RTA working aggressively to obtain workforce housing

Units under consideration and contract at both ends of the valley

[  By Mark Reaman  ]

The Gunnison Valley Rural Transportation Authority is continuing its march to acquire workforce housing for local transportation employees. During the August 12 board meeting the RTA board agreed to take possession of a five-plex at the Lazy K project in Gunnison, put down a deposit on another Gunnison five-plex through a project being organized by the Fading West Company, enter into a contract with the owner of a two-bedroom/one-and-a-half bath condominium in Crested Butte and gave the thumbs up to continue conversations with the town of Crested Butte to potentially purchase units in the Sixth and Butte affordable housing complex in 2024 or 2025.

With robust fund balances, RTA executive director Scott Truex said ultimately the hope is to have the organization own 11 units by the fall of 2023 and then add four or five more units in the north end of the valley with some Sixth and Butte townhouses. Basically, the RTA would own the units and provide a so-called master lease with Alpine Express so that the company that runs the buses for the RTA could offer low-cost housing for its employees. Deed restrictions would vary so as to allow occupancy by Alpine employees with all levels of incomes. The Crested Butte condo, for example, would likely allow a high-paid supervisor to live there since there would not be an income limit associated with that unit.

Truex said the five units in the Lazy K project are ready to go and Alpine has several bus drivers interested in occupying the new units. “This is a pretty cool deal and Alpine said they have one set aside for a couple who both have CDLs (Commercial Driver’s Licenses) and want to move to the area and drive for Alpine,” he said. “There are some of the temporary drivers they are using here that live in Montrose that have also expressed an interest in moving to Gunnison.”

The Lazy K project came in at $1.79 million and the RTA paid the final $350,000 last week.

The board agreed to put down a $380,000 refundable deposit with Fading West for a project that is hoped to begin next summer. Fading West owns property in Gunnison and is a developer of manufactured homes based in Buena Vista. Truex has been working with John O’Neal on the project. Truex said that given cost fluctuations and inflation concerns, Fading West wants to set a final price for the five-plex 120 days before breaking ground next June. The deposit essentially saves a spot in line for the RTA. The current cost estimate for the five-plex is $1.9 million.

“We can decide 120 days before breaking ground whether to proceed with the project or cancel at that point,” explained Truex. “If we cancel, we will get the deposit back. If we proceed, we would pay another deposit to get to about 45% of the cost. That will help with their construction plans.”

Truex said the board should see a contract with details of the refundable deposit at the next board meeting.

The board agreed to enter into a purchase contract with Margot Levy who is selling a Solstice Condominium located at Seventh Street and Gothic Avenue. 

“I am so grateful Margot approached us with the idea after reading about efforts in the paper,” said Truex. “This condo is in great shape and would be perfect for a supervisor or future RTA employee. The price is probably a 25% discount from the market rate, and we are working with the town of Crested Butte to determine details of the deed restriction that would go on the unit at closing. The town has agreed to contribute $18,000, basically the cost of the real estate transfer tax, that would come out of the Good Deed program that is being set up. It would be credited equally between the RTA and Margot. I think this is a really good idea to purchase this.”

“I am extremely excited to preserve an existing unit for workforce housing,” added Levy. “It has been a passion of mine since I was on the council. The RTA’s recognition of the impact of housing on its operations and the aggressive approach of the RTA at both ends of the valley is admirable and should be an inspiration for other organizations in the county.”

Board member Liz Smith asked for more details of the deed restriction and Truex said it would basically be required that the occupant of the condo be a full-time resident who works at least 30 hours a week and makes 80% of their income in the county. There would not be an income limit associated with the unit. “It would essentially be deed restrictions associated with the Good Deed program,” he said. “The idea is to provide workforce housing and keep it in the market forever,” said Levy.

Truex said details of the wording were still being worked out. 

The board approved spending up to $620,000 for the unit including closing costs for the condo transaction. 

Truex said he has also had preliminary conversations with Crested Butte housing director Erin Ganser about purchasing some of the for-sale units planned for the Sixth and Butte affordable housing project. He expects to purchase four or five such townhomes.

“I am excited we are able to pursue all of these projects,” concluded Truex. “I think it’s great that we will be able to provide really nice places to live for the people who provide these valuable services to our community. We are so grateful to all of our partners on these various projects. These homes will help maintain the long-term viability of the RTA bus service and that’s really fantastic.”