The City Lights Project (CLP) is a proposed Habitat for Humanity Neighborhood Revitalization Initiative (NRI) for the city of Wi******er, VA. The CLP scope involves the renovation, repair, and or weatherization of 17 existing rental properties with their gradual transition into owner-occupied residences. The 17 CLP properties will complement 39 other Habitat for Humanity homes already present in t
he same neighborhood. Habitat for Humanity of Wi******er-Frederick County (hereafter called HHWFC or the Affiliate) in partnership with property residents, the community, community organizations, and the City of Wi******er now seeks to transform this poverty-stricken housing area into a safer, more economically viable area, and advance north-side neighborhood stabilization in Wi******er, VA. The major outcomes of this CLP multi-year transition project will be to: (1) place an additional 17 properties into private ownership; (2) add these residences to city tax rolls; and (3) improve community safety as well as the civic engagement for all north-side neighborhood residents. In discharging its responsibility for CLP homes, HHWFC will engage in its mission as “a Christian ministry that mobilizes community resources and trusted partners to enhance people’s lives by building and renovating homes.” The Wi******er/Frederick County Affiliate of Habitat International was established in 1995 and has subsequently assisted 52 families (comprising 68 adults and 80 children) in gaining home ownership (Attachment 1: Map Overlay Current HH Homes) with those homes now valued collectively at $4,800,000 and providing about $62,000 of annual city and county property tax revenue. C. HHWFC has conducted (or will conduct) the following due diligence in assuming the community leadership role for the CLP project:
1) evaluated the 17 homes to determine each one’s suitability for home ownership, including an assessment of needed licenses, permits or zoning changes required by the City;
2) examined the Affiliate’s organizational capacity to manage and execute the CLP project within a five-year time period, including available staff time, their knowledge base, organizational and program leadership, and personnel skill levels;
3) determined that the collaborative development approach taken by the Affiliate with the CLP project is consistent with the Neighborhood Revitalization Initiative (NRI) of Habitat International;
4) met in person with a majority of the 17 current property renters to advise that they will not be displaced by HHWFC; listened to their views and concerns about CLP; and provided reassurance that HHWFC will work with them to convert as many as practically qualified into homeowners, a long-held expectation of several property renters;
5) developed a public relations statement along with the necessary community and group meetings to explain the project to HHWFC’s partners, including city and county agencies, and
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especially the Affiliate’s relationship with Faith Works (including a detailed MOU of respective responsibilities) which will act as rental property manager during the transition years; and
6) work to establish a future Community Land Trust (CLT) between HFHWFC and the North End community to stabilize CLP properties and others in the neighborhood from possible speculation and to help maintain quality, affordable housing and encourage future community project development. D. To accomplish its mission as it pertains to CLP, HHWFC will conduct project work in six phases over six years:
1) use the CLP properties to complement the usual HHWFC continuing search for properties which, in turn, will lessen the organization’s time and effort ordinarily used to locate and rehab suitable homes in the City of Wi******er;
2) build a schedule of essential repairs and/or renovations during 2013-2014 for the 17 CLP homes with a transition plan for the following five-year period (July 2014 through June 2019) for changing the rental properties into owner-occupied homes;
3) acquire necessary funds to accomplish needed repairs or renovations for homes and their subsequent inspections for mortgage eligibility;
4) assess the individual candidacy of current renters for home ownership and support their processes to acquire mortgages;
5) reinforce and where necessary build new positive relationships with other service, government, and agency partners to stabilize the family units and enhance their community and civic engagement through both the NRI and the CLT; and
6) maintain the properties during the transition period in conditions that advance the notion of stable, affordable housing in Wi******er. The Executive Director of HHWFC Michael Butler, (540)662-7066, [email protected] will be the Affiliate’s responsible officer for the project. E. While these six integrated, closely coordinated phases are underway, ownership of the properties will reside with Habitat for Humanity of Wi******er-Frederick County, with First Bank holding the note. Further, rental fees from the 17 properties will be escrowed into a restricted account held by First Bank and used only for the maintenance, repair or ownership conversion of these units while maintaining the properties in an operational and safe environment. An agent will be appointed to monitor and be responsible for the stewardship of the funds and First bank will appoint a liaison to interact with HFHWFC during the CLP project. F. As is true for all HHWFC fund raising, 100% of donated funds is used only for direct housing improvements. As is also true with all HHWFC properties, 75% of needed funds must be in hand
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before conversion or rehabilitation of individual units can be initiated. From funds raised for CLP, a separate contingency fund of 10% from all CLP donations and grants will be established for potential cost overruns or unexpected major repairs, such as asbestos or mold abatement. Any funds remaining in this contingency fund after the transition period will only be applied to later Habitat funded homes in Wi******er-Frederick County. Finally, it is reiterated that the operational costs of HHWFC and its staff are supported by the Affiliate’s retail home improvement operation, ReStore, also located in the city of Wi******er and that such operational costs are not supported by donations or grant funds received by the Affiliate for residential property. G. The Affiliate’s CLP fundraising will focus both on community donors and corporate philanthropy with stress on multi-year fund acquisition to stabilize the project during the five-year transition period. The required funds each of the five years are, on average, $200,000 or about $65,000 per unit, which in total is an estimated direct cost of about $1,100,000 for conversion of the 17 residential units. The actual fund dispersion will be uneven since it is impossible to forecast the condition of each property. However, it is projected that the Affiliate will successfully acquire the extraordinary funds of around $200,000 per year to achieve property conversions and measurably impact the level of affordable and stable housing in the north-side area of the City of Wi******er.
