New Philadelphia Housing Plan helps Dover family build home

James and Laura Rennicker of Dover are looking forward to moving into their new house in New Philadelphia that is being built with assistance from the New Philadelphia Housing Plan.

“It means a lot. Having something of your own is incredible,” James Rennicker said following a groundbreaking ceremony for the house at 229 St. Clair Ave. SW March 12.

“It's nice to know you're putting your money not toward a landlord.”

The housing plan, created by Matt and Audra Karam, is designed to develop affordable housing for residents of New Philadelphia and Tuscarawas County. The Karams are working with the U.S. Department of Agriculture to make funding possible.

The plan helps area residents fill out the paperwork to apply for loans using the USDA Section 502 Direct Loan Program. The program is designed to help a family of four making less than $69,000.

There is no down payment and no private mortgage insurance required. Families that qualify can also receive a monthly government subsidy to assist them in affording the house for as long as they live there or for 33 years, the length of the loan. The loans are fixed at 5%.

Matt Karam stressed that the houses are designed to be energy efficient, with radiant floor heating, extra-thick exterior walls, Low-E argon-filled energy-efficient windows and doors and a tankless water heater. “Our goal has been to create the most energy efficient home for everybody monthly. It's so important that after you get in a home, you can still afford it,” he said.

The program’s three-bedroom model on Ray Avenue NE has already demonstrated the impact of these upgrades. During one of the coldest months this past January, the home’s heating cost was only $95, with the thermostat set at 70 degrees. Electricity averaged about $45, even while the home was unoccupied.

His program is working with Built Brothers Construction of New Philadelphia, which also built the model home. Construction is expected to begin on the house this month and be completed within 120 days.

The one-story house will be 996 square feet.

Karam noted that his organization is currently working with 12 other families in the area that have already qualified for USDA loans. The housing plan is now searching for buildable lots.

Because the USDA only received funding for the program in the last couple of weeks, some of the families have been waiting for a new house since last September.

There used to be a house at the lot on St. Clair Avenue. The city condemned the structure and got a state grant to pay for demolition. The property owners then sold the lot to Karam for $20,000, and he in turn sold the lot to the Rennickers for the same amount.

Mayor Joel Day, who attended the groundbreaking ceremony, said the city is working with the Karams to create more affordable housing in New Philadelphia.

He said he was pleased that a vacant lot is being reused.

“What our code administrator, Josh Mathias, is doing is trying to create these lots and building spaces for new homes in New Philadelphia. So, we're repurposing lots that already exist for this specific purpose,” the mayor said.