Why create affordable homeownership opportunities for working families?

The United Church of Underhill, being near the available property, has found the opportunity to purchase the land at a good price. After much research and data collection, it became apparent that one of the best uses for the land would be to shepherd the creation of affordable homeownership opportunities. Affordable homes are an important need in Vermont generally, and in Jericho and Underhill particularly (see below and also Why affordable homes?). Adding to the stock of affordable homes could enhance social and economic diversity in our community, and does not preclude keeping some of the land open for community agriculture and recreation.

According to the Underhill Housing Study, 2021, the need for affordable homes is great in this area: only 6% of homes in Underhill are affordable (<$200,000) and those that are tend to be in fair to poor condition.

In 2022, the median price for home sales in Underhill was nearly $415,000, well beyond the income-based affordability for Vermonters ($67,674).

The need for affordably priced homes in this area existed before the pandemic, but it has only increased. The placement of these homes—in a village center conveniently close to schools, shops, and public transportation—also aligns with the concept of smart growth, preserving larger undeveloped portions of land elsewhere. 

What is the current plan for the parcel? 

The United Church of Underhill purchased 8.6 acres in 2023, will secure permits, develop the infrastructure, and then transfer the improved lots to Green Mountain Habitat for Humanity to build homes for purchase by working families.

The expectation is to build perpetually affordable and energy efficient homes for up to 10 households and leave approximately 2 acres as open space for agriculture and community recreation.

Who is Harvest Crossing’s planning team? 

The United Church of Underhill membership voted to allow a team from the church to pursue buying property adjacent to the church for the development of affordable homeownership opportunities and preservation of some open space. Once the land is purchased and an engineering plan developed, the land subdivided, and utilities put in place, the improved lots will be sold to Green Mountain Habitat for Humanity. Habitat will then build the homes and use their homeownership model to sell to qualified working families for an affordable price.

Green Mountain Habitat for Humanity is also part of the planning team, sponsoring grants and applying staff time to ensure that the development plan meets the thresholds necessary to keep the purchase price affordable for new homeowners. Habitat carefully chooses owners who will be able to keep up their mortgage payments with their income level.

The Town of Underhill is sponsoring the planning effort which allows for Federal/State grant monies to be applied for and used. Federal dollars must be sponsored through a municipality for costs related to the development effort.

Why is Green Mountain Habitat for Humanity partnering on Harvest Crossing?

We are excited and grateful that Habitat for Humanity is a partner working to make this vision a reality. Habitat has a solid history of creating well-built, energy efficient, perpetually affordable homes in communities across Vermont, the nation and internationally. They have expertise in everything from finance to infrastructure (septic, utilities, roads, etc.) to community relationship-building. In addition to their encouragement and advice, Habitat is also able to bring funds to the plan. If our Church could purchase the land and subdivide it for homes, Habitat could then build affordable homes for purchase by working families.

How is this effort being funded?

Money to support the development plan is coming from donations from the members of the United Church of Underhill, citizens from the Towns of Jericho and Underhill, Federal and State grants from the Vermont Community Development Program, and loans from the Vermont Community Loan Fund and private individuals.

How much money do we need to raise to keep the homes affordable?

The total cost from start to finish will be approximately $2.5 million. This will allow Habitat to sell homes to families for around $150,000, plus closing fees.

The good news is that much of these funds have been raised. Several large grant applications have been submitted. Our current fundraising goal is $225,000.

The church has been raising these funds through both grants and private donations. Personal or business donations would be welcome (see Donate page).

Green Mountain Habitat will also raise funds and seek grants to support home construction.

How will Harvest Crossing work to ensure affordable homeownership opportunities? 

Green Mountain Habitat for Humanity will oversee the construction and sale of the new, affordable homes.

Green Mountain Habitat for Humanity builds safe, decent, and perpetually affordable housing in Chittenden County. They partner with families who need better housing, who earn at or below 80% of the area’s median household income, and who are willing to put in 400 hours of sweat equity. During the building stage, Habitat families work alongside volunteers, which also keeps costs down.

After the houses are built, Green Mountain Habitat sells the homes to the partner households at cost with a 0% or affordable interest mortgage. Habitat also ensures that monthly housing expenses for the new home owners won’t exceed 30% of their income.

Most importantly, Habitat homes remain affordable in perpetuity; when a family decides to move on with the equity they have built, Habitat buys back the home to sell to another eligible family. Learn more at their website.

Why develop homes on this property, as it is the only remaining open space left in the village? 

Preserving open space is a priority throughout Vermont. In the early consideration of purchasing this parcel, it was easy to envision the Church buying it to be kept as open space. In discussion, however, with Vermont Land Trust and Jericho/Underhill Land Trust, we learned that this area was not a priority for either organization. 

The Town of Underhill has identified a need for more affordably priced homes and has also identified Underhill Flats, and in particular the land currently for sale, as one of very few viable locations for construction of multiple homes. The development of affordable homeownership opportunities here will be in accordance with the Town Plan’s goals of concentrating development in the village centers and creating more affordable homes, while maintaining Underhill’s rural character by not over-developing.

Who will buy these homes?

Our new neighbors will be working families living and growing, ready to join our community. Habitat works closely with prospective families to ensure they have the finances and skills to succeed in homeownership. You can learn more about the specifics of the program here: https://vermonthabitat.org/apply-for-a-home/. Of course, a warm welcome to the neighborhood can go that much further toward a family’s long-term success. We hope you’ll join us in welcoming some new Underhillians when the time arrives.

How will the Habitat for Humanity homes affect property values in Underhill Flats? 

Habitat homes, like any new home construction, frequently can increase the values of the existing stock of homes and property. These homes are not given away, but are sold at cost to qualified households. The market or appraised value of these homes, just like any new home, is based on comparable new homes in the area.