In 22 years in Santa Cruz County, Habitat for Humanity has created 34 homes specifically for low-income families. The Scotts Valley City Council cleared the way this month for Nos. 35, 36 and 37.
A unanimous vote at the council’s March 2 meeting called for the city’s Redevelopment Agency to grant Habitat for Humanity a $300,000 loan to get started on a trio of attached row houses planned for a 10,000-square-foot lot on Blake Lane.
According to Habitat for Humanity resource development director Beth Bowman, the total cost of the project — the organization’s first in Scotts Valley — is estimated to be $1.1 million.
Bowman said that Habitat for Humanity, which relies exclusively on donations and fundraising efforts, has already invested about $250,000.
The Scotts Valley Redevelopment Agency had already awarded a $300,000 grant to cover building permits and other fees associated with construction.
Before the loan, the organization was about $362,000 short of its funding needs.
“The loan will allow us to start on the project itself while we fundraise,” Bowman said.
The loan, which will accrue interest, must be repaid to the city either within five years of completion of the homes or no later than 10 years from the loan date.
Michael Bethke, president of the Santa Cruz branch of Habitat for Humanity, spoke on behalf of the organization to the council.
“We’ve really been wanting to do a project (in Scotts Valley) for a long time,” Bethke said, referring to plans for the row houses as the “crown jewel” of Habitat for Humanity’s architectural designs. “This is high-end, high-quality architecture.”
According to Bowman, although residents would park on the street, each of the three-bedroom homes would be 1,296 square feet and have a backyard.
Habitat homes, Bowman said, are sold “basically at cost” to qualifying low-income families, which are given no-interest loans. The mortgage payments total no more than a third of the household’s income.
Each family that is selected will be expected to put in 500 hours of “sweat equity” to help build the homes.
Bowman said that no families had been selected yet, but the orientation for potential selection would take place in late spring, with a month of advertising beforehand.
Councilman Randy Johnson voiced his support for the project, citing the benefits that affordable housing would have in the city.
“This is going to be a tremendous addition to that community,” he said.
Mayor Dene Bustichi said the same, citing the use of Redevelopment Agency funds to make the loan as an example of reinvesting redevelopment money for the benefit of the community.
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