Broomfield, Habitat for Humanity close on home in first partnership deal

Broomfield and Habitat for Humanity have closed on a home in the first such transaction that will enable Broomfield to maintain affordable housing.  Funding for the program came from a $430,000 grant to Broomfield from federal Neighborhood Stabilization Program funds. 

 

The home, purchased in a foreclosure, will be rehabilitated and then sold to a qualifying Habitat-selected family with an income between 25 and 49 percent of the Area Median Income (AMI).  Habitat will work with volunteers to complete the necessary work on the home.

 

This is the first of additional similar transactions planned under the program within available funding.

 

The partnership was begun earlier this year when Broomfield City Council approved the designation of the funds for the transaction.  Broomfield purchased the home and then turned it over to Habitat in a closing on July 12. 

 

Each adult Habitat homeowner invests 225 hours of labor in sweat equity. The work can be for their homes and the homes of others.  The houses are then sold to the partner families at no profit with a zero percent interest mortgage.

 

Successful families also receive training in homeownership, financial planning and home maintenance.

 

The Neighborhood Stabilization Program provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight. The program provides funds to purchase the homes, and to rehabilitate, resell or redevelop them to stem decline in house values of neighboring homes. Funds must be expended by the end of the federal fiscal year in September.