Buyer’s contract deadline April 30
By Kendra Walker
On March 21, the Mt. Crested Butte town council agreed to an extension request from Homestead Housing LLC (HH) in their settlement agreement regarding the 22-unit Homestead affordable housing project that has undergone extensive construction delays over the last several years and remained at a standstill for over a year.
In December 2022, the town council approved a General Mutual Release and Settlement Agreement related to the issues between the town and developer Lance Windel of Homestead Housing. Under the terms of the agreement, the town has agreed to pay Homestead Housing $750,000 for all the Homestead property rights and will acquire all rights to the Homestead property on a closing date of April 30, 2023. The agreement also stated that Homestead Housing would resolve the buyers’ contracts by March 31, 2023.
Homestead Housing has resolved 13 of 15 buyers’ contracts. “As I understand, HH requested an extension to get more time to try and resolve the remaining buyers’ contracts,” town manager Carlos Velado shared with the Crested Butte News.
In a 6-1 vote, the council agreed to extend Homestead Housing’s buyer’s contract deadline to April 30, 2023. The draft motion also reads, “In the event a complete settlement is not reached by Homestead Housing with the remaining two contract holders by April 30, 2023, but mediation has been formally scheduled and is pending by that date, then the contract deadline is further extended to May 31, 2023.”
The closing deadline is extended to 10 business days beyond the applicable contract deadline.”
Additionally, “as a condition of the extension of the Settlement Agreement’s March 31, 2023 deadline of the Buyers’ Contracts deadline, Homestead Housing must release to the Town the SCJ Alliance electronic CAD files of the building plans for the Affordable Housing Units on the Homestead Property for any purpose reasonably related to the construction and sale of Affordable Housing Units on the Homestead Property.”
According to Velado, “The terms of the settlement agreement require Homestead Housing to convey Homestead to the Town free of all encumbrances and liens. If the buyers’ contracts remain in place, then Homestead Housing has not satisfied the terms of the settlement agreement.”
There are seven total units that did not have buyers’ contracts associated with them at the time of the signing of the settlement agreement. “The Town did reserve two units but never entered into buyers’ contracts with HH for them,” said Velado.
The town has said it will inspect and assess the condition of the existing property and structures to determine what next steps need to be taken. Velado recently told the News that the town has had multiple engineers and builders inspect the properties. “No final determination has been made on what to do with the existing structures,” he said.
Velado also confirmed this week that the town has received the building plans.