Island Hill Association has announced success of its three prototype units on Douglas’s Cordova Street.
“They all have great views,” said Wayne Coogan of Coogan Construction, to the Juneau Affordable Housing Committee on Tuesday.
The company plans to start construction in 2013 on as many as 24 two-bedroom one-bath apartments. Eventually Coogan plans to build 56 units. However, he will need to permit the remaining 32 units.
The first 24 apartments are expected to rent for $1,200 per month without utilities.
• Contact reporter Russell Stigall at 523-2276 or at russell.stigall@juneauempire.com.
Comments (36)
Add commentWhy is the rent so high for
Why is the rent so high for these apartments? $1150/mo for 3 bedroom in the valley ...
Affordable housing.
Yeah, right, 1200 bucks a month for a two bedroom
apartment? My mortgage on 1400 square feet
is only 800 bucks a month.
Im guessing neither of you
Im guessing neither of you have looked at either the housing purchase or rental markets lately. My mortgage is $1900/mo and we were typically paying $1500/mo rent before we bought.
Reality Check
You should thank your lucky stars that your rent or mortgage is that low. One bedroom apartments are renting for at least $1000 nowadays. Especially on Douglas and in Downtown! I'm excited to see a new option coming to the area. Maybe if we can get more housing options, it wil drive the price back down to a fathomable rate! But for now, thats a pretty darned good monthly rate!
Hmmm.....
Kpawsuh - so at 3.5% that's a 380,000 loan, for a payment of around 1,900 a month. Presuming you paid something down - that's a $400k house.....good for you. Sounds like the high payment was your choice, though, either because you wanted a really nice house, or you didn't build enough equity to bring the payment down in something smaller.
I started in a 2bed condo - which appreciated from 83k to 141k over 15 years. I had roommates for the first 7-8 years. I refinanced once - dropped 2.25 points and chose to pay $50 a month more to make it a 15 year instead of a 30. Which meant when I did find a 4bed attached for under 300k, I had enough equity to keep the payment under $1200.
People always say they 'can't' afford housing. What they mean is, they can't afford the housing they WANT while not making any other adjustments. A couple and a single living in a 2 bedroom for $1200 makes the rent just $400 each per month. Two people sharing - only $600.
My first rental was $750 - so I think that's a pretty good deal.
Anyone renting
....right now should really, really just make an appointment with a loan outfit/bank right now - this week - and see what first time home buyer plans they qualify for, or how much they qualify for given the same monthly cost as rent.
The trick is to tell THEM what payment YOU can afford - and stick with that amount as you look for houses - instead of getting greedy and taking everything they WILL let you borrow - and ending up with too high a payment.
Even if you have to borrow a down payment - it's likely you can live in a 1/2 way decent space that you can work on and fix up - and pay yourself each month instead of someone else - for the same or less money than you are paying for rent. All it takes is a couple of paystubs, bank statements, credit card statements, maybe last year's taxes - ask your bank - and about 30 minutes of your time.
If you are renting - I urge you to check with a bank NOW. Interest rates will likely never be much lower than they are now.
Blueberry Hill
I always found it strange that some of the nicest homes in Juneau (Foster, Pioneer Ave) are so close to low-income housing and apartments just on the other side of Cordova Street...
Imagine how the drive to work in the morning will be with more cars backed up on Cordova waiting to take a left turn... Especially with 56 units! I don't see how a stoplight won't be put in there. That is going to clog up all Douglas traffic from the bridge south, guaranteed.
Swimmer, thats on a 250K
Swimmer, thats on a 250K fixer upper house at 4%. Don't forget the PMI and the mandatory flood insurance etc. Remember what happens when you assume...
1,200$ with no Utilites Good
1,200$ with no Utilites
Good luck with that.
kp
PMI is avoidable if you put down 20%, and it isn't for the length of the loan. Flood insurance is not always mandatory, only in areas with a high flood risk. Plenty of homes in Juneau where it is not required. Sorry you got a raw deal, honestly it sounds kinda hinky. I don't know who you worked with but it might be worth having someone else look at your package. Could be you got scammed somewhere.
Two thumbs up
Great to hear about expanded housing options. Hopefully, the town can keep growing and thriving. It just seems to be shrinking and backsliding economically. With this kind of development, Juneau could become a place that professionals flock to instead of the kids escaping as soon as they can for lack of affordable housing and career opportunities.
lvmykyk, Yep I know. If I
lvmykyk, Yep I know. If I had an extra $50K to put down, I wouldnt be worried about PMI. Unfortunately, that wasnt an option. We put down 10% which was tough to come up with. And as you recall, FEMA recently expanded the flood maps to include almost half the town. That was a very expensive expansion. Our property has one corner of the yard within the map, about 20 ft of the back yard, not the house. They require flood insurance. I think most of the commentors on here have not shopped for homes since the 90's when you could buy anything in town for $60k. I wish I had, but I wasnt planning on staying here. There are quite a few rentals out there in the solid 1500-1800/mo range that do not include utilities! And no they are not on blueberry hill or fritz cove. I help many friends try to find housing and it is ridiculous out there right now!
Kpawsuh is right`
You guys are out of touch with the Juneau housing market. This area is called "little San Francisco" for more reasons than just the terrain.
New Housing
They seem to use the word "affordable" housing, but I don't see where it is very affordable. Maybe if they keep saying it enough someone will really believe it. They really need to create some REAL affordable housing in the Valley.
Construction Costs are High
My cousin owns a local construction company and he said the reason that no one is building "affordable housing" is that it costs too much to construct a home here in Juneau. Lumber has to be barged in [personally, I think if we had a road in, we could get the price of lumber down; but I am not trying to spark that age old debate in this forum], there are several costs associated with fees to the City (inspections, etc.), and a variety of other costs of living in Juneau.
We vote in a lot projects in Juneau, and borrow to do so. Then we are taxed higher, including higher property taxes which also contribute to the higher cost of living in Juneau. We need to stop asking the City to spend money on things we could live comfortably without. Let's make this town affordable to live in, and then we can attend to the Wants.
kpawsuh - sorry....
...I assumed you were around my age or more - and this would not have been your first home. Still, agree with lvmykyk - sounds like a big payment for a 250k house. I bought mine last year - so I'm familiar with the market.
I also started in a small condo though - and worked my way up. On purpose.
It's all about long-range planning. IMHO, anyone paying $1,500 a month rent in this market is foolish. Downsize your expectations, get a roommate, do whatever you can to gain some equity for a few years, then move up comfortably into a home you want and can afford.
kp
I still think you might have gotten hosed. I say this because I did buy a house this year. Yes, we were able to come up with 20% so that saved PMI. Flood insurance not required at our location. Our payment is similar to yours but the price we paid is not, neither I am guessing is our loan amount. I really hope you weren't though. I only put it out there on the off chance it could help spark to get you a better deal.
KP
His numbers would be correct on a 15 year loan...
I think Swimmergirl's advice is very spot on though. People need to do their research and figure out what they can afford. Most commonly I hear people complaining about the cost of living (or taxes) - and these are the people who have a brand new iPhone every time the new one is released, have two car payments for brand new cars, etc. People need to make responsible choices and stop living outside of their means. (BTW, this last paragraph is speaking generally - not directed at you, KP, because obviously I don't know you personally.)
It just fries me. Half the
It just fries me. Half the people in this town bought in the 90's for $65k and yet whine and moan that they will be destroyed if the market drops and they lose their $400k investment. Or they sell it and won't negotiate at all. They want their retirement at your expense and have the gall to whine about what a raw deal they are getting. That is what is destroying Juneau. Greed. Not investing in the community, strip mining and running south...
SueDoeNimby - nail, head.
...as in, you hit the nail on the head.
I waited until I was 30 to buy the condo - wish I had started earlier.
What I found most enlightening about that experience was, once I got over my fear/trepadation/assumptions about going to a bank and at least seeing what I could qualify for (I think most people who are renting assume they can't afford a house, they don't have good enough credit, etc. etc.) I was surprised by what was available to me, and interest rates were 7.5% at that time. Even if you check with a bank and find you need to save a down payment or work on your credit a little first - at least you can then start saving, and are moving forward and making some positive choices about your future, instead of just blindly paying someone else's mortgage.
Even if you don't think you are ready for a house and you're renting - again, I urge folks - just call a lender, ask what paperwork you need, and take 30 minutes to get a mortgage quote. You might be very surprised.
down payment assistance
If you are interested in buying a home but can't afford the down payment, contact the folks at Alaska Community Development Corp at http://www.alaskacdc.org/ho_prog.php and ask about the HOME Opportunity Program. If you earn less than 80% median income, which is actually higher than you might think, you are eligible for up to $30,000 in a partially forgivable loan from AHFC. Income limits: 1 person household=$45,500 annual gross income, 2 person =$52,000, 3 person =$58,500, 4 person = $65,000. If more folks who can move to home ownership do just that, more rental units become available for renters.
Down payment assistance. What
Down payment assistance. What a joke. The family making 65k a year would only qualify for a home under 200k. That means 2 bedroom condos maybe? Zero lot home not a chance. Condos suck. Been there done that. Didn't help to get in home. Even if the assistance helped increase to a 230k home it still would not be in the price range of a zero lot line home. There are no affordable homes in Juneau.
It sounds like the situation
It sounds like the situation is still the same as in 2001. This is why renting is still more affordable than owning... in Juneau.
Juneau Apartments
I was all excited about hearing about new apartments being built, until I seen the cost factor. Why does Juneau have to have such a HIGH End Cost for renting apartments? It's either that, or Low Income Housing. There is NOTHING for middle class. Juneau needs to start thinking about this, and hopefully think about us middle class citizens.
Will they....
except pets? Seems to be a big thing here is people with pets can't find housing. One of my kid spent months looking for a place to except a small dog. My other child a year cause he had a big dog.
Even when you find rentals here pets are usually a "no"
exactly!
ctmercer- you are so right. There is nothing to keep the middle class here.
We are a one income family and we homeschool. We cannot AFFORD to buy a $300K fixer-upper here. Yes, we are admittedly choosy about where we would buy, and particular about things like, oh, ASBESTOS (which most any house built before 1982 or so has) and say, having a foundation that won't wash out from under us. Don't get me started on the inspectors here. NO ONE is looking out for the buyers and the long-term future of this city once all the people who pay taxes leave. You can't pay off all those bonds you never really NEEDED with exempt seniors and welfare recipients. And who wants to live in an area where they are going to cram way too many people and units? No one who can afford it, that's who.
FYI, we're prequalified for some outrageous amount, but we're currently renting a junky three-bedroom b/c it's just too risky to buy right now. Interest is soon going to go WAY up, and the prices are going to have to come down. Who in their right mind would want to be under water in Juneau where there is a Capitol Move Scare every other year?
As amazing as Juneau is in so many, many regards, this Affordable Housing krap is missing the point.
Also, can anyone tell me who owns the land that Coogan is going to develop? Is that owner going to also be the landlord? Who is paying Coogan to develop the land and how much? Just wondering...
Part of the problem
Sniffing around housing prices and payments the problem hit when it came to property taxes. If you read the CAFR for the CBJ 40%+ of the CBJ is funded by property taxes, which the rates are set by the CBJ Assessors office...see where I am going.
Whiners -
Good grief, people.
jla5134 - good information, thanks!
Sync - you are simply wrong on this point. I've owned and lived in two different places since 1997 - both were/are cheaper than renting.
Thislittlepiggie, ctmercer ("I seen"? really?), AK_mom, and rukiddingme - geeze, stop whining! You all sound like people who've either never actually gone to a bank and figured out what they could afford, and made a plan to save and take responsibility for your own situation, or folks who want everything without making any concessions themselves.
I managed it, as a single person who started out working at tourist gift shops. I managed to go back to school over the years. You know what? If you can't afford a house - you save a bigger down payment. This means giving stuff up you 'want'. If you can't find a place to rent with pets, maybe you give up your pet for a while. If you can't afford $600 a month rent, get a roommate. Do without a cell phone/x-box/cable/lattes for a while, until you can get a better job or a raise.
People want a beautiful, brand new home for $300 a month, and they don't want to put forth any effort or change their lifestyle at all to get it. Get real. My current house still isn't my dream house - I'll probably never get my dream house. But it gets more sun than my last place, has a garden, and a garage. It's attached, which I don't like, but I'll learn to live with. I'll have to paint most of it, which I'll do myself. The kitchen is old and dated - so guess what? I'm actively saving for that now - it will probably take 3 years before I can start. But that's what you do if you want nicer things. You make a plan and you give something else up and you work towards it. You don't just sit around and whine about how someone else should build you cheap, but really nice, housing.
what sucks
If your just over $100 yo get help. You can't get help.
swimmergirl
Incorrect. If I was wrong, we'd be in a house. The fact is, whether you believe it or not, it is cheaper to rent + utilities, than to own.