VOP: Habitat For Humanity

GRAND TERRACE>> Thank you Mr. O'Neil for the opportunity to provide some history and information regarding the Habitat Homes. Although recently Habitat for Humanity broke ground on the construction of two single family homes on Michigan Street, it has been almost six years since the Grand Terrace Redevelopment Agency conveyed the land to Habitat. The land was conveyed before State Legislation dissolved Redevelopment Agencies. As part of the law governing Redevelopment Agencies (RDA), 20 percent of Redevelopment funds were set aside for affordable housing. The land on Michigan at the time of purchase was a blighted property; an eyesore that negatively affected property value of all the neighboring homes. The land was purchased by the RDA with affordable housing money. Habitat single family homes meet the low/moderate housing criteria while helping to satisfy the state mandated goals for city affordable housing. Single family homes were considered a better fit for that location than multi-family housing. If the city council were to have followed Mr. O'Neil's suggestion to sell the land and using proceeds for increased law enforcement that would have been a misappropriation of money designated for affordable housing. It is against state law to spend affordable housing funds on any general fund expenses, such as public safety. The planned homes will be assessed for property tax at market home prices - approximately $350,000 each, the investment in this land and the partnering with Habitat for the building of affordable housing will ultimately provide more property tax for the community through the city's general fund and provide increased home values for the neighbors. The city is experiencing an encouraging financial situation which is projected to continue. The position has allowed the city, to increase law enforcement and to complete various one-time city maintenance programs. This fiscal year, the city council voted to pay off the mortgage held on City Hall, saving the city budget approximately $180,000/year in interest. Please contact me for more specifics about the City's encouraging current financial situation in more detail than this space allows. I look forward to working alongside community members to build these two new homes. Darcy McNaboe, Mayor City of Grand Terrace