Sixth and Butte finalizes partners and receives $3 million grant

Project details to be determined next

[  By Mark Reaman  ]

Monday was a big day for Crested Butte’s Sixth and Butte affordable housing development project. The council officially selected development partners for what should be approximately 80 deed restricted rentals and for-sale units, and the town received word that the Colorado Department of Local Affairs was awarding the project a $3 million grant.

While specific details of the project will be worked out between the town and developers, the council agreed to have staff enter into letters of intent with Crested Butte’s High Mountain Concepts for the for-sale portion of the project and TWG Development that is based in Indianapolis for the rental aspect. The preliminary estimate is that there would be approximately 32 for-sale units and 48 rentals. 

Depending on how financing is achieved, Crested Butte housing director Erin Ganser said the goal is to have a mix of incomes be eligible for occupancy and the hope is to make sure the so-called “missing middle” income earners are provided opportunity to obtain some of the units. The council has consistently asked that priority for affordable housing include “essential workers” that might make too much money under certain circumstances to qualify for some deed restricted housing.

Because the developers would likely use some LIHTEC (Low Income Housing Tax Credits) financing that includes attractive federal tax credits, those units would be limited to people making well below 100% of the Area Median Income (AMI). For example, the annual maximum income for a couple in the 60% AMI category would be a combined $42,480.

“We want to be clear that tonight we are picking a partner, not a specific project at this point,” emphasized Ganser. “We have spoken to both HMC and TWG and both are interested in working together on the various parts of the project.”

Council and staff were excited over the $3 million grant award as well. It is expected to significantly help underwrite the project but details on exactly where that money will be spent has not been determined. “It is money we had expected to use from the general fund so it will help there,” said town manager Dara MacDonald.

“We could decide it’s a priority to use that money (to free up some restricted units) or put it to some other priority related to this,” mayor Ian Billick said. “It is too early to decide, but it is a great win for the staff and the town.”

In the award letter, DOLA executive director Rick Garcia stated that, “Your project was reviewed based on a variety of factors such as readiness, capacity, impact on local housing needs, sustained and equitable community support, provision of community benefits, and consideration of sustainable development patterns. Additionally, we reviewed your submitted qualifying land use strategies and would like to not only confirm that you qualify for this funding program but applaud your progress in this area.”

Per the state’s program guidelines, all funds must be spent before June 30, 2024.

Billick asked staff that when the appropriate time comes, the council be given an outline of risk management for the project, make sure any construction contract is reviewed by a law firm with extensive experience in such contracts, and given the complexities of such a project the council be given adequate time to understand the financing elements and ramifications of such financing. 

Ideally there will be a summer groundbreaking on the project.