HONOR -- The Benzie Housing Council closed its doors, usurped by bigger, costlier programs funded by federal stimulus bill.
The council closed on Friday as new federal and state guidelines squeezed it out of a signature home foreclosure prevention program. The program saved 49 homes from foreclosure since it began as a pilot in 2007, relying on bankers, lawyers and other professionals who volunteered their time to counsel families and negotiate with banks. The Michigan State Housing Development Authority pulled program funding because the housing council, relying on volunteers, didn't have a high enough employee count, said Joanne Sanborn, the council's soon-to-be unemployed executive director.
"A big part of our focus is now gone," said Richard Lutz, chairman of the housing council. "Without the foreclosure program as a means to solicit gifts and grants from organizations and citizens we just don't have the means to function any longer."
The agency expanded and changed with the community's needs since its founding in 1992, Sanborn said. It began with home repairs and weatherization projects, then began renovating homes in 1995. The year 2000 brought construction of new affordable housing, a rural homeless assistance initiative, foreclosure prevention and a program to help new home buyers with down payments and needed renovations.
"After 17 years of serving Benzie County and beyond we are very thankful to our supporters and donors and we are proud to have helped so many people," Sanborn said.
Lutz said MSHDA, one of the housing council's biggest funders, is changing direction. It has eliminated or reduced funding for all three of the council's current programs -- new housing construction, home renovations and foreclosure prevention.
"It's been very emotional for me, I've been with it for about seven years but we're without a real focus any longer, and apparently without any need, according to the new ... funding guidelines," he said.
The 10-county Northwest Michigan Community Action Agency based in Traverse City received stimulus funding to expand its foreclosure prevention staff and will service area residents, Sanborn said. The agency can be reached at 1-800-632-7334.
"It's just too bad we won't have an entity housed right here that will be available to help them," Lutz said. "When someone's getting foreclosed you add to the problem when you have to get transportation to Traverse City."
