ROCKPORT — A lottery to determine who would be able to buy the so-called Gift House on 30 Pleasant St. has not drawn a single application — likely because the $220,000 listing price was too high for the affordable housing applicants, the consultant put in charge of the lottery said Tuesday.
Jill Onderdonk, a lottery consultant hired by the town of Rockport to run the lottery of low-income buyers for the property gifted to the town in 2001, said she thought the total lack of applicants was a reflection of how difficult it is to both have an income low enough to qualify for affordable housing, yet good enough credit to afford the mortgage and down payment for a $220,000 house.
"I truly think it's the price," said Onderdonk. "(That) $220,000 is a lot for affordable housing. It's the maximum amount that is allowed."
Onderdonk said she knew people had been interested in applying for the house, but they would not have been able to afford it.
"I had two single moms with two kids at the open house that were very interested, but I guess they couldn't get financing," said Onderdonk.
A family of three, like the single mothers Onderdonk mentioned, would be limited to an annual income of $58,500 in order to be eligible for low income housing.
On the other hand, the informational packet for the 30 Pleasant St. house noted that the minimum income to qualify for a mortgage would be $50,000, assuming perfect credit and no debt. Those with average — or even good — credit would need to make substantially more in order to qualify for a mortgage.
"The income guidelines are very strict," said Onderdonk.
In addition to other rules, the purchasers have to be first-time homebuyers, ruling out families who have lost their homes to foreclosure — a large proportion of those now seeking affordable housing.
Though the house itself was donated to Rockport, the town has spent $541,801.04 on relocating, maintaining and making repairs to the house. Because of that investment, Rockport officials pushed to offer the house for the highest price possible.
"This particular project cost the town a lot of money, so they were hoping to be able to recoup more of that," said Onderdonk. "It's not that kind of market anymore."
Selectman Sandy Jacques is one of those who wanted the town to get top dollar for the property.
"At this point, I have to eat a little crow, because I thought (the price) was too low to begin with," said Jacques, who said that, in light of the lack of applications, the price would have to be dropped.
"If it's like any real estate market, we're going to have to drop the price," said Jacques.
Jacques noted that he only heard about the lack of applications when contacted by the Gloucester Daily Times, but said he hoped to have selectmen discuss the issue as soon as possible.
"We'll try to do the right thing," said Jacques. Jacques said that he would consider a drop of $25,000 as "significant," but did not rule it out.
"Obviously, we have to do something if we want to sell it," said Jacques.
Stephanie Bergman can contacted at 978-283-7000 x3451 or sbergman@gloucestertimes.com
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