A Habitat for Humanity mission that might make it doable for low- and moderate-income households to afford to buy a house in Novato has obtained a $5.2 million allocation from Marin County supervisors.
The county had beforehand dedicated greater than $760,000 to the mission so the brand new allotment elevated its whole contribution to about $6 million. The mission, estimated to value $84 million, nonetheless has a big funding hole.
Habitat for Humanity Higher San Francisco, an impartial affiliate of the worldwide group based mostly in Atlanta, Georgia, has secured greater than $22 million in everlasting and short-term financing and has a further $10.7 million in pending requests from private and non-private sources.
Maureen Sedonaen, chief government officer of Habitat for Humanity Higher San Francisco, stated the mission’s estimated value has shot up 40% since 2019.
“It’s breaking my heart,” stated Sedonaen, who attributed the rise to an increase in constructing prices. “We have to put in all of the infrastructure, the roads, the sidewalks, everything.”
The 13.6-acre constructing website, which is vacant apart from Pacific Fuel and Electrical Co. transmission infrastructure, is at 8161 Redwood Blvd. simply north of Buck Heart Drive. The mission can be adjoining to the Days Inn Lodge.
The mission requires 23 buildings that can comprise one to 6 houses every. Sixty of the houses can be priced to be inexpensive to households incomes not more than 80% of the realm median revenue for Marin County. Based mostly on 2024 revenue ranges and present mortgage charges, that might put gross sales costs between roughly $467,063 and $689,554 for the low-income houses.
One other 20 houses might be priced to be inexpensive to moderate-income households incomes between 80% and 120% of space median revenue.
“This is really a unique opportunity to invest in low-income families through a homeownership model, which is unusual in affordable housing,” Leelee Thomas, deputy director of the Marin County Neighborhood Improvement Company, informed supervisors previous to the April 15 vote.
Thomas additionally highlighted the truth that every house would have two to 4 bedrooms.
“Much of our housing isn’t serving larger, often intergenerational families, so this is a unique opportunity,” she stated.
Sidney Stone, a vice chairman for Habitat for Humanity, informed supervisors that whereas consumers of reasonably priced houses might be charged a small rate of interest, consumers of low-income houses can be required to pay no curiosity on their mortgages.
Stone stated the price of buying each low- and moderately-priced houses can be capped at 30% of the consumers’ revenue, and Habitat for Humanity would require no down cost. Deed restrictions on the properties would assure their affordability for 99 years.
The county’s $5.2 million allocation will come from its housing belief fund. Novato has additionally allotted $800,000 from its inexpensive housing fund and $200,000 from its normal fund. Novato will get to depend the houses towards its state mandate to foster the creation of two,090 new residences by 2031.
The Marin Neighborhood Basis has already given the mission $1.9 million in grants since 2019 and agreed to lend Habitat for Humanity one other $5 million.
Habitat for Humanity additionally expects to obtain help from the state’s CalHome program, which gives grants to native public companies and nonprofits for first-time homebuyers, and the group is making use of for $2 million from the Inexpensive Housing Program, which is funded by means of the Federal House Mortgage Banks system.
“I’m really pleased to see how far this has come,” stated Supervisor Eric Lucan, who supported the mission when he served on the Novato Metropolis Council earlier than being elected supervisor.
“What is so unique about Habitat’s model is the ownership and equity component,” Lucan stated. “As we look to advance housing countywide, having the right mix of rental and ownership with equity is really key.”
Whereas consumers will get some return on their funding, they won’t be allowed to promote their properties at market charges. They have to be offered to a different income-qualified purchaser at an inexpensive worth that’s per Habitat for Humanity’s resale system.
“They don’t get market equity, no,” Sedonaen stated. “They get every dollar they paid in their mortgage interest plus a little more based on the consumer price index.”
In keeping with a report by the county planning workplace, the Novato mission “seeks to address systemic barriers disproportionately impacting communities of color by offering accessible housing in a high-opportunity area.”
Sedonaen, nevertheless, stated the choice relating to who’s allowed to buy the houses can be made by lottery, though “affirmative marketing” might be performed to stimulate purposes.
“It’s ‘affirmative’ because we don’t just post the information,” she stated. “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.”
Initially Printed: April 27, 2025 at 5:58 PM PDT
