Habitat for Humanity of Clallam County told the housing committee it will not move forward with the Oxbow purchase after negotiations stalled when the seller raised price and timing demands.

“We made the decision to not continue negotiations with the seller of Oxbow. The purchase and sale agreement expired, and the sellers decided that they needed a significantly more amount of money for the sale of the project,” a Habitat representative (Sarah) said, reporting the board’s vote to return funding earmarked for the project.

Habitat staff also described complications with a separate self-help home program. The group said USDA headquarters released a procedural notice in May that changed guidance in the single-family handbook and led to stricter federal interpretations when units share walls or appear to have common elements. Federal reviewers asked for a master insurance policy and other HOA-style requirements; Habitat said that requirement is burdensome for low-income, fee-simple homes.

Staff said Clallam County granted a waiver for setback requirements so the self-help duplexes (four units across two buildings) could proceed; the project required new appraisals and the organization hopes to close and start construction by the end of the month. Habitat said it will engage federal legislators to seek relief from the federal requirement for HOAs or master insurance coverage on these small self-help developments.

Committee members noted the broader conversation about how federal procedural guidance can affect local, innovative housing models and asked staff to continue coordinating with state and federal partners to resolve the insurance and regulatory issues.