Habitat’s mission gets some remodeling

Until this year, Habitat for Humanity followed a predictable pattern for getting deserving families into homes: collect donations, purchase land, then build a house from scratch using volunteer labor.

In 2009, with record numbers of foreclosed properties sitting empty and the federal government preparing to hand out millions to fix up vacated houses, several metro Atlanta Habitat affiliates are preparing to shift gears.

The emerging model: renovation of older, abandoned homes to supplement new construction.

Local affiliates in several suburban counties are planning to tap into a government program that would allow them to purchase foreclosed homes that could be revamped for waiting families.

While some affiliates of the nonprofit, affordable-housing organization have renovated homes on occasion, the federal money will greatly expand that effort.

In north Fulton County, the local Habitat could get enough money to purchase four vacant homes in Roswell over the next several months. In Coweta County, the affiliate expects to purchase 20 distressed properties.

The new approach comes as Habitat adjusts to a stymied housing market.

“Well, what’s normal anymore?” said Leslie Merriman, executive director of the Newnan-Coweta Habitat. “We have to adapt to what the economy is handing us.”

Habitat affiliates across the country are preparing to delve into home renovations in communities receiving the federal grants, said Stephen Seidel, a field director for Habitat for Humanity International.

In affluent Atlanta suburbs such as east Cobb and north Fulton, finding suitable, foreclosed homes for renovation remains difficult. Even in foreclosure, single-family properties may be priced above the $90,000 to $140,000 range considered Habitat-affordable.

And many are two to three times larger than a Habitat house’s typical 1,200 to 1,500 square feet, leaders say.

But even in these pricier neighborhoods, chapters hope to turn some older houses quickly, and relatively inexpensively. They are fielding more calls from sellers —- including homeowners on the cusp of foreclosure —- and developers eager to unload some of their unfinished lots.

If the pattern continues, advocates say more spots in higher-end communities could open to modest-income earners.

Habitat for Humanity of North Central Georgia, which covers north Fulton, Cherokee and Forsyth counties, plans to use the federal program to acquire foreclosed houses. “It allows us to serve more people,” said Russell Hayes, chief executive officer.

While renovating older houses won’t replace the traditional Habitat model of new construction, several affiliate leaders say they’re willing to try.

Across Coweta, 900 homes are in foreclosure, Merriman said, and some properties are available for as little as $30,000. The local Habitat, working with a local housing authority, hopes to acquire 20 vacant houses and sell them to its families for no more than $98,000 each. This could potentially double the number of families it puts into homes for the next several years.

“Bottom line, our goal is to provide decent, affordable housing for qualified families,” Merriman said. “We will look at any and all opportunities out there.”

One couple on her waiting list, Bill and Roma Johnson, are willing to occupy a rehabbed, foreclosed home, particularly if it means a shorter wait time. The couple —- he’s 76 and she’s 68 —- live in a trailer.

“Just getting a real home would suit me,” said Bill Johnson, a retired postal carrier. “Myself, I think it’s a great idea. Picking one that is, what, owned by the bank or the mortgage company? It’s a great thing that they’re allowing us to do that. It puts more money into the economy.”

In other communities, acquiring land for a reasonable price remains the focus.

Since the economy soured, the Habitat affiliate that serves Cobb, Paulding and Douglas counties has had several inquiries from developers, eager to find a building partner, said John Kerwood, executive director and president. So far, either the number of homes or minimum house size has been too large.

Kerwood is hoping for a small subdivision, perhaps 10 lots. “If we could find something like that, and buy it for a reasonable price … we would love that,” he said.

Across Atlanta, the federal program aimed at rehabbing foreclosed or abandoned homes is expected to send about $70 million into communities. Congress approved the Neighborhood Stabilization Program late last year.

In north Fulton, Roswell is known for its quaint historic center and upscale neighborhoods.

But the city has enough of a foreclosure problem to qualify for $721,000 in federal funds.

Hayes could receive a share that would allow his Habitat affiliate to purchase and renovate four homes for families on the waiting list. Under the rules, the money must be committed within 18 months. Habitat and city officials already are identifying potential properties in an area north of Holcomb Bridge Road and west of Ga. 400.

“It stabilizes the neighborhood because it’s a home ownership program,” said Kathleen Field, the city’s director of community development. “The thinking is, if you can go in and start doing a few of the homes, which may be troublesome properties, it helps bring up that street or cul-de-sac.”

For Habitat, the challenge is finding a home of the right size and condition, one that can be remodeled with a minimum of surprises. From experience, Hayes said, the task of renovation tends to attract fewer volunteers.

Instead of the inspiring, “barn raising” experience of building new walls and starting fresh, renovation is dirty work that often involves pulling up old carpet and clearing debris.

“It’s not as easy for volunteers,” Hayes said. “You [could be] sending them into a moldy room and telling them to tear down walls.”

Last year, Southern Crescent Habitat, which serves Clayton, Fayette and Henry counties, acquired a 50-year-old house, for free, from a distressed builder.

Vagrants had moved in and left holes in the walls and other damage, said executive director Brenda Rayburn. Despite the challenges, volunteers renovated the 1,200-square-foot home for just $42,000.

“The end result was a good thing,” said Rayburn, whose affiliate could secure as much as $2 million to renovate vacant homes. That’s double what the Southern Crescent group typically spends, she said, and could purchase 20 to 25 homes.

“At a time when donations are down, it’s a chance for us to keep putting people in houses,” Rayburn said.