The Community Homes Initiative
This project is focused on revitalizing and restoring homes to families in our neighborhood, preserving these properties for affordable housing. It began with a purchase of 213 housing units in fall of 2017, something unprecedented in ICCF’s long history. And we’re not done yet.
213 Affordable Homes
On November 21, 2018, ICCF closed on what is by far the largest real estate transaction we have ever completed – 213 homes, previously owned by one out-of-state investment firm managing them to provide above-average return to investors. All of them are now being repurposed by ICCF to assure their continued availability and affordability for low and moderate income households.
This is not something ICCF has done on its own. This was a community effort, including strong financial backing and leadership by key local foundations who provided nearly $10 million in grants and investment. We also were blessed with enthusiastic support from the cities of Grand Rapids and Wyoming, as well as other area nonprofit housing organizations.
Hot Housing Market = Rising Rental Rates
Grand Rapids’ housing market is now one of the hottest in the nation. Houses sell quickly and prices keep increasing. The area is thriving and property investors are confident and plentiful. But for those of us who are concerned about housing for low and moderate income families and individuals, there is true cause for concern. The dynamics in today’s hot housing market are very different than they were in preceding decades, when urban neighborhoods were too often characterized by disinvestment and discrimination. Today, the chief concern in urban neighborhoods is not disinvestment but displacement caused by rapidly escalating prices and rents. Here are the facts:
- Between 2011 and 2016, area median income rose 18% • Since 2011, the median home price has risen 64%
- Since 2011, the average rent for a two-person bedroom apartment has increased by 49%
- Between 2011 and 2016, the percentage of area homes sold for less than $100,000 decreased from 49% to 15%, dropping to 11% in 2017 to date
- Of the 44,880 community homes in the city of Grand Rapids, 24% are investor-owned
Sources: US Census Bureau ACS, Grand Rapids Association of Realtors, Department of Numbers, Michigan Radio, RentJungle.com
Community Homes Portfolio Initiative
The acquisition of these 213 housing units, as mentioned above, will preserve affordable rental rates and provide new homeownership opportunities for low and moderate income families and individuals.
Key goals and objectives for the properties include:
- Partnering with other local housing nonprofits to assure 50 % of the homes are sold to low and moderate income households within 5-10 years. Ensuring current tenants who desire to purchase their home, have the opportunity to do so.
- Investing $4.5 million to improve the properties with special attention to increasing energy efficiency and environmental stability of the homes, with 75% of the properties meeting the Green Home Institute’s standards for Green Star Certification.
- Hiring local contractors who are committed to employing low income residents of the neighborhoods in which the homes are located.
- Creating green, energy-efficient homes through a grant from the Wege Foundation.
By the Numbers
Total number of properties
Number of single family homes
Number of duplexes & multi-family buildings
Total number of housing units
- 153 In Grand Rapids and Wyoming
- 60 In Lansing and Eaton Rapids
Anticipated cost of renovations and capital improvements (over 10 years)
“Affordable housing is a critical need in our city, and we are grateful to ICCF for its incredible work around this issue. This initiative will provide real and lasting change in our community for generations to come.“
—Mayor Rosalynn Bliss
This significant purchase provides new avenues for collaboration in our community. Please consider how you might get involved:
Pray for families and individuals who are experiencing homelessness or whose housing is at risk; for those whose housing is inadequate and who long for a home that fits their family’s needs; for those who feel locked into circumstances which offer them no hope; for ICCF and others who seek to provide affordable options and services to help people cope, grow, and thrive.
Volunteer Help us beautify affordable housing in Grand Rapids! We have opportunities for volunteer groups, associations, businesses, and churches to help with spring cleanup, landscaping, and shed-building. For more information contact firstname.lastname@example.org.
If construction professionals or suppliers are members of your church, you can Sponsor a Home. For more information on sponsoring a Community Home, contact Michelle Covington at email@example.com.
Give Your financial contribution is critical in this new day when dramatically rising rents and home prices are creating enormous challenges for those of our neighbors living in poverty and those whose limited incomes are simply not enough. Make a secure, tax-deductible gift here.
MANY THANKS TO OUR PARTNERS
Peter C. and Emajean Cook Foundation
Dick and Betsy DeVos Family Foundation
Doug and Maria DeVos Foundation
National Christian Foundation West Michigan
David and Carol Van Andel Family Foundation
W. K. Kellogg Foundation
The Wege Foundation