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Spring 2003 Issue Fall 2003 Issue
FALL 2003 PUBLICATION OF HOMESTRETCH
HOMESTRETCH COVERTS TO “COMMUNITY LAND TRUST”
Over the past year, the HomeStretch Board of Directors has been converting the corporation to a Community Land Trust (CLT). CLT’s preserve existing housing and develop critically needed new homes. They provide permanently affordable homes for families unable to afford housing in a variety of markets - from inner-city neighborhoods to affluent rural resort areas. Homeownership in a CLT is a simple concept. The CLT sells a new or renovated home to an eligible buyer, but retains ownership of the land. The buyer is required to execute a ground lease, which includes a resale formula that balances the homeowner’s equity interest with the affordability interest of the community. Ginny Coulter, board member and chair of the Community Land Trust Task Force explains,
“ I think that the land trust model is the best approach for providing affordable housing in resort communities where land costs are high. Community Land Trusts provide: initial affordability for buyers, the retention of investment for the non-profit, and community stability by providing quality housing that is affordable.”
Funding for technical assistance through the transition was provided by the Michigan State Housing Development Authority. Consultant Michael Brown, Burlington Associates in Community Development, was hired to assist the board with key decisions regarding organizational models, ground lease options, and administration/management issues. Mr. Brown relates, “We are all aware of the obstacles faced by working families when it comes to home purchases. HomeStretch and other housing organizations have invested a great deal of time and effort to made affordable housing possible. So, it is not surprising the HomeStretch, MSHDA, and other Community Development Corporations in Michigan are adopting the CLT model.”
To learn more about Community Land Trusts, visit the Institute for Community Economics website or call 413-746-8660.
CLT LENDERS SEMINAR
In late May, HomeStretch held a Lender’s Seminar at the Great Wolf Lodge in Traverse City. The purpose of the seminar was to inform mortgage lenders about our Community Land Trust. Michael Brown, Burlington Associates, and Maureen Szutarski, Michigan Fannie Mae Partnership, were the featured speakers.
Mr. Brown reviewed the key components of the Community Land Trust model developed by the Institute for Community Economics in the 1960’s. He identified factors that are not present in conventional mortgage lending, but then demonstrated how these factors do not prohibit mortgage financing for HomeStretch homebuyers. Further, he stated how CLT programs have created a need for larger volumes of homebuyer financing, and how ICE has worked directly with FHA, Fannie Mae, and USDA Rural Development, among others, to address any concerns.
Ms. Szutarski told the group that Fannie Mae is teaming up the Community Land Trusts and now has a wide range of products available to make financing more attractive to lenders and other partners.
 
NEW DESIGN!
With the assistance of John Kettle, Design Depot and Mark Salgat, S & S Contractors, HomeStretch has developed a new design for the homes under construction in East Bay Township. The single story design has three bedrooms, two bathrooms, a full basement and an attached two car garage. Because the new homes will be located along the same street, the single story structures will be alternated with the two story design used for the Cross-Town homes.
In addition to the new design, HomeStretch is making the homes Five-Star Energy efficient. Additional cost is required to provide for increased insulation value in the exterior walls, upgraded windows, and energy efficient fixtures and appliances. They will be the first homes developed by the Community Land Trust, which means HomeStretch will have a permanent relationship with the homes that will be preserved through ground leases.
 Jason Potes, Project Manager for HomeStretch, worked on the new design and the Five-Star Energy improvements. Potes stated “Adapting to the Community Land Trust model has challenged us to make quality upgrades to reduce maintenance and still maintain affordability. A Five-Star energy rating will make homeownership more affordable for the long term.”
HOMESTRETCH RECEIVES MSHDA HOME GRANT
 HomeStretch has been awarded a Michigan State Housing Development Authority HOME Grant totaling $825,000. The grant is being used to construct five single-family have and eight townhouses which will be sold to income eligible families.
The five houses are located on Carlisle Road, East Bay Township. These attractive one and two story, 1,120 - 1,200 square foot homes will feature three bedrooms, a full basement, and an attached two-car garage. S & S Contractors is the General Contractor.
The eight townhouses are located along the Boardman River near Cass Street in downtown Traverse City. These unique two-story, 1,100 square foot town-houses will feature two bedrooms, an open floor plan, and a large deck. R.E.D. Management is the general contractor.
In addition to the MSHDA Grant, the National City Community Development Corporation and Michigan Housing Trust Fund provided low interest loans for land acquisition and construction. “Once again, our partners have demonstrated their commitment to providing affordable housing opportunities in the Grand Traverse Area,” stated William Merry, President of HomeStretch.
 
CHECK OUT OUR NEW WEBSITE!
HomeStretch proudly presents its own website, www.homestretchhousing.org, designed and constructed by Maureen Merry. This comprehensive, yet user friendly site covers it all from the inception of HomeStretch to its current projects. View photographs of newly constructed homes and before/after photos of rehabilitated properties. Visit links with our partners, print applications, or have your name added to our homebuyer list. Find our what’s going on and let us know what you think.
HOMESTRETCH HIRES PROJECT MANAGER
 Last Spring, HomeStretch hired Jason E. Potes as its Project Manager. Jason has been working on the development of a new home design and coordinating and managing the construction bidding process. He has also been inspecting job sites and preparing reports for the corporation.
Jason worked as Construction Superintendent for the McComb Construction Company, Austin, Texas, for four years prior to returning to his home near Bear Lake. As Construction Superintendent, he coordinated architects, engineers, and property owners, while directing subcontractors and executing work procedures for commercial and residential projects. He is a graduate of Michigan State University, and earned a Bachelor of Science in Building Construction Management. We are very happy to have him aboard!
Fall 2003 Issue Back To Top Spring 2003 Issue
SPRING 2003 PUBLICATION OF HOMESTRETCH
CROSS-TOWN HOMES COMPLETED
During this past summer, HomeStretch completed the construction and sale of ten low-cost single family homes located south of Eighth Street on Bates, Barlow, Boyd, Carver, Fern, Grant, and Hannah Streets in Traverse City. Each 1,120 square foot, three-bedroom home was sold to income eligible families and individuals that live and work in Traverse City. More than one hundred purchase inquiries were received from prospective buyers.
 HomeStretch made a special effort to make the homes attractive and architecturally compatible with their neighborhoods. Mark Salgat, S & S Contractors, constructed the homes and architect Peter Haddix provided construction inspection services
Land purchases and construction were financed with low interest loans and grants from a variety of partners including Rotary Camps and Services, Michigan State Housing Development Authority, National City Community Development Corporations, Michigan Housing Trust Fund, and the Michigan Capital Fund for Housing. Rotary  was instrumental in coordinating the acquisition of the city owned lots and ensuring their affordability by providing HomeStretch with significant discounts on the final lot sale prices.
Jennifer Rider, a Cross-Town homebuyer, explains how affordable housing benefited her family:
“It’s so nice to have the security for my kids that we are here to stay. When you rent, you have to worry from year to year whether you will have to relocate. We love our new neighborhood and really feel like we are part of the community.”
KINGSLEY HOME FINISHED
 This past year HomeStretch also completed the construction of a single family home in the Village of Kingsley. S & S Contractors acted as General Contractor for the three-bedroom house.
It was sold to an income eligible family this past fall. They are now enjoying the convenience of living in the village and across from the Kingsley Elementary School.
“It is wonderful to have such a great program available and we are happy to be in our new home.” Kingsley homebuyer
This project was funded by a Michigan State Housing Development Authority HOME Grant.
HOMESTRETCH NEW PROJECTS FOR 2003
HomeStretch is planning the development of ten new single-family homes financed by the Michigan State Housing Development Authority, Michigan Housing Trust Fund, and National City Community Development Corporation. HomeStretch is also considering partnering with a private developer to construct a 49 unit rental complex near the City of Frankfort. Look for updates on these projects in the Summer 2003 HomePage newsletter.
“Affordable housing is no longer an issue exclusively for the very poor. Many of the people in need are young, middle-class service professionals. Another group that is in dire need of affordable housing is the elderly.” Jennifer McDermitt, Nov.-Dec. 2002 issue of Michigan Builder, a publication of the Michigan Association of Home Builders
HOMESTRETCH ESTABLISHES A COMMUNITY LAND TRUST
Over the past few months HomeStretch directors have been investigating the benefits of forming a regional Community Land Trust (CLT) with assistance from the Michigan State Housing Development Authority and Burlington Associates in Community Development. While CLTs may take many forms, the goal is always the same - provide permanent affordable housing opportunities.
Community Land Trusts preserve existing housing and develop critically needed new homes. They have provided permanently affordable homes for families unable to afford housing in a variety of markets - from economically distressed inner city neighborhoods to affluent rural resort areas.
Homeownership in a CLT is a simple concept. The CLT sells a new or renovated home to an eligible buyer, but retains ownership of the land. The buyer is required to execute a ground lease, which includes a resale formula that balances the homeowner’s equity interest with the affordability interests of the community. Many CLTs also provide pre and post purchase counseling and help buyers obtain affordable mortgages, manage finances/credit, and maintain their homes.
The Community Land Trust model has several significant benefits. CLTs promote permanent, long-term affordability and at the same time preserve all public and private subsidies used to develop the housing. Affordability and public investment in CLT projects are protected for renewable 99-year periods, more permanent than the average 20 year span of most public subsidy programs.
Over the next few months HomeStretch directors will be making key decisions regarding organizational models, ground lease options, and administrative/management issues, with the hope of having the Community Land Trust operational by early summer.
HOUSING NEEDS ASSESSMENT UNDERWAY
The local engineering and planning firm of Gourdie-Fraser Associates has been hired to complete a Housing Needs Assessment and Development Strategy - Grand Traverse Region. The assessment will provide data on economic activity, housing supply, housing demand, government and policy issues, housing delivery system, and strategy recommendations. The assessment is intended to replace the Housing Needs Study - Traverse City Region, which was completed in 1996.
The project is being coordinated by the Housing Needs Assessment Task Force and chaired by Megan Olds, a HomeStretch board member and Regional Planner with Northwest Michigan Council of Governments. Task Force members will disseminate the Assessment’s key finding and recommendations to local units of government, business and civic organizations, social service agencies, and other interested groups.
“The Housing Needs Assessment Task Force has been working hard on creating a product that can be a real benefit to the region and local communities. We look forward to the study’s release.” Megan Olds, Task Force Chairperson
The Housing Needs Assessment is being funded by the Michigan State Housing Development Authority, Rotary Charities of Traverse City, Michigan Capital Fund for Housing, Fifth Third Bank, and Bank One. We are grateful for their support.
We are also grateful for the Housing Needs Assessment Task Force members who have dedicated much time and effort in this project. The Task Force includes the following individuals representing organizations in the five county region:
- Patty Lowery ----------------Antrim County Housing Committee
- Bob Long---United States Department of Agriculture Rural Development
- John O’Neill-------------------Benzie Housing Council
- Linda Hutchinson ---------Women’s Resource Center
- Mary Jean Brick ------------Community Living Management Corporation
- Virginia Coulter ------------Grand Traverse Housing Task Force
- Carol Moorman -------------Foundation for Mental Health
- Trudy Galla -------------------Leelanau County Housing Commission
- Ron Crummel ---------------Leelanau County Housing Commission
- Megan Olds ------------------Northwest Michigan Council of Governments
- Kristin Brady ----------------Northwest Michigan Human Services Agency
- Jim Weising -----------------MSU Extension - Grand Traverse County
- Marsha Smith ---------------Rotary Charities of Traverse City
- Joe Kaubenaw -------------Traverse City Housing Commission
HOUSING FACTS
Families are defined as having critical housing needs if they spend more than half their total income on housing and/or live in severely inadequate conditions according to the Center for Housing Policy.
For the fourth year in a row there is no place in the country where the prevailing minimum wage is enough to afford reasonable rent for the average two-bedroom apartment, according to the National Low Income Housing Coalition. A person would have to earn $14.66 per hour, or nearly three times the minimum wage of $5.15, in order to afford the median rent of a two-bedroom apartment.
BAY OAKS TOWNHOUSES PROVIDE AFFORDABLE RENTALS
 Beginning last May eager tenants started moving into HomeStretch’s Bay Oaks Townhouses, located on the corner of Aero Park Drive and Three Mile Road in Traverse City. Interest in the attractive apartments was high and HomeStretch was flooded with rental applications. All eight units are currently occupied by income eligible families and individuals  who are enjoying the convenience of affordable in-town living.
Land acquisition and construction financing was provided by the Michigan State Housing Development Authority, Michigan Housing Trust Fund, Fifth Third Bank, and the Michigan Capital Fund for Housing. The City of Traverse City sold the lot to HomeStretch at a discount, with the objective of encouraging the development of low-cost housing.
Lot size, special zoning requirements, and the right-of-way constraints challenged the ability of HomeStretch to develop the site. The special efforts of contractor William Clous, President, Eastwood Custom Homes, and architect Peter Haddix resulted in an attractive project and ensured the success of HomeStretch’s first multi-family project.
 Teresa Grace, a Bay Oaks resident, expressed her gratitude to HomeStretch saying, “I am really thrilled that I found HomeStretch. I could have been paying $700 a month in rent and that would have been pushing the envelope as far as living expenses are concerned.  The beach, TART Trail, and indoor laundry are great!”
Mary Jo Dean, Community Development Specialist, Michigan State Housing Development Authority, cited the success of HomeStretch and stated, “HomeStretch is to be commended on the successful completion of a rental development project. Affordable rental housing is a very great need throughout the state, but particularly critical in northern Michigan.”
Fall 2003 Issue Back To Top Spring 2003 Issue
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