Committee seeks three Habitat builds

When Gene Fennell discussed being on the new steering committee for Habitat for Humanity in Custer with local realtor  Andrea Ronning, she knew she wanted to help.
However, she also wanted to make sure something got done.
“I didn’t want to (just) be on another housing board. We’ve all sat on these boards, we’ve all had these conversations in town,” she said. “There’s not one thing that has been built. That’s why I’m so grateful for this steering committee. We all jumped in, working our tails off to get something done.”
Get something done they have, as with the help of Black Hills Habitat for Humanity and Aspen Federal Credit Union, construction on three new homes (pending approval of replatting from the City of Custer) in the Homestead Addition could begin in the not-too-distant future.
All of the lots are over 9,000 square-feet, with one over 13,000 square-feet. The thought is to build three bedroom homes on the lots, but as the process unfolds under Habitat for Humanity, it is likely that the partner family’s needs will decide what is built.
Fennell has been a longtime volunteer with Habitat for Humanity in Rapid City, and after years of trying to help spur some type of workforce housing in Custer through a variety of ways, Fennell said he felt going back to the Habitat for Humanity model (it’s been nearly 20 years since a Habitat home was built in Custer) could be the best solution. To that end, he reached out to the other members of the steering committee—Ronning, Todd Williams and Julie Oswald—to see if they would like to join him in reigniting Habitat for Humanity in Custer. They were all eager to join in, and all four have donated to the cause.
The origins of the committee actually date back to March 2025, as at Fennell’s invitation the group attended the April 8 Builders Breakfast in Rapid City. It was at that event Ronning and Oswald suggested a Custer group to see what was possible here.
The first meeting of the invited group (the original group was 10 people, and has grown to 16) was just over a year ago inclusive of several like-minded local people and Black Hills Habitat for Humanity Leadership. Over time, the larger group morphed (as is typical) into a three-person “working group” of Ronning, Oswald and Fennell. They hosted an informational gathering at the Beacon with Black Hills Habitat for Humanity personnel which initiated fund-raising and partner family applicants’ interest. From there enough commitments  were received to purchase the Homestead lot.
More recently, Williams was added and the steering committee formed.
Word of the upcoming builds is starting to spread, as there are already seven applicants for the homes, and more are encouraged. 
There are requirements to be eligible for the Habitat project, which includes committing to 200 hours of sweat equity, 50 of which can be shared with friends and family. Part of it is education as to how to be a homeowner. To qualify, the prospective homeowner must make at least 30 percent of Custer’s median annual income—which is $102,000—and a maximum of 80 percent of that amount.
The person who qualifies for the home can take out a loan through  Aspen Federal Credit Union—which has already agreed to help with the project—for whatever payment they can afford. After that, Habitat for Humanity carries a second non-performing, no- interest loan to help cover the balance of the appraised value of the property.
Ronning brokered the deal with Aspen, and said she reached out to credit union president Pam Brown-Graff to explain the vision for the project, and Aspen didn’t blink before jumping on board, including donating $10,000 to the project and having its board approve $2 million in loans and a solid rate.
“That is huge,” Ronning said.
If the homeowner advances in their job and makes more money, their payment does not change, allowing them to establish some equity. Should they decide to sell the home for whatever reason, they pay off both mortgages. When they sell, Habitat has the first right of refusal to purchase the home at fair market value. If it’s sold within seven years, it must be sold to someone earning 120 percent or less of the area median income.
If there is enough money left over from a sale, the homeowner keeps the remaining money.
“That’s how they get ahead. The equity becomes theirs which is beautiful,” Ronning said.
Those who are interested in applying for one of the three homes to be built in Custer can fill out an application online at blackhillshabitat.org/wp-content/uploads/2025/02/2024-07-16-Homeownership-Application-Packet-for-Website51.pdf, talk to a member of the steering committee, or stop in Aspen Federal Credit Union.
Fennell said Habitat for Humanity can build a home that will appraise at $275,000 for around $220,000 thanks to volunteer labor, discounts and in-kind donations. All of that is needed.
The steering committee is not only looking for cash donations, but also professionals—think masons, engineers, carpenters, etc.—who can donate their time and even potentially materials to the project.  For instance, this project will require 200 feet of sewer and two manholes be installed, and if a contractor can help with that, it would be a boon to the project.
The local Custer Rotary club has already pledged to pitch in, as it will be joined by Rotarians from around the Rotary District 5610 in October for a volunteer cleanup day on the lots. The steering committee is already looking for other lots for future homes.
“It’s exciting because I can smell the wood, the sawdust already,” Fennell said.
Fennell added Mayor Bob Brown and the Custer City Council have been supportive of the project, and it is hoped these homes can be used by teachers, city employees, county employees, etc., as a way to get into a home in a Custer housing market that is shallow and expensive.
“I can’t tell you how many people don’t accept jobs because they can’t find housing here,” Ronning said. “This is exactly what Custer needs. There is obviously a need here if we’ve barely spoken about it and there are seven applicants.”