Gainesville resident Lasha Walker stood in her new home in her old East Gainesville neighborhood known as Duval Heights and thanked God.
“God is good,” she said to a room full of family, friends and partners representing Alachua Habitat for Humanity (AHFH), Santa Fe College (SF College), the Builders Association of North Central Florida (BANCF), Regions Bank, The U.S. Department of Housing and Urban Development (HUD), the Florida Housing Coalition and the City of Gainesville.
The gathering on May 26 marked the 165th house dedicated by the Alachua Habitat for Humanity program, and Walker is the first recipient of a $25,000 forgivable loan made possible by the Gainesville Community Reinvestment Area’s (GCRA) My Neighborhood Program.
“This would not be possible without the collaboration of so many organizations,” said AHFH Chief Outreach and Development Officer Scott Winzeler.
The dedication included comments by Walker, Winzeler, Gainesville Commissioner Reina Saco, AHFH Family Services Director Kristine Thompson, SF College President Dr. Paul Broadie, BANCF Apprenticeship Coordinator Justin MacDougal and BANCF President Matt Marino, and a blessing by Pastor Adrian Taylor of Springhill Missionary Baptist Church.
Those comments centered around the topic of community and partnerships working together to address the issue of the lack of affordable housing in Gainesville.
In August 2021, the Gainesville City Commission approved the My Neighborhood Program as a way to strengthen neighborhoods by incentivizing long-term homeownership.
The program, which is managed by the City’s GCRA, offers an incentive for former residents of eligible neighborhoods to purchase a home or lot within their neighborhood.
“This offering supports the housing objective of the GCRA 10 Year Reinvestment Plan by supporting that the culture and existing population of neighborhoods be maintained,” states the program guidelines. “These principles are found throughout the City’s Strategic Plan 2020-2025-2035 which calls for neighborhood stability through increased housing affordability so that income does not dictate where a neighbor can choose to live.”
It is a goal of the City of Gainesville Housing Action Plan to increase equity by promoting permanent affordability.
As outlined by the program application, successful applicants, aka recipients, receive assistance of up to $25,000 to purchase a vacant, developable lot or a residential home in their eligible neighborhood, with funding not to exceed the purchase price.
Disbursement of the program funds are made at the closing to the seller or bank on behalf of the recipient.
According to Chelsea Bakaitis, project manager for the GCRA, four applicants have successfully been approved for the My Neighborhood Program.
The program includes a forgivable 10-year, zero percent interest, due-on-sale mortgage loan from the City to the recipient and is separate from the primary mortgage.
“If the program mortgage conditions are met, half of the program mortgage will be forgiven after five years and the full program mortgage will be forgiven after 10 years,” she said.
According to the application, the mortgage conditions are as follows:
• The property must be the recipient’s declared homestead while the mortgage is outstanding;
• The recipient must continue to own the property;
• The recipient must maintain adequate fire/homeowners insurance on the property, naming the City of Gainesville as mortgagee;
• The recipient must keep annual property taxes current; and
• The recipient must keep the home and property in good condition.
If the conditions are not met for a full five years, then the program mortgage must be repaid in full plus 10 percent interest for each year the mortgage was outstanding. If the conditions are met for five years but not for the full 10 years, then half of the program mortgage will be forgiven, and half must be repaid plus 10 percent interest for each year the remaining portion of the program mortgage was outstanding. If the conditions are met for 10 years, the program mortgage will be fully forgiven.
In order to become a recipient, applicants must prove they lived in an eligible Gainesville neighborhood for at least three years before 2011. Recipients must purchase a home or lot in the neighborhood that grants them eligibility to this program. Those eligible neighborhoods are Cedar Grove II, Duval Heights, Fifth Avenue, North Lincoln Heights, Pleasant Street, Porters, Springhill and Sugarhill.
Bakaitis said the GCRA has dedicated $200,000 per year to the program which allows for eight recipients. In-person only applications are being accepted through July 31st for the next round of up to four recipients who will be announced in August.
(To make an appointment, contact Bakaitis at BakaitisCH@cityofgainesville.org or 352-393-8849.)
Before Walker was handed the key to her home which she will share with her 5-year-old son and 15-year-old daughter, she was presented a welcome mat and a bible.
AHFH Family Services Director Kristine Thompson reminded attendees that Walker had to put in 400 hours of “sweat equity” and commit to make 360 mortgage payment in a timely fashion.
The sweat equity included Walker putting in construction hours, volunteering to work on other people’s houses, and taking homeownership classes and workshops on financials, budgeting and ownership training.
“In January of 2021, Lasha signed off on an agreement for the homeownership program,” Thompson said, adding that to qualify for the program, future homeowners must prove their ability to pay, have a debt ratio under 43 percent, and stay in compliance with the parameters throughout the program.
“We couldn’t do it without all of the partnerships,” she said.
SF College President Broadie shared the sentiment when he spoke of partnerships.
“Never forget that you’re an example for this entire community and individuals will seek to model how you achieved this,” he told Walker.
“And that will advance our entire community as more people look to you and say, ‘How did you become a homeowner? What steps did you take?’ ”
SF College has been close partners with Habitat and BANCF, Broadie continued. “They have been giving our students the opportunity to learn and serve simultaneously.
“Giving our students the opportunity to do something impactful for the community, for individuals, while also honing their skills and building on their trade.”
“You’re the first but not the last,” he said about Walker becoming a recipient of the My Neighborhood Program forgivable loan.
“This is a great partnership with City of Gainesville.”
Broadie turned to Walker and said, “You are having a greater impact than you will ever know because people are watching your success.”
Walker’s new home is less than two miles of her job compared to previously driving a half-hour to get to work.
She thanked all involved and said she watched the construction team at SF College manage issues with the supply chain due to the pandemic.
In 2021, the house was moved from SF College campus to be completed.
“It’s been a struggle, especially during the pandemic,” Walker said. “I’m so happy I’m here.”
--- Story and photos by Suzette Cook/City of Gainesville