Three homes at Bainbridge Island’s new affordable community Ferncliff Village are just about finished and ready for a tour this weekend. The developer of the project, Housing Resources Board, is calling the event a celebration. The public event begins at 10 a.m. on Saturday, February 11. Tours run from 11 a.m. to 2 p.m. On Sunday, tours start at 1 p.m. and run until 4 p.m.
The Willow
The three homes on the tour include one of each of the three models available. The Cedar has 3 bedrooms and 1.75 baths. It includes 1,138 square feet and sells for $220,000. The 1,120-square-foot Dogwood has 2 bedrooms and 1.75 baths. It sells for $210,000. The one-story Willow lists at $195,000. With 2 bedrooms and 1 bath, it covers 860 square feet.
HRB only builds a house once it has been purchased. The three houses on the tour (and a fourth still being finished) are the first wave of homes in the village. HRB is currently taking applications from interested homebuyers for the remaining 20 houses scheduled to be built in the first phase and wants people to come and see how much house they can get for the price.
Kitchen/Living
The homes average $60,000 under appraised value. This means that someone who earns as little as $30,000 a year could qualify for Ferncliff housing and end up with a new home on Bainbridge Island. One way Ferncliff Village is able to cut down on house prices is by being a Community Land Trust project, which means that families enter into a 99-year renewable lease instead of buying the land. Income-qualified families might also benefit from additional subsidies.
HRB Executive Director Mark Blatter had his staff put together two sample purchase scenarios to give people an idea of how affordable the homes are.
The Cedar
Imagine a family that earns $60,500 a year, or about $5,000 a month. They want to buy the Cedar, the 3-bedroom model. They make a down payment of $5,000, leaving $215,000 to be financed. With a 30-year fixed mortgage at 4.5%, this will result in a monthly P&I of $1,090. Taxes might come to $218 a month (assumed at 1% of purchase price), insurance might cost $32 per month, the ground lease will run $50 per month, the homeowner’s association dues come to $23, and a repair reserves fund will take $41 per month, bringing the monthly payments to $1,454.75, which is 39% of income.
Bedroom
Scenario 2
A second family earns $44,000, or $3,667 per month. This family, which also wants the Cedar, qualifies for a $25,000 subsidy. The family puts down a $10,000 payment, leaving $185,000 to be financed. With the same 30-year fixed mortgage rate, this family will end up paying less in taxes, $187 per month, since their purchase price was lower on account of the subsidy. This family will pay the same ground lease fee, HOA dues, and repair reserves fees, but let’s imagine they play slightly higher insurance at $35 per month. Their total monthly housing costs will amount to $1,274, which is 35% of income, the maximum allowed by HRB.
The Dogwood
HRB helps potential buyers reach a ready-to-buy state. Three lenders are working with HRB to pre-approve people to ensure eligibility.
Does the price still seem out of reach? There’s another option for you: In a second phase of development, 24 rental units will be added to the development.
For more information, visit www.housingresourcesboard.org and www.ferncliffvillage.org.
Photos by Sarah Lane.
