Habitat for Humanity to get first dibs on foreclosed Ypsilanti Township houses
This foreclosed home in Ypsilanti Township is being renovated by Habitat For Humanity.
Tom Perkins | For AnnArbor.com
Since 2009, Habitat for Humanity of Huron Valley has renovated more than 50 blighted homes in Ypsilanti Township and put them in the hands of tax-paying homeowners.
That equated to an additional $157,000 to the township's tax rolls paid by families in Habitat homes in 2012.
It also helped stem the number of single-family homes falling into the hands of investors who turn the properties into rentals, which township officials find to be a growing issue.
Now, with a new partnership between Ypsilanti Township and the U.S. Department of Housing and Urban Development, the township and Habitat will get first choice on foreclosed homes to help boost the number of homes Habitat renovates.
“This is just another avenue for us to get the property occupied by a homeowner instead of an investor who might not have the same interest as us,” Township Attorney Doug Winters said. “Neighborhood stabilization is our goal, so home ownership and not having more rental properties is our goal.
“In the area around where I grew up, there are up to 70 percent rentals in one area, and that has a destabilizing impact.”
The “First Look” program offered by HUD was once available to Habitat, but the sale of the homes to Habitat’s residents wasn’t happening quickly enough for HUD rules.
The township will now have a first look at foreclosed homes and be able to buy them at what is often far below market rates. The homes only will be purchased if there is a commitment from Habitat to buy the properties, and the township will not sell them at a profit.
“We’re doing this to help stem blight and the impact that foreclosed properties have had on the neighborhoods, and to get homes back in the hands of homeowners,” Winters underscored.
Contrary to what many believe, Habitat doesn’t just give their homes to residents, said Rob Nissly, Habitat’s housing director. Those benefiting from their programs must put 200 hours of “sweat equity” in on working on the home.
Homeowners are then given a zero percent interest mortgage they must pay off, and they must demonstrate that they will be able to continue making mortgage payments. Homeowners also pay property taxes and insurance.
Habitat has been particularly active in the Gault Village neighborhood, where it has completed around 25 renovations. In addition to those full renovations, the agency offers a critical repair and weatherization program. That includes installing new furnaces, roofs, driveways, electrical work, air-sealing, installation of new hot water heaters and more.
“This keeps people in their home by saving money on utilities or by preventing that catastrophic roof leak that drives the family out of the home,” Nissly said.
The agency completed 28 of those repairs last year in Ypsilanti Township, including nine for veterans.
In 2009, Habitat completed six new houses in the township but switched to renovations as the foreclosed housing stock hit the community hard. Next year there are 17 renovations planned.
Supervisor Brenda Stumbo said she thought getting involved with HUD to be able to pass on the homes to Habitat is “a great idea.”
“It’s another tool in our toolbox," she said. "Habitat has made a huge difference in the communities."
Comments
P Beal
Sat, May 25, 2013 : 3:50 p.m.
My posting dropped jondhall's quote which should read "Lets not body slam THE INVESTORS" (his capitals)
P Beal
Sat, May 25, 2013 : 3:46 p.m.
Doug Winter's observation is more to the point than the article allows. Whether it is by judicial foreclosure (as it is in Michigan), bank foreclosure, tax deed sale or tax lien sale (as it used to be in Michigan), a chronic problem with these systems has always been the minimum or total lack of stewardship (maintenance) that the purchasers often show. At the root of things, they really have little motivation, time or competence to keep up their tax default purchases which then become eyesores and burdens to their communities. Regarding jondhall's comment > (his capitals), the reality is that tax foreclosure buyers, whatever the legal form that takes, as a general rule make no investment or improvements in the properties they purchase or in the surrounding community . This is a canard and self-serving piece of propaganda promoted by individual "investors" and groups such as the NTLA (National Tax lien Association…google it) to rationalize their profitable exploitation of the various property tax foreclosure systems. These systems were originally conceived to help their local communities but which now have become nothing more than a mechanism for outside agencies to extract wealth from those communities while pretending to benefit them by paying the relatively small back taxes due. It is the municipal equivalent of a payday loan: a desperate short term solution followed by long term damages. The tax foreclosure "investment" industry is so lucrative that major banks cannot stop themselves from being involved in what used to be thought of as a 'dirty investment', often not under their own names; JP Morgan, KeyBank, TransAmerica, Bank Atlantic, Deutsche Bank, Wells Fargo, the now defunct Bear Stearns and more are/were all players. The current Michigan system of judicial foreclosure is fortunately probably the least damaging and fairest to the property owner at risk; we have that to be thankful for.
jondhall
Sat, May 25, 2013 : 1:10 p.m.
Tom at A2 News: Your statement :Since 2009, Habitat for Humanity of Huron Valley has renovated more than 50 blighted homes in Ypsilanti Township and put them in the hands of tax-paying homeowners. Implies these homes sat tax free, the only time they might be TAX FREE is when Ypsilanti Township owns them. Banks pay property taxes albeit sometimes late. Investors pay property taxes that are even higher by 18 mills. Lets not body slam the INVESTORS PLEASE. This may be a good program , I guess if I had a house completely renovated at zero interest rate with zero down for doing 200 hours of unskilled work I'd grab it. How does one sign up?
jns131
Fri, May 24, 2013 : 9:16 p.m.
I really hope those who do work on these homes are nice neighbors. I have seen some abandoned within 2 years after they are built. I think there is a statistic on how long these habitat owners live in these homes. Good luck with this one.
Backthetruckup
Fri, May 24, 2013 : 3:55 p.m.
This is nice.
Donna
Fri, May 24, 2013 : 11:04 a.m.
Picking up on Foobar417's comment, you could help TODAY! We're short folks on our work crew from 8am-4pm at 1269 Lester Street. Lunch provided!
foobar417
Fri, May 24, 2013 : 10:47 a.m.
I encourage folks to volunteer with Habitat to help on these homes. I worked on one of the homes in Gault Village. It's very rewarding and you can really see the impact on the neighborhood.
Elaine F. Owsley
Fri, May 24, 2013 : 10:45 a.m.
This is such a rational solution, it's amazing it's being put into practice. What a win-win for both Habitat and the community. Congratulations to both!!!
Murf
Fri, May 24, 2013 : 10:31 a.m.
Before the snarky comments about Ypsi begins, the headline should read Ypsilanti Township homes.
a2cents
Fri, May 24, 2013 : 1:24 p.m.
or maybe Ypsilanti Township, Wayne County, Michigan, USA
tdw
Fri, May 24, 2013 : 11:11 a.m.
What does it matter ? all it takes is the word " Ypsi " for snarky comments
michaywe
Fri, May 24, 2013 : 10:19 a.m.
Nice gesture. Too bad it didn't happen four or five years ago.
mady
Sun, May 26, 2013 : 5:13 p.m.
hey, better late than not at all.