By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly Tuesday approved on first reading an ordinance to transfer two more city-owned parcels of land to the Sitka Community Land Trust, to build affordable housing.
The vote was 5-2 to pass the ordinance on for second reading on September 14.
In favor were Kevin Mosher, Thor Christianson, Rebecca Himschoot, Kevin Knox and Crystal Duncan. Valorie Nelson and Mayor Steven Eisenbeisz were against.
The ordinance calls for selling 1410 and 1414 Halibut Point Road – the former site of the city shops – to the land trust for $1 in order to build seven houses for sale.
Under the land trust plan, the land remains in the trust’s ownership, while the house on the lot is the property of the purchaser. The cost to build the one-, two-, and three-bedroom homes is reduced because the cost of the land is not included in the sale price.
Sitkans passed a ballot question in 2006 dedicating the land at 1306, 1410 and 1414 Halibut Point Road to affordable housing.
In 2015, the Assembly agreed to transfer the parcel at 1306 HPR to the trust for affordable housing, and committed to transferring the other parcels pending demonstration by the trust that it is able to use the parcels in line with the 2006 vote.
Randy Hughey, co-executive director of the trust, said today that one of the houses built on the 1306 parcel is already occupied by its owner and two others will be occupied by next month. He said seven houses are planned on the 1306 parcel, and eight more can be built at 1410 and 1414 HPR.
The city staff memo states the trust’s plan outlines space for parking, a covered workshop space, and other outdoor storage areas.
Hughey said today five applicants are on the waiting list to buy one of the houses.
“I’m sure we’ll have more when we have our open houses,” Hughey said of the Sept. 10-11 event when the three-bedroom homes will be shown to the public.
The selling price of the houses, without the cost of the land, was $260,000, but Hughey added that in the last year “pricing has gone crazy.”
Hughey added the mortgages in general will be less expensive than what the same home would go for as a rental.
“We wish they were less expensive, but it’s still a really good deal,” he said.
The Planning Commission voted at its July 7 meeting to support the transfer of the remaining city shops property to the Community Land Trust.
At the Assembly discussion of the land transfer, Hughey talked about the rising costs of housing and the provisions to ensure “permanent affordability” of the homes. The nonprofit organization expects to receive a $265,000 grant to help with utility installation, which will also help to keep prices down.
“I just urge you to give us this site, and we will give Sitka a neighborhood with 14 affordable homes, homes where the mortgage cost is significantly less than the rental value of these homes,” he said.
A member of the public suggested the land trust consider a different model for providing housing, and questioned whether the homes were actually affordable.
Nelson said, “I have questions that haven’t been answered,” including whether the homeowners pay any property tax on the structure.
(The answer is yes, the city finance office said today.)
Christianson said he was supporting the land transfer because of the prospect of getting additional houses on the market.
With the CLT restriction on the amount of profit an owner can make when they sell their house, “these should be a bit more affordable for quite awhile,” Christianson said.
Hughey said homeowners selling their homes receive 25 percent of the increase in the value, as well as the equity they built.
Knox said even though the homes are more expensive than anticipated they still cost less than those on the open market, and provide an opportunity “to get their foot into the market... It’s fabulous to see the property starting to get used. So I’m a yes vote on this.”
Crystal Duncan said she’s pleased to see the houses go up on the property.
Mosher commented that “it’s not a perfect fit for everybody but it does fit for some people.”
“I can tell you, say you are a small family or a single couple, to get a clean, non-moldy, (non)dilapidated house for that kind of price would be difficult,” he said, and added that the Assembly is following through with its previous commitment to transfer the land.
