Fox Valley habitat has answer to housing crisis

Housing crunch, what housing crunch?

Habitat for Humanity of the Northern Fox Valley employees have been asking that question this year and they may be asking it again next year.

Credit problems and the mortgage disaster have not stopped them from building homes in and around Dundee Township. They have four under construction. In 2009, they hope to build and sell six to buyers who qualify for their program.

Their secrets: open a resale store that will raise money for future projects and eliminate banks as lenders.

"Since we opened our ReStore in Elgin in 2006 we have been able build seven homes," said Barbara Beckman, the director for Habitat's Northern Fox Valley office. "We stock it with slightly damaged and recycled furniture, cabinets and building supplies and we see the items for 30-50 percent of the price in other stores.

"Builders and do-it-yourselfers love it. Who cares if the new hot water heater has a little dent in it, as long as it still works."

The Restore is at 800 N. State St. (Route 31) in Elgin. Since it opened, it has made $1.2 million in gross sales for the not-for-profit organization, Beckman said. Items in the store have been donated by builders who couldn't use the material. The organization then sells it to the public.

First-time home buyers are the ones who benefit from the store. If they qualify for a Habitat interest-free mortgage, they will be expected to work next to the paid and volunteer carpenters, plumbers and electricians who put together the home. And these homes aren't cheap. They cost about $150,000 to build each of them, Beckman said.

The buildings under construction now are a duplex at 203 and 205 Lincoln Ave. in Carpentersville, a single-family house along Memory Lane in unincorporated Lake Marian and another at 959 LaVoie St. in Elgin.

Buyers have already been approved for these homes.

The Habitat program is only open to first-time home buyers on a limited income.

"Interest-free mortgage payments are a lot less than conventional mortgages, even with (property tax and insurance) escrow accounts," she said. "When we receive the money for their payments, it goes back into the kitty and used to buy lots and build other homes."

The economy is really helping us out in buying the lots," Beckman said. "Prices are down and we are able to buy property and keep it until we're ready to build on it."

But even Habitat's system isn't entirely immune to the ills of a bad economy. This year, Beckman had to start proceedings on the organization's first foreclosure, The buyer of the home stopped making payments and eventually moved out of it, she said.

"This is the first time we've ever had to do this," she said. "But the buyer decided to stop making the payments move."

For information on Habitat for Humanity programs, call (847) 836-1432.

Dickens needs you: West Dundee trustees are looking for a handful of residents to help organize the Dickens in Dundee Festival in December.

People who volunteer will plan the schedule, contact local civic groups to put on some events, and organize sponsors for the two-day festival, which will be held Dec. 5 and 6.

"Dickens is an important event for the township," said West Dundee Village Manager Joe Cavallaro. "We've always been lucky by having enthusiastic residents help us with all the work that is involved with putting it on. This is one festival that takes an entire community to plan."

Volunteers will be expected to attend monthly meetings. Anyone interested should contact Cavallaro at the West Dundee village hall, (847) 551-3800.