The city of Clinton has made it a continuing goal to remove blight and public nuisance and safety hazards through condemnation and demolition, and city officials said such a thorough job has been done it has left holes in the city landscape — voids they hope to fill via an affordable housing project.

City staff discussed the project, and a possible partnership with Sampson Community College during the City Council meeting this past week. Through the partnership, students at the community college would build a home that the city would then have to place and sell. The program is still in its early stages, but brings great potential, city officials said.

The initial cost, estimated at between $75,000 and $85,000, would be the greatest. That cost can be recouped upon the sale of the house and the one-by-one process could being again. City manager John Connet said it is hoped the houses would be sold for slightly more money than was invested so the program could prove self-sustaining.

“We’ve been tearing down a lot of houses that need to be torn down,” said mayor Lew Starling. “Now it’s time to start replacing them.”

The need

“As we’ve removed blight from the city, it’s left us with vacant lots,” said assistant city manager Shawn Purvis during a presentation to Council members. “The results of these actions have contributed to safer and more attractive neighborhoods but have also produced vacant lots and diminished the city’s affordable housing stock.”

Providing such housing is challenging, especially during an economic recession that has seen new development at a standstill, but remains nonetheless vital, Purvis stated.

A standard definition for affordable housing takes into account the accepted ratio of housing costs and available resources. Affordable housing means “a household should pay no more than 30 percent of its income on housing costs, including utilities,” Purvis said.

The median family income is often used as the measuring stick for a community to determine a particular community’s “affordability.” In 2008, the median family income in Sampson County was $40,566. Affordable housing, based on the definition, would have the average family in Sampson paying annual costs of $12,170, or just over $1,000 a month.

However, not all families earn the average income. In determining income levels, the Department of Housing and Urban Development (HUD) classified individuals into low, moderate, middle or upper income levels, with families in the low to moderate categories having the greatest need for affordable housing.

Low income is less than 50 percent of the median family income, and moderate is greater than 50 percent but less than 80 percent. That means that low family income level for a Sampson resident would be less than $20,283, while moderate would be somewhere in the range between that figure and $32,453.

Purvis said affordable housing for low to moderate income families would mean monthly housing and utility costs of $507 to $811, respectively. On the low end, that is equivalent to a 30-year mortgage for $65,000 with a 6 percent interest rate and a $110,000 mortgage at the high end.

Purvis said an affordable housing project fits into the city’s mission to provide a high quality of life, clean, safe neighborhoods and lay a solid groundwork for future generations.

“This will put people in there that will take pride in their neighborhoods,” said Purvis.

Plan of action

How does the city get there? One of two ways, the assistant manager said.

The city, Purvis offered, can either partner with SCC, whose Building Construction Technology Program is up and running, with one house near completion. Or the city can establish a nonprofit community housing development organization (CHDO), which would be able to apply for housing grants for which the city is not eligible.

City officials have studied several other affordable housing ventures in North Carolina municipalities, including Farmville, Greenville and Jacksonville, which all receive HUD entitlement money or are part of housing consortiums that get that assistance. Clinton does not have the benefit of being in a consortium, nor is it large enough to receive entitlement money, Purvis said.

A partnership with SCC, or establishing a nonprofit, which could also utilize the community college partnership, are two options. Each has benefits and drawbacks, Purvis noted.

The college’s established program allows for a 1,200-square-foot house to be built at a modest price. It would be up to the city to move the house, place and sell it, which would present the biggest challenge to the city — and poses the biggest risk, Purvis noted.

The time it will take to sell the house to a qualified buyer is an undetermined variable,” he stated.

Banks have expressed interest in being involved, and have suggested the city find a way to counsel potential buyers and provide a list of optional housing programs, the assistant manager stated. To begin the program, it would cost $85,000, which the city can hope to recoup upon the sale of the house.

If the program is successful, the college will produce one house a year and the city could consider bidding out for other houses if the demand is there.

“The community college is really excited about this,” said Councilman Steve Stefanovich, who attested to sharing that excitement.

He was not the only one.

“I have seen one of their houses and I am extremely impressed,” said Councilwoman Maxine Harris. “Being in District 5, this is something we truly need. People tend to take a different sense of ownership with property when they own it, rather than when they rent.”

The other option, a CHDO, in addition to being eligible for grants, could potentially act as a self-supporting autonomous agency — but it would take at least six months to establish and require the city to provide personnel, Purvis said. That would essentially mean the addition of one position solely for housing development.

According to numbers provided by Purvis, fees and costs associated with establishing the agency, to include the position, would be $55,000. That cost could be absorbed if the agency proves successful and self-supporting, but there is no timeline for when that may happen, he noted.

“A CHDO could be able to continue a partnership with the community college and be able to acquire and sell property with greater ease than the city,” Purvis stated. “Probably our best bet is to work with an established nonprofit, and that doesn’t mean the city can’t work with the community college. We’ve already been in talks with the community college. We’ve gotten a lot of favorable feedback on the project.”

SCC president Dr. Bill Aiken accompanied city staff to Jacksonville to look at affordable housing constructed there. SCC is nearing completion on a three-bedroom, two-bath home, with plans the city might sell it.

Aiken said it is a win-win situation for the community college and the city.

“We do think it’s a great opportunity to accomplish our purpose of training our students and, in the process, provide affordable housing for the citizens of Clinton,” Aiken said. “The college really appreciates the opportunity to give back to the community, and we think this is a great way to do it.”

Connet agreed, saying it is the hope the program would be a continuous cycle.

“The cost of the house would be a little more than we paid for, just to keep the program going,” he said.

Connet pointed to a Community Development Block Grant recently received by the city, through which two residents displaced by the Russell Street sewer project would have two new homes built for them on Williams Street in District 5.

“Maybe this time next year,” said Connet, “we will have three new homes in that area. We’ll be in a position to move forward at the end of the year.”

Connet said he was currently working on an agreement and the matter would be discussed further at the City Council’s next meeting.

Chris Berendt can be reached at 910-592-8137, ext. 121, or by email at sicrime@myclintonnc.com.