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Council approves $3.6M city support for Habitat's 40-unit Pelican Place townhome project
Summary
Council approved CRA funding and city support for Habitat for Humanity's Pelican Place: a 40-unit affordable for-sale townhome development targeting households at or below 80% AMI with 0% Habitat mortgages, homebuyer classes and resale restrictions.
City and Habitat for Humanity staff presented details of the Pelican Place affordable homeownership development and the City Council approved a funding package on June 5.
Mark Van Loo (City staff) described the 40-unit project planned near Tangerine Plaza (18th Avenue South / 22nd Street South): total project cost about $15.6 million, an average per-unit cost near $390,000 and city support (including donated land) totaling about $3.6 million (roughly $90,000 subsidy per unit). Habitat expects to sell units at approximately $300,000 each to buyers at or below 80% of area median income (AMI).
Council members asked how Habitat structures financing and affordability. Mike Sutton, CEO of Habitat, explained that Habitat holds the mortgages as 0% interest loans; typical monthly payments were estimated at about $850 principal-only on a $300,000 purchase, with HOA fees around $150 and total monthly housing cost including taxes/insurance likely near $1,200, kept below 30% of buyer income on the front-end. Habitat said it retains a right of first refusal on resales, builds equity-share provisions into mortgage documents, and will retain an HOA board seat for five years to help homeowners establish sustainable governance and reserve planning.
Council moved and approved the CRA funding recommendation after questions about affordability, HOA structure, outreach to CRA residents and long-term maintenance funding.
Action taken: motion to approve the city funding package for Pelican Place passed by roll call vote.
