An affordable house constructed as part of a partnership between the City of Clinton and Sampson Community College has reportedly been sold, and city officials are waiting to close on the property.
“We are working to close on the house,” City manager Shawn Purvis said. “We had an offer for our asking price of $85,000. We have signed a contract (and) are waiting for the lender to complete their appraisal and finish their documents. We hope to close by the 17th (of June) if not earlier.”
It is the second housing partnership between the City of Clinton and SCC for its Clinton Affordable Homeownership Program. The program’s goal is to provide safe, quality and affordable homes for low to moderate-income families through a revolving program by which SCC students, under the supervision of Barney Grady, and professionals build a home that the city places and sells.
The Clinton City Council officially approved a contract for the 1,350-square-foot three bedroom, two bath house in August 2014. The home was placed at the corner of Ferrell and John streets, across from the Clinton-Sampson Rescue Squad, at the end of 2014. As soon as it did, several inquiries were received and have been fairly regular since.
“The house has been on the market for just over a year, which is still one-third the time the first house was on the market,” Purvis stated. “We had plenty of interest in the house and ultimately received two offers.”
Upon sale of the house, the city will be able to reimburse the General Fund completely and have funds available for future houses, fulfilling the goal of the revolving Clinton Affordable Homeownership Program — to provide affordable housing, recoup costs with the sale and begin the process again.
With the first project in 2010, the city purchased a house from the college for approximately $53,000 and completed the project with a budget of $66,000. The house was professionally appraised at $85,000 and placed at the city-owned property at 115 W. Lee St. by the end of 2010. It sat vacant for about three years until it was sold in May 2013 for $70,000.
The city ultimately broke even, investing about $65,000 and selling the Lee Street house for $65,000 after closing costs fronted by the city.
As one house is sold, a vacant lot can be purchased with the proceeds — or an existing city-owned lot used — in order to place another house from the community college. While that revolving process took a good amount of time for the inaugural outing, city officials expected the second house to be sold in shorter order.
“Although the first house took three years to sell, the affordable housing program ultimately provided an affordable home for a family,” Purvis said in 2014. “We fully expect this house to sell quicker than the last with the house being a little bigger and the market in better shape than three years ago.”
This week, the city manager said more knowledge about the process will mean a better handle as the city ventures toward the construction of a third house.
“We have learned some things regarding financing and payment assistance regarding the low-to-moderate income families that our program targets,” Purvis stated. “We will be evaluating our program and making some modifications as we consider building a third house.”
For more information, or to inquire about the house, call the City of Clinton at 910-592-1961 or download the application online at www.cityofclintonnc.com.
Reach Managing Editor Chris Berendt at 910-249-4616. Follow the paper on twitter @SampsonInd and like us on Facebook.