Description

The Elsmere homes are a first for HFHNCC. The organization normally financing the construction through grants and sells their homes to qualified buyer through their 0% mortgage program. HFH is piloting an additional way to bring affordable housing to the market, by financing the construction through a loan from Artisans' Bank. They also received additional support from New Castle County, and had the homes built off-site through a modular builder, Beracah Homes in southern Delaware. Instead of serving as the mortgage lender, as Habitat traditionally does, HFHNCC will sell both homes on the open market to income-qualified buyers earning 80% or less of the area median income. Buyers will bring their own mortgages, and the sale proceeds will repay the construction loan. "Habitat's mission is about homes, community and hope. It has never been tied to one single way of doing things," said Kevin Smith, CEO of Habitat for Humanity of New Castle County. "We try to hold firmly to our principles and stay flexible about our tactics. This pilot is about asking a simple question: how do we get more affordable homes into the market for the families who need them?" The answer starts with capacity. Each year, HFHNCC can only raise so much for construction, and its build team can only work so fast. Buying land, securing permits and building have all grown more complex and more costly. Borrowing for construction and building modular let HFHNCC start homes without waiting on the next fundraising cycle. The need itself has shifted, too. For much of Habitat's history, the focus was moving families out of substandard housing. Today, the challenge is affordability. Many working people, including recent college graduates and young professionals, assume homeownership is out of reach or that Habitat isn't for them. These starter homes are meant to change that.