By William Hermann The Arizona Republic Dec. 30, 2000

It sounds like a communist dream:

A low-income community, but with beautiful custom homes, tree-lined streets, homeowners cooperating to keep yards and a little central park immaculate, neighbors gathering to socialize and sing.

In fact, it's a capitalist reality.

It's called South Ranch and it's in south Phoenix near 16th Street and Southern Avenue. Housing experts call it a model of affordable housing for the poor and worthy of national emulation.

Former Phoenix Mayor Terry Goddard, who now heads the federal Housing and Urban Development office in Phoenix, calls Habitat for Humanity's South Ranch "a fabulous success, a wonderful example of what can be done in affordable housing."

Goddard and others say the lack of affordable housing in Arizona leaves many families in a crisis.

More than 200,000 households in Arizona pay more than 50 percent of their monthly income for housing, government figures show. Of those who qualify for government assistance, only 15 percent find help after a six-month wait.

In South Ranch, not only are lower-income people building their own homes, they are building their own community, Habitat officials say. Currently, 168 of the projected 195 homes are occupied, with 12 under construction. South Ranch is the largest Habitat community in the United States and the second largest in the world, said Christian Wolf, president of Valley of the Sun Habitat for Humanity.

South Ranch has proved so successful that Habitat is taking the concept a few miles southwest and will begin work on the new community of Esperanza in September.

Millard Fuller, a Georgia businessman and lawyer with a vision of a decent home, created Habitat for Humanity 25 years ago. He believed people living in poverty but hungering for a home of their own would gladly work hundreds of hours to build that home. Since its founding, Habitat chapters around the globe have completed about 100,000 homes.

"What is going on at South Ranch, and what we'll do at Esperanza, may be the new paradigm for Habitat," Wolf said.

He said Habitat has typically helped aspiring homeowners build houses on vacant lots in existing neighborhoods. Habitat gets corporations, churches and individuals to donate building materials. Prospective owners and volunteers do the actual construction work.

Residents such as Jacqueline and Steven Sanchez say South Ranch has meant a new life for them and their two toddlers.

"This isn't isolated rental life, it's a close community," Jacqueline said. "We know our neighbors. There are supervised activities for the children in the park, there are neighborhood social activities that we all enjoy.

"We'll go out with our neighbors in a few nights and sing Christmas carols. We have a sense of belonging here that we never knew before."

Juan Jaquez, 20, lives in a three bedroom home with his 2-year-old daughter and his mother.

"We like the standards here," he said. "No cars on front lawns. Houses have to be kept up. No slums. My mother and I knew about slums before, and we had enough."

Habitat spokesman Joe Desimone said homeowner codes, covenants and restrictions are strictly enforced. Houses must be kept painted, new planting must be approved by the community homeowners association, home additions are carefully reviewed.

South Ranch and Esperanza offer three- and four-bedroom homes from 1,225 to 1,400 square feet. There are four floor plans and three elevations.

To qualify, an applicant must earn from $18,000 to $38,000 a year and be willing to put in 400 hours of "sweat equity" - 100 hours of work on a neighbor's home and 300 hours on his or her own home. New homeowners sign a no-interest first mortgage for about $65,000. The mortgages are owned by Habitat, and all income is used to build new homes, Wolf said.

"I don't believe in charity, and this isn't charity," said Wolf, a former investment banker. "People who move into South Ranch work hard - 400 hours of construction work is tough - and they pay for their homes. This is not some socialist scheme. It's people working hard and money being used wisely."

So far, no homeowners in South Ranch have sold their homes. If they do wish to sell, Habitat holds first right of refusal so that the organization can buy the house back and place another Habitat candidate in it.

South Ranch isn't without critics. When plans for the community were announced, many neighbors complained to the city that bringing so many low-income people into one neighborhood would mean instant blight and high crime.

Jaquez said there is a gang presence in South Ranch, "but I believe it's mostly guys from nearby neighborhoods trying to get some power here."

Desimone said neighbors and Habitat officials are working closely with police to deal with the gang threat.

"It's a sad commentary that's it's become sort of a big thing for some local gangs to prove they can move in here, recruit here," Desimone said. "We're being very aggressive on fighting gangs, and the police are helping."

Wolf said that when South Ranch was announced, "some neighbors said we were bringing in a bunch of poor people who would ruin the neighborhood."

"As it has turned out," he added, "not only have our home values gone up, but home values all around us have gone up."

And crime has gone down. Phoenix police crime statistics show that since South Ranch became a community presence in 1996, crime in the area has declined. There were 67 burglaries in the area in 1996 and 37 in 1999. There were 33 auto thefts in 1996 and 15 in 1999.

Nevertheless, Phoenix's volunteer planning board, the South Mountain Village Planning Committee, opposed plans for Esperanza. Habitat appealed to the Phoenix City Council and won approval.

Phoenix urban design consultant Michael Dollin said, "You had to expect some 'not in my back yard' reactions when they wanted to put in South Ranch and their other community.

"But we're seeing that South Ranch has been immensely successful in its mission of providing not only well-designed affording housing, but a real community as well.

"Most affordable housing is very drab; just look at most government housing projects for the poor. It's kind of ironic that in the Valley you can have a custom home if you are relatively affluent, or if you happen to be fairly poor and qualify for a South Ranch or Esperanza home."

Goddard said South Ranch "promises much for the future."

"South Ranch is an example," he added, "and people follow examples. We know there are thousands of families in our state on the brink of homelessness because they can't afford their housing.

"We need about 1,000 more communities just like South Ranch."

Reach the reporter at william.hermann@arizonarepublic.com

-- JLS in NW AZ (stalkingbull007@AOL.com), December 30, 2000

Answers

While no doubt Habitat for Humanity has done a wonderful job of helping 'low income' families get into decent housing, I wonder at the definition of low income? I earn less than their specs, and while I"m not a 'family', being single, even when I was married we fell in the lower-middle of their income bracket. Yet we still managed to acquire a decent, well maintained home, and without taking a mortgage for 65K. Some folks are simply more resourceful than others.

-- Hannah Maria Holly (hannahholly@hotmail.com), December 30, 2000.

Bedford Falls or Pottersville....I think most would prefer Bedford Falls! Habitat For Humanity...the Ol' Building and Loan Company!

-- sheepish (rborgo@gte.net), December 30, 2000.

Ask Sheepish, in the Western Part of WA 65k is merely a downpayment for a majority of homes. Shame

Laura

-- Laura (LauraLeekis@home.com), December 31, 2000.

'tis true. Average selling price for any house in Greater Seattle area just hit $310,000. That's *average*. (source: Seattle PI a few weeks ago.) To qualify for the loan, you have to be making $98,000 a year. Not as bad as some other parts of the country I hear, but I just look at those numbers and my jaw hits the floor. Not going to make $98k/yr at McDonalds or any other service sector job...

-- sheepish (rborgo@gte.net), December 31, 2000.

I've cooperated with Habitat both here in KY and back home in PA and find them to be a great group.

Income is based on being able to make loan payments.It is a loan,not a gift.I don't know if the income range here is the same as listed,here.We are a poor area,and I expect it is lower.Housing costs are lower, here, as well.I would have to check on this to be sure.

Habitat houses that I know are well built,the loan is very reasonable,the owner takes more pride & interest & knowledge away with them bc they helped build it,and there are few loan defaults.Now,if our banks and large contractors could do the same.

-- sharon wt (wildflower@ekyol.com), December 31, 2000.