Families with a gross household income of at least $41,049 but no more than $131,940 could soon find themselves living in the same community as million-dollar condo owners at the Hideaway Bungalows in Goleta.
Officials hesitate to call the affordable housing program a lottery, but whether applicants will reside in one of 10 income-restricted condominium units at 7900 Hollister Ave. is entirely up to chance, as well as whether they actually qualify for the coveted spots.
The City of Goleta has partnered with the Housing Authority of the County of Santa Barbara to conduct a lottery for the units if the number of applicants exceeds the number of units — a certainty if hundreds of early inquiries are any indication.
Agencies began advertising the program this month, allowing six weeks for questions before an application deadline of 4:30 p.m. July 16 and a public lottery drawing July 25.
The Hideaway Bungalows, which was approved in 2009, has 101 units, including duplex, triplex and single-family homes near Sandpiper Golf Club and Bacara Resort & Spa in western Goleta. Prices range from $637,000 for two-bedroom, two-bath units in triplexes up to $1,018,000 for a four-bedroom, detached single-family home.
With the program, affordable housing includes five studio units for moderate-income households with an estimated maximum sales price of $252,939 (aimed at households earning 80 percent to 120 percent of median income).
Three one-bedroom units for above-moderate income households have an estimated maximum sales price of $458,780 (households earning 121 percent to 200 percent of the median income), and two two-bedroom units for above-moderate income households have an estimated maximum sales price of $517, 575.
Final sales prices will be based on the actual purchaser’s gross household income and size, as well as interest rates at time of sale.
Victor Honma at the Housing Authority has received several applications thus far, along with inquiries to clarify what constitutes household income.
Honma wouldn’t divulge a specific number, since potential applicants could try calculating their odds.
He emphasized that maximum sales price is for those in the maximum income range.
So someone with an income of $58,640 could buy a studio/one bath for $200,331, but someone else with an income closer to $41,000 would pay less.
“If you fall in the lower part of the range, then the price goes down,” Honma said. “Monthly mortgage can only be percentage of monthly income.”
Out-of-area and local folks have inquired about the units, although a main requirement is that applicants live and work in the area and cannot rent out the homes after purchase.
Spreading the word about the program is key, since it’s been in the works since December 2011 and construction on some of the affordable units only began two weeks ago, said Jaime Valdez, Goleta’s economic development coordinator.
Two two-bedroom units are expected to be ready in December, with all others completed six months later, Valdez said.
Because of the construction schedule, potential buyers can’t look at actual units before applying, and the 20 people picked through a randomized computer lottery must still go through an extensive income certification process.
And by the time someone is deemed qualified, the unit they want could already be taken.
“They have to make a decision on whether or not that’s something they want to do,” Valdez said. “It’s tough because they are being built going forward.”
Valdez encouraged interested parties to review credit history, check with banks or lenders, and to continue saving.
Honma called the lottery more of a priority list of those who might qualify.
“Some who apply simply will not qualify,” he said. “I know it’s a complicated thing. I can tell that people are looking at the website and reading very carefully. We don’t do a lot of these programs, and each program is different. It’s a serious thing for a lot of people.”
Information and lottery applications are available at the Housing Authority of the County of Santa Barbara Office at 5575 Armitos Ave. in Goleta, or click here to download the information.
Honma said he is happy to answer any questions, and can be contacted at 805.967.3402 or at [email protected].