By J. FERGUSON
Sun Staff Reporter
Saturday, November 10, 2007
www.azdailysun.com
If all goes as planned, three local families will spend part of their off-hours paying for their first homes in both sweat and dollars.

The local Habitat for Humanity chapter has recently been given the green light by the city to build three homes in Sunnyside next year.

Each family will spend at least 500 hours apiece working on their home to help bring down its cost.

Each Habitat unit will cost a fraction of the average home in Flagstaff, mostly due to donate materials, equipment and labor.

Home prices haven't been set, but monthly mortgage payments on each three-bedroom residence are expected to be no more than $700.

Gwen Groth, the executive director of Habitat for Humanity of Flagstaff, hopes to break ground on the project early next year.

"We are excited at the opportunity to bring housing to those who need it," said Groth.

The project represents the first homes to be built from scratch since the chapter built its 11th house in 2003. It could not find a landowner willing to donate a suitable parcel.

So instead, Habitat bought the Sunnyside parcel priced at $170,000, with the city of Flagstaff giving the nonprofit $80,000 toward the purchase. A recent donation of $2,000 from the eastside Home Depot will also be put toward the project.

Groth said the $90,000 loan taken out to purchase the property will be incorporated into what is expected to be a typical 20-year loan with interest for the new Habitat homeowners. "Our main objective is to serve residents with very low income," said Groth.

Groth said the nonprofit limits participation to households earning below 80 percent of the median Flagstaff income, or $43,760 for a family of four.

But Groth goes a step further, saying this project is aiming for residents making even less, roughly 50 percent of the area median income.

The $700 monthly payment could be even smaller if the city winds up purchasing the entire parcel for its land trust. Habitat homeowners would not owe anything for the land, although they would have to sell their structures back to the city if they decide to move.

In 2006, the nonprofit had to buy back one of the Habitat homes it built several years ago after the family announced it was moving out of town.

Habitat exercised the right of first refusal and repurchased the home rather than lose the home to fair market pricing.

But Groth said the nonprofit does not have the resources to continue to buy back homes as they are put up for sale, hence the consideration of joining the land trust.

Sarah Darr, the city's land trust manager, confirmed ongoing negotiations with Habitat.

"We have to decide whether this property is a good fit for everyone involved, not just the city," said Darr.

The city's Development Review Board approved on Thursday a preliminary plan to put the three, three-bedroom homes on a 0.18 acre site near the intersection of Rose Street and Felice Avenue.

To qualify, families must prove they are have inadequate living conditions, a proven ability to pay back the loan, lived in the area for at least one year and a willingness to put in 500 hours of "sweat equity."

The final condition requires families help build not only their home but homes for other families in the program

The group does not maintain a waiting list, Groth says. The nonprofit is expected to begin accepting applications for housing in January.

J. Ferguson can be reached at 556-2253 or jferguson@azdailysun.com.