Work is to begin this week on a small strip of new townhouses in Woodbury's Garden Gate Development, where Twin Cities Habitat for Humanity has been flexing its muscles as a fledgling developer.
The faith-based homebuilder, which relies largely on volunteers and altruism as it rivals some of the nation's biggest homebuilders in new construction, has bought an abandoned housing development, Garden Gate, on the city's northeast side.
Stepping in to finish off 24 abandoned lots, along with streets and other infrastructure, Habitat for Humanity is teaming up with citizens and community leaders in what Mayor Mary Giuliani Stephens calls a win for all involved.
When the bottom dropped out of the housing industry six years ago, Habitat had already built a four-plex and six-plex in Garden Gate.
But out of 40 units planned, bankrupt developer Heritage Development left 30 platted lots empty and abandoned. Streets, sidewalks, fire-access lanes, retaining walls, erosion control, landscaping and a playground were never built.
Another builder eventually built six more units, but amid the market's collapse, city officials struggled to find a developer to finish the project.
Then, in 2010, Twin Cities Habitat for Humanity bought what was left of Garden Gate. It's one example of how the nonprofit has become one of the nation's top home builders, and now, a rising developer of affordable homes. The city gave the nonprofit a $150,000 grant to help buy the land and kick-start the languishing development.
Outside of Minneapolis and St. Paul, Woodbury has built more Habitat for Humanity homes than anywhere else in Minnesota, with 53 built in the past decade and many more planned, said Matt Haugen, a spokesman for Twin Cities Habitat.
"We've been able to purchase property at a lower cost," said Jake Kirchgessner, a senior site supervisor for Habitat, who called the Woodbury property a "unique opportunity" for the charity.
It's akin to a revolution in this charity, which has moved nimbly with low margins, from building homes to revitalizing entire developments.
"While providing homeownership opportunities to low-income families continues to be our primary focus in the U.S., Habitat's work has evolved toward an intentional focus on community redevelopment," said Talia Mollett, a spokeswoman for Habitat for Humanity International in Atlanta.
Habitat for Humanity was named the sixth-largest U.S. homebuilder in 2010 by Builder's Magazine. In 2011, it built 4,800 new homes in the United States and Canada and nearly 20,000 worldwide. It also rehabbed or repaired more than 4,700 U.S. homes and 81,500 worldwide, Mollett said.
Garden Gate rebirth
When Heritage Development went bankrupt, the platted but vacant lots went back to the lender, Assured Financial, which sold them to CSS Builders of Woodbury. CSS built one six-plex, then filed Chapter 7 bankruptcy in 2008. CSS lost everything back to Assured in a foreclosure.
Habitat bought the remaining 24 lots in a partly done, "fractured" development, said Karl Batalden, Woodbury city planner.
"When Habitat bought the lots in 2010 they assumed the responsibilities of the developer and among the first actions they undertook were unfinished infrastructure items -- road work, landscaping, sidewalks," he said.
The transaction was between Assured Financial and Habitat, but the city allocated $150,000 from a federal community block grant to help Habitat pay for the land, Batalden said.
On March 24, Habitat is holding open houses for the new families at their Garden Gate five-plex. Habitat volunteers this week hope to pour the foundation on another four-plex.
Batalden, formerly a Habitat employee, said Habitat builds market-rate housing that is affordable because of its zero-interest mortgage financing. Yet it must meet industry standards, he added.
Volunteers do much of the carpentry and finishing work. Electrical, mechanical, plumbing and foundations are contracted out as professional services.
"All of the planning, the designs and aesthetics -- that is all professional and meets the standards and commitment to excellence we would expect from any other builder," he said.
Happy to come home
Until they helped build their Woodbury Habitat home in Bailey's Arbor, Kinini Jegeno and his wife, Zemzem Tena, had lived with their young daughter in a stuffy St. Paul apartment. The tot had breathing problems that led to trips to the emergency room two or three times a week in the winter, Jegeno said.
"There was mold inside the apartment," he said. "It was almost suffocating, and the sanitation was completely bad."
Times were tough, and houses were expensive in 2005. Jegeno earned $14 an hour as a Hennepin County financial aide worker and was eligible to qualify for a Habitat home. He also did 400 hours of "sweat equity," helping people from other cultures and faiths build homes, including his two-bedroom townhouse in 2008.
"I actually don't have words to express the opportunity that we got," Jegeno said. "It totally changed our lives. We don't have to run to the emergency room again and again. Every time we come home, we're happy."
He continues to volunteer for Habitat, Jegeno said, because he not only enjoys connections with others, but because he wants the organization to grow.
On a recent morning in Woodbury, retirees and others with 3M Cares put final touches on two Habitat townhouses. Groups from Andersen Windows and many other businesses and organizations also provide volunteers, along with the city of Woodbury.
"It's very satisfying; it's very fulfilling," said Daniel Shapiro, a retired 3M lawyer who once worked in a world where mergers and acquisitions could take years. "Here, at the end of the day, you see what you've accomplished."
Asregdew Assfa Agonafer, 44, was working with Shapiro and other volunteers. He and his 14-year-old daughter will move into one of the reconditioned townhouses from a small two-bedroom apartment in St. Paul that they share with a third person, he said.
Agonafer, an immigrant who works for a catering service, qualified for one of Habitat's zero-interest loans. He's worked at least 300 hours of sweat equity, too.
"This area is good for us," he said.
Joy Powell • 651-925-5038
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