Restore SGF paves way for homeownership

In a city where only 42% of homes are owner occupied, one organization is trying to change the math.

Restore SGF, whose stated mission is to help families achieve dreams of homeownership, is helping to fund home purchases in five of the city’s historic neighborhoods through its Down Payment Assistance Program. The program offers $9,000 to first-time homeowners whose income is up to 150% of the area’s median income. Buyers are not required to pay the money back if they reside in the home for at least five years.

Alyssa and Michael McDaniel signed the first contract for a home purchased through the program on March 20, and they moved into the Doling Park East home with their children Nevaeh, 4, and Brixton, 1, right away.

“It’s just perfect for us,” Alyssa McDaniel said. “The neighbors are so friendly.”

While the family expressed excitement, it’s also a cause for celebration for Brendan Griesemer, executive director of Restore SGF since January.

Griesemer said three and a half weeks after the program launched, five closings were scheduled – and four of the houses, purchased from an investor, were former rental properties.

“They’re flipping to owner occupants, which is exactly what we were trying to do with this program,” he said.

The program was funded through a $466,000 grant from the city of Springfield, Griesemer said.

“Based on kicking it off with little fanfare, we knew we had a lot of word of mouth,” he said. “The response has been really great.”

He noted the funding will pay for around 50 down payment assistance grants.

“If things go well, we’ll run through it this year,” he said.

Griesemer said Restore SGF wanted to provide an incentive for homebuyers because of the city’s low homeownership rate, which is 27 percentage points below the 2023 Missouri average of 69%, according to the Federal Reserve Bank of St. Louis. Unveiling the study’s findings at a Springfield City Council luncheon in December, researchers from Atlanta-based APD Urban Planning and Management said the city had substandard rental housing stock that is expensive to bring up to date, and at the same time it is difficult for a personal buyer to afford a home.

“Stabilizing neighborhoods means you reduce turnover, so perhaps there’s more of a balance between rentals and owner occupied,” Deborah Jensen, senior planning and design manager for APD, told council.

When the housing study was released, Griesemer occupied a different role as the city’s assistant director of the Department of Planning and Development. Before retirement, he said he knew the organization and the people involved in it well. He noted the organization has borrowed ideas that worked well in other cities and adapted them for Springfield.

“That’s one of the things that’s quite enjoyable from my standpoint,” he said. “I have knowledge from the city to know some of the issues that we deal with, and I can bring my expertise here to address some of those issues.”

The down payment program is for buyers who want to purchase a house in one of the five neighborhoods served by Restore SGF. In addition to the McDaniels’ new neighborhood, Doling Park East, Restore SGF serves Fassnight, Grant Beach, Meador Park East and Woodland Heights.

Some communities offer down payment assistance in the form of low-interest loans, but Restore SGF has opted for grants instead.

“The $9,000 incentive is a grant as long as they stay as owner occupied in that house for five years,” Griesemer said. “I’m hoping we will get new people to buy houses in these neighborhoods and stay for five years, or hopefully a lot longer.”

That five-year requirement is the industry norm for a grant, Griesemer said.

“The whole purpose is to get them established in the neighborhood, and hopefully they’ll remain there, but they’re not penned in there forever,” he said.

Alyssa McDaniel said she can see her family staying in their new home for a long time.

“Whenever we were looking at houses, we actually weren’t looking at any neighborhood in particular,” she said. “It’s old-fashioned, but we just liked the house.”

She added that her lender, Matt Yaktine of Flat Branch Home Loans, was the one who told her about the program.

“He handled everything,” McDaniel said. “I sent the stuff to him, and he sent in the application for us. In this economy, every little bit helps.”

McDaniel said she had been preparing to put down a $4,300 down payment, but that was reduced to $1,500.

“It was helpful to us. We saved some money in our pocket,” she said.

She added that she would recommend the program to anyone who is looking to buy a home.

Yaktine recommends it, too.

“It’s a fantastic deal,” he said.

He said the program has no minimum credit score requirement, unlike the Missouri Housing Development Commission homebuyer program or the Home Buyer Assistance Program operated by the city of Springfield.

“That knocks out a lot of people,” he said.

He added that he can do a manual underwrite, which also helps buyers to qualify.

“Buying isn’t for everyone,” he said. “Sometimes it doesn’t make sense.”

But he said finding anything under $1,000 for monthly rent is difficult, especially for a family of four. With first and last months’ rent and a security deposit, that’s $3,000.

“In this particular setting, you’re bringing $1,500 to the table for a mortgage payment that’s under $1,000 per month,” he said.

According to Restore SGF guidelines, to be eligible for down payment assistance, the home must be in a qualifying neighborhood, and its sale price must not exceed $250,000. Additionally, a borrower must meet these qualifications:

• Be able to contribute $1,500 of their own money at closing.
• Have income that does not exceed 150% of area median income. For a family of four, 150% of median is $112,950 annually, according to a chart at the Restore SGF website.
• Be a first-time homebuyer or one that has not owned a home in the previous three years.

Other programs
Restore SGF’s first program, which kicked off at the opening of its office in September, is the Restore My Block Challenge Grant. The program provides up to $2,500 for each member of a collaborative improvement project in which group members’ homes are within view of one another within a qualifying neighborhood.

The program aims to make a visible difference to historic neighborhoods, with residents posting yard signs touting their participation in the program.

“Obviously, we want to show an immediate impact on the street – that’s why we have neighbors submit as a team,” he said.

Griesemer said 12 banking partners contributed funds to the program’s first round, and the initial investment was $140,000.

“For every $1, we’ve been able to leverage $2.50 in homeowner capital – the investments homeowners are making into their houses,” he said.

He said applications are now being accepted for groups of neighbors who want to participate in the program’s second go round. The applications are accepted on a rolling basis through Sept. 30.

As far as other initiatives of Restore SGF, on the day he was interviewed for this story, Griesemer had just come out of a meeting with a group of homeowners who approached him with an idea for betterment activities in their neighborhood.

“They wanted to talk through some various options,” he said. “That’s the benefit Restore SGF will be able to provide to our neighbors that we work with – for some of those unusual programs or initiatives a neighborhood wants to launch, we’re the willing partner.”

And at the March 25 meeting of City Council, Griesemer stepped up to the podium to offer another idea: a housing trust fund for the city.

A housing trust fund could pay for repair programs, rent and mortgage assistance, neighborhood stabilization, land banking, housing preservation, revolving loan funds, home modifications for accessibility, and the elimination of home health hazards, like lead-based paint and asbestos.

“As you begin to look for new ways to address the housing challenges of our city over the coming weeks and months, we need a bigger toolbox with more tools,” he told council.

Griesemer told SBJ that Restore SGF is just getting started.

“In 2024, you’re going to see a lot from the organization as we get more people recognizing what we’re doing and helping them to make their neighborhoods a better place,” he said.

The nonprofit community initiative Restore SGF has an 11-member board of directors, appointed in January 2023. Staff includes Griesemer and former banker Dana Elwell, who is helping the organization during the transition.

Initial funding came from the city of Springfield through an American Rescue Plan Act allocation of $1 million, and the city provided an allocation of $300,000 from its budget, according to a news release from the city. Additional investments are provided by banking industry partners and the Community Foundation of the Ozarks.