Twin Oaks Subdivision

Fact Sheet and Frequently Asked Questions

click to see a larger image

• 142 dwelling units:
  • 71 market units, sold to private/individual developers and builders
    • 49 condos (max.) between two parcels to be developed by another private developer
    • 22 single-family detached lots sold and built at market rate
  • 71 affordable houses, built by three non-profits and sold to eligible homeowners
    • 21 sold to homeowners having income cap of $59,000 (family of four)
    • 50 sold to homeowners having income cap of $44,500 (family of four)
• No rental, all home-ownership
• Architecture will be traditional in design, with small lots and required front porches.
• Twin Oaks neighborhood preserves 10 acres of wetlands, around which the City Parks plan to install a bike path in coming years. The neighborhood also preserves an old stand of oak trees near its center, which will have a public path meandering through it. A bike path will connect Twin Oaks with William McFarland Park to the east.
• Construction Timeline for 50 Habitat for Humanity homes – Fall 2003 through 2007

Is Twin Oaks consistent with the City’s long-range plan for this area?
Yes. Although the land for Twin Oaks – and the adjacent land for Midland’s Liberty Place - is now countryside (fields), the plan for residential neighborhoods in this area has been well established for years. The City’s approved long-term neighborhood plan has stipulated a mix of single-family with some multi-family owner-occupied (condo) for this area. In this way, the plans for Twin Oaks mirror the city’s long-term use envisioned for this property. As such, we believe that it is not a development on the outskirts of Madison, but rather is a legitimate, higher-density, in-fill project between two thriving municipalities.

What will the Habitat homes be worth?
The developer (Habitat for Humanity) will only be building 50 of the 142 dwelling units. The homes Habitat builds will likely be 3-5 bedroom homes. It is anticipated that the homes will appraise for $140,000-$165,000 upon sale.

Does Habitat for Humanity give these homes away?
No. Selected families purchase homes for a sales price that is exactly equal to the home’s full appraised value (determined by an independent appraiser). Affordability comes to the homeowner via Habitat’s very favorable financing terms that take high profit mark-ups and expensive interest out of the home-buying equation.

How are the families selected?
The 50 families selected to build and purchase the 50 Habitat homes complete a rigorous, competitive family selection process that takes more than 6-months to complete. Applicants undergo credit checks, criminal background checks and extensive reference checks before being granted an interview. Any problems (poor credit, arrest record or negative references) disqualify an applicant family immediately. For each family selected, HFH denies approximately 10 other families. Each family invests 350 “sweat equity” hours into building their home prior to moving in.

Who will take care of common areas?
A homeowners association will be created, with modest fees due annually that will provide funds to accomplish the modest shared maintenance of common areas such as the oak woods near the northern end of the neighborhood and the entry-way off of Sigglekow Rd.

Do Habitat home-owners pay property taxes?
Yes … on the full assessed value, just like all of their neighbors.

Do Habitat homes have a home warranty?
Yes. Like most other builders in the market, Habitat offers a one-year warranty on all of the homes it sells.

Do Habitat homes appreciate in value?
Yes. Certainly in Dane County, Habitat homes have appreciated in value at rates consistent with similar homes in the neighborhoods where they exist.

Can families re-sell their homes at profit?
Yes, although it will only be equal to the equity they have built up over time, plus a portion of appreciated value. The important point is that there is no cap on re-sale pricing on the market. If a non-income qualifying family moves in, the favorable silent second mortgages must be re-paid in full to Habitat and to the City of Madison upon sale.

What are default rates on Habitat homes?
Comparable to (or better than) mortgage default rates in the private banking industry. Because of careful screening and selection of families, this number is always quite low. Of the 68 homes HFHDC has built and financed over its 15-year history, only two have defaulted.

Are local tax dollars being used to fund this?
No. The developer (Habitat for Humanity) is paying for all of the street and utility design and construction costs, just like other privately developed subdivisions such as Liberty Place to the west and Lost Creek to the north. Likewise, Habitat for Humanity will pay park fees – like every other developer - that will help maintain other nearby City of Madison and Village of McFarland parks.

What federal funding is being used?
$700,000 in federal HUD funding has been secured to assist Habitat in paying for infrastructure that will allow 25 of the purchasers in buying their home more affordably. Secondly, a temporary bridge loan of $350,000 assisted Habitat in purchasing the land in 2002. This loan will be re-paid in full within a year as other financing is secured and as lots are sold.

What schools will these kids go to?
The children moving into the whole area (Liberty Place, Lost Creek, Twin Oaks) will attend Glendale Elementary, Sennett Middle and LaFollette High School.

What will the impact of 10 Habitat homes per year be on the schools?
Historically, for every 10 Habitat for Humanity of Dane County homes built, there are 10 new elementary students, 3 new middle school students and 2 new high school students attending area schools. Because we plan to build approximately 10 homes per year at Twin Oaks, this will be the anticipated annual impact on area schools.

Where is the nearest grocery store?
The nearest grocery store is a Pick n’ Save less than one mile away from the Twin Oaks neighborhood on Hwy. 51 in the Village of McFarland.

What other amenities are nearby?
The Twin Oaks neighborhood borders the Village of McFarland and its many commercial stores like hardware stores, greenhouses, gas stations. Also, the strong identity of the Village is reinforced by six churches, the McFarland Library, post office, restaurants, parks and ball diamonds – all within 2 miles of the Twin Oaks site.