Community Land Trust & Community Housing Development Organization

3104 Logan Valley Road             Suite 300                  Traverse City, MI 49684

Phone: 231- 947-6001                                                        Contact HomeStretch

HOMESTRETCH AT WORK

The Michigan State Housing Development Authority (MSHDA) awarded HomeStretch a $250,000 Housing Resource Fund Grant for the development of four homes and additional construction funding was provided by Huntington Bank. After considerable research and discussion, the Traditions development was chosen as the location of these homes. Situated on Rusch Road just one half mile off Garfield, Traditions is a neighborhood style development created by Red Management and owned and managed by Tim Burden. 

TRADITIONS

Construction began in the fall of 2007 for our newest homes in Traditions, a development off Rusch Road in Garfield Township.  HomeStretch purchased four lots in Traditions, which is a development of Red Management, owned and managed by Tim Burden. A new single story model was designed to meet the unique configuration of the building sites and blend with the existing structures.  With over 1,200 square feet of living space, our new model features three bedrooms, two full baths, separate living and dining rooms, first floor laundry area, and a covered front porch.  The kitchen is equipped with all the necessary appliances - stove, refrigerator, microwave and dishwasher.  A full basement and detached two-car garage complete the homes. 

Racing against time, the sites were cleared and excavated before the snow fell. Winter soon arrived and slowed the pace, but still the work continued, Foundations for the first two homes were laid and soon the homes began to take shape.   With the walls up on the first two homes, the foundations for the next two were started and those homes soon took  their form.

All four homes were completed by autumn of 2008 and the first two owners took possession in time to celebrate Thanksgiving in their brand new homes.

The homes are located on Cobalt Street and, as the topography of the lots is not the same for all the homes, two have high porches and two have ground level porches. The two car garages are located behind the homes, increasing curb appeal, and are reached by an alley running behind the homes. Landscaped with hardy plantings, the remaining attractive home is priced at $119,600. The home above is 810 Cobalt Street with the lower porch and slightly larger yard.  The home at the right is 842 Cobalt and shows the style of home with the higher porch and slightly smaller yard. The difference in construction was necessitated by differences in the topography of the lots.  842 Cobalt has been sold, and we closed the sale of 810 Cobalt on December 23rd. We have no current plans to build any single-family homes in the Traverse City area at this time as MSHDA is not currently funding construction of single-family homes. We did receive one of the last HOME Grants available for three homes in Honor in Benzie County.

For more photographs of the Traditions homes, a floor plan and views of the interior of the home, go to our Homes for Sale page.

KEYSTONE VILLAGE

Keystone Village is a 24 unit permanent supportive housing complex to be built next to the existing Goodwill Inn on Keystone Road.  Working with Al Martin, ACERA, Inc., HomeStretch submitted a Low-Income Housing Tax Credit (LIHTC) application to MSHDA in August of 2008.  The application was successful and Keystone Village was selected to receive a tax credit allocation of $2,031,281. Additional financing will be provided by MSHDA through their Campaign to End Homelessness Initiative and HOME Program funds, by the Federal Home Loan Bank of Indianapolis Affordable Housing Program, and Fifth Third Bank.

This pleasant tree covered site is the future home of Keystone Village. Eight local human services agencies will provide both personal and employment counseling for the residents.

Peter Haddix is the architect for the project and the General Contractor will be Hallmark Construction. We expect to break ground in October of 2009 and to be ready to welcome the first residents to Keystone Village in the spring of 2010.

Site clearing finally began in early November and the project has progressed rapidly.  With concerns that the weather would turn too cold, the concrete foundations were quickly poured. The site appeared to be a veritable forest of forms in preparation. In no time the concrete was in place and cured so that construction of the Supportive Housing apartments could begin. Taking advantage of the mild autumn weather, crews rapidly constructed the first of the four buildings and have started raising the walls on the second.  The photos below show the progress of construction.

The walls of the first of the three apartment buildings go up

The trusses are lifted by a very tall crane, making construction of the roof of the first building progress rapidly. The photo on the right shows the first building now up with shingles on the roof, insulation on the walls, and the windows in the process of being installed.

With supplies lined up, the walls of the second building go up quickly while the work continues on the first building.

SHUTDOWN!! On the day before Thanksgiving, HomeStretch received a telephone call with the disturbing news that Huntington Bank had pulled out of their investment in the project. Working through the Great Lakes Capital Fund (CAP Fund) as syndicator for the tax credits, Huntington originally was to be the sole investor in the project, taking all of the available tax credits.  Fifth Third Bank came in later and the tax credits were divided equally between the two investors. Working in coordination with CAP Fund, MSHDA approved the start of construction with Huntington scheduled to disburse funds to cover the initial construction costs. The date for disbursement was set for mid October and an account set up to receive the funds. The date for disbursal of funds was rescheduled several times until the surprise notification that Huntington had reversed its decision and was not going to invest in the project. Without funds to pay for the construction already done or for future work, the contractor had no choice but to stop work. The impact of this shutdown is devastating, with the contractor and the subcontractors not only out of work at the holidays, but also unpaid for the work they have already completed. Suppliers of the construction materials are also affected.

Machines and material sit idle as the weather turns colder.  The pullout of Huntington Bank from the project left no option but to shut down construction.

The CAP Fund and HomeStretch had been working with Huntington since very early in 2009 and had received assurances and e-mails from top level Huntington officials.  MSHDA was also involved and had sufficient documentation from Huntington to approve the start of the project, which was 40% completed at the time of the shutdown. All three agencies were absolutely stunned by Huntington’s pullout.

Normally a beehive of activity, the Keystone site shows no sign of life.

However, there was no time to waste and the Monday after the Thanksgiving holiday was spent in intense brainstorming with both the CAP Fund and MSHDA. With the winter weather closing in fast, it was obvious that the two buildings already under construction must be made tight to weather and trespassers. As the contractor and workers cannot be expected to do this work without compensation, MSHDA is working to release the HOME Funds already approved for the project and a disbursal for the work is expected on or about December 17th. In addition, HomeStretch will exchange fifty percent of the awarded tax credits under the Section 1602 Program.  This program is funded as part of the American Recovery and Reinvestment Act of 2009 economic stimulus plan. The exchange will replace the funding lost as a result of Huntington’s decision to withdraw from the project. Fifth Third Bank has remained committed to investing in the much needed project.

BACK TO WORK!  With winter fast approaching and half the funding gone, MSHDA staff went into high gear to release HOME funds to make the partially completed buildings tight to weather and to replace the investor funds by exchanging the unused tax credits with Section 1602 Program funds from the American Recovery and Reinvestment Act of 2009. There are not enough ways to say “Thank You” to the people at MSHDA who processed and approved the exchange as the emergency it was. The folks at the Great Lakes Capital Fund also put in many hours working with all parties to ensure the project would be a success.  If not for the hard work of the staff of these two agencies, this much needed housing would not be a reality. We also want to express our thanks and appreciation to Fifth Third Bank, which remained committed to the project despite the setback.

In the end, all the work done to restore the funding would not get the job done without someone to build the complex.  We also wish to say “Thank You” to the general contractor, Hallmark Construction, the subcontractor, and all the workers who kept building up to the shutdown and came back to complete the project. We thank you for sticking by us during this difficult time.

Funds were released in mid-December to begin the weatherization of the buildings.  In practical terms, that meant continuing construction as the original plan was to complete the outside of the buildings before bad weather set in and move to the inside during the worst of the winter.

Work on making the three buildings tight to weather progressed rapidly despite the snow and cold. We still expect to have the first building ready for occupancy by the end of April.

Below, Building 2, which was constructed first, moves rapidly toward completion. As the photos show, the outside has been completed and the work has moved to the interior.

Building One, the second to be constructed, will soon be completed on the outside. Already work has started on the interior to frame in the apartments.

The last building to be started, Building Three, is getting close to being weathertight.

The layering of the Project Based Vouchers has been approved by HUD and MSHDA is currently working to appoint a representative and set up a meeting with Goodwill, the lead agency, KMG Prestige, the rental management company, and HomeStretch.  At that time, the HAP representative will provide paperwork, policy and procedures for the lease-up, but until then, no applications can be distributed or accepted.  Information on how to apply will be distributed as soon as it is available

MAIN STREET - HONOR

HomeStretch was awarded a $200,000 HOME Grant by the Michigan State Housing Development Authority (MSHDA) to construct three single family homes on Main Street in Honor in Benzie County. The site of the new homes is property that had been occupied by a burned-out, foreclosed and condemned home and shed.  HomeStretch also purchased an adjoining property to have enough room to build the three homes. While the demolition of the old structure was welcome, we were unable to save many of the trees. The power lines needed relocation and during the process it was determined that many of the trees were either too close to the lines or so old that they posed a danger to property. Another danger that was eliminated was the huge, open and debris filled hole where the back half of the home had collapsed into the basement. 

The first of the three Honor homes rapidly takes shape

The three bedroom homes will be constructed one at a time, a change from the group construction of the past.  This will allow the Honor homes to be sold as they are completed, reducing the holding time and thus the cost of the home. This is particularly important in the current economy. Every attempt was made to keep the work local, with Honor Building Supply the main source of building materials. Other companies involved in the construction are Honor Excavating, Glen Lake Electric and Seguin Heating and Cooling.

With the approach of winter, the crew worked quickly to make the exterior tight to weather so construction could continue on the interior. The roof has been shingled, the walls insulated, and the garage and entrance doors installed. The interior framing, furnace and hot water heater are in place. The two bathtubs have even been installed.  The photos below will give you an idea of the layout of the first floor space.

The photo on the left shows the framing for the kitchen island/countertop located between the living room and the dining room. The photo on the right shows the generously sized living room.

For an artist’s drawing and a floor plan of the Honor homes, visit our Homes for Sale page.