FERNANDINA BEACH, FL - Like much of the country, Nassau County has seen a steep rise in home values in the past few years. This was good news for builders, mortgage brokers, realtors and sellers - but locked out many of moderate means seeking to purchase a single-family home. Though the lucrative climate has changed somewhat due to the mortgage crisis and falling home values, finding affordable housing continues to be a challenge. And over the years, the thorny issue has been addressed sporadically at best by city and county officials.
A few local citizens are nevertheless dedicated to helping the less-than-wealthy pursue the American dream. And according to some reports, single-family housing is already becoming a little more affordable in Nassau County for people of moderate income. Gerry Clare, president of BRASH (Building and Renovation of Affordable and Substandard Housing), announced at a Feb. 19 city commission meeting an affordably priced house was recently built within city limits.
Clare has been working with the city on the problem since 2002, presenting an affordable housing proposal to commissioners in 2004 requesting waivers of city fees for 10 locations designated for affordable housing. While she noted that one house at a time is not what she envisioned, she was pleased about the two houses that have been built on Vernon Street since 2005.
The closing for the last-built house on Vernon Street was last fall, says Clare. The builder was Donna Lynne VanPuymbrouck of Donna Lynne Custom Homes, who got involved in the project as a goodwill gesture and received no profits. The down payment was provided by the State Housing Initiative Program. Clare says that buyers who qualify for the affordable home program must have an "under-median" income and must also sign a statement that they will live in the house. If the buyer is forced to eventually sell, they must agree that profits cannot exceed 4 percent.
The city of Fernandina Beach also participates in the program by waiving city fees such as permits and impact fees. The city puts a lien on the house for the amount of the waiver, which must be paid back to the city if the house converts to "non-affordable" status. Because of the recent, extremely profitable real estate climate, builders have been slow to donate time and money to build affordable housing, says Clare. But lately, she said, developers have been calling her to find out more about building affordable housing. "Builders are realizing it's a very big need," she said.
Mike Hutchinson, project manager for Amelia Development Co. of Fernandina Beach, says he has been talking with city staff and with Clare about the development of affordable housing over the past year. His company has identified 13 lots in the city of Fernandina Beach that "appear to be feasible for building," he said. At 25 by 100 square feet, the already-platted lots would have three-bedroom houses measuring about 1,100 square feet. The final cost to homebuyers, he said, would be from about $160,000-$170,000.
Hutchinson said the company is in the phase of finding out what kind of assistance the city can give it to make the houses affordable, and is waiting to hear back from a commission workshop. Hutchinson has also met with Community Development Director Marshall McCrary, who has already offered topographical information on the lots; and Clare has offered to assist with speaking to city commissioners about the project. While Hutchinson is looking forward to building affordable housing, the project is not completely out of charity. There are still profits to be made, he said, although the company will make less than half of what it would normally take in.
The local real estate market has also started to open up for buyers looking for new homes under $200,000, according to local real estate agent Karen Werling. Werling said t
Source: News-Leader