A Need Fulfilled
CDCU Success Story, August 2011
Community Development Corporation of Utah (CDCU) recently had the opportunity to help fulfill a homeownership need for Julia McKinney, a single mother with seven children living on a limited income who was in need of a safe and affordable place to raise her children. The following is a summary of her story in her own words.
“As a single mom with seven kids, I found myself in the unenviable position of having to find a home for all of us. Three months ago, I realized I couldn't afford the rent on the house we had been living in, so I searched the internet for more affordable housing. But a house for our size family was still out of my price range and I was left with two options: squeeze us all into an apartment, or move out of state and break up my family to live with relatives until I could find something. 
Since neither of those options would provide the security I was looking for, I determined that our best hope would be to find a house to buy. With limited resources, I searched the HUD websites, found a broker named Sandy Davidson, and asked for her help. She dove in and offered her extensive experience, working hard to find me a place before the summer ended. But many of the homes available required remodeling, and I just wasn't sure if I could afford it. When a CDCU home came on the market, she showed it to me that very day and explained the application process. The home was beautifully remodeled and well within my price range. It met all of our needs, from the clean, new bathrooms, to the sturdy walls and flooring, to the spacious backyard to satisfy our gardening desires. I loved the little room with the fireplace to read books when the snow falls, and the extra room downstairs which I could use as our homeschooling room, with lots of wall space for bookshelves and maps. The wonderful morning light pouring into the well-equipped kitchen sealed the deal. This was the house for us.
I had already taken the Community Action Center's Homebuyer Education class, so I was in a good position to qualify. Sandy worked hard to get my application in and make sure we had covered all the qualifications. The only thing standing in my way was the down payment and closing costs. Though I had saved enough for moving to another rental, I was not able to raise the rest for the down payment. Hard as it was, I made a decision to sell an heirloom ring left to me by my grandmother almost twenty years ago. Though she had passed away shortly after she left it to me, I never thought of selling it unless my need was great. Well, as Aragorn said in The Lord of the Rings, “The person who cannot let go of a treasure in great need, is in fetters.” I was in great need of this house. This house represented security and stability for my kids. This house met all our needs. This house was my last hope. I made contact with a jeweler who got me a good price on the ring and I was able to fund the remainder of the down payment.”
Julia’s home, located in Orem, Utah was recently renovated by CDCU as part of the U.S. Department of Housing and Urban Development (HUD) Asset Control Area program. CDCU is one of only five partners across the country to administer this program for HUD in which HUD designates target neighborhood revitalization areas (based on low income, low homeownership rates, and high foreclosure rates) in order for CDCU to buy repossessed HUD homes at 50% of their appraised value, rehabilitate them, and resell the affordable housing to eligible homebuyers. Any difference between the selling price and the costs is given to the homebuyer as a forgivable equity loan in order to help them improve their economic situation through the security of some home equity.
Community Development Corporation of Utah purchased the home with funds from UBS Bank USA and went to work making needed repairs and upgrades. Improvements include upgraded insulation, repairs to the stairwell and basement walls, roof repairs, duct repairs and duct cleaning, bathroom upgrades, new kitchen cabinets, counter, sink, refrigerator, and dishwasher, and a new washer and dryer. Now the home is not only safe and comfortable, it is affordable. Julia’s mortgage payment is nearly 150 dollars less than what she was paying for rent.
The home is just what Julia was looking for to provide long-term stability for herself and her children. “I can walk through our new house, grateful for my grandmother's legacy, and grateful for CDCU’s programs that put together such a lovely new home for my family. I appreciate all the work that has been done on the house. I know we will be happy there for many, many years, said Julia.”
