immediate challenge of providing quality low-cost housing for a growing population of low and very low income families - over 38% of the households in the Grand Traverse Region (source: 1990 U.S. census.)
“The incomes of many service sector employees are not keeping pace with escalating property values. Working families are struggling to afford housing these days.” Richard Beers, Chairman, HomeStretch
A variety of partners have been assembled to provide the financial and technical support required to meet the challenge. Rotary Charities and Rotary Camps and Services of Traverse City, the Michigan State Housing Development Authority, Michigan Housing Trust Fund, Local Initiatives Support Corporation, Michigan Capital Fund for Housing, Old Kent Bank, the Federal Home Loan Bank of Indianapolis, the Fannie Mae Foundation, and MichCon have invested over $1,250,000 in project financing, organizational funding, and technical services.
The long-term partnerships HomeStretch has developed will continue to provide the capital and technical expertise needed to produce quality affordable housing throughout the Grand Traverse Region for many years to come.
HOMESTRETCH RECOGNIZED
HomeStretch’s Center road duplex was featured in Housing Matters, a publication of the Federal Home Loan Bank of Indianapolis. A grant from the bank’s Affordable Housing Program provided construction funding for the duplex. The successful completion of the Center Road duplex was also recognized in the Michigan Housing Trust Fund 1999 Annual Report. The Trust Fund provided a low-interest construction loan for the project.
HOMESTRETCH BECOMES CHDO
During the past two years, HomeStretch recruited partners that could not only provide project financing but also could provide ongoing organizational funding. Because of our demonstrated ability to build housing, and Rotary’s steadfast commitment to supporting HomeStretch, the Michigan State Housing Development Authority recommended that HomeStretch seek certification as a Community Housing Development Organization (CHDO.)
Last spring, HomeStretch began the application process and was notified in May that the request had been approved. A subsequent General Operating Assistance Grant application for $37,500 was also submitted and approved. Each year HomeStretch will now be eligible to receive $30,000 to $60,000 in MSHDA CHDO operational funding.
FIRST PROJECT COMPLETED
In the spring of last year, HomeStretch completed its first project, a 2280 square foot duplex apartment located on Center road in Peninsula Township, Grand Traverse County. Each unit has three bedrooms, a large living room, combination kitchen/dining area, full bath, laundry/mud room, and plenty of closet space.
The total development cost of $156,200 was financed by a $90,000 grant from the Michigan State Housing Development Authority, a $56,200 low-interest loan from the Michigan Housing Trust Fund, and a $10,000 grant from the Federal Home Loan Bank of Indianapolis. Eastwood Custom Homes, Inc. constructed the duplex on land donated by Grand Traverse County. Both units are currently leased to low-income families.
“HomeStretch’s Center Road project is a wonderful example of creatively using local, state, and national resources to find a solution to a community problem.” Congressman Bart Stupak
TRAVERSE CITY SUPPORTS AFFORDABLE HOUSING DEVELOPMENT
In February of this year, the City of Traverse City agreed to sell eleven lots to Rotary Camps and Services for the development of affordable housing. The lots were acquired by the city to provide right-of-way for a cross-town corridor project that has been abandoned. Rotary plans to sell the lots to HomeStretch and Habitat for Humanity.
Once the lots are purchased from Rotary, HomeStretch will select a local contractor to design and build quality homes that are compatible with the character of each neighborhood. The new homes will then be sold to eligible low-income, working families.
The City’s farsighted decision acknowledges the pressing need to provide safe, quality, low-cost housing in the downtown area, close to employment sites and public services.
REHABS IMPROVE COMMUNITIES
As construction of the Center road duplex neared completion, HomeStretch staff and directors began developing plans for their next projects. To provide home ownership opportunities and improve neighborhoods, HomeStretch decided to acquire, rehab, and resell three single-family homes. Rehab activities are currently underway in the communities of Mancelona, Frankfort, and Benzonia Township. Also, we will soon start construction of a new home in Kingsley.
The Michigan State Housing Development Authority is funding the $380,000 in property acquisition and construction costs. The homes will be sold to low-income families.
LISC SELECTS HOMESTRETCH
Late last year the Local Initiatives Support Corporation (LISC) selected HomeStretch to participate in a three-year partnership program. LISC is a national nonprofit organization that helps community-based development corporations create housing and economic opportunities for low-income families. It links local initiatives with resources from state and national corporations and foundations.
Over the next three years LISC will be helping HomeStretch build its housing production capacity by providing project financing, operational funding, and technical assistance. Currently, LISC is matching a $25,000 grant from Rotary Charities.
“LISC has a proven track record of successfully creating affordable homes for working families, spurring commercial investment, creating jobs, and expanding opportunities in low-income neighborhoods in many cities in our state.” Governor John Engler
HOMESTRETCH INVESTORS
Since its incorporation in the fall of 1997, HomeStretch has been developing partnerships with local, state, and national organizations to secure the funding required to build affordable housing and support operation.
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INVESTORS
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PROJECTS
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OPERATIONS
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Rotary Charities of Traverse City
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$-0-
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$165.000
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Michigan State Housing Development Authority
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$470,000
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$89,500
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Michigan Housing Trust Fund
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$252,600*
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$-0-
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Old Kent Bank
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$200,000**
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$-0-
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AmeriCorp*VISTA
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$-0-
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$30,000
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Local Initiatives Support Corporation
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$-0-
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$25,000
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Federal Home Loan Bank of Indianapolis
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$10,000
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$-0-
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Fannie Mae Foundation
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$-0-
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$10,000
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MichCon Foundation
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$-0-
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$1,000
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TOTALS
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$932,600
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$320,500
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COMBINED TOTAL
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$1,253,100
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* The Michigan Housing Trust Fund “investment” includes a $200,000 line-of- credit **All of the Old Kent “investment” is a line-of-credit
Summer 2000 Issue Back to Top Fall 2001 Issue
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