39 th Street Neighborhood Revitalization Project

Transcription

1 39 th Street Neighborhood Revitalization Project Project Partners: Habitat for Humanity of Hillsborough County Florida, Inc. Jim Jacobs Real Estate Kathleen MacDaniel Pastor Jerry Nealy Charlie Hounchell Joe Gibbons

2 Habitat Hillsborough Lead partner and developer background information Established in 1987 as an affiliate of Habitat for Humanity International 501(c)(3) Non-profit organization Businesses include: Residential home construction and rehabilitation Mortgage financing & servicing ReStore home improvement store Funds to build homes come from partnerships with: Individuals Corporations Government grants Faith-based organizations Habitat homeowner mortgage payments (Fund for Humanity)

3 Need for Affordable Housing in Hillsborough County, Florida HFHHC serves families with income between 30% and 80% of Area Median Income (AMI) Many families in this range are unable to obtain a mortgage with an open-market lender There are approximately 14,500 severely costburdened households in Hillsborough County that need access to affordable housing

4 Families Served Each Habitat family must meet the basic selection criteria: Must be a first-time homebuyer Must have lived or worked in Hillsborough County for at least 1 year Must be a U.S. citizen or possess permanent residency Must exhibit a Housing Need Substandard or unsafe housing (includes building code violations such as mold, unsanitary conditions, dangerous wiring, etc.) Overcrowded conditions Rental cost burden exceeds 30% of gross monthly income Homeowner has accessibility needs that are not met

5 Families Served Basic selection criteria: Ability to Pay Gross income must be between 30% and 80% of Area Median Income Reasonable credit history Debt Ratio Cannot exceed 45% of Gross Monthly Income Provide documentation to show their ability to repay mortgage over thirty years Willingness to Partner 300 sweat equity hours (valued at $6,400!) $1,500 toward closing costs prior to closing Complete a HUD-approved Homebuyer Education Workshop

6 Habitat s Thriving Families (Habitat International statistics) 97% of Habitat homeowners still live in their homes, many for more than 20 years. (In contrast, most low-income renters live in their homes for less than one year) 71% of children of Habitat homeowners graduate from high school & go on to attend an institution of higher learning. Children of Habitat homeowners grow up with stability they do not move or change schools frequently Inadequate housing hinders education. It undermines a student s ability to feel safe enough to learn. Habitat homes are a solution! 69% of Habitat homeowners reported increased earnings 50% of Habitat families say that their health has improved

7 HFHHC Economic Impact HFHHC has built or renovated almost 140 homes with a total assessed value of $10 million Taxes Paid 2010: $78,868 Since 1987: $832,378 Volunteer Contributions Average number of volunteer hours to build a home: 2,000 Value of a volunteer hour, according to The Independent Sector : $21.36 HFHHC s 2010 total volunteer investment in your community: $405,840 Average Mortgage Savings for Habitat Homeowners Average monthly savings: $500 Average savings over 30 years: $150,000 The savings realized by our homeowners benefits the economy

8 Habitat Hillsborough the Affordable Housing Solution New Home Construction Infill single family homes Subdivision development Neighborhood Revitalization Initiative Foreclosed and abandoned property rehabilitation Rehab and repair of owner-occupied homes A Brush With Kindness (ABWK) o Moderate home repairs, landscaping and painting Weatherization and energy efficiency measures Neighborhood beautification o Street tree planting and neighborhood cleanups

9 Special Programs & Events Suzie Q Blitz Build for Breast Cancer Awareness homes /3 homes Habitat for Heroes -honoring those who have honorably served /3 homes Women Build recruits, educates and inspires women to build and advocate for affordable housing Collegiate Challenge alternative spring break experience - students build homes and hope Campus Chapters passionate & committed students raise funds and awareness for affordable housing issues

10 39 th Street Neighborhood Revitalization Project Project Details

11 39 th Street Neighborhood Aerial

12 39 th Street Neighborhood Existing Land Use

13 North Bay Village approved preliminary plat

14 39 th Street Neighborhood Revitalization Project Outline New 26 home subdivision at North Bay Village Purchase and rehab existing homes Neighborhood Beautification: A Brush With Kindness Street tree planting Neighborhood cleanup days Partner w/ other non-profits for owner-occupied rehabs Veteran homeowners mini-grants for accessibility improvements

15 39 th Street Neighborhood Revitalization Auxiliary Projects Costs Purchase and rehab existing homes $40,000 purchase; $25,000 rehab Neighborhood Beautification: A Brush With Kindness Up to $2,000 total costs expended per house Street tree planting Negotiate w/ wholesale nursery for donations and discounts Neighborhood cleanup days Partner w/ City of Tampa Solid Waste Dept and/or waste removal company Partner w/ other non-profits for owner-occupied rehabs Expand upon funds provided by City to approved housing rehabilitation providers Veteran homeowners mini-grants for accessibility improvements $2,000 available per home for up to 10 homes

16 North Bay Village Property HFHHC approved purchase 18 months ago but never contracted property due to questions about stormwater pond and # buildable lots Northern Trust appraised in Sept 2010 at $725,000 Bank owned asking price $475,000 Tax assessed value w/o improvements $161,028 HFHHC submitted offer to Northern Trust on August 16

17 Financing: Property Purchase Northern Trust requires down payment 20% the max down payment is $60,000 Northern Trust may offer us financing for the remainder $240,000 max Purchase price $300,000 Down payment $60,000 Financing(@3.5%?) $240,000 plus interest

18 Work Required Prior to Home Construction Approx $3,000 max $120,000 - $225,000 $37,500 Approx $5,000 Approx $6,000 $2,000 $2,500 or less??? Due diligence expense for civil engineer research Site work including fill, grading, tree wells and sod Transfer light poles to $7,500 each Civil engineer review all civil work for current code and process to completion of transfer to municipality Plat process to completion Sewer line TV test and sewer tap repairs HOA formation and land use attorney SWFMD stormwater pond updates required? Street resurfacing? Bond? $168,000 - $285,000+

19 Financing: Site Work Options assuming no government funding available Community sponsor (cash or donation) Sell mortgages 1 or 2% interest loan FHFC predevelopment loan fund Federal grant funding not from HUD?

20 Home Building Costs Estimated $85,000 construction costs Garages included Potential exterior wall material change to SIPS Plan changes free w/ contract for plans for 26 homes? Estimated appraisal at $110,000 Increased value attributed to inclusion of garages and use of different building materials

21 Cost/Build Timeline Land purchase Costs prior to build Home construction $300,000 max over X years $60,000 max down at closing by Dec 2011 $285,000+ potential out of pocket expense by affiliate Beginning as early as Jan 2012 Can wait until FY to do work need approx 6-9 months to complete Completed Dec 2012 As early as Jan 2013 Ready to build when Providence Pointe completed

22 Potential Costs Per Lot Land 225, , , , , ,000 Civil 160, , , , , ,000 Total 385, , , , , ,000 Per Lot $14,827 $17,231 $17,712 $18,673 $19,635 $23,077

23 Monthly Costs to Homeowners Mortgage ($110, yr) $ Taxes $70.00 Insurance $ HOA fees $85.00 $640.55

24 Why North Bay Village? Property Value vs. Cost $725,000 appraisal vs. $300,000 max purchase price Location Advantage to HFHHC Proximity to offices w/in East Tampa NRI focus area Advantage to Homeowners Close to jobs, transportation and support services Strong existing community organizations Timing 90% infrastructure complete? capable of building first homes as Providence Pointe is completed

25 Where Do We Go From Here? If, yes, we want to look into purchasing the property Letter of Intent provided to bank week of Aug 15 Contract w/ civil engineer and surveyor for due diligence work week of Aug 15