Home project stumbles; eyed by Habitat

The down economy appears to have taken another victim: developers of a 40-home subdivision for moderate-income earners near Columbia.

But their loss may turn out to be a boon for the Tuolumne County Habitat for Humanity chapter, which is looking into buying the partially complete subdivision.
 

The project, though without homes, has access roads and sewer, power and water already installed.

Habitat officials confirmed they are working with owner Umpqua Bank to secure the property, though they declined to go into further detail until the deal nears completion.

Dubbed Parrotts Ferry Village, the 4.5-acre property sits at Parrotts Ferry and Damin roads. Initial plans dating back to 2005 called for 36 townhouses and four apartments.

The property was foreclosed on in the spring, after developers were unable to continue with the project.

Developers Jack Wilson Jr. of Jamestown and Steve Sloan of Los Banos were unavailable for comment by press time. But Tuolumne County Assessor-Recorder Ken Caetano surmised that the overall economy took its toll on the proposal, which Tuolumne County supervisors approved in 2005.

Due to the down economy, this year’s foreclosure filings in Tuolumne County have already broken a record going back to 1996, and likely further, according to Caetano.

“Even with a small subdivision, in order to get your money back you have to be able to sell those lots, and nothing is selling right now,” he said. “There are so many homes available on the market right now you could probably get a better deal by buying one as you could building one.”

The Parrotts Ferry Village proposal was a contentious affair back in 2005, with the Columbia Area Planning Commission voting against  the project. The county Board of Supervisors subsequently approved the project anyway.

The commission’s vote reflected concerns by a group of Columbia residents, who worried the project would lead to more traffic and erode their neighborhood’s historic character.

If Habitat for Humanity secures the subdivision, the group can likely avoid the public hearing process so long as the original plans aren’t altered, according to information from the Community Development Department.

The Parrotts Ferry Village property, which has a $1.1 million assessed value, failed to sell for $352,000 earlier this year. The potential for a bargain is what piqued Habitat for Humanity’s interest in the property, according to Betsy Hardin, the local chapter’s executive director.

Affordable housing is badly needed in Tuolumne County, she said. The county’s median home price is roughly $250,000, while the median income is $28,000, according to Hardin.

Buying the property would allow the group to provide affordable housing locally “on a much larger scale,” she said. Currently, the group builds one affordable home a year.

Hardin attempted to dispel some myths about Habitat for Humanity, saying the homes it builds are not free, and a months-long vetting process is done on potential homeowners, involving credit checks and income verification.

Owners of Habitat homes generally make below the median income and are employed, according to Hardin. They pay a sliding fee on an interest-free home loan, and cannot get equity in the home for five years, she added. 

Because the homes are built with volunteer labor and in-kind donations, the cost of a Habitat for Humanity home is roughly half of the normal price.

Back in 2005, the affordable homes in Parrotts Ferry Village were slated to go for around $245,000, which is now close to the median home price. In 2005, at the peak of the housing boom, the county’s median home price was $339,000.