Habitat lands lots for homes

The Tuolumne County Habitat for Humanity chapter has purchased a foreclosed 40-home subdivision near Columbia on which the group plans to build affordable homes over the next several years.

The 4.5-acre property — the Parrotts Ferry Village subdivision — was secured by the group for $400,000, about a third of the property’s assessed value. The property sits at the corner of Parrotts Ferry and Damin roads.

Umpqua Bank foreclosed on the developers in April, with a $1.7 million note attached to the property. Developers haven’t commented on the reasons leading to the foreclosure, but Habitat officials say the down housing market had something to do with the bank taking over the property.
   

Habitat officials took title to the property on Thursday afternoon.

The developers’ loss is now Habitat’s gain.

“This could be a once-in-a-lifetime opportunity,” said local Habitat board member Dave Palmer. “These times created this opportunity.”

Adding to the sweet deal is the fact that developers have already installed various improvements at the now-houseless subdivision, including access roads and infrastructure related to sewer, power and water.

On top of that, plans for the subdivision were approved back in 2005, which could keep Habitat from going through the sometimes-contentious public hearing process.

However, according to the county Community Development Department, if plans are changed significantly, a hearing could be required. Habitat officials say plans will remain the same, with some minor tweaks.

The property will enable Habitat to bolster its efforts in Tuolumne County.

“This is huge,” said Betsy Harden, director of the local Habitat for Humanity chapter. “We were looking to be able to build two to four houses a year, but this — wow.”

Over the past several years, the local Habitat chapter has built one home a year. But if everything goes as planned, the group will build several homes a year at Parrotts Ferry Village, starting in 2010 and continuing until roughly 40 homes are built.

More work and money will be involved in preparing the property for development, Harden noted, but, she added, the land purchase was still a good deal.

The idea to purchase the property came to Harden and the local Habitat board after the property failed to sell at a public auction in April for $352,000, a fraction of its value.

Next, local Habitat philanthropist Roger Haughton stepped in. As the retired CEO and chairman of mortgage insurance giant PMI, and a former member of Habitat for Humanity International, Haughton had a lot of clout, and helped convince the parent organization to help the local chapter with financing.

Other local leaders have also publicly expressed support for the project, including County Administrator Craig Pedro, county Auditor-Controller Debi Russell, Community Development Director Bev Shane and Supervisors Teri Murrison and Dick Pland.

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

Harden 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 Harden. 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 homes in Parrotts Ferry Village were slated to go for around $245,000, considered affordable back then but now about the median home price. In 2005, at the peak of the housing boom, the county’s median home price was $339,000.