Grant terminated, increase in cost to build affordable housing leaves many in tough spot
COLLEGE STATION, Texas (KBTX) – The College Station City Council terminated a grant contract with Habitat for Humanity, expecting a loss of at least $65,000 in community funds.
The council approved $794,000 grant in 2017 for Habitat for Humanity to build five low-income housing options in the community. According to the city, Habitat for Humanity purchased a piece of land near Renee Lane for the project. But, when the group went to bid for construction, they hit a roadblock. Average construction prices shot up, by more than double.
This is something affordable housing advocates say they’ve been running into. Paul Turney, the President of the Brazos Valley Affordable Housing Corporation, says it’s a problem across the board.
“This is the most rapid increase in inflation that I’ve seen since the 80s,” he said.
Vice President, Ben Fortner, says they try to work with clients about this but, it’s tough.
“Most of our houses we’re building right now we’re pretty much just trying to control the cost to keep it still affordable,” he said. ” We might be paying three times for a frame package right now than what we normally would.”
This is a frustrating problem for those looking to afford a home, working to help people find an affordable home and even those on the council.
Terminating this contract was a mutual agreement with the city and Habitat for Humanity, but it wasn’t an easy one. Councilmembers shared concerns about a loss of $65,000 in the deal, plus the chance to lose more if the lot purchased by Habitat for Humanity sells for less than they purchased it.
“You do know how many nonprofits would have loved this money,” Councilmember Elizabeth Cunha told the city.
