By Angela Hatton
http://stream.publicbroadcasting.net/production/mp3/wkms/local-wkms-895351.mp3
Murray, KY – Incentives such as the federal First Time Homebuyer's Tax Credit and low interest rates have helped the continuing housing market recovery in the U.S. Throughout the recession, Habitat for Humanity has continued to build at a rapid pace. They have completed over 350,000 houses since their founding in 1976. The ecumenical Christian organization builds affordable housing in all fifty states, and internationally. Murray, Kentucky's branch began in 1990, and volunteers recently dedicated their twelfth home. Angela Hatton has the story.
Murray-Calloway County Habitat for Humanity Board Secretary Rebecca Landolt leads a group in prayer at the close of the home dedication.
"Guide and direct us and lead us according to your will, in Jesus' name we ask it. Amen." Crowd: "Amen."
Volunteers, co-workers, friends, family, and a local government official turned out to congratulate new homeowner Jill Stephens and her daughter Melody. The house isn't quite complete. There's still landscaping to do, and detailing work to finish. However, Stephens has already moved in.
"Where I was living before was a duplex, and it was a lot smaller and it was a lot older, wasn't kept up as nice."
Volunteers began building the Stephens' house in August 2008, but for this single mother, the process took a lot longer. She originally filled out an application in 2005, but didn't make the cut.
"I think it was a couple years later I received a call and, um, so I went ahead and filled out another application just to update my information, and a couple months later I got called for an interview. They came to my house and met my daughter and asked me some questions . . . and then called me back and said they, they wanted me."
Habitat for Humanity only charges families for the cost of the lot and for the cost of the building materials. They pay through a 20 year, zero interest loan. Murray Habitat Board President Chuck Hulick says the board looks for families with income 60 percent below the poverty line in Calloway County. These people normally would not qualify for a bank loan.
"We do require a, a credit history that shows a clear desire to meet, uh, financial obligations. That doesn't mean people don't have difficulties at times, but, um, they have to show, in a sense, a willingness to partner and pay that mortgage."
The family is also required to live in the home for at least five years, a cautionary measure to discourage house flipping. If they do leave, they must pay the remaining balance on the home. Hulick says today it costs between 50 and 55 thousand dollars to build a house in Calloway County. Without the program, families would likely have to pay twice that amount. Hulick says the cost to complete a house changes depending on what's going on in the world.
"Katrina had a very big effect. It jumped at the point that all demand for building materials increased."
Rainy days, and a lack of volunteers may also hinder a house's completion.
"We'll have a group come in from a church and help us on a couple Saturdays. Then we'll get another couple friends that'll come in and help us at various times. So our model in a smaller town is more little by little."
Hulick says on average, a house is finished in about a year and half. The Habitat model uses money generated from mortgage payments on finished homes to finance building the next house, but in Calloway County that isn't enough.
"We still have to do fundraising and accept donations. We have a much smaller base here to draw donations and that sort of thing from."
With work wrapping up on house twelve, the board is taking applications for their next project. Hulick hopes to have volunteers digging the footings by late May.