Project Information

Issues to be Addressed

Habitat for Humanity of Southeastern Connecticut (HFHSECT) is the only organization in Southeastern Connecticut offering homeownership opportunity for very-low income households. Citing the City of New London Consolidated Housing and Community Development Strategy and Plan, Fiscal Years 2005 to 2009, affordable housing has been defined as a regional issue over the next five years. The priority category identified by the City is very-low income households currently renting. While homeownership is often not thought to be possible for households in this income bracket, the Habitat model does make it a reality by financing the homeowner’s purchase with a zero interest mortgage.

“While relatively low median sales prices might suggest that housing is affordable in New London, the median household income data suggests otherwise. The median household income in the year 2000 was $35,420. This means that a family making $35,420 could afford to purchase a home that sells for, at most, $106,260. Compared to the median 2001 sales price of $124,000, this family would need another $17,740 in order to purchase a median-priced home. To summarize, there are not enough affordable housing units in New London, and/or families in New London are simply not earning enough to afford housing in New London.” 1 This situation has been compounded further by continued increases in median home sales prices and declines in median income. The median home sales price for 2005 in New London increased to $204,5002, while New London County median income decreased by seven percent.

According to the City’s Plan, the age of the housing stock also presents a barrier to affordability. Over sixty percent of the total housing units in the city were built prior to 1959, and while there is no statistical data available on pre-war housing stock, a tour of the City and review of property cards does reveal that much of this older stock was built in the pre-war era. While the majority of these buildings are structurally sound, their age warrants the need for increasing levels of maintenance, rehabilitation and modernization.3 Every Habitat home is designed to be certified Energy Star compliant, further increasing affordability by decreasing utility costs and preserving environmental resources.

Statistical Data - New London County

City of New London: New London median household income of $35,420 is the 4th lowest in the state, and is 59.3% of the state’s median income.

HFHSECT targets households using HUD very low household income data. Family selection criteria has three major components:

1. Actual need, as determined by the condition of current housing and affordability;
2. Ability to pay, as determined by household income and credit history, and;
3. Willingness to partner with HFHSECT by completing 400 hours of sweat equity and the long term commitment to repay their mortgage loan.

1. City of New London Consolidated Housing and Community Development Strategy and Plan, May 2, 2005, Section II-26.
2. Eastern Connecticut Association of REALTORS Market Statistics
3. City of New London Consolidated Housing and Community Development Strategy and Plan, May 2, 2005, Section II-34.

Description of project

HFHSECT is planning to build 6 new units of affordable housing on contiguous lots in New London, CT. The homes will be completed over a 30 month period with site excavation beginning March 2007. The new development is referred to as Davis Farm, named for the family that donated a parcel of property for the project. The project will add an estimated $840,000 to the grand list, and generate approximately $25,000 annually in additional property taxes for the local municipality. It is also expected that HFHSECT will invest $1.2 million in the project in the acquisition of property, purchase of materials and trade labor.

 Location of Davis Farm with photo of home
similar to those planned.
Chart shows the average owner housing
costs (mortgage, taxes, insurance, utilities,
fuels) in the area, yellow indicates $1035 -
$1114 as compared to Habitat owner
housing costs of $900 or less. Also note,
home ownership costs within a several
mile radius range from $1123 to $1847.