Affordable housing is on the way

The game-changer is more than $1 million in grant funding provided to the region by Dogwood Health Trust — said Patsy Davis, executive director of Mountain Projects, the parent agency for the housing partnership.

“The Dogwood contribution is huge,” said Davis, who has been at the forefront in helping individuals find suitable housing for three decades. “This is the first time in my career that a dream to help people go from homelessness to home ownership is starting to become a reality. This moves us into the future so we focus on the needs rather than on fundraising.”

The organization’s housing component is handled through Smoky Mountain Housing Partnership, where the vision is to help those with moderate income afford a home.

A key component is the client friendly home ownership center where credit evaluations, financing and down-payment assistance and more will be offered. Classes and workshops will help potential home buyers reach their goal.

A large portion of the Dogwood Health Trust grant funds will support this effort.

The partnership’s two-year goal is to increase the supply of affordable and workforce housing in the Smoky Mountain communities by building 66 affordable housing units in Haywood and Jackson counties.

Open for business

While the two new homes being built in Bethel Village will appraise in the $250,000 range, said Heather Boyd, executive director of Smoky Mountain Housing Partnership, the affordability issue will be dealt with on the financing end.

“The key to affordable homeownership is not in building a less attractive, lower quality home, it is in leveraging the resources around us, to offset some of the cost burden for the buyer,” she said.

While staff has been meeting with clients remotely until now, the home ownership center officially opened this week at the Mountain Projects, Inc. offices at 2177 Asheville Road, Waynesville.

Remote services will remain available and during times that meet the needs of the applicants, as to not place a burden on their already busy lives, Boyd added.

Smoky Mountain Housing Partnership has become a HUD-certified agency, which opens doors to numerous types of federal housing funds and other programs, Boyd said.

One housing consultant, Tara Abshire, is completing the training process, and Maggie Leftwich was hired in a dual role as a part-time housing counselor and part-time family self-sufficiency coordinator.

The counselors will meet with clients individually plus teach classes to help them learn the ropes about becoming home owners, as well as guide them through the pre-purchase and post-purchase process.

“Our role is not only to help a family obtain a mortgage but to share education and guidance to be successful long-term,” Boyd said, adding that the partnership will have a continuing relationship with clients should they run into snags.

Those who will be targeted for the workforce and affordable housing are likely to have an obstacle or two to work through, she said, but by crafting a plan and working toward the goal, success will be possible.

The target income group for the housing units will be those earning between 50-80% of the area median income, an demographic area where the most resources are available. The center will also help those up to 120% of the median income, however.

The first homes will be built on lots in Bethel Village on Jonathan Creek where turnkey three-bedroom, two-bath homes will be built.

The organization has partnered with Kituwah Manufacturing to provide the housing units. This company is owned by the Eastern Band of the Cherokee Indians and is part of the tribe’s economic development efforts, Boyd said.

While the $250,000-appraisal price for the homes would generally be beyond the price range for many, there will be financing packages that will make the mortgage payments workable, said Boyd.

With her background in banking, Boyd has learned about things like silent second mortgages, forgivable grants, self-help housing programs, the inner workings of the NC Housing Finance Agency and other government programs, and more.

“I pull together a lot of pieces to a puzzle,” Boyd said. “That’s my strength. Different funding sources come with different guidelines. Once you understand how the pieces fit together you are able to change someone’s life for the better.”

Here’s an example Boyd provided.

A household making $33,000 per year can afford a mortgage payment of $825 to keep there housing ratio less than 30% of their income. In order to have a payment of $825 per month, you are looking at a $150,220 home, which is impossible to find or build in today’s market, and that does not even include private mortgage insurance for those that do not have a 20% down payment. However by leveraging resources, Smoky Mountain Housing Partnership can create an affordable payment for a new energy efficient home.

Counselors at the home ownership center will work with anyone who needs help, even if they have a higher income than the group targeted for help, Davis said, estimating that about 400 families can be assisted through he center in some way in Haywood and Jackson counties over the coming year.

Key to success

What has really helped poise the partnership for success, Davis said, is funding from Dogwood Health Trust, the private foundation created from sale of Mission Hospital System.

Dogwood provided the one-time 25% required match to create the Southwestern NC HOME Consortium, a six-county effort that has qualified the region for $542,000 of federal housing funding on an annual basis.

Because the application was approved prior to the most recent federal COVID stimulus package, the region has become eligible for an additional $1.9 million in funding over the next decade.

The grant will be administered by the Southwestern Commission and benefit all of the counties within the consortium.

“The partners in this consortium share Dogwood’s commitment to address the disadvantages created by a lack of affordable housing,” said Sarah Grymes, Dogwood’s vice president of impact for housing in a press release. “Nearly 29% of households in Haywood County are cost-burdened, meaning that a family is paying more than 30% of their total budget for housing. Increasing the availability of affordable housing in these communities is essential to changing that equation.”

Dogwood provided $261,690 in matching and training funds to help start the consortium.

In addition, Dogwood Health Trust is providing a $872,671 grant to support Smoky Mountain Housing Partnership’s efforts to hire the housing counselors, cover acquisition and pre-development expenses on housing developments, offset infrastructure and rising materials costs, and expand affordable rental opportunities.

Boyd anticipates that the Dogwood Health Trust grant will help Smoky Mountain Housing Partnership secure an additional $2.4 million in state and federal sources.

Affordable housing is one of Dogwood’s four strategic priority areas that will drive its work for the next decade. The other priority areas are education, economic opportunity and health and wellness.

“Dogwood Health Trust operates from the belief that health and wellness begin when basic needs are met — namely, when people are safely and affordably housed,” said Dr. Susan Mims, interim CEO of Dogwood Health Trust. “This matching grant is another step forward in our effort to fund partnerships that will support creation of safe shelter and affordable homes for everyone in Western North Carolina.”

To find out more about the services offered through the Smoky Mountain Housing Partnership, visit smokymountainhousing.org or call 828-452-1447.