Clik here to view.
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."