Jefferson Co. Land Bank closes on affordable home
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STEUBENVILLE -- Tabatha Glover likes to think of the Jefferson County Land Bank’s Welcome Home Ohio program as a way to change communities, one house at a time.
The state-funded WHO program provides grants to land banks and other qualified agencies or nonprofits interested in revitalizing neighborhoods by renovating or building single-family homes for income-eligible buyers, bringing home ownership within reach of individuals and families who might not qualify for traditional loans.
The land bank’s first WHO home sale closed this week. The buyers, a Pennsylvania couple, paid around $119,000 for the brand-new, energy-efficient three-bedroom, two-bath ranch at 627 Logan St., Steubenville.
Glover, director of the land bank, said they already have purchase agreements on two other houses currently under construction -- at 801 N. Fourth St. in Toronto, and 823 N. Fifth St. in Steubenville -- and they’re not even done. The North Fifth Street property sale should be finalized in the next 45 days after the prospective buyer does a walk-through.
They’ve also broken ground for a new construction at 547 S. Fourth St., and plan to do another just up the street from it. They’re also working on a deal for a Cherry Avenue property where as many as 10 new homes could be constructed. Going forward, she said they plan to take the WHO program into other Jefferson County communities.
Glover said Wednesday buyers are pulling the trigger early because they “want to make sure they don’t lose out,” she said. “Where else could you buy a new house that cost over $200,000 to construct and get it for a little over half of that?”
Without WHO, she said, it “wouldn’t be possible,” pointing out it “shows there’s a need for them, a demand for them, if they’re being sold before the houses are fully constructed.”
“There’s definitely a big need, a big want and desire for them, and on future applications for continued funding, it will show that we do have the capability to proceed and construct more houses,” she said.
Glover said they’ve already applied for another $1.4 million in WHO funding to build 10 more houses as well as acquire and to rehabilitate two other single-family properties.
The WHO grant award covers construction costs, so any proceeds they realize through the sale of the homes go back into the program.
Eligible buyers must be at 80% or below the area median income and meet other program requirements, Glover said. That essentially means a family of four “can earn up to $68,150 to be eligible to purchase this house,” she said.
Because it was built in a community reinvestment area, the Logan Street property comes with a 15-year tax abatement -- meaning the buyer will pay taxes on the land itself but not on the house for the first 15 years of home ownership. There’s also a long-term deed restriction, and buyer counseling is required before a sale.
“We’re reimbursed through the program for the cost of construction,” she said. “All sale proceeds are put into our WHO program so we can keep building houses. As long as the demand is there, we’ll continue.”
She said construction contracts are advertised for bid, but so far Matt Davis of Davis Homes has been either the low bidder or, in some cases, the only bidder for the job. Cedar One Realty handled the Logan Street sale.
“Matt’s done a very good job with them,” Glover said. “They’re all high energy efficiency -- brand new furnaces and air conditioning, as much energy efficiency as he could put into them so their utility bills will be lower. And rentals are out of control right now so their monthly payments will be very close to what people are paying to rent homes (not in as good of shape.)”
Over the years she said the land bank demolished around 312 properties, which helped neighborhoods by ridding them of structures that weren’t maintained and couldn’t be saved.
“But to build new houses and help someone who couldn’t afford to purchase one of their own is overwhelming,” she said.