Home Sweet Home (HSH) Nonprofit Housing Corporation has been awarded a seed grant from the Grand Traverse Regional Community Foundation to help with its unique response to the housing crisis.
Actually we were awarded this grant months ago,” said Jason Potes, HSH secretary. “We needed to hold off until our tax exempt status was confi rmed and we knew that we could accept the Community Foundation’s money.”
Board President O’Neill was thrilled with the development.
“When I opened the letter in the post Office I hooted and hollered with joy,” he said. “I’m pretty sure that’s not the normal response to an IRS letter, but the application is very detailed and complex and we were waiting for a long time — they do want to make sure we’re legit before awarding the 501 (c.) 3 status.
“The reporting requirements give donors confidence that we are accountable and that they can deduct donations on their tax returns,” O’Neill said. “We’ll be raising a lot of money because homes aren’t cheap. But our approach is designed to make a permanent difference in the lives of families and the community.
Potes works with people looking to purchase homes. Beginning in 2022 he found many who were approved for first-time homebuyer mortgages who because they could find nothing in their price range were homeless.
“The people were also excited because for the first time ever they were making great wages, they had good credit or had repaired their credit, but they were finding that there was no place for them in the market,” Potes explained. “This was the first time ever that I came across so many families who were living in their car, were living in a tent, were living in an RV and were concerned about what they would do when the snow comes.”
Prospective home buyers have been frustrated.
“They told me, ‘I’ve done everything right; I’ve kept every promise; paid off my old bills. I’m making great money, why can’t I have a house too, why can’t my kids have a house too?” Potes said.
But why don’t these folks rent?
“The ironic fact is that it’s more expensive to rent than to purchase,” O’Neill said. “The research shows that there’s a direct correlation between the cost of homes and homelessness. Look around. Notice all the help wanted signs, diminishing school enrollments. It’s an existential community problem when responsible people can’t afford to live here.”
This injustice motivated Potes and O’Neill to form Home Sweet Home, which will extend interest- free down payment help to responsible people purchase homes. “The Bridge Down Payment Help is deferrable so that it doesn’t reduce the buyer’s loan limit.”
Home Sweet Home is different in several ways.
“We focus on existing starter homes, not dream homes,” O’Neill said. “We don’t build houses — this is one of our efficiencies. Instead the buyers locate houses in accord with our criteria such as location close to work and schools and reasonable energy efficiency.”
HSH is a Christian group responding to a local need.
“We’re motivated by love by tax money is compelled,” O’Neill said. “Besides, we don’t want to compete with the many groups already making good use of such funds.”
HSH offers Bridge Down Payment Help, representing a significant community investment, buyers will sign a deed restriction committing themselves to sell to another incomeeligible buyer when they decide to move on.
“Thus we will be stabilizing neighborhoods — unless we do this the housing crisis will be permanent.”
HSH has no paid staff and relies for donations to carry out its missing.
“Donations go to the Bridge DPH and related expenses such as closing costs,” O’Neill said. “Leelanau County has so many caring and talented people. We are looking for folks who can help orientate prospective buyers, help us raise the funds, inspect homes, and other tasks.” Home Sweet Home is also eager for invitations to speak before churches and civic organizations. “This is good news, we want to get it out there.”
Home Sweet Home is focused on raising sufficient funds before it accepts applications.
If someone wants to participate, HSH suggests they contact the USDA Rural Development and begin the process of qualifying for First Time Homebuyer Direct Loan Program, which O’Neill said has by far the lowest interest rates, from 4.75% to 1%. Being pre-qualified for a RD Direct Loan is a must for the Home Sweet Home Bridge.
“We don’t want to see people weighed down by heavy interest rates,” he said.
To volunteer or donate, contact John O’Neill at [email protected] or by texting to 231 835-0733.
Home Sweet Home is an Equal Housing organization that observes the spirit and the letter of the law. There is no faith test or expectation of conversion for participation.
