Housing project boosts local economy

In today’s struggling economy, it’s not hard to imagine a string of abandoned, run down trailers creating an eye-sore for neighbors and passers by. It would be no stretch of the imagination to envision local teens getting into trouble without supervision. Maybe graffiti or vandalism, maybe worse.

With the 1.1 million dollar Sherwood Court Project, that’s exactly what the Sanders County Community Housing Organization (SCCHO) hopes to avoid, all while creating jobs and boosting the local economy.

By utilizing Community Development Block (CDBG) and Neighborhood Stabilization Grant (NSG) moneys the non-profit organization has managed to buy several foreclosed, and even one abandoned, duplex to create ten units of moderate income subsidized housing in Plains.

“They’re all three-bedroom two bathroom units, and they’re going to be for moderate income,” SCCHO member Deb Achatz said. “These units are set up for your neighbors. Your teachers, people who work at the hospital and clerks. That’s who we want to make it available to.”

Both Achatz and Sherwood Court’s general contractor Roland Golan have dealt with criticism from locals weary of the stigma of government-subsidized housing.

Achatz has heard complaints like, “Oh, low income—that means you’re going to have prostitutes and drug dealers!”

“It’s not going to be a slumlord sort of arrangement at all, and it’ll be well monitored,” she explained of the project which will have an on-site manager upon completion.

“I’m from Chicago, I’ve seen low income housing that I wouldn’t put my dog in,” Golan,  said. “We’re starting up a much higher level of quality than you see in most subsidized housing—plus the fact that it’s not going to be cheap, it’s going to be affordable.”

Although qualifying residents will be selected by income and considered on a first come, first serve basis in accordance with grant requirements, measures will be taken to ensure a “neighborhood feel” in the community.

The amount and type of pets, the number of vehicles parked, and number of families per unit will all be monitored.

According to Achatz, the process of buying the units began last spring after the SCCHO was contacted by Billy Lee, the director of the Lake County Community Development Organization (LCCDO), informing them of the availability of the grant money.

Upon learning that they had been awarded the two grants the SCCHO went forward in purchasing 1002 A and B Sherwood, and 1007 Second Avenue. In accordance with grant criteria, both properties were in foreclosure.

Of the 1.1 million dollar budget about 600,000 dollars went into purchasing, and about 200,000 into improvements and rehabilitation most of which was spent right here in Sanders County.

“There were 19 different bid packages,” Dan Bates SCCHO president explained. “We broke it down small deliberately to keep it local. We’ve got fifteen contractors and twelve of them are from Sanders County. The other three are from Kalispell.”

“Normally in a project like this, you might just have two or three sub [contractors] and a general [contractor] and his crew, but we split up the work, trying to get as many people employed,” Golan said. “And each one has got a pretty good chunk of the contract. It was a nightmare administratively, but I’m glad to see a lot of people working.”

Local contractors include Country Road Builders, Bighorn Custom Cabinets, Beachy Construction, Charlie Clinkenbeard, A Train Electric, Traver Excavator Service, Complete Restoration, Diamond Custom Homes and Additions, Elvin Eberly, Eddy Mountain Servies, Sparky’s Gutters, and Rocky Mountain Surveyors.

“We’ve even tried to buy locally at Gambles,” Achatz said. “We want to involve as much of the community as we can, because that’s who we are. We’re a community housing organization.”

Repairs range from minor upgrades like replacing ceiling fans, heaters, door frames to upgrades like installing washers and dryers to major construction like re-grading the road, putting in cement driveways, and almost entirely re-building of the units which had been abandoned for six months.

“It’s only a matter of time before somebody throws the first rock through a window,” Golan said. “You can’t leave a building unoccupied, it deteriorates. The concern people have that we’re going to lower the property value, but it’s the complete opposite. We’re raising it.”

Since SCCHO is a non-profit organization and the project itself has been funded by grants it will be entirely debt-free and self-sustaining when it’s completed. Golan has seen projects like this make drastic impact on local economies before as the property can be leveraged for other community projects like parks or pools.

“It’s an income producing project,” Golan said. “There’s an immediate asset to the County to either leverage, sell, or borrow against it for other community projects.”

Because the properties were on foreclosure the SCCHO was able to buy one in a pre-auction bid, and the others in reduced prices at auction, and since SCCHO is non-profit every penny saved in the purchase price is being put back into the project going towards improving the property.

Other cost-cutting methods the SCCHO’s ability to general contract the project itself, and with ten units, buy materials, like heaters doorknobs, etc. wholesale rather than retail and pocket the savings difference.

“By doing that we probably knocked about one hundred and fifty thousand dollars off the purchase price which allowed us to do a lot of the things we’re going to do. Which is put in a road, and parking pads and patios and all that,” Golan said.

The units are scheduled to be available to rent this December.