SWEATING IT OUT : ‘Sweat Equity’ Group Aids Those Willing to Help in Construction of Their Own Homes

Deni Stevenson acquired her condominium here the old-fashioned way. She built it.

Or at least she helped.

As a member of Homes For People--a nonprofit developer of low-cost housing that was founded in Santa Barbara 12 years ago--Stevenson lowered her condo cost with “sweat equity” points that she earned by sweeping, cleaning and painting during construction. On the job site, she worked for 14 months alongside her future neighbors, which made for an extra-friendly complex.

“There’s a lot more closeness,” said Stevenson, 51, a college English teacher. “We water each other’s plants when we go away. It’s 50 times better than moving into a condo complex where you don’t know anyone.”

But it’s the Cape Cod-styled two-bedroom, 1 1/2-bath condo itself that gives Stevenson most pleasure.

“What I’m really jazzed about is my patio,” said Stevenson, gesturing toward the brick patio that her friends helped her lay, brightened with flowering potted plants and a colorful umbrella.

Thanks to her own efforts, city-subsidized loans, private contributions and other factors, Stevenson’s payments are about $700 a month for her $102,000 condo. She figures that is less than what it would cost her to rent a two-bedroom apartment.

“I get so happy looking at my flowers and fence and umbrella, and knowing I can afford it,” Stevenson said. “I’m so grateful I’m not out on the street as a single parent without a lot of money in this town.”

Across town, Rebecca and Frederick Russell, both 51, just finished the “sweat” stage, working 30 hours a week between them on their project, as required by Homes for People.

While Rebecca, a ceramic artist and teacher, was throwing scrap lumber into a Dumpster one recent Saturday, her husband, a construction worker, was busy plastering a wall. During the week, much of the work was done by licensed tradespeople, but on weekends the future homeowners did what they could, from cleanup and digging ditches to painting and plastering.

t’s kind of exciting to see everyone working together,” Rebecca said. “It’s kind of a bonding experience. You go in there and work hard. “

But amid the hard work, she enjoyed planning for life in the new home. The couple paid extra to have track lighting in the living room where Rebecca will display her ceramic artworks, which she said “haven’t been displayed in years.” And she has plans for adding tile to the small patio area outside the living room.

“I do clay, so I’m going to get carried away,” she said.

In early August, the couple and their two sons moved into their three-bedroom, two-bathroom condo.

According to Rebecca Russell, her youngest son especially enjoys having a bathtub. To save the required $20,000 down payment, the couple had taken on second and third jobs and the family had been living in a one-bedroom, bathtub-less duplex. Before that, they rented a three-bedroom home for $1,000 a month, but, according to Russell, “I wasn’t saving a dime that way.”

Now that the family has moved into the $180,000 condo, the payments are about $1,300, including condo fees.

“That’s still high,” Russell admitted, adding, that $180,000 for a three-bedroom place is pretty low. “It’s so hard to buy in, especially in Santa Barbara.”

For those willing to sweat for home ownership through Homes for People, family income must be low enough to qualify as low or moderate and yet be high enough to qualify for the low-interest loans. Also, a down payment of about 10% is required.

Once a family or individual decides to buy a home through Homes for People, they begin working on a building project. If the project they want to buy into is in construction, participants work there, earning points that can reduce the cost of their home by as much as 10%. Typically, a single person is required to work 20 hours a week and couples must work 30 hours a week between them.

If participants want to buy into a future project, they work on current projects and earn points, which gives them priority in selection of units in their own project.

Homes for People was born as a reaction to the skyrocketing home prices of the 1980s, when the ordeal of trying to buy a home in pricey Santa Barbara drove many families north to Lompoc or Santa Maria or out of the state altogether.

One young couple, however, thought there must be some way to create affordable housing in the city. Mark and Pattie Lurie, owners of a construction company, “sat around talking about what we could do,” said Pattie Lurie. Their ideas developed into Homes for People, whose motto is “people helping people help themselves.”

A newspaper ad drew 25 people to the first meeting and a board of directors was created that evening. The group raised the down payment for a $70,000 parcel occupied by a condemned house. The plan was to rehabilitate that house and build another on the same lot.

The Luries submitted the tenets of Homes for People and a detailed plan for the building project to an affordable-housing competition sponsored by the state Department of Housing and Community Development. Taking that to the City Council, the group was awarded low-interest loans by a narrow vote.

“We just got started by the seat of our pants,” Pattie Lurie, 38, recalled. “We were starting out very small. We were a bunch of idealists.”

During construction, the two families who would buy the finished homes worked full time on the project and were helped by students in a Saturday class on home building taught by Mark Lurie and sponsored by the local community college.

Besides low-interest loans provided by the city’s redevelopment agency, as well as grants and private donations, other factors help Homes for People build homes for $40,000 to $50,000 under market value.

One factor is the city’s “bonus density” provision, which allows more homes per acre than normal. Also, setback and parking requirements are occasionally relaxed. Because the developer is a nonprofit agency, Gil Garcia, one architect who has designed several Homes for People projects, said he charges “favorable” rates for his services.

And the buyers--40% of whom are ethnic minorities or single women--are empowered through knowledge about home ownership and condominium organization and acquire building skills that can save them money down the line for repairs and improvements.

Along with the chance to buy housing under market value also come some restrictions. The units cannot be rented out for more than two months a year. And under terms of a limited-equity partnership with the city, the units cannot be sold for more than a cost-of-living-increase for 30 years.

“We’re providing shelter rather than investment,” said Tom Moore, 44, co-director of the organization and previous president of its board.

Homes for People strives to rehabilitate old properties as well as build new ones.

In the Russells’ project, the property’s original structure was a beaten-down 1920s Craftsman-style Girl Scout clubhouse. From that restored building, three units are being crafted--complete with all original doors and windows and ceilings more than 11 feet high. In addition, seven new units of compatible design are being built in the back of the property.

Since the beginning, Homes for People has built or rehabilitated 61 homes in 10 projects. Now, another 37 units are under construction or in pre-development.

One new project gaining momentum is a living and working space for artists called “El Zoco.” The 580-square-foot to 780-square-foot units will feature 16-foot volume ceilings and an abundance of light and windows. Prices will range from about $120,000 to $145,000, depending on their size. It will take an annual income between $25,000 and $45,000 to qualify.

“This is giving artists a chance to buy in Santa Barbara so they don’t leave,” said Pattie Lurie, co-director of Homes for People. “We’re trying to get them to stay.”

Despite its idealistic goal, each project has its share of hurdles to overcome. For instance, neighbors of the Girl Scout clubhouse project objected to increased density allowed on the property, which they said would contribute to crowding and traffic problems.

As a result of complaints, architect Garcia reduced the number of units from 13 to 10, reduced the height of the two-story buildings and moved second-floor balconies that would impinge on the privacy of neighbors in the one-story homes that surround the project.

But even amid continued complaints, the Planning Commission approved the 10 condos. According to Commissioner Jeff Prieto, “We all agree there are problems on the Westside that ought to be addressed.” But, he added, denying approval for the project would not solve those problems.

For co-founder Mark Lurie, 40, the lofty idealism of Homes for People’s beginning has softened with experience. A specialist in historic restoration, Lurie said he was “lured” back--after several year’s absence from involvement with Homes for People--to work as a general contractor on the Girl Scout building and to run the building class.

“I’ve been out of the loop,” he said. “It’s a lot of heavy-duty people stuff. Sometimes it’s appreciated. Sometimes it’s not.” Lurie mentioned an earlier Homes for People project where the future homeowners fought with each other over the many decisions that needed to be made. Now, Lurie said, people’s input is more limited.

“We had to change it,” he said. “We’ve made it more standard. There’s very little owner input.”

“I’ve lost some of my idealism,” he added.

From the beginning, the dream has been for the Homes for People idea to catch on in other areas. This seems possible to City Councilman Hal Conklin, who said, “It’s a wonderful program. Except for the Housing Authority, which is a government agency, we give almost all our (affordable housing funds) to Homes for People.”

The city was acknowledged for its efforts in 1989 as one of 10 cities given awards by the U.S. Conference of Mayors for making the city a better place to live and for forging partnerships to provide affordable housing.

And according to Pattie Lurie, “It’s certainly not just Santa Barbara that needs affordable housing. If we could do it in Santa Barbara, it would certainly be easier to do in other areas.”

But in the mind of co-director Moore, that would take one critical ingredient. “We have an enlightened City Council,” he said.

For the present, Homes for People continues to search for funds and develop affordable housing in Santa Barbara.

According to board president David Shelton: “When there’s no more need, Homes for People can close up shop.”

Meanwhile, the group gives people like Deni Stevenson a feeling of roots. “I can see growing old here,” she said.