Lottery to Market 58 Low-Priced New Homes : Simi Valley: To qualify, the household income of winners cannot exceed $38,600. The application deadline has been extended to Friday.
More than 300 people have entered a lottery, set up by the city of Simi Valley, in which the jackpot will be 58 new homes at bargain prices.
The winners will each get a chance to buy a $190,000 single-family detached house in Simi Valley for just $124,300.
The contest comes with numerous strings attached. For example, the lottery winner’s annual household income cannot exceed $38,600.
Nevertheless, when city officials reopened the lottery application period on Monday, Maria Mitchell’s telephone began ringing nonstop.
“I’d say 98% of the people I’ve talked to are serious buyers, not speculators,” said Mitchell, who is coordinating sales of the subsidized housing. “They’re young people trying to buy a house. This is just giving them an opportunity to get a start.”
Mitchell said that about 1,600 people inquired about the lottery during the first application period, between June 1 and Aug. 14, but many did not qualify to enter.
The income limit, set by the U. S. Department of Housing and Urban Development, is about 80% of the median annual household income in Ventura County.
Because interest in the housing lottery has remained high, city officials have resumed accepting applications through Friday.
“The minute you close something, people say, ‘I just heard about it,’ ” Mitchell said.
The lottery drawing will be held Sept. 14 at Simi Valley City Hall.
At stake are chances to buy 58 houses in The Classics tract on the south side of Tierra Rejada Road, just west of Madera Road. Simi Valley officials said the city is underwriting the cost to help people who are priced out of the market.
At the same time, the developer, Santa Monica-based Oak Tree Homes, was able to get the city’s approval to build 173 other dwellings nearby more quickly by agreeing to build the so-called affordable housing.
Each lottery house will be 1,520 square feet, with three bedrooms, 2 1/2 bathrooms, a two-car garage and front-yard landscaping.
The subsidized units will be about 500 square feet smaller than the other models that will be sold at market rates, said Joseph Carroll, a partner in Oak Tree Homes. But he said his firm will not cut corners on the appearance of the more affordable houses.
“We have made an extra effort to make sure that, visually, there is not a disparity between the two,” Carroll said. “They’re very consistent in look. We’re providing housing for people who ordinarily wouldn’t be able to afford houses like this.”
But Harvey Gandel, president of the Simi Valley-Moorpark Assn. of Realtors, has mixed feelings about the program.
“Even with pricing the way it is, which is lower than it was three years ago, it’s still tough for young people to come up with a down payment,” he said.
But, he added, “I do have a problem sometimes with the government competing with private industry. I think there are other directions that could be taken to help keep the cost down.”
Gandel said the housing lottery “is providing a gift to the select few who win the drawing and meet the criteria. This is something that needs to be done on a massive scale, not just a couple of units. It’s just a Band-Aid.”
To prevent lottery winners from reaping an immediate real estate windfall, the buyers will not be allowed to resell the subsidized houses at market value for five years.
Afterward they must repay the city’s subsidy and share any appreciation in the value of the house with the city.
FYI
To enter the Simi Valley housing lottery, a buyer must have a household income of no more than $38,600 annually. People who live and work in Simi Valley will be selected first. Applications for the lottery will be accepted until 5:30 p.m. Friday at Mitchell Realty, 2468 Tapo Canyon Road. Information may be obtained by calling 522-8252.
