Expanding Affordable Housing by Reallocating Housing on Closed Military Bases I. TOPIC Wurtsmith Housing Acquisition and Reallocation Project II. LOCATION Northeast Michigan III. SUBJECT Expanding Affordable Housing by Reallocating Housing on Closed Military Bases IV. SUMMARY Economically disadvantaged families living in severely deteriorated mobile homes have often been overlooked by traditional public housing assistance. The Community Development Block Grant housing rehabilitation assistance program requires that renovation costs not exceed 75 percent of the after-rehab value. Therefore, many applicants are denied assistance and remain in severely substandard housing. In June 1993, a portion of Wurtsmith Air Force Base (WAFB) was closed in the ongoing military downsizing. The Northeast Michigan Community Service Agency (NEMCSA), a Community Action Agency, received grants and loans to purchase, renovate, and redistribute the base's housing units through the County Housing Commissions in six targeted northeast Michigan counties. The primary use of these units will be as replacement homes for low- and very low-income residents who now live in substandard housing. The two-year program includes acquisition of removable units, reclamation of the sites, preparation of the recipient sites, moving the units, temporary relocation assistance, renovation of the relocated home, and remodeling of the WAFB site-fixed units. The program brings together NEMCSA, the Township of Oscoda, and six County Housing Commissions. Because of their cooperation, 307 families will have affordable, safe, and sanitary living conditions. V. SUCCESSFUL PRACTICE Developed a national model project for redistributing unused military housing units to replace substandard housing with safe, affordable, and sanitary units. VI. CONTACT John M. Swise, Executive Director Northeast Michigan Community Service Agency, Inc. (A Community Action Agency) 2373 Gordon Road Alpena, Michigan 49707 517-356-3474 FAX: 517-354-5909 VII. CASE STUDY The Problem: High unemployment rates, high poverty rates and poor housing have plagued many people in the northeast Michigan region. Often, economically disadvantaged families living in severely deteriorated mobile homes are overlooked under traditional public housing assistance programs. This occurs, in part, because a condition of Community Development Block Grant renovation assistance requires that renovation costs not exceed 75 percent of the after-rehab value. The Approach Adopted: In June 1993, through military downsizing, 307 Wurtsmith Air Force Base housing units were unoccupied. Northeast Michigan Community Services Agency (NEMCSA), the Community Action Agency serving the area, proposed relocating and renovating these units for use by low- and very low-income people. For the first 75 units, clients will be screened, pre-qualified, and selected during the late summer and early fall of 1995. Renovation of the units will be completed by March 1996. A similar process in 1996 for the second 75 homes will complete the project by mid-1997. How They Implemented The Approach: Using grant and loan funding for the project, NEMCSA will purchase 150 homes from the Charter Township of Oscoda and redistribute the units through the County Housing Commissions in each of six targeted counties. The primary use of the units will be to replace substandard, owner-occupied mobile homes and trailers for low- and very low-income households. Clients will be selected by local County Housing Commissions. The program includes acquisition of the removable units and reclamation of the WAFB sites; preparation of the recipient site; moving the housing units; temporary relocation assistance; any required demolition services; trailer removal; well and septic systems repair and renovation of the unit after it has been moved; and remodeling the WAFB site-fixed units. In addition to meeting low-income guidelines, recipient families must: own and occupy their qualifying mobile homes for at least one year before program application approval; obtain Health Department approval of water and sewage disposal systems; hold a warranty deed on the property; be up-to-date on all tax payments; have homeowners insurance; and be able to sustain an affordable mortgage. Results: Because of the program, 307 families will have affordable, safe, and sanitary living conditions. Removing the 150 homes from the base will facilitate platting and marketing the remaining homes. The remaining 157 homes will be remodeled and readied for sale at affordable rates. VIII. PROGRAM SPIN-OFFS This program will be a national model project of an innovative method for the reuse of military housing involved in base closures. The program will demonstrate the broad local benefits from reuse of military housing and exhibit wide replicability. IX. KEY WORDS Base Closures Community Action Agency Community Development Block Grant Community Housing Development Organization County Housing Commission Housing Office of Economic Adjustment Manufactured Housing Military Housing ref: nemcsa.doc