It took longer than expected, but an unsubsidized new home at 138 Townsend Street has sold. The single-story residence across from St. Stanislaus Church was purchased for $110,000. For developer Mike McHugh, selling the first of what he hopes to be many more has been a learning experience.
McHugh is owner of McHugh Contracting and has built a niche in church restoration, painting and repair. After spending four years working on the restoration and stabilization of St. Stanislaus Roman Catholic Church, McHugh was encouraged by then pastor Bishop Grosz to focus on rebuilding the surrounding community. Their plan was to build affordable single-family homes in the church's Broadway-Fillmore neighborhood where vacant lots outnumber occupied homes on many streets.
"We are trying to do positive things in the neighborhood," says McHugh.
Working with Councilman David Franczyk and Mayor Brown, McHugh purchased 26 vacant city-owned parcels on Coit, Detroit, Townsend, Peckham and William streets in 2007- enough land to build 14 new homes. Four different styles of homes with two to four bedrooms were offered, priced from the $80,000's. McHugh says there is land available to build hundreds of homes in the area.
The credit crunch put a damper on those plans however. McHugh built one home and patiently waited for a buyer.
"I had the home sold nine times, but banks wouldn't touch it," explained McHugh. "People were interested; they just couldn't get a mortgage. It took seven months to close the sale with the buyer and we had to use a California lender. Appraisals were an issue. Every home in the neighborhood is 100 years old."
The buyers relocated from the Cold Springs neighborhood. The three-bedroom ranch has 1,100 sq.ft. of living space and an attached two-car garage. "The husband grew up in the neighborhood and they were attracted to living in a new home on one level due to health issues," says McHugh. "They are thrilled to be living in the house."
"I lost money on the home, but I knew the first would be the hardest to sell," says McHugh.
McHugh plans to ask City officials about subsidizing future new homes.
"Now that I have one sold, that's a start," adds McHugh. "I am going to watch the economy to see how it goes before starting more. I'm not going to give up."
Get connected: Mike McHugh, 716.741.8077




Mr. McHugh, work with the church closer. They have resources to pour millions into the church facade, roof, interior, lighting, etc... They have an annual Dyngus Day party making tons of money and bringing thousands into the neighborhood. Since this project is using St. Stan's name, shouldn't they helping subsidize the project and recruit buyers? If there is no neighborhood what is their future.