Habitat, Housing Authority join forces for grant effort

The Newnan Housing Authority and Newnan Coweta Habitat for Humanity are joining forces to apply for federal funding to purchase foreclosed homes which would in turn be sold to families at the discounted prices the homes were purchased for.

The proposal, presented Monday night to the Senoia City Council, involves purchasing 36 homes for up to $75,000 each with a minimum size of three bedrooms and two bathrooms. Organizers said they may not be able to target any residences in Senoia right away, as authorities are steering attention to areas with high foreclosure rates such as those in or near the Newnan city limits.

It is possible that perhaps some homes in Senoia will be purchased as part of the program in the future, organizers said.

The grant funds are available through federal legislation that set aside money to buy foreclosed homes nationwide, and $77 million has been earmarked for Georgia, said Leslie Merriman of Newnan Coweta Habitat for Humanity. The legislation is entitled the Housing and Economic Recovery Act of 2008

Of the 36 homes, 27 will go to Habitat for Humanity which will use them as part of their affordable home ownership program and the other nine will go to the housing authority for a program where residents rent to own their homes.

Housing Authority President and CEO Sandra Strozier said their program provides training and education before qualifying residents for home ownership.

The grant requires that the homes be foreclosed on at the time of purchase and the funds must be obligated in 18 months and spent within four years.

Merriman said Habitat has almost a zero percentage of foreclosed homes, which is attributed to the education and support provided to families. There are now 13 families on Habitat’s waiting list for homes, she said.

“We cannot build them fast enough,” Merriman said.

Strozier said the rent to own program from the housing authority will help open up other housing units for people on their waiting list, which now numbers about 300.

The City Council voted 4-1 to voice its support for the program, which was sought to help improve the grant application. Councilman Bobby Graham was the lone vote against the measure.

The proposal does not require any funds from the city to be spent on the program.

The program is being administered by the Georgia Department of Community Affairs. According to the U.S. Department of Housing and Urban Development, speculators, investment properties and “second or third” homes are ineligible for the program.

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