Habitat still building houses despite the economy

Not everyone is weeping over the shaky economy and dip in land values.

Employees of Habitat for Humanity of the Northern Fox Valley are finding the decrease to be working in their favor.

Because land is less expensive, they can buy more lots to build more houses to sell to first-time homeowners.

"This year, we're going to build seven houses," said Barbara Beckman, the agency's executive director. "That's the most we've built in one year."

Ground is expected to be broken in May on lots along Lincoln Avenue and Memory Lane in Carpentersville, along with Lavoie Avenue and Margaret Place in Elgin and Dean Street in St. Charles.

Beckman and her colleagues are negotiating with the owners of two other vacant parcels in Kane County.

Once a property is bought, employees sift through the application of potential buyers. If they are first-time home buyers, have an average income of $30,000 and are willing to help build the house, then they receive a low-interest mortgage through Habitat.

"We don't accept anyone who's gone through foreclosure or bankruptcy, and we want them to have good credit. The majority of the families we work with are (apartment) renters," Beckman said. "These are people who don't have enough money to obtain a conventional mortgage."

Habitat gets the money it lends through mortgage payments, grants, donations and profits from its store, ReStore Elgin, along Route 31, about a mile south of I-90. The store, which sells new or gently-used building materials, is doing well and the donations are doing even better.

"We have an annual fund drive and the donations doubled last year," she said. "We received $30,000 in donations. I was surprised."

So are many other people who raise money for charities. The economy is curbing the generosity of many donors.

When people buy a house through Habitat, they are expected to work alongside carpenters, electricians and plumbers. Some of the materials are donated. And some of the workers donate their time.

But still, it costs money to build the house. The average house Habitat builds costs about $150,000, Beckman said. It could be a lot more without the donations.

"Even with the donations, our costs went up about 10 percent." she said.

But Habitat continues to build houses when many builders have stopped.

"We're always looking for people who are willing to work with us and get their first mortgage," she said.

The agency will have a public information meeting about its programs at 10 a.m. March 1 at Willow Creek Community Church in South Barrington.

For details, call (847) 836-1432.