Door County Housing Partnership makes new affordable homes happen for families

STURGEON BAY - Two new homes now owned and lived in by single-parent families highlight a program working with local partners to address the challenge of providing permanent affordable housing in Door County.

The homes were built in Sturgeon Bay through collaborative efforts under an agreement with the Door County Housing Partnership as part of its mission to provide stable, affordable housing for year-round, low- to middle-income, working families on the Peninsula.

Not only that, but the homes will remain affordable if and when the families currently living in them decide to move because they'll be sold to another family in need of permanent affordable housing in Door County.

The Door County Housing Partnership was incorporated in 2019 as a 501(c)(3) nonprofit organization by residents who wanted to do something to increase the number of affordable permanent homes, not apartments or other rental properties, in the county for people and families who work and live on the Peninsula full time.

"A small group of citizens saw there seemed to be a need for some answers to the affordable housing crisis for families in Door County," said Jim Honig, president of the partnership's board. "The community's been talking about this for 40 years. Most initiatives (for affordable housing) have been in rental homes."

The group operates by partnering with public and private organizations who arrange to build the homes, with the housing partnership raising funds to cover the difference between the construction costs and what will be the affordable sale price of the home. That gap can be upward of $100,000, Honig said. The partnership relies on donations and grants from private community members and local businesses and organizations to fulfill its mission.

In the case of the two latest Sturgeon Bay homes, the partnership worked with Door County Habitat for Humanity on one, which was sold to a Habitat client, and with private benefactors Mike and Kathryn Martell on the other, with construction carried out by local firm Countrywide Construction of Forestville. Honig said for the three homes for which they've partnered with Habitat, Habitat found the home buyers and holds the mortgages on the homes.

"The partnership's role is to get the community involved and bridge the gap between what it costs to build and keeping it affordable," he said.

Honig said the partnership's operation is based on the community land trust model, noting that more than 250 communities across the U.S. and at least one in Canada have seen citizens form similar groups to improve their affordable housing situations.

"Organizations like this are being founded right and left," Honig said.

Under the Door County format, an affordable price that is below market value is established for the initial home buyer, and a subsidy allows the buyer to purchase the home at that price. An agreed-upon formula helps the family realize equity on the home over time – not market-rate equity – but the partnership retains ownership of the land and enters into a 99-year land-lease agreement with the buyer.

Families looking to buy a home through the partnership must meet income eligibility requirements (up to 120% of area median income, according to the partnership's website) and qualify for an approved mortgage, live there full time, keep the home maintained and in good shape and, if they choose to move later, sell the home to another income-eligible family at an affordable resale price calculated by the partnership.

"Under our model, each time a home is sold, it's sold at an affordable price," Honig said. "It will not just serve one family but generations of families."

The partnership also says on its website it will work with interested families to help find financing for them that is affordable and safe. It also will offer ongoing support to its homeowners and applicants, including access to housing counseling, budgeting and financial management counseling and default counseling.

The two new Sturgeon Bay homes are the fourth and fifth built so far under the partnership. Its first home was put on the market in 2021, with two more the following year and these two new ones placed on the market last year before their recent sales.

All have been built in Sturgeon Bay so far, but the partnership is ready to break ground for two new homes in Sister Bay. He said the group used a state grant through the United Way of Door County to purchase 10 lots in Sister Bay for affordable homes and hopes to complete construction on three homes in the Sister Bay area next year. He said it's vital to bring more homes for working families to Northern Door County, about which he said, "The affordable housing situation in Northern Door is critical."

To help make that happen, Honig said the organization is in the process of raising more community support for its work. He said the goal is to be able to build more than just a couple homes a year.

"You can't address this deep challenge by building one home at a time," Honig said. "That's why we hope to expand our work."

For more information about the Door County Housing Partnership, visit doorcountyhousingtrust.org.

Contact Christopher Clough at 920-562-8900 or cclough@doorcountyadvocate.com.

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This article originally appeared on Green Bay Press-Gazette: Door County Housing Partnership makes new affordable homes happen