MOUNT VERNON — Several planned developments in the area include multi- and single-family housing, but they are priced higher than many consider affordable. A local partnership is making inroads into another type of housing that is sorely needed: workforce housing.
Sam Filkins, vice president of the Knox County Land Bank, said workforce housing is owner-occupied and affordable.
The Foundation Park Conservancy started the ball rolling by donating 15 vacant parcels in the Columbus Road/South Vernon neighborhood to the land bank. Of the 15 lots, 12 are buildable.
Knox County Habitat for Humanity is working with the land bank to build 12 houses on those lots. Construction will begin this spring.
“It’s a familiar partnership between organizations that have been able to partner before, but never on this scale,” said Terry Schulz, executive director of Habitat for Humanity.
Filkins said the conservancy’s mission does not include land use.
“They partnered with us because that is our mission, to find the highest and best use of properties. We’re excited to partner with Habitat for Humanity because that represents the highest and best use for these properties,” he said.
Habitat can build two homes a year with its volunteer labor force; for 12 houses, that means a six-year program. However, grant money could accelerate it to a two-year time frame.
Financing the workforce housing project
The land bank applied for a $2.46 million grant through Welcome Home Ohio. WHO is a state grant program in the most recent biennial budget cycle.
“The state recognized there was a shortage of affordable housing,” Filkins said. “They put this money in to jump-start these types of projects with the land bank being the specified entity to work through.
“If we get the grant, we will have to build all 12 homes in two years,” he continued. “June 2026 is the final build date.”
Filkins said several private and independent builders are interested in helping Habitat build the houses to meet the two-year deadline. He expects to know whether the WHO approved the land bank’s application this month.
If it receives the grant, the land bank will use $2.1 million to buy the constructed houses from the builder. The land bank will then sell the homes to the families.
“Because the land bank is the one receiving the grant money, it’s the entity that has to sell the houses,” Filkins explained.
Design plans range in square footage, but the grant requires a minimum of 1,000 square feet. The first build is 1,400 square feet.
All units are single-story and have two bedrooms; a few might have three bedrooms depending on lot size and budget. All are ADA-compatible and energy-efficient.
Each house will have a one- or two-car garage, depending on the lot size, configuration, and zoning setbacks. The remaining $360,000 in grant money ($30,000 per house) will cover garage costs and other potential improvements such as driveways or other home upgrades, depending on budget.
The maximum sale price to the home buyer is $180,000 per house.
Home buyer eligibility
Home buyers must make 80 percent of the area’s median income or less and have a stable source of income.
At current rates, that means an estimated annual income of $61,000. The yearly income for a family of four is $63,900.
Applicants do not have to live in Knox County, but their income source must be within the county.
Habitat for Humanity will screen the applicants. Schulz said the agency hopes to select a few families from its fall applications for the South Vernon project.
“This spring we will open up another round of applications,” he said. “Our intent is to get families selected early enough in the process so they have some choice in the home, such as paint, siding, shingle, and counter top colors.”
The grant requires buyers to take financial literacy classes.
“We were already doing programs like that,” Schulz said. “We’ve reached out to several organizations doing financial literacy which are closer to state requirements.”
Another grant requirement is that home buyers cannot resell the property for 20 years.
“These are hard-working, solid middle class families that we need to have,” Filkins said. “They’re not living off the system. They’re hard-working, sometimes two-income families.”
Schulz said that, most likely, their mortgage will be lower than their rent. Fifteen years later, they will own 60 percent of their house, have equity, and can take out a loan.
Enhancing the workforce housing
In addition to the 12 home builds, the land bank and Habitat will partner on two existing Habitat for Humanity programs: Critical Home Repairs and Brush with Kindness.
Each program will target 12 existing neighborhood homes.
“Brush with Kindness events are one-day events where we focus on multiple homes, about five each event depending on the need and number of volunteers,” Schulz said.
Projects include landscaping, painting, or power washing.
“Something that doesn’t take a whole lot of effort, time or money, but does a lot to increase pride in the community,” Schulz explained. “We can leave the community a better community through this process.”
A critical home repair is any improvement that extends the usable life of the property for the homeowner. Examples include roofs, access ramps, windows, and HVAC equipment.
Schulz estimates spending around $5,000 per repair but said it could be higher or lower depending on the family’s needs.
“We want to make sure the property remains safe and affordable for the future,” he said.
As with the home construction, Habitat and the land bank will do two critical repairs and two Brush with Kindness homes a year. If the state awards the grant money, the 24 homes will be revitalized over two years.
Neighborhood impact
Filkins said 101 parcels in the neighborhood have existing homes.
“Out of the 101, 50 percent are owner-occupied,” he said. “From a community impact standpoint, more than 74 percent of the residences in the neighborhood will get some sort of improvement.”
Filkins said that with previous renovation projects, he noticed neighbors start doing things to their property.
Schulz agreed.
“Part of the reason we are excited about doing this project is we have seen success on a limited basis in the neighborhood with one new home,” he said. “Being able to put up 12 new houses in a community, we can imagine that the result will increase exponentially.
“Giving residents the resources to do home repairs and Brush with Kindness projects gives them a sense of pride, even if you are not a home owner,” he added.
“If we can build this many houses, particularly if we can do it with speed, they will reset values and improve values in the neighborhood,” Filkins said.
Land bank staff will track crime statistics to see if adding owner-occupant and neighborhood pride events creates more of a “look out for your neighbor” atmosphere and reduces issues.
Habitat staff will follow the home buyers for 10 years, checking on stability factors such as maintaining employment.
“These are outcomes traditionally associated with gentrification efforts,” Filkins said. “By using the grant and working together, we’ll make sure we’re not doing that.
“We’ll lift the neighborhood up around them instead of driving them out of the neighborhood.”
Plans call for the three unbuildable lots to be green spaces with activity stations or playground equipment. This enhances the healthcare aspect for neighborhood residents.
“It’s literally life-changing,” Schulz said of the workforce housing project. “Home ownership isn’t for everyone, but it should be affordable to everyone.”
“The project will happen,” Filkins said. “Grant money will just speed it up.”
