GLADSTONE - Gladstone Community Development has been granted additional funding to rehabilitate defective Habitat for Humanity homes in Gladstone and Escanaba. The funds were awarded by the Michigan State Housing Authority (MSHDA).

Two years ago it was discovered homes built through the Habitat for Humanity program had structural issues, defects, and shoddy construction. Gladstone Community Development took over the rehabilitation of these homes.

Last month, a dozen homes were completely rehabilitated, and six more were in the process of being completed. The rehabilitation of the rest of the homes depended on whether community development could get additional funding, since its contract with MSHDA had ended and the funding had ran out.

Gladstone Community Development Director Howard Haulotte applied for additional funding, as work on the homes continued. At last week's Gladstone City Commission meeting, he announced MSHDA had granted an additional $240,588 for the project.

"We were very excited when we heard we were going to get the funding," said Haulotte. "It's certainly going to help us accomplish our goal."

Without the funding, 11 Habitat homes would have been left in their original state, but now, with the additional $240,588, all homes with original Habitat owners and possibly some that aren't original homeowners will be worked on. However, to do the maximum amount of work on these homes, more funding is still needed. Haulotte said he is researching a second funding source - the Federal Home Loan Bank, which has set aside $7 million for home rehabilitation.

Haulotte said he has spoken with a bank representative about possibly applying for additional funding from the Federal Home Loan Bank. He said he hopes to find out about the application process sometime in November.

In the meantime, work on the remaining homes will continue. Two more homes have been completely rehabilitated since September.

"Rehabilitation has been continuous," said Haulotte. "We are going to start working on the rest of them, and then we'll be in position to accept that money."