Improving Neighborhoods with Homeownership Opportunities

Long term Lemmon Avenue residents, Riley and Merial Uzel, rented a home for 13 years on Lemmon Avenue in Rapid City.  Unfortunately, the rental property did not comply with city ordinances, leaving it up to the land lord to make improvements. The landlord’s plan was to demolish the current rental property and replace it with a two unit town home. This would have forced Riley and Merial out of their home.  

The residents of Lemmon Avenue did not want to see their neighbors go, nor did they want another rental property in their neighborhood.  The residents came together and fought to keep the new rental units out.  They wanted to find a way to   allow the Uzels to become permanent residents of Lemmon Avenue.  They wanted the Uzels to become homeowners.

 According to the Neighborhood Reinvestment Corporation, homeownership improves the quality of neighborhoods. Homeowners have a financial stake in their home and neighborhood.  Studies find that homeowners are 28% more likely to repair or improve their homes than renters.  Owner-occupied homes are far less likely to have interior, exterior or structural problems than the homes of comparable renters. Homeowners also tend to engage in activity that beautifies their properties.

Due to the Uzels fixed income, they never imagined they could become homeowners. NeighborWorks partnered with South Dakota Housing Development Authority, Dakota Land Trust, Teton Coalition and Pennington County Housing Assistance to create an affordable home for the Uzels. 

Utilizing the Governor’s House Program, the Uzels were able to purchase a reasonably sized, affordable home.  The home was then placed on a Dakota Land Trust Lot.  Dakota Land Trust works by sparing low income buyers the cost of the land, thus requiring only the cost of the house be financed. The property is leased to the homeowner, who can renew the lease every 99 years, provided they or their descendants remain the inhabitants. 

Each layering partner made this possible: the residents of Lemmon  lobbying together to retain their fellow neighbors, the land lord agreeing to sell the property to Dakota Land Trust, South Dakota Housing Development Authority,  Governors’ House Program,  Dakota Land Trust, Pennington County Housing and Teton Coalition. 

 Each partner understands the benefits of providing affordable housing options.  Without these programs, many families, including the Uzels, would never experience the joys of homeownership.