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The financial figures will be different than originally planned, but a Twin Cities Habitat for Humanity project in Hopkins is still scheduled to move forward.
The Hopkins City Council approved a motion in February that authorized selling lots at 13 and 15 Harrison Avenue in Hopkins to TCHFH for $75,000 each.
The organization plans to build two single-family homes with detached garages on the lots. It will be the organization's first project in Hopkins.
However, the $150,000 total for the purchases was contingent on TCHFH securing $100,000 in grants from Hennepin County's Home Investment Partnership Program. It learned last month, though, that it would only receive $50,000 from the program, which put the project in jeopardy.
Karl Batalden, TCHFH's government and community-relations officer, said he knew it was a tough real estate market out there, so he wasn't shocked that the organization wasn't able to receive all the requested funding.
Nevertheless, the organization was able to secure another $75,000 in June through grants from the Minnesota Housing Finance Agency, meaning the project will be able to move forward. TCHFH will only be able to offer the city of Hopkins $70,000 each for the two lots - $5,000 less than it originally planned - but the city has agreed in principal to the offer.
"We still consider it to be a fair-market price and the city is happy the project is moving forward," said Tara Beard, Hopkins' community development coordinator.
The profit the city stands to make on the sale will go toward paying down debt on the Hopkins Center for the Arts, she said.
The two vacant lots on Harrison Avenue used to belong to Surge Water Conditioning. The city purchased the properties for $33,668 in 2006 when it was expanding Excelsior Boulevard in the area. It re-zoned the property for residential use in March 2007 and hired a realtor to sell the lots. Twin Cities Habitat for Humanity indicated an interest in the lots at the end of last year.
The organization's mission is to eliminate poverty housing from the metro area and make decent, affordable shelter for everyone. It sells its homes to families, who are selected based on need, for no profit and with zero-percent-interest mortgages. Homeowners pay full principal, taxes, insurance and maintenance escrow payments. The homes are sold at fair-market value, as determined by an appraiser. Local volunteers help build the houses.
Homebuyers are required to provide 300 to 500 hours of "sweat equity," helping to build their home or other Habitat homes, and attend 11 first-time homebuyer classes.
Twin Cities Habitat for Humanity focuses its land-acquisition activity in cities that have good job growth and high-quality schools, such as Hopkins, Batalden said.
"It's wonderful partnering with Hopkins," he said. "Every time we can work with a new community is a good thing."
When the organization moves into a new community, he said, it forms partnerships with churches, rotaries and businesses that often last beyond one project.
He said some Hopkins churches and youth groups have already approached TCHFH about helping out.
"This is exactly what we like to see," he said. "It makes it an enjoyable experience for everybody."
Twin Cities Habitat for Humanity interviews about 300 applicants each year for each of its houses. About 60 are chosen based on financial need and living conditions. They must demonstrate they have a stable income and the ability to make monthly mortgage payments.
The Hopkins City Council requested that TCHFH market its program to Hopkins residents. Batalden said the organization can't guarantee that the two homes will be sold to Hopkins residents, but added that good applicants from within the city might have a better shot because they will be ranked higher in terms of community relationship.
Construction on the two houses is expected to start next spring.
"It's wonderful partnering with Hopkins," he said. "Every time we can work with a new community is a good thing."
When the organization moves into a new community, he said, it forms partnerships with churches, rotaries and businesses that often last beyond one project.
He said some Hopkins churches and youth groups have already approached TCHFH about helping out.
"This is exactly what we like to see," he said. "It makes it an enjoyable experience for everybody."
Twin Cities Habitat for Humanity interviews about 300 applicants each year for each of its houses. About 60 are chosen based on financial need and living conditions. They must demonstrate they have a stable income and the ability to make monthly mortgage payments.
The Hopkins City Council requested that TCHFH market its program to Hopkins residents. Batalden said the organization can't guarantee that the two homes will be sold to Hopkins residents, but added that good applicants from within the city might have a better shot because they will be ranked higher in terms of community relationship.
Construction on the two houses is expected to start next spring.
For more information on TCHFH, go to www.tchabitat.org.
Marc Ingber
Sun Newspapers
July 9, 2008
This article was first published July 3, 2008
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