The Ames City Council recently approved the sale of a city-owned residential property to Habitat for Humanity. The property is destined for redevelopment and sale to a new family.

A federal grant program provided the city with money to purchase the property located at 1508 Carroll Ave., just north of Mary Greeley Medical Center.

They city purchased the property for $99,500 using the federal grant money, and sold it for $47,450.

Ames Mayor Ann Campbell said these federal grants are designed to help communities redevelop neighborhoods and properties that have started to decline in value. In most cases, they are neglected rental properties.

Jim Black, member of Habitat for Humanity of Central Iowa, said property values have been rising in the Ames area so quickly that the cost of property has become one of Habitat for Humanity’s primary cost-control concerns.

“It has gotten to the point that we have a very difficult time affording homes or lots in the city and we have to build outside of the city,” Black said. “In fact, most of our new developments over the past few years have been outside of the city itself.”

Black said Habitat for Humanity tries to keep costs as low as possible for its residents as they have to finance the homes themselves and the less expensive a home is, the easier it is for new residents to maintain ownership.

“Any way we can find to keep costs as low as possible we explore. These grants really provide a win-win situation for both the city and Habitat for Humanity,” Black said. “We get a discount on the property and the city gets a refurbished lot increasing the value of the neighborhood.”

Assistant City Manager Sheila Lundt said filing for the federal grants can be time consuming, but is worth the effort.

“The money is waiting for us to apply for it – it would be foolish if we didn’t,” she said. “The process can be a little tedious and requires a lot of paper work, but all grant applications do; it’s not unusual at all.”

Black said the recently purchased property has approximately 1,000 square feet.

“The home will require some remodeling before a family can move in,” Black said. “Because of the reduced cost, we can afford to do a decent amount of remodeling and still keep the house affordable.”

Kim Rezarch took possession of a Habitat for Humanity home in October of 2005. The home was built during Iowa State’s annual “Blitz Build” and the interior was finished several months later.

“I could have never afforded a home without Habitat’s help. It was a lot of work getting my credit in order and going through the financing process,” Rezarch said. “Some people think we are just given homes, but that isn’t the case at all. I had to do just as much as any normal home buyer, if not more.”

Rezarch’s home was built in Kelly, seven miles south of Ames. The location was chosen because of the low cost of land.

“At the time, Habitat didn’t have any homes available in Ames, but it isn’t a problem – I’m not too far away,” Rezarch said. “It doesn’t bother me; anywhere I could afford a home was fine with me.”

Black said Habitat for Humanity is trying to increase the number of homes built in Ames, because that is where need exists the most.

“People who have families and need homes are in Ames, and they want to stay in Ames,” Black said. “With the help of federal programs like these, we can help them fulfill that dream.”