VERO BEACH — This will be the first year that new home construction will not be the primary focus through which Indian River Habitat for Humanity serves its families.
Incredible as it may seem in a recession and depressed housing market, the cost of building a home has risen over the last 10 years. Some grants require that Habitat sell its houses at least 1% below appraised value.
Due to the depressed housing market, appraisals are now well below even Habitat’s low cost of construction. Federal and state programs, which have offset some building costs and homeowner down payments, have been curtailed or discontinued.
Habitat’s only recourse is through our house sponsors, many of whom are also struggling in the current economy.
The rental picture, too, is indicative of the economic times: in Indian River County, 6,590 households pay more than 35% of their income for rent. The average rent on a 2-bedroom apartment at fair market value is $872/month, which translates into a minimum required annual income of $34,880.
At current minimum wage, an individual would need to work 88 hours a week.
During the past 22 years, Indian River Habitat for Humanity has built 303 homes and completed 55 repair projects and 40 rehab projects, for a total of 398 families served.
In recent months, however, it has become evident that these efforts to provide decent, affordable, low-income housing have been falling behind the ever-increasing need in Indian River County.
Determined to continue its mission, Habitat has developed an aggressive plan which changes its strategy going forward, one which not only maintains but exceeds previous long-term goals.
This will be done by readjusting the focus, using three elements already tested by the affiliate: new home construction; repair projects for the elderly, infirm, and veterans; and rehabilitating existing housing stock, such as foreclosures.
With this plan, Habitat anticipates serving 55 families in Fiscal Year (FY) 2014, compared to 50 in FY 2013.
This shift in the affiliate’s priorities, with a concentration on serving families rather than simply building new homes, will be reflected in adjustments that will reach beyond the construction plan. By necessity, it will involve the repositioning of financial, staff, and volunteer resources.
Because Habitat will now build all “stick” construction homes, rather than concrete block, more volunteers will be needed to participate. The proposed rehabs and repair projects, however, will require fewer volunteers and staff supervision.
Going forward, Habitat’s repair projects will focus initially on owner-occupied homes in the Gifford community. Habitat conducted a detailed house-by-house survey of 1,400 parcels, including an inventory of each house’s exterior condition.
Although much government funding has been reduced or eliminated, county government is working with Habitat on this project. Habitat is also working with Gifford community leaders who can identify needs that exist, but are beyond the ability of an exterior survey to disclose.
This project will allow Habitat to engage with other community entities, including churches, civic groups, and other non-profits.
Rehabbing of foreclosed homes has, over the past few years, become a more important element in Habitat’s program. In fact, next year, rehabs will overtake new home construction by a margin of more than 2 to 1.
Partial funding for rehabs has come through the Neighborhood Stabilization Program (NSP3.) The county enlisted Habitat to utilize $1.3 million in HUD grant funds earmarked for the purchase of foreclosed homes in the Oslo Park area.
In the first segment of this program, 14 homes, many of which are distressed, will be refurbished and made available to Habitat homebuyers this fiscal year.
Additional financial support comes from a bill recently signed by Gov. Rick Scott shifting some of Florida’s national mortgage-settlement dollars into programs targeting the homeless, low-income and foreclosures, $20 million of which was awarded to Florida Habitat for Humanity affiliates.
The new business plan will not only lower the cost of serving families, but it will also enable Habitat to serve more needy families, which, in FY 2014, will amount to five additional families, for a total of 55.
Through this aggressive strategy, Habitat can better meet the growing need for simple, decent, low-income housing which, in turn, will improve the community as a whole and help strengthen the local economy.