February 1, 2008 4:19 PM

HOPE Communities starts construction on 10 homes

The non-profit Hope Communities started construction Monday on 10 new homes at East 39th Avenue and Adams Street that will be sold to low- and moderate-income buyers.
The homes are priced from $168,000. Hope Communities will offer the homes to first-time homebuyers who earn less than 80% of Denver’s area median income, or less than $51,600 for a family of three.
Brad Bates, Hope's executive director, Denver’s need for affordable housing is so great that he anticipates continued demand for homes affordable to those who earn less than Denver’s median income.
“Denver is leading in national statistics that are hopeful and awful, for instance," Bates said in a statement. "Denver is bucking the national trends in current home sales, that’s great. But Denver is also leading the country in the number of working households who are severely cost-burdened by their rent or mortgage.�
He said Hope Communities is "contributing to the state’s optimistic market and providing quality homes in central Denver for families who would not otherwise be able to afford them.�
Michelle Mitchell, president of the Colorado Housing Assistance Corporation, agrees that adding product to Denver’s affordable housing market is necessary through all economic cycles.
"The demand for CHAC's down payment assistance and homebuyer education has been consistent," Mitchell said in a statement. "As new affordable homes come on the market, especially those suitable for families, I'm sure we will always have clients eager to secure housing they can truly afford.
The Center for Housing Policy, reports that Denver is the No. 1 city in the nation for the percentage increase of working family households that pay more than 50% of their incomes for housing and/or live in severely dilapidated conditions, citing a 162% rise from 1997 to 2005.
And studies from Harvard University show that more than 50 percent of low-income homeowners in Colorado have severe housing cost burdens. In addition, Housing Colorado reports that state housing prices have outpaced state incomes by 48 percent from 2000 to 2006.
“Hope Communities is proud and excited to make these 10 new homes a reality, especially in this market," Bates said. "We feel, given the impending economic downturn, it is all the more critical to get these homes off the ground now.� said Bates.
The 10 homes located in Northeast Denver’s Clayton neighborhood, dubbed the Residences at 39th & Adams, are being built by Hope Development, a wholly owned subsidiary of Hope Communities, Inc, in volunteer partnership with Shea Homes, who is bringing in-kind donations of materials and labor to the build.
The development is being managed by volunteer and Hope Communities board member George Shaw, founder of Shaw Construction, a 46-year veteran of Denver building.
Financial partners include the City of Denver’s Office of Economic Development, FirstBank and other vendors are donating time and materials to the development.
The Residences at 39th & Adams will be 3 bedroom, 2 bath, single family homes with off-street parking for 2 vehicles. Each Craftsman-style home will feature an old-with front porches. They will have unfinished basements that can be converted into additional living space.
. Hope Communities has been providing affordable rental and for-sale homes in Denver since 1980. Beginning in Five Points, Hope Communities’ operations have expanded to include the entire northeast corridor of Denver.

Posted by John Rebchook at 4:19 PM | Comments (3)