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Looking for a home in Seattle can seem as daunting as climbing to the top of the 14,000-foot summit of nearby Mr. Rainier. Real estate marketing firm Zillow has ranked Seattle for several years as one of the hottest housing markets in the United States. And it's for good reason. The Emerald City—as Seattle is commonly known—has an average home price exceeding $500,000, and those prices have been surging more than 5 percent each year. What’s a low- or moderate-income person to do? Make a visit to NeighborWorks network member Homesight in Seattle.
Homesight recently completed Pontedera condominiums, a project specifically created to meet the needs of underserved homebuyers. Homesight Director of Real Estate Development Uche Okezie says the property was designed to fit into the "look and feel" of Seattle. It has 94 residential condos with a mix of urban loft style and more traditional flats. Homes at the Pontedera feature either a deck, patio or balcony, just like properties built by for-profit developers in the city. And in cyclist-friendly Seattle, the property’s bike-storage room probably sees as much traffic as the parking spaces. Each home is assigned one spot.
In addition to the 94 traditional homes, Pontedera has eight semi-commercial units, called live/work spaces, fronting a major retail avenue. Work/live spaces have businesses facing the street at ground level, with residential living quarters directly behind.
"Beginner" homes at the Pontedera sell for about one-third less than the average Seattle home for sale. Okezie says that to meet the affordability hurdle, the company used multiple layers of financing. Financing sources include equity from the organization itself, HUD grants, NeighborWorks America, Fannie Mae and bank loans. Affordability is further assisted by a multifamily property tax exemption from the city, available depending on buyers' incomes.
Importantly, Homesight offers a range of mortgage products that help buyers purchase a home in Pontedera or elsewhere in the greater Seattle market. Buyers who earn as much as 120 percent of the area median income could qualify for the Homesight Puget Sound loan, an amortizing second mortgage (often referred to as an 80/20 loan) that further supports affordability. This product, like many mortgage programs offered by NeighborWorks organizations, requires a borrower to complete homebuyer education and pass a financial assessment. That makes sense, especially since independent research shows that buyers who complete NeighborWorks homeownership education programs are less likely to default on their loans.
Although all of the condos were sold in fiscal year 2015, and Homesight has transferred full management to the tenant-run homeowner’s association, Okezie explained that it was a long road. The Pontedera homes were set to be sold a few years before, but then the housing and mortgage crisis hit. Homesight looked at several options, including converting the homes to rental, but the best choice was to keep focused on homeownership. Just as when climbers take on the challenge of climbing Mt. Ranier struggle through unexpected headwinds, Homesight adapted, stayed the course and achieved its goal. Now, 102 happy homeowners later, it’s clear the challenge was worth the effort.
Homesight recently completed Pontedera condominiums, a project specifically created to meet the needs of underserved homebuyers. Homesight Director of Real Estate Development Uche Okezie says the property was designed to fit into the "look and feel" of Seattle. It has 94 residential condos with a mix of urban loft style and more traditional flats. Homes at the Pontedera feature either a deck, patio or balcony, just like properties built by for-profit developers in the city. And in cyclist-friendly Seattle, the property’s bike-storage room probably sees as much traffic as the parking spaces. Each home is assigned one spot.
In addition to the 94 traditional homes, Pontedera has eight semi-commercial units, called live/work spaces, fronting a major retail avenue. Work/live spaces have businesses facing the street at ground level, with residential living quarters directly behind.
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| The deck of Pontedera in bloom Photo credit: Homesight |
"Beginner" homes at the Pontedera sell for about one-third less than the average Seattle home for sale. Okezie says that to meet the affordability hurdle, the company used multiple layers of financing. Financing sources include equity from the organization itself, HUD grants, NeighborWorks America, Fannie Mae and bank loans. Affordability is further assisted by a multifamily property tax exemption from the city, available depending on buyers' incomes.
Importantly, Homesight offers a range of mortgage products that help buyers purchase a home in Pontedera or elsewhere in the greater Seattle market. Buyers who earn as much as 120 percent of the area median income could qualify for the Homesight Puget Sound loan, an amortizing second mortgage (often referred to as an 80/20 loan) that further supports affordability. This product, like many mortgage programs offered by NeighborWorks organizations, requires a borrower to complete homebuyer education and pass a financial assessment. That makes sense, especially since independent research shows that buyers who complete NeighborWorks homeownership education programs are less likely to default on their loans.
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| A view of Pontedera from the street. Photo credit: Homesight |
Although all of the condos were sold in fiscal year 2015, and Homesight has transferred full management to the tenant-run homeowner’s association, Okezie explained that it was a long road. The Pontedera homes were set to be sold a few years before, but then the housing and mortgage crisis hit. Homesight looked at several options, including converting the homes to rental, but the best choice was to keep focused on homeownership. Just as when climbers take on the challenge of climbing Mt. Ranier struggle through unexpected headwinds, Homesight adapted, stayed the course and achieved its goal. Now, 102 happy homeowners later, it’s clear the challenge was worth the effort.
