Sixth and Butte agreements approved

Tax credit application in 2023 but design review in 2022

[  By Mark Reaman  ]

A major hurdle with the Sixth and Butte affordable housing project in Crested Butte has been cleared with the approval of a Cost Sharing Agreement with TWG, the developer that was selected for the Low Income Housing Tax Credit (LIHTC) rental portion of the project. The agreement allocates costs for design and engineering work and that the land for the project will be leased for 99 years and not sold to TWG. TWG is an Indiana-based company that has done affordable housing projects throughout the country and is familiar with the funding mechanisms involved.

According to a memo from Crested Butte housing director Erin Ganser to the council, TWG will fund $161,020 for predevelopment expenses and preliminary drawings under the agreement and the town will fund $425,100 to finalize design to a level that are ready for building permits. The idea is that if TWG successfully obtains the tax credits, the town will be reimbursed in the fall of 2023. If the LIHTC application is not successful, the town will not be reimbursed but will own the design plans. 

The LIHTC application is due next February, and awards are granted in May of 2023. It is anticipated the LIHTC credits would help fund approximately 75% of the project costs. The agreement facilitates a start date of the project in fall of 2023 if LIHTC credits are approved instead of having to wait until the following spring. 

As part of the agreement, TWG will submit plans for the project to the Board of Zoning and Architectural Review (BOZAR) in September of this year. This too is intended to help speed up the process to get rental units constructed as quickly as possible.

“The idea behind all of this is that the town will help with the design and the process so as to shorten the timeline and we can get in the ground faster,” said Ganser.