The Oklahoma State Capital

GUTHRIE, Okla. — A housing rehabilitation project on Guthrie's east side is moving forward, following earlier opposition from Logan County Commissioner Charlie Meadows. The initiative, funded through a combination of "sweat equity" credits and more than $600,000 in federal funds, aims to provide affordable housing to qualified buyers.

Construction workers could be spotted working on the Guthrie housing project on a gloomy Wednesday afternoon prior to the Thanksgiving holiday.

County property records show that the Oklahoma City Housing Services Redevelopment Corporation, a nonprofit organization, has acquired two properties in Guthrie's Capitol Hill townsite. Specifically, the nonprofit purchased lots in the 1300 block of East Cleveland Avenue. On Wednesday, the day before Thanksgiving, workers were seen constructing two similarly designed units, each featuring detached garages.

The homes are intended for sale to owner-buyers whose income does not exceed 80 percent of Logan County's median income. According to the U.S. Census Bureau, the county's median household income was $80,565 in 2022.

The project received endorsement from the Logan County Commissioners in March after the nonprofit's director, Sheryl Lovelady, approached the county for support. Lovelady informed the commissioners that she had been collaborating with District 3 Commissioner Monty Piercy and requested authorization to utilize "sweat equity" credits as a match for $616,000 in federal funds.

These sweat equity credits were earned by volunteers participating in Habitat for Humanity projects dating back to the 1990s in communities such as Coyle, Marshall, and Crescent. The credits are recognized by federal agencies and can be leveraged to obtain additional funding for housing projects.

During the meeting, the commissioners approved the project but did not inquire about the specific location of the intended development. There was also no discussion about the appropriateness of utilizing credits earned in smaller northern communities for a project in Guthrie, the county seat. Additionally, the commissioners did not publicly discuss criteria for awarding the matching credits to the Oklahoma City Housing Services Redevelopment Corporation over other similar nonprofit organizations, nor did they examine the nonprofit's capacity to undertake a project of this scale.

At some point, we have to start saying no to some of these federal dollars, whether they are good or bad. -- Logan County District 2 Commissioner Charlie Meadows.

A review of the organization's 2022 financial filings shows that the nonprofit participated in two projects during that year, reported net assets of $1.1 million, and had an annual revenue of $885,000.

Lovelady told the commissioners that in previous projects, rehabilitated properties had a positive impact on surrounding neighborhoods, often encouraging other property owners to make improvements. The commissioners did not request specific examples of past projects during the meeting.

Commissioner Meadows, representing District 2, expressed his opposition to the program. He questioned the constitutionality of federally funded housing initiatives and voiced concerns about the growing national debt.

"At some point, we have to start saying no to some of these federal dollars, whether they are good or bad," Mr. Meadows said during the meeting.

Lovelady indicated that without the commissioners' approval to use the sweat equity credits as a match, the project could not proceed.

District 1 Commissioner Mark Sharpton acknowledged Mr. Meadows's concerns but noted that the situation was not Lovelady's fault. He provided the necessary motion for the vote to proceed.

The motion passed with a 2-1 vote, with Sharpton and Piercy in favor and Meadows opposed. The vote was notable due to the great rarity with which Commissioners vote no on proposals supported by fellow Commissioners.

Despite the county's split decision, the Oklahoma Housing Finance Agency granted approval for the award in July, signing off on the $616,000 in federal funding.