Dixon Habitat for Humanity’s 32nd build underway

DIXON — Dixon Habitat for Humanity has been building homes for low-income families in Sterling, Rock Falls and Dixon since 1992. Their 32nd, and most recent build, broke ground on May 4, 2024, and is still under construction. The home was awarded to Megin Steeb and her two children.

Applications are generally taken during the summer, and the chosen family is decided by the homeowner selection committee during Dixon Habitat for Humanity’s annual meeting in November. Groundbreaking typically takes place the following spring.

Applicants are chosen based on the following qualifying criteria:

Level of need: Their income must be less than 80% of the median income level for Dixon. According to data provided by the United States Census Bureau from a 2022 American Community Survey of 5-year estimates, the median income level for a Dixon household was $52,208. Based on those figures, a qualifying household would need an income of under $41,766.

Families must also be currently situated in a less desirable housing situation. Some examples include living in a home in extreme disrepair, a home with no heat, or one without enough bedrooms for the number of occupants.

A willingness to partner with Habit for Humanity: All adult family members must agree to complete financial counseling courses and 200 “sweat equity” hours, where they can assist at the home’s construction site with cleanup, yard maintenance and other tasks. They may also be asked to help promote Habitat for Humanity programs.

“There’s a popular misconception that we just give out homes for free but that’s not the case,” said Dixon Habitat for Humanity Public Relations Coordinator Rachel Deskins. “These homeowners have a mortgage and certain responsibilities when this is all over.”

—  Rachel Deskins, Public Relations Coordinator for Dixon Habitat for Humanity

Ability to pay the mortgage: This is determined by a number of factors, including the family’s total income and the number of dependents and adults living in the home. Applicants’ total debt cannot exceed 40% of their gross monthly income. Additionally, the mortgage payment for the new home must be at least 20% and no more than 30% of their gross monthly income.

Homes are sold for market value following an appraisal, and families can apply for federal grants to assist with the downpayment. Their mortgage is interest free, and families who qualify for less than the appraised value of the home are provided with a second option to cover the difference.

“Say the home is appraised at $150,000 but the family only qualifies as being able to afford the home at $105,000,” said Dixon Habitat for Humanity President Tim Tedrick. “They could then apply for a second, completely forgivable mortgage, to cover the difference, provided they meet certain conditions.”

Those conditions include making on-time mortgage payments, maintaining the home’s condition, and remaining a resident of the home during the duration of the mortgage. Should they fail to meet the requirements, the entirety of the second mortgage falls back on the family, according to Tedrick.

Building materials are largely funded through donations, and labor is a mix of local contractors offering their time and private companies for which Dixon Habitat for Humanity pays out of pocket.

“We’re very blessed with donors,” said Deskins. “By both anonymous financial donors and those who give us their time and expertise.”

For more information on Habitat for Humanity, or to learn how to apply, visit www.habitat.org.