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Nationwide, more than 11 million households have severe cost burdens, paying over half their incomes for housing, and more than 3 million of those families live in rural areas. And it's a pretty safe bet that downstate Illinois has at least its fair share of people who are struggling with the need for decent, affordable housing, and others who are living with family and friends. It has been known for a long time that there is a housing crunch in some areas, and co-op leaders realize that a lack of affordable housing and financing difficulties contribute to a lower quality of life for many in their service territories. The problem also stifles local economic development efforts. Illinois Rural Housing Task Force Several organizations have formed the Illinois Rural Housing Task Force, and are putting together a booklet that's designed to help people in rural areas and small towns come to grips with the housing shortfall. Entitled "Building a Brighter Future... Bringing Affordable Housing to Your Community", it is in the production stages. It will be free. It was commissioned by Rural Partners, the Illinois public/private partnership for rural development, and should be available from that organization (See sidebar for address and other information).
It discusses just what affordable housing is, and what rural people need to do to overcome obstacles that stand in the way of building new housing. Unfortunately, there are many obstacles, ranging from a lack of infrastructure to the reluctance of many homeowners to have housing projects located near them. USDA Rural Development Sheldon Keyser, rural development coordinator for USDA's Rural Development, says, "One of the biggest problems is the lack of builders in rural areas. There were quite a few of them years ago, but the high interest rates and inflation in the early 1980s forced a lot of them out of business. And they haven't been replaced as time went by. "And to make matters worse," he continues, "we've seen an incredible decline in the number of building trades classes in schools, virtually all over the country. We just don't have enough skilled people to do all the construction that we need." That may be changing for the better, now. Classes that were once generically lumped into the category called "shop" a few decades ago were designed primarily as a place to park non-college-bound youths. Often, skills taught in such classes involved building birdhouses, hammering ashtrays out of copper sheeting and making piles of sawdust out of good lumber. Fortunately, things are looking up for the old shop classes. They've gained new respect as "building trades classes," and are designed to teach skills that will enable young people to find good jobs and to get into a line of work that's really needed. 10 ILLINOIS COUNTRY LIVING • MARCH 2001
"When I go to conventions and workshops, I'm the only one there who has a junior high program. Everyone else represents high schools." — Bob Holquist Chatham Jr. High Building Trades Program Bob Holquist, instructor at Glenwood Junior High School in Chatham, notes that he gets young people interested in the building trades early. "When I go to conventions and workshops," he says, "I'm the only one there who has a junior high program. Everyone else represents high schools." He emphasizes that today's classes are light years away from the old shop classes, and that there are many bright, interested kids in them. "I have nine different classes, and there are anywhere from 18 to 23 kids in each. There are a total of 187 kids enrolled in my classes this year, and about half are girls." Holquist's classes are different from many in that he has the kids build small houses — indoors — then takes them apart and sells them as storage buildings. "We usually build two buildings, each 8 feet by 16 feet. We'll build a third if we have it pre-sold. We build them with a real electrical service entrance, flooring, carpeting, studs on 16-inch centers, drywall, and everything. The kids sweat-solder joints in copper tubing, wire outlets, install insulation, install and rig a toilet and sink, build trusses, and put on a roof, just like they were building a full-sized house. "When we get done, we rip out everything down to the studs, and sell the shell." Rural Electric Convenience Cooperative Co.(RECC), Auburn, helped with the materials, donating a sink, countertop, and an electric meter loop with its attendant hardware. Holquist notes that RECC personnel occasionally help with his electricity classes, too. While getting construction people trained is an important part of a solution to the puzzle of affordable rural housing, there is more to it than that. In fact, there are so many disciplines involved, and so many different pieces to the puzzle, that even getting everybody moving in the right direction may well be a Herculean chore. Raising money can be a problem for some, and the "Affordable Housing" booklet notes that getting money for rural construction can be much like pulling teeth. USDA's Keyser emphasizes that the fragmented nature of rural housing efforts increases the cost of money, and that the still-diminishing rural population poses a problem, too. "Some 60 rural counties in Illinois are basically just holding their own, with low growth," he says, "and there are lots of people in low-paying entry-level jobs. In poor areas, high interest rates and the lack of skilled construction workers is a real problem. You have difficulty finding people to build homes, and there's often a two-year waiting period for those who already have their financing lined up." In addition, rural areas suffer from a lack of respect from the financial community. Borrowers in counties that have a Metropolitan Statistical Area (city), can get a better interest rate than people in non-MSA areas (most of downstate Illinois). "Those in MSA counties benefit because there's more competition," Keyser says, "and there are fewer lenders in really rural areas. The volume isn't enough to excite loan brokers, who often play a big part in financing. And lenders may not have a widely known presence in rural counties." Many people, he adds, are shocked by the cost of both rural property and the price of a building to put on it. While many people perceive that "rural" means "cheap," that's not really the case. While rural lots may be less expensive than urban ones, property costs have gone up dramatically in the last couple of decades. Those who haven't kept track of such things are in for a real awakening when they go looking for a place to live. Habitat for Humanity In the meantime, many people are taking the direct approach and building affordable houses for those who need them. Habitat for Humanity, a nondenominational ministry made famous by former President Jimmy Carter, is far and away the MARCH 2001 • ILLINOIS COUNTRY LIVING 11
Sharon Hess, executive director of Southern Ilinois Coalition for the Homeless, is pictured with one of the houses that organization likes to obtain and refurbish. It will take a lot of work, but this old house will look just fine after SICH volunteers work their magic. best-known of such organizations, and is growing by leaps and bounds, as the need becomes more and more recognizable. Habitat, realizing that it's vital for the new homeowner to bond with the house, insists that the recipient put hours of "sweat equity" into the home by helping with the construction process. Each adult in the family must put in 250 hours. Many would-be donors of money, materials or labor are often gun shy about giving, for fear that the new homeowner might just sell his or her new home and make off with the money. The organization holds a "hidden mortgage" on the structure to prevent such an event. The Springfield chapter has an unusual source of labor. Inmates from the Shelbyville Correctional Center, some 50 miles southeast of Springfield, build prefabricated sections of homes, which are then assembled by volunteers on site. Such creative thinking enables Habitat for Humanity to reduce costs while still coming up with a quality product. Southern Illinois Coalition for the Homeless (SICH) The Southern Illinois Coalition for the Homeless (SICH) in Marion does a similar job, but it refurbishes older homes. In the past, notes Sharon Hess, executive director, the Marion-based group sold homes, with no thought given to people who might want to rent. Now, it both sells and rents. She notes that many people perceive the homeless to be lazy. In fact, she says, many of the homeless or under-housed are actually low-paid working people suffering from the twin problems of poverty and a lack of affordable housing. "We look for older vacant homes," she says, "that don't have a great deal of 'curb appeal.' We get them for as little as possible, and we refurbish them. We work with several government agencies, other organizations and volunteers, to bring them back up to first-rate condition." The organization has bought and rehabilitated 43 homes in 12 counties. As of now, 11 of those homes have been bought by their formerly homeless occupants. Others are in various stages of the process, or are being rented. The houses, she notes, get new wiring, plumbing, insulation, roofing, furnaces and whatever else it takes to get them ready for their new owners. SICH seeks a match for the house, a low-income family that's looking for a home. The family then signs a six-month occupancy agreement and pays 28 percent of its gross income monthly. "At the end of six months," Sharon says, "we offer them a lease-to-purchase agreement. "Under this agreement, a case manager works with the family for two years, to help them get ready to buy their home through conventional financing. The family then becomes homeowners." This is one of the differences between SICH and some organizations. Long after the family moves into its home, the organization is still there to help, working with them to complete their education and helping them adjust. While most of us have grown up in homes and have adjusted to the trials and tribulations of home ownership, some haven't. They need to be reminded that there are expenses and difficulties that must be overcome. For example, it's one thing to make a mortgage payment, and another to pay for electricity, gas, water, sewer and maintenance. Since 1989, SICH and its members have served 10,000 homeless and near-homeless in 24 southern Illinois counties, providing support services and housing counseling. Much of its work involves helping people obtain their GED (General Education Degree), and working with them in helpful ways short of providing homes. Most of the recipients - by far - receive this kind of help. While Illinois electric co-ops aren't involved in housing, some in other states are. Alfalfa Electric Cooperative in Cherokee, Oklahoma, is busily marketing first- 12 ILLINOIS COUNTRY LIVING • MARCH 2001 class modular homes to people in its service territory, and notes that a prospective buyer can have a carefully-built, energy-efficient home in just a couple of months. The homes, unlike many modulars, are indistinguishable from any that might be found on any rural lot or suburban subdivision. Alfalfa Electric offers two homes, available in a choice of floor plans, for less than $90,000, and they can be insured and financed just like a site-built home. Sac County REC, in Sac City, Iowa, doesn't sell houses, but it helps its community with a program similar to Chatham's Holquist's, but with some added touches. High school students revitalize older homes, or build new ones in the mid-price range. In a recent project, art students drew up house plans, while media students got involved in videotaping the procedure. The computer-assisted drafting (CAD) class came up with alternative floor plans, and the building-trades classes did the construction work. The FFA chapter and the school s football team built retaining walls and helped with landscaping. Elementary kids got involved by writing essays, and got a bit of exposure to the building trades. Since the construction students worked with area contractors, they were exposed to job opportunities they might not otherwise have had. Even though there is a shortage of affordable rural housing, and a shortage of people to build such housing, there are a lot of creative people working to find a solution. And electric co-ops are there, too, doing what they can. For more information about AJEC and it's member cooperatives visit us at:www.aiec.org
Those looking for a solution to the rural housing problem may wish to begin by contacting the following organizations: To learn more about Habitat for Humanity, write: Habitat for Humanity International
121 Habitat Street
Habitat for Humanity's Springfield office is located at:
1525 E. Phillips St.
Southern Illinois Coalition for the Homeless is located at:
1311W.Main
Sheldon Keyser, rural development coordinator for USDA's Rural Development, can be reached at:
265 South Mill St.
Rural Partners, the organization that commissioned the "Affordable Housing" book, is headed up by Paul Galligos, partnership manager. He can be reached at:
Rural Partners
The web site where the Housing booklet will be hosted is:
From there, you'll need to go to "Outside Publications," and follow directions from there. Illinois electric cooperatives are involved the "Certified Comfort Home Program." They realize that just being able to pay a mortgage often isn't enough, and that homeowners will be better off if they live in energy-efficient homes. The book is full of energy conservation tips to help reduce the cost of heating, cooling and water heating. It's available from your local co-op, and it's free. MARCH 2001 • ILLINOIS COUNTRY LIVING 13 |
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