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HOMESTRETCH AT WORK - KEYSTONE VILLAGE
Keystone Village is a 24 unit permanent supportive housing complex to being 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 and the project will not receive the discounts previously offered as payment cannot be made on time.
 
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
THE WORK CONTINUES - With the project once again fully funded, the work continues. Building Two, the first building to be started, is in the final stages of completion and is scheduled to be finished by the end of April.
BUILDING TWO
 
The photos above show the progress of Building Two. The walls have been painted, the trim painting is in progress, and doors have been hung. The photo at the left shows interior doors painted and waiting to be installed.
BUILDING ONE
 
Building One, the second to start, is shingled and sided. The brick facade will soon complete the exterior.
 
Drywall goes up in Building One and will soon be completed. Due to the cold, heaters are used to dry the compound. At left are the workers on their lunch break. They told me my photos would be much more interesting with drywallers in it, so here they are.
BUILDING THREE
 
The interior of Building Three is a maze of wires and pipes as workers move to the inside of the apartments. Upstairs, insulation is installed.
 
Outside, the siding is started.
We hope to be able to start taking applications for these apartments soon, but are not able to accept them at this time. Information on applications will be posted as soon as it is available. As these apartments are dedicated to Supportive Housing and the Campaign to End Homelessness Initiative, they will be available only to persons who meet the definitions of those programs.
THE FINISH IS IN SIGHT - Building Two, the first to be started, is nearing completion and is scheduled to be ready by mid May. Workers are down to the finishing work so the changes aren’t as obvious as in the other buildings, but look closely and you will see the progress.
BUILDING TWO
 
Finishing continues in the kitchen of Building Two. The cover has been installed on the furnace duct and installation of the electrical outlets has begun. Look closely and you will see the materials laid out on the floor by each electrical opening. Look out the window on the door and you will see the outside light has been installed. The photo on the right shows the kitchen floor now installed.
 
The bathroom floors are installed, the towel bars up and the door hardware has been installed. The bedrooms are also progressing with closet shelves and door hardware.
 
One stair rail is already installed. This view shows the windows at the top of the stairwell, making the area bright. On the right, workers carry in the railing to start on the second stairway.
Building One, the second to be started, is rapidly catching up to Building Two and is actually the first building that is scheduled for completion. The walls have been finished and most are now painted. The photos below show just how quickly the work is progressing. Compare these to the photos of Building One in the set above - they were taken only two weeks ago.
BUILDING ONE
 
The front of the building sided and bricked, the work moves around the side and to the back.
 
The rooms are at the “white box” stage now, but the trim is waiting to be installed and will soon add warm details.
Building Three shows the most obvious progress - from bare framing and wires two weeks ago to discernable rooms. Upstairs shows even more progress, with most of that level drywalled.
BUILDING THREE
 
The brick facade goes on the front and side of Building Three.
 
Pink insulation now defines the rooms on the first floor of Building Three. And, if there is a need to clean up, the bathtub is installed.
 
The drywallers have been busy on the upper floor of Building Three.
With Building Two nearing completion, we look forward to our first tenants. A meeting has been scheduled to set up the leasing process and we hope to be able to take applications by mid April.
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.
 
Walls are up and the finishing has begun. The linoleum is installed and the countertop and sink will be next.
 
Graceful curves are used in construction. Note the curved entrance to the sunny dining area. The basement is fully insulated. The home has received a preliminary energy rating of Five Star Plus.
Construction of the Honor Main Street home is now complete with the exception of landscaping, which will be done as soon as weather permits. For photos of the completed home and a floor plan, visit our Homes for Sale page.
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