Homebuilding slump works in Habitat for Humanity's favor

     PORTLAND — The downturn in the homebuilding market locally has provided a golden opportunity for Habitat for Humanity, the non-profit Christian outreach that builds low-cost homes for low-income families.
      As outlined recently in The Oregonian, many housing lenders have been looking to unload hundreds of lots waiting for houses, and Habitat for Humanity Portland.Metro East has been quick to respond. Launching a fundraising campaign, the organization over recent months has built up a five-year supply of land, enough for as many as 150 houses. It aims to increase its home production by 50 percent.
     Habitat sells volunteer-built homes to families with income between 30 and 60 percent of the area’s median.
     Participating families make a 1 percent down payment and put in 500 hours of volunteer work for Habitat. They then pay a zero-interest mortgage to pay off the construction cost of the home.
     Tom Walsh, chair of Habitat’s campaign committee, said that at the height of the building boom, finished lots would cost at least $60,000. But since the economy slumped in 2008, banks have been under increasing pressure to get land off their books and offered them at bargain prices. Now, Habitat is buying finished lots for as little as $30,000.
      Some of the Habitat sites were projects started at the peak of the housing boom, but then brought to a stop with the economic crash.
      The largest — a site at Southwest 171st and Division Street — was a community of 65 lots where only the first 20 homes were built and sold. Habitat will build the remaining 45 for low-income families.
      Habitat for Humanity Portland/Metro East suffered a setback in late September with the theft of a truck and $8,000 worth of tools in Gresham. The theft was discovered when construction staff and volunteers arrived to the agency’s eight-home Victoria Cotta-ges build at Southeast 204th and Stark.
     “It is a shame that this happened,” said David Bonn, director of housing for Habitat. “We rely on donations to purchase materials needed to build homes for hardworking, deserving families.”
      To donate to replace the stolen items, visit habitatportlandmetro.org and select “Truck and Tool Fund” as the program designation, or contact Erika Read at 503-287-9529 x16.