CAMARILLO : Low-Income Buyers Priced Out of Houses

Rising costs on a Camarillo low-income housing project have priced most people in that income category out of the market, city officials have conceded.

Instead, the 22-house project at Temple Avenue and Ponderosa Drive will probably serve first-time home buyers of moderate income, said Matthew Boden, the city’s planning director.

“I’m a little disappointed,” he said. “It’s not going to hit the low-income people, but at least we can serve some first-time buyers.”

To be considered low-income, a family of four must earn no more than $35,700, Boden said. But these houses will likely cost more than $170,000, Boden said. Low-income, first-time buyers will still get first priority for the houses.

But if enough people do not qualify in that category, the city will begin taking applications from families with higher incomes, Boden said.

The plan to build the three-bedroom, two-bath houses of prefabricated components, with stucco to be added at construction, was conceived in 1986. To keep the prices down, the city allowed smaller lots than are normally permitted. The city also set aside money to provide low-interest second mortgages of $10,000.

But since then, Invest West of Santa Barbara bought the project and paid $25,000 per lot, which drove the prices up, Boden said.

The City Council approved an agreement Wednesday that each buyer must sign. It places limits on resale profits and gives the city the right to buy the house when it is put up for sale.

The houses must be occupied by the owner, according to the agreement.