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CITY OKS HELP FOR HABITATS PROJECT; UNFINISHED HOMES IN BURBANK GIVEN NEW LEASE ON LIFE BY COUNCIL.


Byline: Troy Anderson Staff Writer

The Burbank City Council voted Tuesday night to bail out Habitat for Humanity's housing project on West Elmwood Elmwood is a neighbourhood in Winnipeg Manitoba Canada. It is located close to downtown Winnipeg, just over the Disraeli Bridge. It is one of the oldest areas of the city. It falls in the River East Transcona School Division.  Avenue.

Badly short of volunteers and donations, Habitat has been unable to finish homes being built for eight families waiting since last fall to move in.

If the homes are not finished soon, the completed portions are going to begin to deteriorate.

The City Council voted 5-0 late Tuesday night to renegotiate re·ne·go·ti·ate  
tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates
1. To negotiate anew.

2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor.
 its development agreement, so it receives more proceeds from the sale of the homes, and give Habitat the rest in a $330,000 grant.

Councilman Bob Kramer supported the motion, but said he didn't like the way Habitat has handled the matter.

``We've already donated between $500,000 and $1 million to make this work. They were supposed to complete the project and they failed to live up to their end of the bargain,'' Kramer said. ``Now the council can either abandon the project or kick in more taxpayer money.''

In September 1997, the council and Redevelopment Agency approved the development of the eight-unit townhouse town·house or town house  
n.
1. A residence in a city.

2. A row house, especially a fashionable one.
 project. Under the agreement, the Redevelopment Agency purchased the existing 14-unit apartment building at 191-195 West Elmwood Ave. and was responsible for tenant relocation and demolition of the complex.

The property was sold to Habitat for $500,000 through a loan payable over a 30-year term with zero interest. Habitat was responsible for construction of the project and was required to sell the homes to low-income, first-time home buyers for an average price of $100,000.

Habitat, which relies on volunteer labor and donations, expected to get donations to fund the construction costs. But Habitat was unable to get enough volunteers and donations to complete the project.

The cost to finish the project is now estimated at $330,000.

The plan to build the homes is a year behind schedule, hobbled by mismanagement mis·man·age  
tr.v. mis·man·aged, mis·man·ag·ing, mis·man·ag·es
To manage badly or carelessly.



mis·manage·ment n.
, mistakes, a lack of volunteers, a decline in donations and El Nino's rains.

In the nine years that Habitat for Humanity Habitat for Humanity, nonprofit ecumenical Christian organization that enables low-income people to own affordable, livable housing. Headquartered in Americus, Ga., it was founded in 1976 by businessman Millard Fuller and his wife.  has built or renovated homes in the San Fernando San Fernando, city, Argentina
San Fernando (săn fərnăn`dō), city (1991 pop. 144,761), Buenos Aires prov., E Argentina. It is a district administrative center in the Greater Buenos Aires area.
 and Santa Clarita valleys The Santa Clarita Valley is the valley of the Santa Clara River in Southern California. It stretches through Los Angeles County and Ventura County. Its main population center is the city of Santa Clarita. The valley was part of the 48,612-acre (19,672. , the Burbank project has had the most difficulties.

Habitat has identified eight low-income families who want to purchase the homes once they are completed.
COPYRIGHT 1999 Daily News
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Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Daily News (Los Angeles, CA)
Date:Jul 7, 1999
Words:371
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