CB council to purchase aging mobile home

Still not sure of everything so questions yet to be answered

[  By Mark Reaman  ]

While not knowing exactly what the end result will be, the Crested Butte town council agreed at its September 19 meeting to purchase a 1991 mobile home located on Teocalli Avenue for $570,000. The ownership would include the land as well as the mobile home. In a memo to the council, town housing director Erin Ganser proposed putting a deed restriction on the unit and then reselling it for $250,000.

“Town is actively pursuing opportunities to apply deed restrictions to existing entry level housing either through the Good Deed Program or through property buydowns,” she wrote in a memo to council. “The potential purchase of (the property) provides an immediate opportunity to secure a permanent workforce housing unit that would be made available for sale via lottery with GVRHA (Gunnison Valley Rural Housing Authority).”

Ganser said because it is a manufactured home, comparable selling prices were difficult to come up with and a loan for a new buyer would have to be done through a local lender. The interest rate on a loan would land in the 7% or higher range, making for high monthly payments. Thus, the idea to resell it for a heavily discounted $250,000. The proposed deed restriction would mandate, among other things, that whether rented or owner-occupied, the occupant must work at least 1,500 hours annually in Gunnison County or be a retired or disabled person who has been a full-time employee in the county for at least four years. It would not include an income restriction.

Town manager Dara MacDonald said the council was not being asked to approve a deed restriction at the September 19 meeting since details would still be worked out. 

Councilmember Gabi Prochaska asked about the typical lifespan of a mobile home and Ganser said typically it was anywhere between 35 and 50 years. The Teocalli unit is 31 years old. Ganser said the new mobile homes purchased for the Paul Redden Workforce Housing project cost about $150,000 each. 

“If a new manufactured home becomes necessary soon, who covers that replacement cost?” asked mayor Ian Billick.

“We would need to look at it but presumably the owner,” said Ganser. 

“That would make this purchase a lot less affordable,” said councilmember Mallika Magner.

“We can’t predict who would be responsible. It would be a policy decision down the road,” replied Ganser.

“That presents uncertainty down the road,” said Magner.

“I’m not comfortable with just putting a $250,000 resale price on the home and reselling it to whomever,” said Billick.

“I agree,” said Magner. “The town needs to provide a subsidy for an appropriate purchase.”

Billick made clear that the council decision at the meeting was only on whether to pursue the purchase of the mobile home. Further details would still be worked out and the council would need to approve the process and the details. Council voted 5-0 to proceed with the transaction. Councilmembers Anna Fenerty and Jason MacMillan were not at the meeting.