Dear Editor:

On behalf of BRDC, Vitalius Real Estate Group has begun marketing the Butler Road condominiums. This week, three units were listed, at $330,000, $412,500 and $495,000. This was intended to attract buyers at a range of prices. These prices reflect subsidies between $35,000 and $200,000/unit.

“Affordable” means different things to different people. Historically, the rule of thumb was spending no more than 30% of gross income on housing. Over time, that number has crept up. These listing prices were established in consultation with lenders, using underwriting criteria for single-family home mortgages. Ultimately, each unit will be individually priced to ensure that buyers spend no more than 41% of their gross income on housing.

The townhomes on Butler Road cost well over the listed prices to develop. Every household that purchases one will receive a subsidy and pay less than the cost to develop it. The size of the subsidy depends on the income of the household that purchases the property.

A household with a combined income of $100,000/year will pay more than a household with combined income of $75,000/year. However, both will pay less than the cost to develop the home and neither will pay more than 41% of their gross income. This is how affordability is spread across the project.

Area Median Income (AMI) is published annually by the Department of Housing & Urban Development (HUD). In 2024, the AMI for Lincoln County is $94,900 for a 4-person household.

A household making an income of $75,920/year (80% of AMI) can spend $31,127/year (41%) on housing costs. Property taxes, insurance, and HOA fees are estimated at $7,300/year, leaving $23,827 available for mortgage payments. This equals a monthly mortgage payment of $1,986. A payment of this size can support a mortgage of $330,000. This household will spend 31% of its income on the mortgage, leaving 10% of their gross income available for taxes, insurance, HOA fees, and utilities.

BRDC’s goal continues to be to provide a range of housing choice for our area workforce.

BRDC Board of Directors

Steve Malcom, Erin Cooperrider and Susan Witt