Novato affordable housing project battles funding gap

A Habitat for Humanity project that would make it attainable for low- and moderate-income households to afford to purchase a home in Novato has received a million allocation from Marin County supervisors The county had previously committed more than to the project so the new allotment increased its total contribution to about million The project estimated to cost million still has a large funding gap Habitat for Humanity Greater San Francisco an independent affiliate of the international organization based in Atlanta Georgia has secured more than million in permanent and temporary financing and has an additional million in pending requests from general and private sources Maureen Sedonaen chief executive officer of Habitat for Humanity Greater San Francisco reported the project s estimated cost has shot up since It s current my heart noted Sedonaen who attributed the increase to a rise in building costs We have to put in all of the infrastructure the roads the sidewalks everything The -acre building site which is vacant aside from Pacific Gas and Electric Co transmission infrastructure is at Redwood Blvd just north of Buck Center Drive The project would be adjacent to the Days Inn Hotel The project calls for buildings that will contain one to six homes each Sixty of the homes would be priced to be affordable to households earning no more than of the area median income for Marin County Based on income levels and current mortgage rates that would put sales prices between approximately and for the low-income homes Another homes will be priced to be affordable to moderate-income households earning between and of area median income This is really a unique opportunity to invest in low-income families through a homeownership model which is rare in affordable housing Leelee Thomas deputy director of the Marin County Neighborhood Expansion Agency explained supervisors prior to the April vote Thomas also highlighted the fact that each home would have two to four bedrooms Much of our housing isn t serving larger often intergenerational families so this is a unique opportunity she mentioned Sidney Stone a vice president for Habitat for Humanity stated supervisors that while buyers of moderately priced homes will be charged a small interest rate buyers of low-income homes would be required to pay no interest on their mortgages Stone stated the cost of purchasing both low- and moderately-priced homes would be capped at of the buyers income and Habitat for Humanity would require no down payment Deed restrictions on the properties would guarantee their affordability for years The county s million allocation will come from its housing trust fund Novato has also allocated from its affordable housing fund and from its general fund Novato will get to count the homes toward its state mandate to foster the creation of new residences by The Marin Neighborhood Foundation has already given the project million in grants since and agreed to lend Habitat for Humanity another million Habitat for Humanity also expects to receive sponsorship from the state s CalHome activity which provides grants to local constituents agencies and nonprofits for first-time homebuyers and the organization is applying for million from the Affordable Housing Project which is funded through the Federal Home Loan Banks system I m really pleased to see how far this has come declared Supervisor Eric Lucan who supported the project when he served on the Novato City Council before being elected supervisor What is so unique about Habitat s model is the ownership and equity component Lucan commented As we look to advance housing countywide having the right mix of rental and ownership with equity is really key While buyers will get specific return on their financing they will not be allowed to sell their properties at sector rates They must be sold to another income-qualified buyer at an affordable price that is consistent with Habitat for Humanity s resale formula They don t get sphere equity no Sedonaen disclosed They get every dollar they paid in their mortgage interest plus a little more based on the consumer price index According to a analysis by the county planning office the Novato project seeks to address systemic barricades disproportionately impacting communities of color by offering accessible housing in a high-opportunity area Sedonaen however revealed the decision regarding who is allowed to purchase the homes would be made by lottery although affirmative marketing will be conducted to stimulate applications It s affirmative because we don t just post the information she explained We re trying to make sure that people who have historically been locked out of homeownership both institutionally and racially know about it We want to make sure we re targeting those groups