A Consensual Termination of a 2017 Contract
The College Station City Council and Habitat For Humanity have come to a mutual agreement to end a contract formed in July 2017. The contract was to facilitate the construction of five homes for low-income families. However, rising construction costs and financial constraints have forced the parties to reconsider their plans.
Increasing Costs Halt the Development
Debbie Eller, Community Service Director of College Station City Council, informed the council about the mutual decision to terminate the contract. The average construction price for each house in the project more than doubled, surging from $187,000 to $448,000. This meant that the project was financially unattainable, given the original $794,000 grant given to Habitat For Humanity.
In light of the contract termination, Habitat will return to the city any funds they get from selling the land on Renee Lane, only three blocks north of the College Station High School, originally allocated for this project.
Reimbursement and Further Actions
The city will owe a reimbursement of $65,000 to the federal government due to the incomplete status of the project. Councilwoman Elizabeth Cunha, considering that this sum comes from the sale of the former project land, lamented, “You do know how many non-profits would have loved this money?”
As a solution to the escalating land prices in College Station, Councilman Dennis Maloney suggested that Habitat For Humanity and other low-income housing providers rethink their business models. He proposed shifting from constructing single-family homes on such expensive lands to building vertical housing structures.
No Comment From Habitat For Humanity
Despite the deliberations and crucial decisions made, no representatives from Habitat For Humanity were present during the City Council meeting to provide their take on the termination of the contract. A spokesman for the organization was subsequently invited to provide a statement about the contract termination, though no such statement has been issued as of yet.
The specifics of the contract termination and underlying considerations were presented to the public during the March 28, 2024, College Station City Council meeting. Further information about the case, along with relevant presentation materials, is available on request.
Final Thoughts
While the termination of this contract appears unfortunate at first glance, it could potentially open the door for more cost-effective, sustainable solutions to housing low-income families in College Station. The city and its many non-profit housing providers, including Habitat For Humanity, are sure to continue their tireless work towards this noble cause, hopefully leveraging the present circumstances to come up with innovative methods to combat the housing deficit.
