Storied subprime real estate market woes notwithstanding, this Baltimore lender and developer thrives on the clientele that other mortgage originators wouldn?t even consider.
Of course, Chesapeake Habitat for Humanity ? an affiliate of the Jimmy Carter-founded national organization ? is a $2 million-a-year nonprofit that purchases ramshackle properties through donated funds, renovates them with its in-house construction arm and then sells them to qualifying families through no-interest mortgages and at prices not to exceed $100,000.
“We?ve never had a default; we?ve never foreclosed on a property,” Mike Mitchell, the group?s executive director of four years, said of the 115 homes Chesapeake Habitat for Humanity has refurbished and mortgaged to qualifying applicants in its 25-year history. All have been for Baltimore City or Baltimore County people who earn less than 50 percent of area median income, have good credit and have donated 300 volunteer hours.
“Our mission is to provide affordable housing for low-income working families,” Mitchell said, expanding on the “broader and deeper” role his organization plays in the community. “Through our program they become homeowners and, in turn, stakeholders, often paying less in mortgage than they were paying in rent ? which means they have more discretionary income, which adds to the economy of the city.”
And which spurs other inner-city investment and development, Mitchell said, which is happening in two transitional downtown areas the group currently is developing ? Patterson Park and Washington Village/Pigtown. At the Washington Village/Pigtown site, Linthicum Heights-based Foundation Coal Corporation is sponsoring development with a $100,000 donation because of the area?s B&O Railroad connection.
“Chesapeake Habitat for Humanity is a great way to give people a hand up instead of a handout,” said Foundation Coal Corporation spokesperson PeterVietti, who noted that company employees also donated labor on the property.
“They have allowed me to own a home at zero percent interest rate,” echoed Vandaleia Kouka of Northeast Baltimore, who used Chesapeake?s program two years ago. “I would not have been able to purchase a home without that.”
The nonprofit has a paid staff of 12 and 10 staff volunteers from the Americorps and VISTA national service programs in addition to 3,500 walk-in volunteers a year.
