Glendon Hotel townhouses will cost $370K each to build, be sold for about $126K
The five townhomes to be built on the site of the former Glendon Hotel will cost about $1.85 million total, or $370,000 each.
They will still be a big bargain for five households, with a sales price of about a third of the cost, according to a plan presented Thursday by Community Action Lehigh Valley. CALV is a not-for-profit group based in Bethlehem that is in charge of the development on Main Street in Glendon borough.
With the big subsidy, about a quarter-million dollars per unit, there will be some restrictions on owners.
The houses will be set aside for people making 80% of less of the area's median income, Mike Handzo of CALV told Northampton County Council's economic development committee. The full council later voted to seek a grant for part of the cost.
The estimated sales price of about $126,000 is "very preliminary," Handzo said, and will be adjusted when construction is complete. The five three-bedroom, two-and-a-half bath homes will be ready for occupancy with 18 to 24 months, he estimated. Each will have about 1,900 square feet of space and a one-car garage.
To qualify, a single person would have to make about $50,000 or less, while a family of four could have an income somewhere in the $70,000 range, Handzo said.
Owners will be required to occupy the homes, not rent the buildings out, with some exceptions, and there are other restrictions on the subsidized housing.
The price may be a bargain, mostly because of a state grant, but residents have to accept limits.
For the first 99 years, owners and future owners will be required to sell to buyers who meet income limits, he said. There are also limits on how much the home can be sold for.
"For the first 20 years, you can sell for up to 90% of the appraised value," Handzo said. After 20 years, that limit rises to 95%.
Commissioner Tara Zrinski said home ownership is a wealth-building strategy and questioned whether that is limited by the CALV rules.
"I'll admit you don't have the same wealth-building ability as you would on the pure unregulated open market," Handzo said.
Of the total cost, $950,000 will come from the State of Pennsylvania; Northampton County's share including the grant will be $400,000; and CALV will use credit to finance the remaining $500,000.
The total projected cost for the five townhomes in Glendon of $1.85 million, less the $630,000 total sales price, indicates a subsidy of $1.22 million total for the five homes. That works out to $244,000 off the price for each residence.
The result, Commissioner John Cusick said, will be a mortgage payment that will be less than the cost of rent.
The land became available when Northampton County stepped in last year to demolish the long-vacant structure. The building was collapsing and threatened to fall into Main Street. The inn was built in 1740 and abandoned about 30 years ago.