Lumber, steel, aluminum and all the other materials for building have risen.  Some hope (like me) that the cost will return to a more normal level as the world opens back up.  The ‘experts’ are suggesting that the increased cost has come due to a bottlenecking of supply and demand.  This would lead to a decrease in cost within the next several months.  Other ‘experts’ predict that a small drop will occur, but the price of materials is now shifted to a new level due to aging population, limited natural resources, shifting economies and a plethora of other factors.  Whatever the reason, housing costs are up and the wages for many are stagnant.  In Lexington, the costs rise due to the city being a desirable place to live.  Lexington is growing and for many offering opportunities for economic growth and stability.  However, for the almost one third of Lexingtonians that live at 50% of the median income – housing is becoming even harder to find and afford.  Therefore, Gleanings Housing decided to build even though the costs are higher than desirable.

Our build presently has three funding streams: Affordable Trust Fund monies, a bank loan and Gleanings Housing building funds.  We are hoping to tap into Lexington’s Affordable Trust Fund for a $50,000 grant.  We have been in conversation with Rick McQuady at Lexington’s Office of Affordable Housing.  He has been extremely helpful and optimistic that we can access those funds.  Central Bank has been working with us to qualify for a construction loan with a conversion into a mortgage loan that has a balloon payment after 5 years.  We can qualify for this loan only based on the grant monies and our ability to fund a percentage of the cost.  Gleanings Housing donor partners have been able to raise $40,000 towards this building project.  This will allow us to purchase the land for the build.  The land will factor into construction cost in a way that should swing the loan approval.  That is a praise to God!!!

However, this also brings us to the greater need.  Affordable housing for those living at or below $27,000 a year requires that the rental property themselves carry as little debt as possible and that the property’s cost can be supported monthly by our donor partners.  It is Gleanings Housing’s hope that the financing of this building project comes in two ways.  First, that the cost of the loan can be offset by volunteer labor, in kind donations from various companies, and build donations from organizations and individuals that share our vision.  Second, that we can have 25 individuals giving $25 a month to support each of these units over the coming years. 

This is an exciting adventure.  God is at work with His plan to love and provide for people.  We are joining Him and invite you to prayerfully consider how He may be calling you to work along side. 

 Gleanings Housing Pages, no. 5, May/June 2021