HomeMy WebLinkAbout11-09-2022 SB Resdential Neighborhood MtgThe Need for Affordable Housing“There are 14,000 families in St. Joseph County who pay over 30% of their income toward housing costs. They are “rent‐overburdened.”
Since 1987 Habitat for Humanity has built 232 new homes in St. County - 144 in South Bend.
We have recently focused on home repairs in South Bend.2017-2022Aging in Place for Seniors = 54Veteran Home Repairs = 15
Improved Habitat House Designs since 2009
Old House Design
In 2018 the average Habitat house appraised for $130,000. In 2022 the exact same house appraises for $240,000.
Average Rent –St. Joseph CountyThe median rent for a 3‐bedroom apartment in St. Joseph County is $1,250 per month.
The Old Habitat ModelAverage house appraisal was $130,000Habitat provided an affordable mortgage to a family at 0% interest. Average payment was $650 per month (including taxes and insurance)
The New Habitat ModelThe average house appraisal today is $240,000A local bank provides an affordable first mortgage (at market rate) based on what the family can afford –no more than 30% of their gross incomeHabitat provides down payment assistance through grantsFamily only pays $1,500 down payment
The New Habitat ModelNo closing costsNo PMI insuranceHabitat provides a second mortgage at 0% that does not have to be paid back until the family sells the house
ExamplePurchase price = $240,000Habitat down payment assist = $30,0001stSource first mortgage ($100,000 at 7% for 30 yrs) = $665/monthFamily down payment = only $1,500No closing costsNo PMI Habitat second mortgage ($108,500 at 0% for 30 yrs) = $0/month –does not have to be paid back until family sells the house
ExampleFirst mortgage P&I = $665Second mortgage = $0Taxes and insurance = $250Total mortgage payment = $915
If Family SellsShared Appreciation –50/50Habitat has 1stRight of PurchaseAMI sale restriction –must sell to family below 120% AMI unless stricter grant requirementMust repay second mortgage upon sale
Contact InfoJim Williams, President & CEOHabitat for Humanity of St. Joseph Countyjwilliams@habitat‐for‐humanity.org