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.  

NeighborWorks® Revitalizes Lead Neighborhood

For over ten years two homes sat vacant on Washington Avenue in Lead.  The historic homes were beyond repair and a hazardous site for children and other residents.  In 2011, NeighborWorks®   Dakota Home Resources purchased both homes in an effort to continue to revitalize the neighborhood and create a new affordable home.

NeighborWorks®   has been assisting families with homeownership opportunities and revitalizing homes and neighborhoods for twenty years.  The Washington neighborhood has greatly benefited from NeighborWorks’®   mission.  Many of the residents on Washington Avenue have utilized NeighborWorks® programs to purchase or rehab their homes. 

In 2009, Lead resident, Joel Edgar purchased his home on Washington Avenue with assistance from NeighborWorks®    Dakota Home Resources and Dakota Land Trust.  His home was built on a vacant lot after the removal of a blighted structure.  Joel looked into buying an older home but, the rehab cost would have been a financial burden.  In Lead, the median house price is $126,500. Joel purchased his newly constructed home for $80,000.  His property was not only a more affordable option but improved the quality and appearance of his neighborhood.  Joel Edgar shared that he is excited to see how the new project will improve the neighborhood. ”I am excited to see a new home replace the old houses in our neighborhood.  

Cleaning up that area will improve the look of the neighborhood and help with the growth of Lead.”

NeighborWorks® plans to repeat the success of Joel’s home with the two Washington street lots.  NeighborWorks®    hired a local contractor to remove the dilapidated structures and clean up both lots. The lots will then be transformed into a site for a safe, decent and affordable home.   “One of the goals of the City of Lead is to encourage property improvement through either rehabilitation or, in this case, demolition and new construction.  A newly constructed home on this large, desirable lot will be very appealing, and with the assistance from NeighborWorks® , affordable.” City Administrator, Mike Stahl stated. 

 If you would like more information on the Washington street project or any of NeighborWorks® Dakota Home Resources programs, please contact Stephany at 578-1401 or visit us on the web at www.NeighborWorks dhr.org

Partnerships and Positive Attitudes

Thanks to the Box Elder office, NeighborWorks Dakota Home Resources has been building solid partners and reaching out to more families and individuals in Western South Dakota.  On February 23rd, the Community Development office contacted NeighborWorks seeking assistance for a client that was in need of an "Emergency" water heater.  

Homeowner, Judy McKeon, is on a fixed income that limited her ability to replace her non-working hot water heater.   Thanks to the partnership between Community Development and NeighborWorks Dakota Home Resources, NeighborWorks was able to provide a loan which allowed Judy to replace the water heater quickly. 

Together both organizations helped improve the quality of her home and life.   

Although Judy has had a difficult year, she was still very positive and thankful.  Several times she stated, "What a lucky person I am."  

Judy's Loan Counselor, Doris Nelson, stated "I  thought,  "Wow",  I could sure learn something from this lady on Positive Attitudes". 

"Homeownership Offers New Beginnings"

Sherry Bald Eagle Bear and her two nieces will now have a safe, affordable, and spacious place to call home.  Sherry purchased a South Dakota Housing Development Authority (SDHDA) Governor’s home at McGuigan Ranch in Spearfish. Sherry utilized a 502 direct loan from USDA Rural Development, NeighborWorks® Dakota Home Resources down payment and closing cost assistance, and homebuyer education. Together these partnerships helped create an affordable home for Sherry and her family. 

Sherry never thought that she would be able to own a home due to her fixed income.  It was not until she was referred to USDA Rural Development that she knew there was assistance and programs, like the Governor’s House and NeighborWorks® Dakota Home Resources, that could help her get in a home.

“Once I was qualified for the loan, I thought the process was finished. I was referred  to NeighborWorks® Dakota Home Resources. The NeighborWorks® staff, and their education program, helped me through the process.” Sherry stated. 

NeighborWorks® Dakota Home Resources was the general contractor for this project.  NeighborWorks® made sure the project was moving along and that Sherry and her nieces would have a quality home in a timely manner.  NeighborWorks® construction manager, Dennis Rentz, played a big roll in helping the process run smoothly. “Dennis was so helpful throughout this process. He let me know that I could call him whenever I needed anything,” Bald Eagle Bear stated.

Sherry said that the only thing she would have changed about the process was she wished she had attended the homebuyer education class before she was pre-qualified. Sherry attended homebuyer education in Belle Fourche through NeighborWorks®, but this was after she was pre-qualified for a SDHDA Governor's Home. NeighborWorks® Dakota Home Resources offers monthly homebuyer education classes throughout the Black Hills which prepare future homeowners for homeownership and educate clients on all of their options.   “Homebuyer education taught me a great deal of information. I would have liked that to be my first step.” 

The family is excited to start their journey in their new home. “Homeownership has offered me a new life. One in which my nieces can be proud to have a home to love,” Bald Eagle Bear Stated.

NeighborWorks® Dakota Home Resources has assisted over 900 families with homeownership. For more information about NeighborWorks®, and their programs, call 605-578-1401.

NeighborWorks Celebrates 900th Homebuyer!

For Eric Linn, the best part of homeownership is the realization that without programs like NeighborWorks Dakota Home Resources, he probably wouldn't be living where he is.

"I'm really thankful to be building equity in my own place," said Linn, who recently purchased a newly constructed 2000-square foot, three bedroom home. "Without these programs, I wouldn't be doing that."

Linn was able to move his 6-year-old twin girls and 9-year-old boy into their new Box Elder home before Thanksgiving, something he wasn't always sure would be possible.

"My dream was to be in our new home by Christmas, but we were able to move in even earlier," he said. "Two months ago, the foundation was there but there was no roof. It went up really fast -- what a great Christmas present."

Before Linn discovered the USDA Rural Development program and NeighborWorks, his odds of buying a home were not all that good.

"I looked into getting a loan from a bank, and going that route, I simply could not get into a home based upon what I could afford," he said. NeighborWorks Dakota Home Resources offers down payment and closing cost assistance to families like the Linns, who qualify under specific income guidelines.

Linn participated in NeighborWorks Home Buyer Education and received financing for his down payment and closing cost, making him NeighborWorks' 900th home buyer. A celebration of Linn's achievement as well as the success of the NeighborWorks program was held Saturday at Linn's new home.

For Linn, the buyer education program involved two three-hour classes that covered the entire home buying process, and included presentations from real estate agents, bankers and others actively involved in the purchase of a home.

"We teach people what they need to know to become homeowners," said Stephany Valkenburg, NeighborWorks Dakota Home Resources marketing director.

The buyer education program, along with post-purchase classes that teach homeowners how to maintain a home, are free of charge and are open to anyone, not just those who qualify for home buying assistance through NeighborWorks. Valkenburg said that through "neighborhood block clubs" in Rapid City, Deadwood, Edgemont, Wall, Lead and Box Elder, the organization "helps bring communities together."

For Linn, obtaining a five-year interest free loan to cover his down payment took away some of the pressure first-time home buyers face.

"When you buy a home, there are so many more things to consider than just the obvious things like the purchase price, down payment and closing costs," Linn said. "For me, there were things like buying appliances. The help I received gave me one less thing to worry about."

Casino Royale-2011

Box Elder Warm and Safe-2011