Hiring a housing expert and filling in vacant lots

[ by Mark Reaman ]

After a four-hour retreat on affordable housing issues last week, the Crested Butte town council appears ready to hire a new housing specialist for the planning department and take action that could result in a new 60-80 unit, deed restricted development in the Slate River Subdivision starting construction in the spring of 2022. Council also is ready to fund the completion of building opportunities in Paradise Park that could result in another 13-15 units. An additional three units could be included if the county is ready to build on the lot they own in the neighborhood.

The council along with town staff, Gunnison Valley Regional Housing Authority executive director Jennifer Kermode and affordable housing consultant Willa Williford touched on several topics from regional coordination of projects in the county, to clarifying deed restrictions and guidelines to talking about how to fund future housing projects. On that last topic councilman Will Dujardin wanted to resurrect discussion over the idea of a tax on second homes that sit empty in town but there was little enthusiasm voiced from the rest of the council.

Progress countywide
While there are a number of affordable housing projects in the works or on the drawing board, the three principle north valley projects in the wings appear to be the opportunity in the Slate River Subdivision just north of the Gas Cafe, the North Village project in Mt. Crested Butte and on the county’s Whetstone property south of Crested Butte across from the Corner at Brush Creek parcel.

“Given the fact that the Slate River property has infrastructure and entitlements in place, it is the most likely project to move forward first,” explained Crested Butte community development director Troy Russ.

Williford agreed that while progress is being made with the North Village and Whetstone properties, the Slate River property has a big step up given approvals and nearby town infrastructure. She also said that an updated housing study should be completed in early May and that can help delineate what type of housing might be most appropriate for each site.

“It is worth noting that even if the town hits the high density mark with Slate River and a Paradise Park build-out, we will still be under our stated goals for occupancy in town,” said Dujardin. “We need to actually commit to serious action on affordable housing and not just talk about it.”

Williford complimented the town on having a pretty full “tool box” to address the housing issue. She noted that Crested Butte uses incentives, regulations, various funding methods and partnerships to address the housing problem.

Filling in the gaps
“There are some holes and gaps in the overall program,” said Williford. “One example would be to have a full-time person working on the development of affordable housing in the valley.”

Russ made it clear that the current CB planning department does not have a housing specialist within its ranks. Town manager Dara MacDonald said there was some talk with Mt. Crested Butte before the COVID pandemic struck that the two towns might split such a position. “We could keep someone busy with just Crested Butte projects right now,” she said. “So stay tuned.”

“I’d be really excited to have a housing expert on town staff,” said councilwoman Mona Merrill. “Having someone to know the details of what is needed, where and work on how to get such projects completed would be great.”

Russ presented the council with a potential plan to fill in the remaining lots in the Paradise Park neighborhood. A number of single family, duplex, and triplex units could be built and depending on the numbers, the cost would fall between $2.7 million and $3.8 million. Dujardin asked that every lot be developed to the max to get as much density as possible, even if it meant increasing the number of water taps on each lot.

Council gave Russ the go-ahead to research getting proposals from a builder to complete the Paradise Park construction.
As for the Slate River subdivision project, there are two parcels that are designated for workforce housing. One needs some cleanup from the old dump and the other is ready to go. Russ said the two projects could likely be done simultaneously.
“Regional coordination is important but the readiness and the scale of the Slate River property could attract a developer,” said Williford.

“It is important to get the right information to proceed thoughtfully and carefully. That’s where a new full-time housing specialist can guide us,” said Merrill.

Councilman Chris Haver suggested that at least some of the units be prioritized for seasonal workers who would like to live in a dormitory situation. Russ said Telluride has a good example of that type of housing that might be implemented here.
Mayor Jim Schmidt said he felt there was talk about the North Village or Mt. Crested Butte supplying that sort of housing near ski area jobs. “Crested Butte was originally designated a place for ‘For Sale’ units,” he said.

“That is where the updated housing study will also help guide us,” said Russ.

“The rental track is important but the North Village, Whetstone and Slate River projects could all offer such opportunities,” said Williford. “Those will give us a good pipeline over the next five or 10 years.”

“We’ve been wanting Mt. Crested Butte to do something for decades so we can’t wait for the North Village,” said Dujardin. “Our responsibility is to put as much density as possible in the Slate River site. It is a super opportunity for our community in the long run to take a bite out of affordable housing.”

“I think with the new Mt. Crested Butte lodging tax that should bring in hundreds of thousands of dollars every year and a council that seems intent on addressing the housing issue, I am more confident in Mt. Crested Butte,” said Schmidt.

Paying for it…
Council also discussed the possibility of buying land for future housing, perhaps purchasing already built condo units and placing deed restrictions on them, purchasing deed restrictions on existing homes and agreeing to come up with creative ways to fund housing projects.

“We should be looking and at least investigating every opportunity and idea,” suggested Dujardin. “Whether it is Kent’s (Cowherd) idea of using what is currently designated as wetlands by the school for housing or looking at the elephant in the room of the Alpine Lumber property that might be moving.”

Dujardin repeatedly suggested the council reconsider an idea discussed pre-COVID about taxing second homes in Crested Butte to pay for new affordable housing projects. “It feels like there was some support for the idea but that funding suggestion was not held in earnest before COVID shut everything down,” he said. “Maybe we didn’t get the idea out there correctly. Maybe it should be called an affordable house tax. But I’m curious if the council could support such a tax being on the ballot this year or next.”

Schmidt said he thought the discussion had been discussed in depth and there was not unified support for a tax on second homes. “It was beaten to death before,” he said. “I am very much against it. I don’t think it is fair and there are many reasons it is not equitable, especially to some of the old-timer families that may have inherited a house here. The last time it was discussed a lot of bad blood came out of it.”

“I am for having a discussion of out-of-the-box ideas to fund affordable housing but I am less interested in a tax and more interested in organizing contributions that are significant and make a dent in the housing issue,” said Merrill. “Let’s look for a more positive way to fund solutions to the issue.”

“Before COVID there was a small but real group that offered to donate and help the housing cause,” said Schmidt. “If we think the ADUs (Accessory Dwelling Units) are hard to enforce, this would be really hard.”

“I agree it would be hard to implement,” said councilman Jason MacMillan. “And some of the old-timers should be exempt somehow but there could be creative ways to deal with funding.”

“An altruistic approach has worked,” said Williford. “There are success stories with that in other communities such as Jackson.”
“I’m still waiting on the second homeowners to step up and donate to the Valley Housing Fund,” said Dujardin. “We should be doing both things actually. I’m not into the equity argument when someone who inherited a house worth who knows how much might be asked to pay $1,000. This could bring in a lot of money.”

Deed restrictions and guidelines
Also during the retreat, Kermode spent time with the council suggesting ways to smooth out its various deed restrictions and affordable housing guidelines on the books. Kermode said one good indicator for the valley is that while an emergency assistance fund for mortgages was set up for deed restricted properties in the county a year ago to deal with potential COVID hardship, no one has applied for any of the funds. The plan is to keep the fund open until March of 2022.

A few glitches to start

[ By Mark Reaman ]

The 36-unit GardenWalk affordable housing project located in Gunnison has started leasing their apartments to local workers. While there have been some hiccups in the initial process, renters have started to move in.

The project is a LIHTC (Low Income Housing Tax Credits) building similar to Anthracite Place in Crested Butte. But while Anthracite Place has two AMI (Area Median Income) levels to consider for potential renters, GardenWalk has four along with two bedroom types (one bedroom or two bedroom). The deed restriction for the Gunnison project limits renters to making between 30 and 60 percent of AMI. Being a LIHTC project subsidized construction costs and helped make the project affordable to lower income workers.

Some initial renters who wished to remain anonymous said they felt like they were given the runaround. “It seems they told me and others one rent amount and then that would change; they would tell us one deposit amount and that would change,” said one person. “Move-in dates were moved several times and they had trouble verifying my income despite a ton of paperwork.”

Gunnison City manager Russ Forrest said there were some glitches with the first renters but he said, “The issues have been worked out to the best of my knowledge.”

Gunnison Valley Regional Housing Authority executive director Jennifer Kermode said she had heard of the initial confusion some people experienced but is excited that a new affordable opportunity is opening.

“GardenWalk has had some challenges with the marketing/communication piece to the public and not setting clear expectations of applicants on how the lease-up process works,” she explained. “Unlike Anthracite Place, GardenWalk has four different AMI levels and two bedroom types, which complicates the process (we only have two AMIs at APA). Once someone brings in a fully completed application package and their income is calculated, that’s when they know which unit at which AMI level someone qualifies for. As is the case with almost all subsidized housing, there are fewer units at the lowest AMI (30 percent) and more units at the max (60 percent) AMI. So, once the units at 30 percent AMI are leased up, someone may get offered a 60 percent unit even if their income is at or below 30 percent. Again, without clear communication, some folks felt it was a bait-and-switch.”

GardenWalk is owned and managed by a company out of Oklahoma and Kermode said the developers have been trying to find a local property manager, “but finding someone here who is trainable for LIHTC which is very complicated is a challenge,” she said.

The Crested Butte News reached out to Belmont Management by email but did not hear back.

A single person qualifying for the 30-percent AMI level must make less than $14,950. At the 60-percent level, the upper limit annual income is currently $31,680.

“Despite the initial confusion at GardenWalk, the complex is beautiful, affordable and provides good quality living here in Gunnison,” emphasized Kermode.

An official ribbon cutting is being planned for May.

Figuring out when, where and how to pay for it

[ by Mark Reaman ]

The future of affordable housing in the valley was a primary topic of discussion for the Crested Butte Town Council at the December 21 meeting. Several ideas and strategies are being mulled over to address the issue.

Some of those ideas include possibly asking citizens to approve a tax that would specifically fund workforce housing; not over-saturating the market with similar projects at the same time; doing a water well study at the Brush Creek property south of town to see how much water the land produces; focusing and coordinating the projects currently in the hopper with Crested Butte, Mt. Crested Butte and Gunnison County; and recognizing the sense of urgency associated with the need for more affordable housing.

Crested Butte community development director Troy Russ and town planner Mel Yemma presented an hour-long work session of a proposed five-year plan for housing in the north valley. They went over Telluride’s affordable housing plan that included significant taxes that fund such projects. They also outlined the local projects that are progressing and showed that hundreds of units are actually in the pipeline.

About 100 deed-restricted units are slated to come online in Gunnison next year. Major projects being considered in the north valley include the Slate River annexation housing opportunity in Crested Butte; the potential North Village project in Mt. Crested Butte; and Brush Creek and Whetstone (the land across the highway from the Corner at Brush Creek). Combined, those could bring several hundred more deed-restricted units into the mix.

That is on top of other initiatives like the InDeed program that would purchase deed restrictions on existing free market homes; the student build project in Paradise Park; the Redden “Tiny Home” development; and the Homestead at Prospect housing project in Mt. Crested Butte.

Basically, Russ indicated that next year would be spent primarily in the planning phase. Crested Butte is starting its comprehensive “Community Compass” planning, Mt. Crested Butte is updating its Comprehensive Plan and the county commissioners are beginning a Strategic Plan update.

“Everything needs balance,” said Russ. “That is part of the Compass and all the planning initiatives. It is part of the challenge going forward.”

The Gunnison Valley Regional Housing Authority is expected to begin a new Needs Assessment study for the valley starting next spring. That data will help drive what sort of projects should emerge in the north valley.

In a memo from town manager Dara MacDonald to the council, she stated, “It is important that each project be carefully thought through as to unit type, size and price point to make sure they are meeting the highest needs. It is also important to coordinate the projects to ensure they do not compete with one another to the detriment of the success of any projects… Additionally, development opportunities of this magnitude also bring with them several ancillary impacts that must be considered and mitigated including traffic, utilities, transit demand and impacts on recreation facilities to name a few.”

Would a new tax work?
Russ cited the effective use of bonding and taxes to leverage money for workforce housing in Telluride. While Crested Butte doesn’t normally go into debt for such projects, he said it would be worth asking the citizens if that policy should be adjusted. “It is important to think into the future and understanding upcoming growth and its impacts on housing,” Russ said. “The town has done an amazing job from a regulatory perspective in developing places to live in town but we can look at other tools in the toolbox. Housing is a regional issue, not just Crested Butte. Given Crested Butte’s price point, the whole north valley has more opportunities than just the town.”

“A big question is what is our comfort level as a community if we go to the citizens and ask for the ability to bond and go into debt for affordable housing,” said council member Laura Mitchell.

“Again, that’s part of the Community Compass,” said Russ. “What does the Crested Butte community want Crested Butte to be like 20 years from now? That will help outline the community decision-making framework. And then there is the need to coordinate with our partners.”

Citizen Margo Levy said the town needed to come up with ways for more people to reside in town. She also said there was a need to leverage town affordable housing funds to get more units on the ground.

Kent Cowherd advocated for using the Slate River annexation project for so-called “Space to Create” housing that included things like artist studios or small retail spaces in conjunction with housing. He also asked the council to begin studying whether the land behind the Crested Butte Community School was a wetland or if it could be used for another major housing project. “I urge the council and public to understand the urgency of the affordable housing need,” he said. “Declare a ‘housing emergency’ like council did with the Climate Action Plan.”

Finding water at Brush Creek
Mayor Jim Schmidt suggested it would be worthwhile to have the four partners in the Corner at Brush Creek parcel conduct a well test this winter to see how much water could be pumped on the land. “It makes sense to do it this year and see what is out there during a relatively dry year,” he said.

“If there is not much water, do we lose that land for potential housing?” asked council member Mona Merrill.
MacDonald said during the Corner at Brush Creek discussions several options to provide water to the property were touched upon.

Skyland resident George Gibson supported the well testing idea and asked that some of the testing include monitoring the neighboring wells to see what impact the pumping would have on them.

“It is an important step,” Gibson said. “We all want to know what is there, so please go forward and do it right and look at the neighboring wells too.”

MacDonald said she would approach the other owners of the property with the proposal to conduct such tests.
Council member Will Dujardin said while it was understandable to see what projects were happening throughout the valley, “We need to deal with our one square mile of town. We need to keep local people living in town,” he said. “And I’ll echo Kent’s comment on the need for urgency over the issue. We need to look out for ourselves as well as be good partners.”

“I couldn’t agree more,” said Russ. “Representatives of Mt. Crested Butte, the housing authority and the county will be meeting regularly to stay informed about housing. For example, we wouldn’t want Slate River and the Whetstone project starting at the same time and competing for the same dollars. Our square mile is important but housing transcends just Crested Butte.”

What about Kent’s school site suggestion?
Dujardin suggested the town take up Cowherd’s suggestion and conduct a wetland study of the land by the school to see if it still is wet or if a development could go there.

Russ said as part of previous deals with the property, there is a covenant on the land with the Army Corp of Engineers that the town cannot develop those wetlands.

Bob Gillie, who was town planner at the time, said the whole wetland delineation issue was tied to the Trust for Public Land that helped facilitate the purchase of the property. “And if you develop wetlands, you have to mitigate and create wetlands elsewhere, which can be expensive.”

Town attorney Barbara Green said wetland issues are not just a town matter but also extend to the county, state and federal level.

Russ emphasized there were several housing projects further along in discussions and the focus should remain on them.
“We will examine every square inch of town over the next several years for housing but every project is intensive and eats up staff time to do well,” said MacDonald. “This might very well be good for housing but we have plans in the north valley for hundreds of units. I would recommend focusing on the Slate River project that is a big lift right now. Plus it is more shovel-ready than the school parcel.”

“In the big picture it is important to get an updated study of that property,” said Dujardin.

“If we don’t know what we can do on that property, then we don’t have an understanding of the big picture,” added council member Mallika Magner.

“Two things have been determined. We know that land has been designated a wetland and there is no reason to believe that’s changed,” said MacDonald. “And there is a covenant tied to the property with the Corps of Engineers.”

“That property has met the community values for years so that is why I am excited about the Compass,” said Merrill. “Do the residents still want that to be open space or are they good with more affordable housing?”

Focus
“The hard thing is that when council focuses on one thing they forget about everything else,” said mayor Jim Schmidt. “That is what the Compass is about. Kent’s idea would bring more units but it would also bring a lot more traffic to an already busy area, for example.”

“I would rather keep moving toward the Slate River annexation project,” said council member Laura Mitchell. “It is better situated. Have you been over in that neighborhood when school is in session? They are overrun by traffic already.”
“It’s not time to get into details now,” said Dujardin.

The housing discussion will continue with the planning efforts taking immediate priority in early 2021 while government staffs will continue to move to solidify affordable housing projects already on the drawing board. From a policy perspective, the elected officials will determine how best to take the interest of citizens and ultimately, how to pay for the millions of dollars worth of new projects.

“We recognize that housing is a regional issue”

[ By Kendra Walker ]

In an effort to provide more affordable housing options for local workers, the town of Crested Butte is pursuing an “InDeed” deed restriction purchase program from existing housing stock, and is looking for partners to bring the program to fruition in the north valley. The Mt. Crested Butte Town Council is interested in collaborating, and discussed the idea with Crested Butte’s community development director Troy Russ during their December 1 meeting.

“We all know the housing challenges in the valley,” said Russ. “We recognize that housing is a regional issue.”
In the north valley, the median home price is $864,940; however, the median per capita income is only $37,603. With the growing income disparities between housing costs and incomes, the north valley currently holds 42 percent of the jobs but only 23 percent of the employees actually live in the north valley. “We need our employees to live in the north end of the valley,” said Russ.

Of the 4,393 total housing units in the north valley, about 45 percent of those are owner-occupied but only 7 percent are deed-restricted units, said Russ. With an InDeed program, public resources could be utilized to purchase deed restrictions on existing buildings. “When you look at those housing stocks it starts to make more sense,” said Russ. “We think it’s a far more feasible and valid program to develop in the north valley.”

Crested Butte has looked at existing InDeed programs in Vail and Summit County, where the program pays the property owner between 10 percent and 20 percent of the property’s value to place a deed restriction on it to preserve it for local workers.

Crested Butte has committed $50,000 each year for the next five years to an InDeed program, but is looking for additional funding resources. “We really want to work with our valley partners. Collaboratively, we can put together the resources to create a very effective program,” said Russ. If Mt. Crested Butte decides to contribute funds, their amount would be at their discretion, he said.

The Mt. Crested Butte council gave the partnership an initial thumbs-up.

“I love the idea of getting involved with this and figuring it out,” said council member Steve Morris.
“This is within what we wanted to accomplish with some of our STR [short-term rental] dollars. We need to have an internal conversation to see if there is a certain percentage of the fund we can use,” said council member Roman Kolodziej. Mt. Crested Butte has a 2.9 percent excise lodging tax on short-term rentals and hotels, with the funds designated for affordable housing projects. “I would hope that we’re not just creating another governmental entity that’s going to cost a lot of money to run,” Kolodziej added.

“Do you foresee us prioritizing rentals over owner-occupied?” asked council member Lauren Koelliker.
“That’s where Crested Butte would suggest is the most strategic way,” said Russ.

Jennifer Kermode of the Gunnison Valley Regional Housing Authority (GVRHA) chimed in, saying, “I think this is a great program. Troy has done a phenomenal job in putting the initial draft together. It’s certainly an important tool in the toolbox for us to have. The housing authority is certainly supportive of seeing this program develop.”
“It sounds like we have some interest in pursuing this with you, Troy,” said mayor Janet Farmer.

Russ said the town is working to solicit partners over the next couple months. In addition to Mt. Crested Butte, Crested Butte’s goal is to partner with Gunnison County, the Valley Housing Fund and the GVRHA toward the InDeed program. Partnership meetings would tentatively take place February through June 2021 for a potential project launch in Fall 2021.

Gary Gates excited for 77-unit development

by Mark Reaman

The basic infrastructure is in. Large machinery is moving dirt across from the Gunnison Recreation Center with the intent to see scores of affordable rental housing units pop out of the ground within the next several months for local workers. Foundations are expected to be poured this week and framing to begin next week on the county’s latest affordable housing project. The developer of the 77-unit complex, tentatively called Paintbrush, hopes to be renting the spaces by February 2021.

Developer Gary Gates of Gatesco Inc. said Monday that while there were some delays with road and irrigation ditch issues, everything is wrapped up and it should be smooth sailing, weather permitting, to get the units vertical and workers living in them before the end of next ski season.

“If the weather is good and the coronavirus situation doesn’t shut us down for some reason, we can go pretty fast,” Gates said. “There is no bank involved right now so we don’t have to wait for lender approvals. I think we have the people to get it done. The city of Gunnison and the county have been very cooperative, so we don’t have any obstacles. It is nice to get this going.”

Located across from the Gunnison Recreation Center near Walmart, the approximately $15 million project will have almost 90 percent of the units under a deed restriction. The units range from 375-square-foot efficiency units to 1,268-square-foot single-family homes with three bedrooms and two bathrooms. There will be everything from tri-plexes, to buildings with 16 units, to detached single-family homes.

There is a LIHTC (Low Income Housing Tax Credits) project going up in Gunnison so the idea is to fashion most of the Paintbrush units toward what might be considered middle-income workers making between $17 and $22 per hour. Twenty-nine units are meant to be rented for people in the 80 percent AMI (Area Median Income) category with a 60 percent or below AMI floor; 30 units will be restricted to those making less than 120 percent AMI, but more than 80 percent AMI; nine will be set aside for people making no more than 200 percent AMI but more than 120 percent; while the remaining nine units will be free market with no deed restrictions. As was the idea with the proposed Gatesco Corner at Brush Creek project, utilities will be paid by the landlord, so water, natural gas and electric will all be rolled into the rental rate.

Gates said his original intention to complete a quick construction process was to bring in crews from Houston. While he has typically purchased apartment complexes instead of building them, he owns 8,300 rental units in that city and has crews experienced in some construction. He said they might still be used but initially the construction workers in Paintbrush will come almost 100 percent from the Gunnison County area.

“With the coronavirus it seems work slowed down up here so people wanted to submit bids. They were all very competitive and I would have had more overhead bringing crews up from Texas. I was starting to look at hotels and other housing but this makes better sense,” Gates explained. “So right now A.J. Cattles is overseeing the day-to-day work and no one from Houston is on site working.”

Gates, who ran into headwinds with some strong opposition to his proposed Corner at Brush Creek affordable housing proposal, made it clear he has not given up on developing similar affordable housing projects in the north end of the valley. “This is probably my worst economic investment ever but I think it is important,” he said. “I just don’t want to lose money on the project. But this will, I think, address all the concerns brought up with the Brush Creek project. I’ve said to everyone that we need to knock this out of the park. It has to go beyond expectations.

“I feel an obligation to protect the people who are part of this and those who supported this,” Gates continued. “We have to go beyond expectations and I need to live up to the faith they put in me.”

Gates explained from his business perspective, it makes sense to own about 500 total rentals in the county with between 200 and 300 of them located in the north end of the valley. This is his first project outside of the Houston area. He admittedly still has his eye on the county-owned property at Brush Creek Road and Highway 135.

Gates said, given his business success in Houston where there is a minimal 5 percent vacancy rate in his 8,300 rentals, he can weather a slow start to the Gunnison project if the coronavirus puts a lag on housing needs for workers.

“There is some satisfaction to come here and do something a lot of other people, including some developers, can’t do, due to the unusual circumstances with the coronavirus and its impacts. I’ve run my business so when this struck, it hurt, but unlike some others I can wait this out. I’m not in this for the short-term,” Gates said.

“I understand that how Western Colorado University does this fall will have a big impact,” continued Gates. “There could be a lot of empty apartments if the students don’t come back to campus this fall. But I’m ready and prepared and in a position to think long-term. It will all come back. It may take a couple of years for the economy to fully recover but it will happen. I have the tools to get through this. And it is still important to get the project completed like we said it would.”

While Gates said he has worked well with the county and city and perhaps could have negotiated harder, he did not try to “squeeze” any of the fees or upfront costs. “It was more important to show this can be done, even in this coronavirus time,” he said. The county sold him the five acres of land for $10,000 instead of the original $100,000 price but he had to contribute to the road and irrigation ditch improvement costs.

Once the framing starts and he has an idea of how fast it will take to get the buildings up, Gates will start advertising to get a feel for the workforce housing demand. He predicts that phase of the project will come about the middle of August. “The goal is to have them ready and start renting them early next year. I think we have the labor to get there,” he said.

Gates also noted the design is meant to be used as a basic template for other future projects, whether in Gunnison County or Texas. He said while adjustments can be made to account for local regulations, having a workable basic design will save time and money in the future.

“The bottom line for this project is doing it right,” Gates concluded. “It will be something we all can be proud of. We want to make sure we don’t have anything to come back and bite us.”

20 new homeowners expected to have their units within a year

By Katherine Nettles

As of Friday, June 12, there are 20 new Gunnison County residents looking forward to affordable home ownership in the valley. The Gunnison Valley Regional Housing Authority held a virtual lottery for new affordable housing units at the Prospect Homestead subdivision in Mt. Crested Butte, units that vary from two to three bedrooms each. Construction on the units is set to begin in the next few weeks. Gary Huresky with LIV Sotheby is handling all of the contracts.

Twenty pre-qualified Gunnison County applicants vied for the 20 units available. Initially 30 people had applied but only 18 of them qualified. The week prior to the lottery the GVRHA board of directors conducted an appeals hearing for three of those applicants who had initially not met qualifications to be included. County commissioner Roland Mason, who sits on the GVRHA board, said that due to extenuating circumstances, two of the three appeals were accepted.

“It just goes to show that housing is in huge demand,” Mason said.

The subdivision includes six two-bed/two-bath units; three three-bed/two-bath units; and 11 three-bed/2.5-bath units. Prices range from $267,115 for the smallest unit at 1,303 square feet to $383,145 for the largest unit at 1,869 square feet. There are two additional units which the town has reserved for its employees.

GVRHA executive director Jennifer Kermode said there were a few hiccups in technicalities during the virtual lottery and there were also complications stemming from a few applicants who wanted the same units.

“We were trying to use the town’s phone system, which works through microphones, but the feedback made it impossible to hear anything so we just used the Zoom audio system instead. It took about 10 minutes to figure that out,” Kermode said of the technical problems. Next, a mix-up in bedrooms being requested by certain applicants required a bit of shifting.

“Twenty households selected a home and two went onto an alternate list for bedroom count,” said Kermode. “There was a bit of switching around and both now have a home to write a contract on. Everybody wins!”

Mt. Crested Butte community development director Carlos Velado wrote of the process in a report to town council that with pending contracts, “This does not mean that all the units are spoken for at this time. Lottery winners are in the process of finalizing agreements to purchase the units.”

Velado reported that architectural drawings for the Homestead subdivision have been submitted to the town of Mt. Crested Butte, and the project received approval from the Prospect Design Review Board and conditional approval from the Planning Commission on March 27.

Mason said it looks likely that those who complete the process will have housing within the next year.

Opportunities exist in the north end of the valley

by Mark Reaman

Several one-bedroom apartments and one two-bedroom apartment in Crested Butte’s affordable housing project, Anthracite Place, are vacant, with one having been open since last summer. Three deed-restricted affordable housing units are available in Stallion Park, located up Brush Creek Road in the Buckhorn Ranch subdivision, as well.

The vacancy issue came up at the February 12 meeting of the Gunnison Valley Regional Housing Authority (GVRHA). There are six two-bedroom units and 24 one-bedroom units in Anthracite Place managed by the GVRHA. The Housing Authority also manages 11 units in the Stallion Park subdivision south of Crested Butte.

“It sounds like there are some units without people living in them,” said GVRHA board member Jim Schmidt. “Have we contacted everyone on the waiting list?”

GVRHA executive director Jennifer Kermode and housing specialist and manager Chris Peterson said the organization doesn’t keep a waiting list anymore since it actually can slow down the qualification process. Instead, when a vacancy arises in Anthracite Place, the GVRHA advertises in hopes of attracting renters.

Peterson anticipates two of the units to be filled shortly since the GVRHA is in the process of confirming applicant eligibility, but she said one has been vacant since last July. Peterson joked at the board meeting that she thought that particular unit must be haunted.

To qualify for that unit, the renter must make less than 50 percent of the Area Median Income (AMI). “That means the maximum income for a one-person household is $24,850 annually,” explained Peterson. “If someone is working full-time, year-round and makes more than $11.71 per hour, they are over the income limit. And it’s very hard for someone to survive on just $11.71 per hour here, so it’s tough to find a qualified applicant. Our files are audited annually for compliance with the strict rules that come with a Low Income Housing Tax Credit (LIHTC) project, therefore we jeopardize the financial investment ‘stack’ used in getting the building developed if we ‘fudge’ on income. With minimum wages rising, it’s becoming more difficult to fill the lower AMI apartments.”

Kermode said qualifying renters for Anthracite Place is not a simple process since it is a LIHTC project that must meet federal guidelines. This requires a large amount of paperwork.

“We work with people to try to get them in the units but there are several things that come into play,” Kermode explained to the board. “First, they have to sign a minimum of a one-year lease. We think that puts off some people and we are looking at the possibility of offering six-month leases. Second, they have to put together a lot of paperwork and that’s a lot of work on their part. Third, you can’t smoke cigarettes or marijuana on the property and that puts some people off. And fourth, Anthracite Place doesn’t allow dogs. I also think that this time of the ski season, most people have stable housing if they are here.”

On the bright side for tenants, the chances of a big jump in rent are slim. “Rents at Anthracite Place have seen almost no increase since the project was completed in 2016,” explained Kermode. “We’re only allowed to increase rents by the change in AMI each year; the average increase in AMI in the county is .2365 percent per year. Thus, we can’t increase rents enough to always keep up with the increase in costs to manage and maintain the property. This dilemma works in favor of prospective tenants. They can be fairly certain they’re not going to see huge jumps in rent as they could in a free-market unit.”

To move into the complex, the GVRHA requires first and last month rent along with a security deposit that can be paid out over three months. Rent depends on income. So if a qualified renter makes less than 50 percent of the AMI, they will be charged $644 per month. That includes utilities. If a single renter makes more than 50 percent of the AMI ($24,850) but less than 60 percent ($29,820), the rent is $779. The rent on the vacant two-bedroom unit is $933 per month.

GVRHA board chairman Carlos Velado said renting those units is different from having a free market unit for rent. “It’s the nature of a LIHTC project. There is lots of red tape and roadblocks that make it more difficult to fill those units than otherwise,” he noted.

Peterson said the vacancies are being advertised in both Crested Butte and Gunnison.

The GVRHA also manages 11 units in Stallion Park in Buckhorn Ranch. Those are deed-restricted as well but higher income limits are allowed than in Anthracite Place. Of the 11 units, three are vacant at the moment. Peterson said a three-bedroom/2.25-bath townhome is available for rent to local workforce employees and the rent is dependent on income. She said there are two two-bedroom condos being refurbished to be sold later this spring. She said the GVRHA will post on its website and notify those on its “interested list” when that happens.

To get on the “interested list” call (970) 641-7900 or email cpeterson@gvrha.org. “We’ll also notify them of other housing opportunities as they come available,” Peterson promised.

Gathering the information

by Mark Reaman

The eviction of a single mother and her two children has caused a stir in the north end of the valley. The Gunnison Valley Regional Housing Authority manages several workforce housing units in the area and took action to remove a family from one of its units in Buckhorn Ranch.

A friend of the woman who was evicted, Tricia Kubisiak, sent letters to the local papers (see page 5) and posted her views on social media. She said that the family admitted they were late with rent payments but when they tried to pay the rent the GVRHA would not accept it.

The woman who was evicted did not respond to an email request for a comment.

GVRHA executive director Jennifer Kermode said on January 24 that while she was aware of the posts on social media, “at this time the GVRHA is not able to comment.”

GVRHA board chairman Carlos Velado said the board was gathering information on the situation but could also not comment in any detail. “The board spent Friday afternoon acquiring information on the recent GVRHA eviction that has been publicized on social media by a local citizen,” he wrote in an email. “The GVRHA held a special meeting Monday morning to discuss and obtain legal advice on how to respond. Out of respect to the privacy of the former tenant and the fact that the eviction is still in the court process the Board of Directors is unable to comment further on the matter until the eviction court proceedings are finalized.”

Velado said the current situation was different from a recent issue in Anthracite Place where a lease was not being renewed. “This particular issue is an eviction, which has to go through the courts,” he explained. “The eviction is still in the court process so I can’t get into specifics until the proceedings are finalized.” A court hearing on the matter is scheduled for February 20.

Packaging the county projects under one application for significant state funding

By Mark Reaman

The Valley Housing Fund wants to pull together elected officials from throughout the county to collaborate on how best to go after millions of dollars in state money being set aside for affordable housing.

Executive director Darin Higgins and VHF board chairman Jim Starr reported to the Crested Butte Town Council on November 18 they hope to get state officials to the valley early next year to participate in a forum for local officials to ask questions and understand how the money will be distributed.

“We hope to bring in the key people from the state and have them tell us how it would work,” said Starr. “We want to be together so we all hear the same information. Given county commissioner John Messner’s role in helping to get the legislation passed, we think the valley has a very good chance at obtaining funds from that pool of money. There will be a huge infusion of money from the state directed at affordable housing over the three years. We want to send the state a countywide package for them to consider.”

“Our idea is to come to the state as a county with three years of projects detailed in one request,” explained Higgins.

Higgins said it is anticipated that funding will range from about $20 million the first year to $114 million in year three, for a total of hundreds of millions of dollars on the table.

“That is a good idea and, while it sounds like a lot of money from the state, everyone in Colorado will be looking to get a piece of it,” said mayor Jim Schmidt.

“The goal is to maximize the benefit,” said Higgins. “The more we can package the whole county, the better.”

“A team effort is attractive to the state,” said councilman Chris Haver.

Starr and Higgins also went over the changing role of the VHF, which used to be known as the Gunnison Valley Housing Foundation. Starr said the group is committed to develop affordable, accessible and energy-efficient housing in the valley. The board hopes to accomplish that by providing grants to government entities, providing loans to private developers of workforce housing and banking land in the county. “We are also considering some developments ourselves,” he said.

The ultimate goal according to Starr is to develop 400 new units by 2024. That will be funded in large part when the Long Lake Land Exchange Project is completed, which is expected soon. That deal will fund the VHF coffers to the tune of about $2.5 million.

“We’re not widely known but we are doing good things with housing,” said Starr.

Higgins said that the lack of affordable housing is a nationwide and statewide issue, as well as a local problem. “A recent study shows that Gunnison County is one of the least affordable counties if you are trying to rent a place,” said Higgins. “You need to make 160 percent of the median income in the county to afford the median rent. That is in part because our wages are lower than in places like Aspen and Vail.”

Higgins disagrees with those who say the valley needs to be careful of over-saturating the affordable housing market in the valley. “We are so far away from a ‘saturate the market’ problem,” he said. “We’re in a deep hole.”

Higgins said the VHF planned to help update the county’s Needs Assessment Survey to pin down the current need for types of housing throughout the valley in 2020.

But will advocate first for the North Village housing project

By Mark Reaman

While town staff is recommending the Crested Butte Town Council shift its affordable housing focus to supporting the upcoming North Village development in Mt. Crested Butte, the council in general wants to keep taking steps toward at least a preliminary plan to get housing on the upcoming Slate River annexation property north of town.

Council members made it clear they want to do whatever they can to stand behind affordable housing in the North Village but they want to be prepared if that project at the base of Snodgrass Mountain hits roadblocks.

Crested Butte community development director Michael Yerman outlined concepts and potential timelines for the Slate River annexation parcel. They ranged from constructing some dormitory-style housing for rentals, to apartment rentals, to for-sale condominiums.

The town would use approximately two acres of land located basically on the southwest corner of the property at Gothic Road and Butte Avenue across from the Gas Café with the higher density development bordering Gothic Road. That acre of property would entail some further cleanup of a portion of the old town dump that lies beneath the land. That cleanup could cost between $800,000 and $1.2 million but that cleanup could possibly provide an avenue for some underground parking.

Yerman said the longest part of the development would be a thorough public process to create a vision for the site that addresses density and amenities. He said the most dense development could result in 40 to 60 rental units, depending on the type of project the community green-lights. He said a dormitory-style project constructed in Telluride has been very successful.

Yerman projected that it would take about four years from planning to finish for the first phase of the rental development. “It will be an impactful project given the density and the location,” he told the council at the November 18 meeting. “The timeline is aggressive but doable.”

Yerman then told the council that the feeling of the staff was to first support the possible affordable housing project being proposed as part of the North Village development in Mt. Crested Butte. That development is in its early stages but is initially contemplating a relatively low-density development at the base of Snodgrass.

Part of the parcel includes 17 acres owned by the town of Mt. Crested Butte. That council is determining what sort of affordable housing density would be appropriate on that land and if it could be incorporated into the overall development being proposed by Claudio Alvarez.

“There are three sites in the north end of the valley for big affordable housing projects,” Yerman said. “The North Village is big, especially given that a new lodging tax passed in Mt. Crested Butte to fund housing. The annexation to Crested Butte is another, as is Brush Creek. The Slate River annexation site is probably the most ready to go but a year is needed for public planning.”

Local affordable housing consultant Willa Williford agreed saying, “The North Village wants to move quickly but they have a lot of pieces to put together.”

“My recommendation is to focus on the North Village,” said Yerman. “Going after the state money being set aside for affordable housing in Colorado, we should prioritize one project and the North Village makes sense.”

Councilman Will Dujardin said he foresaw problems with the North Village project coming from neighbors living near the potential development. “It is frustrating that we all have to wait,” he said. “I would rather see us move forward as well.”

Mayor Jim Schmidt agreed with Dujardin. “I would like to move forward to at least get the planning started,” he said.

“We don’t want to take the wind out of Mt. Crested Butte’s sails,” said Yerman. “We are talking two major projects and we don’t want to split the public. We don’t want to send mixed signals to the state. It is important to come together with one project. The North Village should be our priority and we should put our support behind that.”

Town manager Dara MacDonald said the council should also consider the appropriate number of units to put on the market. In a discussion earlier that evening, Valley Housing Fund executive director Darin Higgins said the valley needed hundreds of workforce housing units. “We are so far away from a ‘saturate the market’ problem,” he said. “We are in a deep hole.”

“I disagree with Darin’s statement. We should be worried about the absorption rates,” MacDonald said, citing fewer people than expected who applied for affordable housing units with the town and about 50 people currently on the Gunnison Valley Housing Authority waiting list.

“Overall, we see the need for possibly 150 rental units and there are a lot being built in Gunnison,” said Yerman. “Typically with that need you would build maybe 50 in a market this size. Lenders would be uncomfortable putting more than that on at once. All the potential projects are awesome but they need to be phased. We need to be mindful of the absorption rate.”

“If for some reason the North Village falters you can get to a place where you can start one up,” added Williford.

Yerman told the council his staff was also stretched pretty thin with other major projects such as the upcoming Climate Action Plan and potential “Community Compass” project, meant to draw a big vision picture for the community.

“I am concerned our constituents will think we’re doing nothing. It’s frustrating,” said Dujardin. “We need rental housing now.”

“The town is completing the biggest housing project ever done here. You’re not doing nothing,” responded Yerman. “Have them come look at what is going up.”

But Schmidt said he was in the same boat as Dujardin. “I would at least like to see the plan go forward,” he said. “The state money is available for three years. I would at least like to revisit the topic in three months. But I do want to support the North Village and our friends in Mt. Crested Butte.”

“I would like to see how the annexation plan fits in with the Mt. Crested Butte plan,” said councilman Chris Haver. “What’s the process to put in place to make the best decision for the future?”

Councilwoman Mona Merrill suggested a meeting with Mt. Crested Butte council. MacDonald said organizing such joint meetings could be difficult and suggested a subcommittee be formed of the housing authority representatives from both towns along with county commissioner Roland Mason. The idea would be share to information and updates about progress primarily with the North Village and other potential housing projects.

“It will make a difference to the state funders to show such regional collaboration,” said Yerman. “We don’t want to seem like there are two competing projects wanting the same money that are located three miles away.”

The council agreed to form the subcommittee to stay abreast of the housing project in Mt. Crested Butte.