Rochester 'tree house' grows into affordable housing opportunity
Jun. 22—ROCHESTER — It's been dubbed First Homes' "tree house" but it's not a new, elevated approach to affordable housing.
The property at 218 Eighth Ave. SE landed in First Homes's hands shortly after a tree landed on its roof during a June 28, 2022, storm.
"When we took over, the tree was gone, but we had to start from scratch," said Jennifer Woodford, president of Rochester Area Foundation, which includes the First Homes program.
First Homes is a nonprofit organization that
seeks to preserve affordable housing
throughout a seven-county area, and Woodford said the Eighth Avenue home helps grow that effort.
The storm that knocked out a portion of the home's roof and second floor occurred as the former owners were pondering a move out of state. While they had been slowly renovating the five-bedroom home, they opted to take the insurance payment and sell after the tree fell.
The owners were put in touch with First Homes, which was able to secure the home for $75,000 — $50,000 sale price and $25,000 in added expenses connected to the damage. The purchase was assisted by federal community development block grant funds distributed by the city of Rochester to support affordable housing options.
In the following months, First Homes contracted Kurth Construction to oversee repairs and upgrades that included restoring the roof and damaged walls, as well as installing new plumbing, windows, heating and air conditioning and insulation.
"Half the house got rewired," said Justin Voss, First Homes' director of projects, of the work that amounted in a total repair and renovation bill of approximately $190,000
Woodford said the extensive work means the future homeowner will be able to move in with the assurance that many of the big-ticket items associated with a home are in good shape.
"They are able to come in and have time to relax before there are major repairs," she said, pointing out its a key benefit when buying a home that's been part of the city for more than 100 years.
The other benefit she said is the five bedrooms, which is rare for the affordable homes provided by First Homes. She said the size will allow the organization to help a large family that might otherwise not be able to afford owning a home.
The house appraised for $300,000, but First Homes is expecting to sell it for $230,000 with the added $70,000 in value remaining in its community land trust.
The land trust allows First Homes to sell homes at more affordable prices while maintaining ownership of the land under and around the home.
In addition to creating an affordable option for the buyer, the land trust keeps the housing affordable for future buyers by controlling the resale price of houses, which are overseen by First Homes.
Homeowners leasing the trust land benefit from the security, control and tax advantages of owning a home, while also building equity just like any homeowner, but with a more affordable entry point.
"We are trying to add as many homes as possible to the trust, so we can add affordable options to the community," Woodford said, adding that First Homes expects to have approximately 270 homes in the trust by the end of 2023.
