Financing Community Vibrancy

In the heart of Elkins, West Virginia, an inspiring transformation is taking place. Woodlands Development Group, is revitalizing neighborhoods by building new single-family homes on lots that were once vacant and dilapidated houses. This infill development project made possible through an innovative partnership between Lenders, the City of Elkins, and the WV Housing Development Fund (WVHDF) addresses the city’s need for quality, affordable workforce housing and neighborhoods free from the blight of dangerous vacant properties.

Revitalizing Elkins

In 2023 Woodlands used financing from Lenders to purchase four lots in Elkins. These properties have been vacant and unmaintained for years but were tied up in complicated ownership red tape. Woodlands spent significant time working with the owners and the City to untangle the titles and make it possible to redevelop the properties. Dustin Smith, Director of Project Development, explains, “after years of planning and waiting for the estate to settle with the City, we were finally able to acquire these four properties earlier this year.”  Woodlands Community Lenders financed the purchase with two-year, interest-only terms.

The significance of redeveloping these infill properties cannot be overstated. “Developing in town is often prudent because we know that we will have access to utilities and critical infrastructure, and the future residents will be able to easily access groceries, healthcare, and other amenities and services,” Smith says. This approach ensures that new housing developments are conveniently located and contribute to the vibrancy of the community.

Overcoming Financial Barriers

A crucial aspect of making this project viable has been an innovative public-non-profit partnership. The City of Elkins has played a pivotal role by demolishing dilapidated structures on the lots, significantly reducing the overall development costs. “Before, we had to take out debt on the acquisition of the property, the demolition, and the rebuild, which made those projects infeasible,” Smith explains. The city’s involvement has made the numbers work, driving down costs and making the new homes affordable for eventual buyers.

In addition to municipal support, the project benefits from the WVHDF’s Affordable Housing Fund Program. This program provides up to $40,000 per housing unit, further subsidizing development costs. Applications for these funds are planned for the spring, with construction expected to begin mid-2025. “This is one of our more flexible funding sources,” Smith notes. The new houses can be sold to anyone who earns below 115% of the area median income. In Randolph County for a family of four in 2024 that could mean a household income of up to $78,000, opening the option of homeownership to many families that could not afford it previously.

Partnerships and Collaborations

Successful rural housing projects require strong partnerships. The relationship with the City of Elkins has been instrumental, particularly in terms of demolition and identifying properties for redevelopment. “The city’s ability to demolish structures has been a pivotal partnership,” Smith says. Additionally, Woodlands Community Lenders has provided flexible financing crucial for early project stages. “Their flexible financing frequently helps us secure ownership of the property, then have a chance to put together the right construction plans and additional financing.” Smith emphasizes.

Local banks also play a significant role, providing construction and permanent mortgage financing to the buyers. Rural housing projects lack the safety in numbers of urban housing development so these collaborations are essential to their success, ensuring that financial barriers are overcome, and development can proceed smoothly.

The Impact of Rural Housing

Recent housing studies, including one completed in 2023 for Randolph County, highlight a strong demand for single-family homes. “A lot of the housing stock we have is aging; so building new, move-in-ready homes that don’t require the buyer to invest significant capital on renovations is a high priority,” Smith explains. Creating affordable homeownership opportunities helps people to buy their first home, remain in their communities, and build personal equity.

For Smith, the most rewarding part of his work is seeing the human impact. “The most rewarding thing for me is when I get to talk to the people that live in the housing units we develop,” he shares. Hearing stories of residents who have transitioned from substandard housing to new, high-quality and energy-efficient homes underscores the importance of these projects. “That community impact is how I gauge whether a project is successful,” Smith concludes.

Looking Ahead

With rental projects in active development in Greenbrier and Randolph Counties, and upcoming projects in Elkins, Philippi, Parsons, and Thomas, there’s more great housing on the way from Woodlands. They focus on creating affordable housing that blends into the neighborhood and serves the needs of the local community. In addition, the projects in Philippi, Parsons and Thomas are all located in downtown districts and include commercial space on the first floor.

Opportunities for economic development, small business growth, and providing quality, affordable housing for our local workforce are the foundation of Lenders’ mission and vision and we are thrilled to be able to work together with a strong partner to move the needle on those goals.