Gastonia approves construction of additional single family affordable home

At a recent meeting, Gastonia City Council voted to approve an agreement with Branch Construction Group to rebuild a home at 608 N. York St. with the intention of selling the property as an affordable single family home.

The property has played a role in the city’s long-term redevelopment plans for the Highland Community for more than a decade.

Here is everything to know about the initiative.

History

In 1999, the city of Gastonia began the process of redeveloping the Highland Community to combat blight, according to a city document that was included on the most recent agenda.

Part of the redevelopment plan included purchasing properties in the area for revitalization.

The city purchased the home on York Street in 2010 after beginning negotiations with the homeowner in 2007 that were put on pause due to the economic downturn in 2008.

“Since its acquisition 608 N. York Street has suffered significant deterioration, necessitating rehabilitation,” the document said.

Current plans

Due to the state of the property, developers will not be able to up fit the structure as it stands, so the structure will be demolished and a new home will be constructed in its footprint.

According to Gastonia HUD Administrator Kenny Gherig and the city's Director of Housing and Community Engagement Danette Dye, the presenters for the project at the Feb. 20 meeting, the new home must follow the same footprint as the previous building.

Following those guidelines, the home will be a 961-square-foot dwelling with two bedrooms.

The project will be funded by $167,966 from Gastonia’s Community Development Block Grant.

Once the contractor receives a proceed order allowing them to start work from the city, they will aim to complete construction within nine months, according to the document.

Community questions

Gastonia resident Mike Tamburello spoke at the recent meeting and ask the council to consider other strategies to encourage affordable housing after two single family affordable homes in the Highland Community were recently listed for $260,000 each.

“I think the whole idea is to have affordable housing in this community. This would not be affordable housing,” Tamburello said. “The house would sell for, in excess of $250,000.”

“A $250,000 home is out of reach of most residents when the average income in Gastonia is in the $40,000 range,” he added.

Recent census data shows that Gastonia’s median income for a household is around $58,000.

Council questions

Following the public comments portion of the meeting, Councilman Jim Gallagher asked the presenters from the Housing and Urban Development department to answer some questions.

“It’s going to be 961 square feet, and the average cost is about $185 per square foot to do the construction, so the average sale price is going to be between $189,000 - $205,000, is that correct?” Gallagher asked.

Gherig confirmed that price range, and he and Dye added that the program will offer not only homeownership classes to potential buyers, but also several state level grants are available to home buyers who qualify for affordable housing assistance.

Councilman Dave Kirlin asked the presenters which specific subsidies could be available to potential buyers.

Dye said there are various community reinvestment act incentive programs available but that the NC Housing Finance Agency specifically offers subsidies up to $40,000 to help lower costs for potential buyers.

She added that while CDBG does not require a certain amount to be paid in a downpayment, loan underwriters may require a downpayment.

Closing the conversation Councilwoman Donyel Barber commented that started homes essentially do not exist today.

She added that in the '90s, a buyer could get a decent home for under $200,000, whereas today, that is no longer the reality of home buying.

“I think a lot of times people see $200,000 for the home not realizing that there are people in programs, in a pipeline so to speak, who are waiting. They’ve been through counseling, and they’ve been prepped and prepared to be able to purchase these homes,” Barber said. “They receive a substantial amount of money to subsidize which brings down the price, which makes it more like what we were accustomed to 20 years ago for the price of a starter home.”

This article originally appeared on The Gaston Gazette: Gastonia approves construction of additional single family affordable home