The long-term purpose of this new quality affordable homeownership program is:
- Empowering residents to achieve economic self-sufficiency, and to create new homeownership opportunities for income limited, employed citizens through participation in a homeownership development program and supportive services.
- To provide access to safe, quality, affordable renter to owner single-family homes, addressing a current gap in local programs and offering an innovative homeownership option.
Who will live in a Cobblestone Terrace home?
Pre-qualified families will be working families earning just under $30,000 (family of 4) with the desire and the potential to become homeowners by participating in the Renter to Ownership Savings Equity (ROSE) program. The ROSE program will include families who otherwise may never have an opportunity to purchase their own home. JLCS will strongly reach out to the parents of Jefferson School students as potential residents, knowing that the connections to this fine school will help maintain and/or grow family stability.
The tenant selection process will include an extensive application process including, but not limited to: local, state and federal criminal and sexual predator background check, review of credit history, personal and landlord references, verification of income and employment, interviews with JLCS Tenant Services Coordinator and a Homeownership Counselor, all to assure ROSE and Low Income Housing Tax Credit program requirements are met.
What is the ROSE Program?
The Renter to Ownership Savings Equity (ROSE) is an Iowa Finance Authority model renter-to-homeowner program. The ROSE program provides a participant the ability to apply a portion of their rent ($50 in a restricted savings account) towards the purchase of their existing home (in 15 years) or another home if successfully participating in the program. The program would use the resident’s new single family home as a platform from which they move into homeownership through the purchase of a home after completion of a minimum a 6-month education and participation in on-going program services while residing at Cobblestone Terrace. The program would provide financial literacy classes, home maintenance instruction, homeownership counseling in conjunction with United Neighbors' Dream Program, and family supportive services where participation is mandatory.
Specific maintenance and other supportive services provided to ROSE Program participants:
- Quarterly maintenance inspections conducted by Property Services staff in evaluating repair, maintenance and upkeep of each home for the first year and semiannually thereafter;
- On-going maintenance classes that will familiarize participants with electrical, heating and plumbing systems in the home;
- Instruction on how to incorporate seasonal preventive maintenance into a regular schedule;
- Assistance for participants to develop a neighborhood watch or participate with existing program to maintain a positive relationship with other nearby neighbors;
- Provision of on-site supportive services as needed and requested by residents or staff;
Overview of Supportive Services Component:
The provision of housing counseling as part of the ROSE program will provide much needed education and information for those wanting to become homeowners. Informed people make better decisions and have a better chance of avoiding the crises of delinquency and foreclosure. To this end, JLCS, Inc. will work with the ROSE families to maintain their home in a quality, caring manner and to participate in the life of the surrounding neighborhood. JLCS will not tolerate any illegal activities or other actions, which will be detrimental to the quality of life in the neighborhood.
John Lewis Community Services has a history of using a holistic approach in working in the central city neighborhoods it serves through partnerships with neighbors, churches, community organizations and government. Its presence in these neighborhoods has lent itself to helping single family owners rehab their homes, restoring abandoned historical structures, assisting with the development of neighborhood watch groups and helping erase the presence of crime and gangs. Further, the presence of JLCS and the services provided by it in the Central Community Circle neighborhood in the past fourteen years have led to an increase in property values and a reduction in crime. Currently there are no housing-service programs in Davenport, Iowa that provides for a lease-to-purchase option that includes homeownership counseling, on-site supportive services and opportunities to save for one’s down payment.
Why would families decide to live in a ROSE Single Family Home – a lease/purchase type home?
- Affordable rents for beautiful, quality built single-family 3 or 4 bedroom homes, with front porches, garages with extra storage;
- Lower heating costs due to energy-efficient designs;
- Opportunity to move from project-based or sub-standard housing to a neighborhood setting and a single-family home with a commitment toward maintaining their home in quality manner;
- An opportunity to purchase their first home after saving money toward a down payment and learning the mechanics of maintaining a home, the importance of maintaining credit and contributing to their own quality of life as well as the surrounding neighborhood.
Summary of Construction Costs:
Initially, the program was designed as 20 single-family townhomes on shared lot sites and later reduced to 14 single-family homes in response to early summer 2003 neighborhood meetings. This reduction in units was in direct response to neighborhood concerns about density and quality of living. Cobblestone Terrace was again reduced to 10 single-family homes again within the context of a mediation process and in response to neighborhood leaderships input. As a result of reducing the number and type of units, the overall per cost per unit was driven up due to the loss of economy of scale (10 single sites instead of 4 shared sites, no shared walls, adding garages, porches and other architectural amenities). The following comparison shows the changes in cost per unit:
|
Constructions cost for 20 townhomes:
|
Total cost per unit, including construction,
infrastructure; sewer improvements, new water lines, new
street, lot costs, etc.
|
$174,260
|
|
Total actual construction hard costs for architectural,
general/sub contractors:
|
$126,866
|
|
Construction costs for 10 single family homes:
| Total cost per unit, including construction,
infrastructure; sewer improvements, new water lines, new
street, resurfacing and new curb/gutter on 12th and Myrtle
Streets, lot costs, garages, porches |
$240,775
|
|
Total actual construction hard costs for architectural,
general/sub contractors adding porches, no shared walls,
garages and other amenities:
|
$165,824
|
|
