Council begins process to gain control of foreclosed unit in Poverty Gulch

Affordable housing a town priority

By Mark Reaman

The Crested Butte Town Council took the first official steps Monday in bringing back into the town’s affordable housing stable a deed-restricted unit that recently went into foreclosure.

The certificate of purchase for Unit I of the Poverty Gulch complex on the northeast side of town was sold to local realtor Mindy Sturm on March 8 at a public trustees auction at the county. The unit had gone into foreclosure when unit owner Jim Harlan stopped paying his mortgage, along with other obligations associated with the unit. Sturm purchased the certificate for $93,000.

After a long executive session on Monday, March 20, the council approved four motions beginning the process that should return the unit to town deed restrictions for affordable units in Poverty Gulch. Earlier Monday, the town had entered into an agreement with the Poverty Gulch Home Owners Association to retain the rights on its HOA lien on the property in exchange for paying off the lien of $9,235 that was accumulated in past dues.

Essentially the HOA assigned their lien to the town. With that lien, the town executed a notice of intent to redeem the Poverty Gulch property with the Gunnison County trustee. They will have to deal with a junior lien holder as well.

The council also instructed the staff and attorney to prepare a resolution for the April 3 Town Council meeting approving the payment of $93,000 “and other such amounts” to redeem on the certificate of purchase issued to Sturm.

The town staff met with Sturm last week to try to work out a quick and easy deal with her, transferring the certificate of purchase to the town for $95,000 but Belkin said Sturm rejected the deal. He said that ultimately the town stepping in the shoes of the HOA should allow the town to redeem and get title to the property through the issuance of a confirmation deed by the public trustee to the town.

“The town has made affordable housing its top priority and this includes the preservation of our existing units and deed restrictions,” said town planner Michael Yerman. “While we are still pursuing all options to ensure this unit stays part of our affordable of program, we are happy the Poverty Gulch HOA has agreed to work with the town. They have a tight-knit neighborhood and understand that the intention of these units is to ensure we continue to have locals living and working in our town.”