Chris Sill

Financially stable low- and moderate-income households have the opportunity to build a new home in Dickinson County via a new homeownership program.

Community Housing Initiatives, a Spencer-based housing development organization, was recently awarded a grant through the Iowa Department of Economic Development's HOME Investment Partnership Program, which receives funding from the U.S. Department of Housing and Urban Devel-opment. This money will be used to assist 10 first-time home buyers to build homes in Dickinson County. (See first-time home buyer definition and income limit requirements on page 2).

Doug LaBounty

"Home prices are a little exorbitant in some areas," said Doug LaBounty, CHI's president. "That's where we come in, as far as replacing that gap for the affordability factor in the housing itself. We need to fill a gap, and that's what we're trying to do with this."

Through this pilot program, the non-profit housing organization will be able to provide grants of up to $35,000 per home, assisting potential first-time home buyers in buying down the cost of building said residence.

"If they're looking to build a brand new $140,000 three-bedroom house, we apply that $35,000, and all of a sudden we have a $105,000 home that becomes more affordable to somebody with less income," LaBounty explained.

The financial assistance will be structured as a 10-year forgivable loan. Repayment of a portion of the money would be required if the home were to be sold during the first 10 years of ownership.

CHI representatives recently purchased four of the 10 lots for potential homes to be located within Dickinson County. In Spirit Lake, two new houses will be built near 25th Street and Troy. Two more homes will be constructed near the 28th Street and Troy intersection in Spirit Lake.

"We're going to take this new homeownership program a different direction," LaBounty said. "We have plans to get a home built this summer. Before, we were trying to find the buyers first, have them go through the (required educational) program and then build the home. Now, we're going to build a home and hopefully sell it in this manner with the first-time home buyers assistance."

Chris Sill, a certified CHI homeownership counselor, stated this pilot project does differ from the Habitat for Humanity program.

"Habitat for Humanity's program isn't necessarily always new construction. And, they have a lot of 'sweat equity' the owners have built into it. While they're getting a lot of donated materials, ours is strictly relying on local contractors and lumberyards for purchasing all the supplies -- and typically not getting a discount on it, either," Sill explained. "It's just like if you or I wanted to go out and build a home. The difference is if you're a first-time home buyer and meet the median income levels, you can get $35,000 for the assistance to get it going, the down payment assistance."

"I am working closely with the local Habitat charters here, though, and we think we've got it worked out to where we can utilize both," he added. "So, if you apply for a Habitat for Humanity home, you can also get the $35,000 assistance to go with it. We're also tagging along with any other programs we can find similar to that. ... So, there's really no limit to what you can do with these funds."

LaBounty, meanwhile, indicated bids have been received for the first Spirit Lake home construction project.

"So we'll be starting our first house pretty soon," he said. "Hopefully we can replicate this in other towns. We are hoping to move it down to Spencer as well. The reason we wanted to do this was because we saw a lack of affordable single-family housing opportunities."

* For more information on this first-time home buyer assistance program, contact Doug LaBounty or Chris Sill by telephone at 262-5640.