In addressing housing affordability, partnerships lead to more options

At least 14 people who had struggled to afford a home became new owners in one day last week.

Mahmoud and Intesar and their four children needed a one-story house because of concerns about the safety of two family members who have disabilities and difficulty with balance.

“This gives me a chance to have an affordable house for me and my family,” Mahmoud said.

They’re among three families supported by Habitat for Humanity of Greater Sioux Falls through a new partnership with the city of Sioux Falls that’s aiming to make homeownership more accessible, one household at a time.

In this case, it’s a twin home neighborhood called Millard Acres in northeast Sioux Falls where Habitat and the city partnered in 2020 to secure land. Currently, there are 10 housing units in the new Habitat neighborhood with a goal of 26 homes.

Intesar said her children want to move in as soon as possible. “They are all very excited.”

Her youngest has been ready to move in for a while, Intesar said, and he loves the new house.

As a way to thank the donors, Mahmoud and Intesar cooked Iraqi dishes to share at the dedication ceremony.

Genet, another new homeowner who will live next door, cooked Ethiopian dishes for her guests.

Genet previously lived in a one-bedroom senior living apartment and faced financial barriers that kept her from homeownership. She said she looks forward to the “freedom her new home will bring her to cook what she wants and have company visit.”

“I am just so grateful,” Genet said.

Elizabeth, who works a full-time job, said she and her five children live in a cramped apartment and require additional privacy. Moving into a new home will provide them with stability and offer a healthier living environment.

“Sioux Falls is a good place to live,” Elizabeth said. “I feel so empowered being my own homeowner now.”

The process for these three new families was a long one. They first spent 12 to 18 months in the homeownership program. Each family participated in homeownership classes, learned about paying their mortgage and worked 300 sweat-equity hours with volunteers and staff to build the homes.

Habitat typically receives up to 80 applicants for the rate program, and from there, 10 families are chosen to enter it.

“This was our first land development project,” executive director Rocky Welker said at the dedication of the three new homes. “Some people didn’t think it was Habitat’s job to tackle something like this, but here we are.” 

Accessible housing push

Habitat for Humanity of Greater Sioux Falls is a nonprofit organization that works toward better housing conditions for families by constructing homes, rehabilitating/preserving existing ones and advocating for fair housing policies.

People in Sioux Falls recognize the unprecedented demand for local and accessible housing, Welker said.

“Homes for sale under $300,000 are basically nonexistent and being sold instantly if they do appear on the market,” he said. “Many low- and moderate-income families are struggling to find a home that will align with a mortgage that they qualify for.”

A first step is helping bring down the cost of the land, as the city helped do at Millard Acres, said Logan Penfield, housing development manager for the city of Sioux Falls.

“Something great about Habitat is the size of families they serve and that they are trying to get low-income families into a home rather than renting,” Penfield said. “Last year, the average family size they served is 7.5 people, so these are large families.”

The city is also in the process of collaborating with Habitat by sharing a list of empty properties that the nonprofit can restore and sell.

“The homes remain on the vacant building ordinance list until occupied again,” Penfield said. “As it’s really hard to build new affordable housing, we’re looking at older houses we have that just need to be rehabbed.”

Through a pilot program, once Habitat finds an eligible single-family home on the vacant home registry, the city will give a grant to rehabilitate it. Once the money is invested into the home, Habitat can sell it to a qualifying homeowner.

“It fits the mission that we’ve tried to focus on and will add value to our city,” Penfield said. “It’s a learning process for everyone involved.” 

Habitat for Humanity plans on closing on 10 homes this coming fiscal year, Welker said.

“Land availability is the biggest issue that we’re facing. We’re ready to move forward and do a larger scale project,” he said. “But with rising subcontractor costs and material costs, it is a challenge.”

Ways to help

If you want to support the mission of accessible, stable housing, one way to do so is by donating to Habitat for Humanity’s ReStore.

The store sells new and gently used building materials and home goods to the public that have been donated by individuals and corporations. ReStore accepts clean, used items, such as appliances, cabinets, flooring, furniture and windows. Donate from 10 a.m. to 5 p.m. Tuesday through Thursday at 721 E. Amidon St.