New Homes for First-Time Buyers Open in Birmingham, Alabama

New Homes for First-Time Buyers Open in Birmingham, Alabama

Habitat for Humanity of Greater Birmingham partnered with the city of Birmingham to build 11 single-family homes in the Wahouma neighborhood. Restricted to households earning up to 80 percent of the area median income, the houses will provide first-time homeownership opportunities to low- and moderate-income families and further the city's goal of revitalizing the neighborhood. Photo credit: Greater Birmingham Habitat for Humanity

In 2019, Habitat for Humanity of Greater Birmingham began building new homes in the Wahouma neighborhood of Birmingham, Alabama. These houses provide first-time homeownership opportunities for low- and moderate-income households. As of early 2024, 9 of the 11 new homes were occupied, with the final 2 houses scheduled for completion in late 2024. At the November 2023 dedication ceremony, representatives from the city and Habitat recognized former First Lady Rosalynn Carter, a dedicated volunteer for Habitat for Humanity, who had passed away the previous day.

Planning for New Housing

The city of Birmingham approached Habitat for Humanity about the possibility of building new housing in Wahouma, a neighborhood nestled between two major highways 5 miles north of the city center, to create affordable homeownership opportunities and help rehabilitate the area. Wahouma residents are predominantly Black renters. The median annual household income is approximately $30,000, and more than one-third of residents earn incomes below the federal poverty level. More than 90 percent of the neighborhood's occupied housing units are at least 40 years old, and nearly one-third were built before 1940. Neighborhood amenities include Wahouma Park, at the neighborhood's southern edge, which offers 16 acres of public recreational space.

Habitat purchased the 11 parcels from the Birmingham Land Bank Authority, a city-supported entity that acquires tax-delinquent properties. Photo credit: Greater Birmingham Habitat for Humanity

Several Wahouma properties were owned by the Birmingham Land Bank Authority, a city-supported entity authorized to acquire tax-delinquent properties for blight removal, commercial redevelopment, affordable housing, and other community purposes. In 2020 and 2021, Habitat purchased 11 properties from the land bank for $5,000 to $7,000 each. Drew Bonner, vice president of operations at Habitat for Humanity of Greater Birmingham, explained that, at the city's request, the organization prioritized acquiring lots adjacent to Wahouma Park and then pursued other properties in the neighborhood. "We tried to acquire them in as close proximity [as possible] so that we could make an impact and get a little bit of momentum [by] having a good amount of new construction close together," Bonner said. He explained that Habitat wanted to redevelop lots with dilapidated structures so they could remove some of the many vacant blighted buildings from the neighborhood. Four of the properties had no existing buildings, and the other seven had vacant structures.

Building Homes

The city provided a $1.1 million grant from the HOME Investment Partnerships Program to the Central Alabama Housing Alliance, Habitat's partner Community Housing Development Organization, which covered approximately half of the development costs. Volunteers helped construct some of the homes; however, because much of this work was done during the height of the COVID-19 pandemic, Habitat relied primarily on subcontracted labor for construction. Supply chain issues associated with the pandemic further delayed construction.

Residents moved into the first home in late 2021, and four more were occupied the following year. An additional four houses were occupied in time for the 2023 Thanksgiving holiday.

The Houses

All the Habitat-constructed homes are reserved for households earning no more than 80 percent of the area median income. Each home costs less than $160,000. The city provides down payment assistance in the form of a second mortgage. As with all HOME-supported purchases in Birmingham, the new homeowners must reside in their houses throughout the affordability period. During this period, which lasts from 5 to 15 years depending on the amount of city support, homeowners can resell only to other income-eligible buyers.

The three-bedroom, two-bathroom houses are comparable in size to other homes in the neighborhood. Photo credit: Greater Birmingham Habitat for Humanity

Each house has three bedrooms and two bathrooms. The homes range from 1,050 to 1,250 square feet, comparable in size to many other homes in the area, and most of the homeowners are families with young children. The houses feature front yards and front porches. Spacious lawns and quiet streets provide a safe place for children and families to gather and play.

Future Plans

After Habitat completes the initial 11 homes this year, the organization will construct 2 additional homes in the Wahouma Park neighborhood with its own funding. Habitat is continuing to build other affordable single-family homes throughout the region. The organization completed a total of 28 homes in 2023, and, according to Bonner, plans to build an additional 40 homes by the end of 2024.