Looking for reliable funding source

by Mark Reaman

Crested Butte town planner Michael Yerman recently updated the Town Council on its current affordable housing efforts, and one takeaway was that the council would like a more regional, collaborative approach.

Yerman outlined some projects that are in the works at a February work session, including a Crested Butte Community School student-build project on one of the town’s deed-restricted micro lots. The students are designing and will build the 1,000-square-foot home that will eventually be rented to a town employee.

There are six locals preparing to build homes this coming summer on other deed-restricted lots in blocks 79 and 80 in the northeast side of town. While the departure of former Gunnison Valley Regional Housing Authority executive director Karl Fulmer has delayed some affordable housing projects, the town is actively assisting in seeking his replacement.

The town is submitting a grant application with Colorado Creative Industries for a so-called “Space to Create” project that could bring a major project to an acre of land that would be included with a possible annexation with Cypress Foothills on the north side of Crested Butte.

And the town is working on two duplex projects in partnership with the Gunnison school district and Mountain Express to provide housing for “essential service workers” in the community. Those could be built in 2018 and would likely provide two units for teachers, one for a town employee and another for a Mountain Express worker.

Finally, the town is investigating the beginning phase of getting some affordable housing on the 17-acre parcel located at the intersection of Highway 135 and Brush Creek Road.

While outlining affordable housing goals, Yerman said one lofty goal was to build 50 more units of affordable housing in town in the next five to seven years. That would make about 25 percent of the town housing stock deed-restricted for locals. “That is a big one and we want to make sure the council is on board,” he said. They appeared to be.

Mayor Glenn Michel said one objective he would like to see added to the list was “more regional collaboration as part of the goals. The county and Mt. Crested Butte have to be on this journey with us. The town cannot do it all alone.”

Yerman agreed that was important and would include it in the list of stated goals.

He also said the partnership with the community school was a great project that could be extended to other micro lots. “They have a great team of professionals from the community assisting them but the students are really driving the project,” Yerman told the council. “We hope to continue this program into the future. There are two more micro lots out there. It has been really cool and we will end up with a good product that will be rented by a town employee.”

“Is there a chance to do more micro lots in town down the road?” asked Michel. “We are hearing people really want micro lots and small houses. They are sort of the future. Are we looking at more?”

“We have learned a lot about micro lots. No one here is building a tiny home. They’re great for Tucson where you can open the doors and expand the space,” responded Yerman. “Here, with all the snow like we have seen this year and the cold, living in 400 square feet might make people start living at Kochevar’s every night. And we’ve found that once people are in a space, they stay there even if the family grows. I’m starting to agree with [councilman] Jim [Schmidt] and see the drawbacks of a tiny house in this environment with all the needed storage for toys, the parking issues, the snow storage elements. It is looking best to construct duplex and triplex units, given the demands of things like storage.”

The 17-acre Brush Creek parcel seems to hold potential bang for the buck and could be suited for a public-private partnership. The four owners—Crested Butte, Mt. Crested Butte, Gunnison County and Crested Butte Mountain Resort—are looking to put out a request for qualifications to see if developers are interested in helping with a project.

“Once we see if there are qualified developers, we’ll ask them to submit a request for proposals,” explained Yerman. “The developers would be responsible for the master planning and Land Use Resolution approvals through the county. We will keep the council informed with any progress.”

“All of these projects require money,” noted Michel. “We need liquidity to go forward with the projects. We need more revenue streams. It seems like we need a new regional revenue source for this issue.”

“That is being contemplated with the county commissioners and housing authority but it would take a vote of the whole county,” said Yerman.

The Town Council and county commissioners are planning a joint meeting on March 28 to discuss that issue (along with several others).

Yerman also informed the council that since 1991 the town has contributed $2.4 million in tap fees to protect deed-restricted housing.

Can a 2015 ordinance govern a 1990s covenant?

By Mark Reaman

The Crested Butte Town Council did not react kindly to the threat of a lawsuit over an accessory dwelling unit (ADU) enforcement issue in town last Monday. Tension filled the council chambers at the regular Town Council meeting during a presentation by attorney Marcus Lock, who is representing two Crested Butte second homeowners who do not want to long-term rent their ADUs.

Lock said he was hoping to reach a quiet settlement with the town in part because he felt a court ruling on the regulation could actually impact scores of deed restrictions on ADUs in Crested Butte and make the renting requirement null and void.

John Kiltz of 715 Sopris, LLC, who owns a house and ADU at 715 Sopris Avenue, and Chris Mize, who owns similar property at 225 Butte Avenue, have retained Lock after being notified by the town that they were out of compliance with town code by not actively renting the units.

Active enforcement of restrictive covenants and deed restrictions began last March at the request of council. After sending several compliance letters and granting extensions, the town issued notices of violation to the property owners on September 15. Kiltz and Mize hired Lock to fight that action.

Lock filed appeals for Kiltz on September 23 and Mize on September 28. Under the town code, appeals of such violations are heard by the town manager. According to town manager, Dara MacDonald, the hearing was set for October 13 to accommodate discussions about a possible settlement.

The town has been working since spring to actively make sure any ADU that received tap fee breaks and density bonuses complied with the town code, updated in 2015, that required such ADUs to be physically rented.

As a result, the majority of ADUs in town were brought into up-to-date compliance.

When the units in question were originally constructed, detailed rental requirements were not part of the town code. At the time, the covenant attached to the property read simply that the property had to maintain a long-term rental unit as defined by the Crested Butte Municipal Code.

In 2015, the town tightened up the ADU regulations. According to building and zoning director Bob Gillie, the intent of the 2015 ordinance was “to more fully express the original intent of the deed-restricted regulations. The rule set was amended to state that a vacancy of three months or more was not in compliance with the definition of long-term rental. Also a more definitive penalty and appeal process was defined for non-compliance.”

Fines for noncompliance could be up to $100 per day.

Proposed settlement not settled

Lock appealed the action by the town to force the property owners to comply with the updated language. He told the council Monday night that he had worked out a settlement in October with attorney Barbara Green, who was hired to represent the town in the matter.

Town attorney John Belkin explained that, given the quasi-judicial nature of the appeal, he was there to advise MacDonald, who would hear the appeal while Green would represent the staff who enforced the regulations. Because of MacDonald’s decision-making role in the hearing, she and Gillie did not communicate about the details of the enforcement actions or proposed settlement in the days leading up to the hearing.

On October 13, MacDonald was presented with the proposed settlements and officially heard the appeal and decided to uphold the notices of violation. This essentially meant that the property owners had to abide by the updated code and they were given six weeks to rent their properties.

MacDonald said Lock threatened to sue the town over the issue and requested to be placed on an upcoming agenda to speak directly to the council. She and Belkin decided that, due to the significant public impact of the issue, Lock should be given a chance to address the council. He did so Monday.

“I don’t want to turn a mole hill into a mountain,” Lock said. “We don’t want to do great damage to the good work done by Bob Gillie with affordable housing in town. We are not asking anything of you. The code says the town manager has the final word. But that does not preclude your hearing the issue. There is an opportunity to resolve the dispute. My clients have given me the authority to file litigation but we all would prefer to work through the situation. I feel there is an opportunity to reach a compromise on the issue.”

But the council was in no mood to compromise over the two deed-restricted affordable housing units.

A court decision could impact scores of other units

“You’re here to threaten us?” asked mayor Glenn Michel.

“No, “replied Lock. “I felt we had reached a settlement with [town legal representative] Barbara Green. The town has a 98 percent compliance rate. My two clients do not feel the 1990s code requires them to do what the 2015 regulations state. Litigation could impact 40 or 50 other accessory dwelling units that have the same deed restriction language.”

MacDonald said the number of ADUs that could be impacted is actually more than 80.

“You are threatening the town of Crested Butte,” said Michel. “There are longtime citizens living in those ADUs and you are saying litigation could take that away?”

“If the outcome is adverse to the town of Crested Butte, it could impact 50 or so units,” Lock said. “The law is the law. If it is illegal for my clients, it would be illegal for all such situations. It’s not a threat to allow a court of law to determine what is legal or illegal. In my opinion, litigation is always a lose-lose situation. I always try to avoid it.”

Lock then showed the council five slides making his argument. He said that a 2015 ordinance “cannot be applied backwards. How you interpret a 1990s deed restriction has to be done based on the code in the 1990s. The one-sentence deed restriction at the time said ‘A long-term rental unit as defined by the Crested Butte Municipal Code will be maintained on the property.’”

Lock said the property owners are ”maintaining” the structure as required.

Lock told the council that if he could explain a case in five slides, “I would implore the other side to settle the case.”

“Affordable housing is so important to the community right now,” said Michel. “Why would we let these two go?”

“Policymakers in the 1990s did what they could. Current policy makers want to do more. But you can’t go backwards,” said Lock.

“The spirit of the 1990s was to give the homeowners who were building such accommodations something in exchange,” said councilman Chris Ladoulis, citing tap fee breaks and density bonuses. “If the spirit has lasted 30 years, one could argue the 2015 ordinance was meant to commemorate that spirit.”

“What was agreed to in the 1990s and today is different. The language has changed,” said Lock. “The 2015 language says you have to rent it and to whom. It didn’t say that in the 1990s. I would ask that you look hard at this. I spent a lot of time negotiating a settlement with Barbara Green. Consider that result.”

An upset councilman Jim Schmidt said he had been on the council in the 1990s and “the absolute intention was to provide long-term housing for people living in the valley. People were given tap-fee breaks that were paid for by the town. Providing as much housing as we could was important to us. I would say there was no doubt what the intention of the properties were. To think we would say build it and we will give you a break but don’t use it, is ridiculous. I’m just disappointed that your clients don’t believe what we believe with affordable housing. To step backwards seems like a terribly wrong way to go. The popular interpretation of the law is that this was meant as long-term housing.”

“The deed restriction had to be in the title work,” added councilwoman Laura Mitchell. “If they missed it, it’s their fault. It has to be there. It’s certainly a clear intent.”

“I am highly disappointed with this,” said councilman Roland Mason. “I really support the staff position. I support the 2015 ordinance. It would be hard for me to settle with two people when everyone else has come into compliance. I want to stay firm right now.”

“For me it started when the council instructed the staff to bring all the ADUs into compliance,” said Michel. “To get down to two and have this is disappointing. I commend the town manager on her decision. I do not want to settle with Marcus. The answer is no. The council will stand firm and uphold [MacDonald’s] decision.”

Property owners have until December 19 to rent their ADU

On Tuesday, MacDonald said the town would follow up with the property owners to see if they come into compliance with the town ADU regulations by December 19. If not, they will be considered in violation of town code.

When asked why she didn’t take the advice of the town legal representative who had worked out a settlement with Lock and the property owners, she said there were obviously “significant shortcomings with the proposed settlements.”

Among other issues, she said, the agreement would not have required the units to be rented long-term or to locals. “This would have put the town in the position of telling one property owner that it was fine that they did not have their ADU rented while asserting to 80-plus other property owners with identical or similar covenants that they had to rent theirs out,” MacDonald said. “Although Marcus argued that Kiltz and Mize would not reveal the contents of the settlements, the documents were presented during a public meeting and are therefore public. In addition, Crested Butte is a small town and it was unrealistic to believe that word would not get around through them or subsequent owners.”

MacDonald said the council direction was clear after Lock’s Monday presentation. “The council indicated at the meeting that protecting the availability of long-term rental units—the town has made concessions and provided funding to establish—is a huge priority,” she said. “Given that the cost of obtaining one long-term rental unit could easily exceed $300,000, the council is prepared to vigorously defend the units that already exist.

“As a community the decision was made 25-plus years ago to tolerate additional density and provide tax dollars towards these units in order to ensure there were rental housing options for those who work here,” MacDonald continued. “These are an important component of the broader workforce–affordable housing efforts.”

There are 241 units in Crested Butte that are deed-restricted, covenant-limited or otherwise restricted to long-term or affordable housing.

No definitive decision has been made about when or if to file a lawsuit against the town.

Modular and creatives top the list

By Mark Reaman

As part of the annual budget process, the Crested Butte Town Council is readjusting some of its future projects. Affordable housing remains a priority and several projects will begin next year.

One adjustment will come with the seven units planned to be built by the town and Gunnison Valley Regional Housing Authority on blocks 79 and 80 in Crested Butte. Town planner Michael Yerman and GVRHA executive director Karl Fulmer told the council on October 3 that two duplex units and one triplex planned for 2017 would be modular units instead of stick-built structures. Cost is the primary reason for the change.

“These units will be sold in a lottery,” explained Yerman. “Four of them will go to individuals and we will offer the other three to local businesses that might want them for their employees. Since we are building them, the applicants can use a conventional loan to purchase the properties.”

Yerman said since the town is basically donating the lots and not having to pay for design work by using modular, the cost could be kept pretty low. He expects the units to come in at around $200 to $210 per square foot. “This will keep them affordable for a longer period of time since there is a cap on appreciation. By starting out with a low cost, the price remains lower for several years since it cannot appreciate in value more than 3 percent a year. That’s the philosophy, anyway.”

“As a construction guy, it’s a bummer they are coming in as modular and not being constructed with local labor,” said councilman Roland Mason. “Can a modular get through the BOZAR [Board of Zoning and Architectural Review] process?”

“These will have to go through BOZAR,” assured Fulmer. “One constraint in using a modular is the roof pitch. We are working with manufacturers to figure that out right now. We will be using a local architect to make them fit in town. While we too prefer stick-built structures, we are trying to get the most bang for our buck.”

“And even though they are modular, there is still a percentage of work that will employ local contractors,” added Yerman. “But we found that stick-built units are closer to $250 or $260 a square foot minimum.”

“Poverty Gulch is made up of modulars,” noted councilmember Jim Schmidt who resides in the deed-restricted complex.

The council gave the go-ahead to Yerman to begin pursuing a state grant for the so-called “Space to Create” affordable housing project. That building would be built on the land near Poverty Gulch that could be annexed into town as part of the Cypress Foothills Slate River development. Yerman said he felt the town with its Creative District had a good shot at getting a grant worth millions of dollars for the project.

A certain number of units would have to be rented to so-called “creatives” in the community but Yerman said the definition of creatives was pretty broad. Part of that project would include a communal workspace for creatives to create.

The application for the grant money is due in January and would be awarded in 2017. Yerman said it would be a three-year project.

Schmidt wanted to make sure that the grant and construction timeline coordinated with the Cypress development that has yet to be approved. But Yerman said he has communicated with the developers and they are on board with the need for the project.

Lots of activity from camping to renting to student participation

By Mark Reaman

A review for the town council of affordable housing projects in Crested Butte shows the issue is being addressed on many fronts but nothing is simple. At an August 5 council work session, town planner Michael Yerman and Gunnison Valley Regional Housing Authority executive director Karl Fulmer went over the half dozen projects in the works.

Of the eight people chosen to get lots in blocks 79 and 80 in the northwest side of town, four plan to close on the property in September and four will likely close early next year. Yerman said the four closing next year are rolling the purchase price into a construction loan so the town does not want to burden the owners with mortgage payments until they are ready to build next spring. That will leave a $150,000 shortfall in the town’s housing fund but the money will come in next May.

Yerman said the ROAH (Resident Occupied Affordable Housing) fees are lagging as well. Those fees are generated from new construction in town and thus far only $45,000 has come in for 2016.

As for the construction costs on the affordable housing lots in blocks 79 and 80, the town will not impose several fees. In an effort to make the projects more affordable, the town is waiving the building permit fees, the application fee, the affordable housing fee, and the town will pay two-thirds of the water and sewer tap fees. That amounts to close to $20,000 in fees per property.

Yerman said all eight lot owners will be using local banks to fund their project and the town is estimating the projects will come in at about $220 a square foot including the lot cost.

“We are using that figure because it is real. We want to make sure the winners of the lottery have their eyes open,” said Fulmer. “We are trying to help them and walk them through realistic building costs for what it is they want to build.”

Needs assessment

The countywide needs assessment survey went out this month and Yerman and Fulmer are encouraging everyone to take the time to fill it out. “I’ve heard some people that are disgruntled with the Housing Authority don’t want to participate,” said Fulmer. “But those are exactly who we want to fill out the survey so we can gather information and do a better job. Greater participation leads to better data so all residents and business owners are encouraged to take the ten-minute survey.”

The survey costs $77,500 and a draft should be completed in October. A final report is expected in mid-November.

Anthracite Place

Fulmer said 17 of 30 units have been leased in Anthracite Place and he expects it to be filled by the end of September. Fulmer said he has been involved in several public and private apartment projects and not one was ever filled at the end of the construction process. He had anticipated a two-month period to fill Anthracite Place and he said that appears to be on schedule.

“We have had more than 50 people start the application process,” he said. “Some have not completed the paperwork. Others have been denied because of prior rental history or criminal history. Applicant review is a time consuming process but part of the goal is to have a nice project for people to live.”

Designing next stage of 79-80

The town and housing authority are currently working on designs for about a dozen multi-family units that would be built on blocks 79-80.The hope is to break ground on two duplexes and a tri-plex next spring. The designs have to go through the Board of Zoning and Architectural review (BOZAR) process. The council will see costs in the 2017 budget.

Avalanche Campground

The town continues to evaluate Avalanche Campground just south of town as a potential place for some summer camping/housing. Yerman said consultants are evaluating the site and initial feedback from traffic engineers is that recreational vehicles (RVs) will not be allowed out there. He said RVs would require that accel-decel lanes be constructed on Highway 135 and that cost would be significant.

“There appears to be room for approximately 30 tourist tent sites or about 20 workforce housing tent sites,” he said. “We allow more room out there if the sites are used for people who are working and staying out there for longer periods of time.”

The consultants will compile a report and present their findings to the council in September.

Bringing the hammer down on noncompliant ADUs

On the ADU (Accessory Dwelling Unit) front, building and zoning director Bob Gillie said as of May 15, 28 of the 151 deed restricted units were of “questionable” compliance. That amounts to about 12 percent of the units in town. “Since that time we have tried to contact the owners through letters or in person and seven were deemed to be in compliance. We have not gotten a response from three of the owners, three others are in questionable compliance and 15 have been determined to be out of compliance. We have talked to most of them and we are working with the owners and most are trying to get into compliance.

“The hammer will start to come down this month for noncompliance,” Gillie continued. “The fine regime, which can be $100 per day, will start here soon. I’d expect some possible legal responses but it is about to get heavy.”

Teaching kids about construction

Perhaps the most interesting affordable housing project is set to begin this fall. A partnership with the Crested Butte Community School will begin for one of the micro lots on block 79. The school will work with students to design a home and go through the planning process. The idea is to then break ground on the house next spring. Assistance is being provided by local architects and contractors, but students will also assist with the building.

“This will likely be a fairly simple two bedroom, two bath house,” explained Yerman. “There is a $120,000 budget mainly for material costs and skilled labor like electricians. Once completed, the 1,000 square foot home will go into the town’s employee rental pool. It is a really cool project. And good for kids in the community who want to get a taste of the construction world.”

Space to Create for “creatives”

Another interesting potential project is the so-called “Space to Create” idea. That would be a housing project geared toward local “creatives.” Yerman said the application for the $5 million in state funds that would help fund the project is due in January.

Yerman said the one acre of land earmarked for affordable housing in the potential Cypress/Slate River Development annexation could be used for the project and the developers have expressed an interest in participating.

“We are trying to stay away from 60 percent AMI (Area Median Income) limits that Anthracite Place addresses,” said Yerman. “We want to target people making between 80 percent and 160 percent of AMI for future rental projects. This seems to be where the gap is, however the needs assessment will shed some light on that later this fall. I think our odds are pretty good to get some of the money since I think Carbondale, Mancos and North Fork might be the only other Creative Districts looking at these dollars.”

The AMI for a two-person household at 100 percent in 2015 was $57,400.

Yerman said he wants to come up with a “good creative concept plan” for the one acre site that could include both living and work space for artists. There is a potential for up to 40 units on the site. He said it might be worth having a design contest with a cash prize to bring in ideas. He said previous such projects were mainly rehabilitation for existing buildings and this idea of starting from scratch could be a new venture for the state project.

Councilman Jim Schmidt had some hesitation with the idea because there are so many unanswered questions. “What percentage has to go to artists? How much space would be used for work space and not directly for housing? There are lots of unanswered questions for me,” he said.

Yerman said a certain percentage of the units would have to go to “creatives” but he said that encompasses a broad range of people from artists to chefs to architects. “That window is wide open,” he said. “Part of the idea is that someone would live in a space upstairs and have a work studio below. I know we still have to bring a lot of information about the idea to the council, but if you guys aren’t interested in this at all, I won’t pursue it.”

Councilman Chris Ladoulis wondered if it could service some seasonal housing needs.

Yerman said it would be a rental project but other projects were in the works, including one on the mountain that could provide dormitory type accommodations that might be better suited for that need.

Yerman said the Space to Create idea was probably a two to three year project.

Private-public partnership potential

Finally, Yerman said the town is in the preliminary stage of working with a private developer that might be interested in constructing 16 rental properties on block 76 by Rainbow Park. Those would be geared to people making between 80 and 200-percent of the AMI. The town would have a 40 year lease with the developer and then take ownership of the structures.

“This is all very hypothetical at the moment. The needs assessment survey is key for this project,” explained Yerman. “But the bottom line is that you could get more units in the ground faster. It is a different approach than selling the lots and the design can go through the process all at once. This is very preliminary but there is opportunity.”

Some places still available

by Mark Reaman

A grand opening of the soon-to-be-completed Anthracite Place affordable housing apartments will be held July 22. People will be able to start moving in shortly thereafter. The goal is to have the building filled by the middle of August.

Anthracite Place is located next to True Value and contains six two-bedroom apartments and 24 one-bedroom apartments. The project is geared toward local employees who make between 50 percent and 60 percent of the area median income (AMI) in Gunnison County, under $28,950. Rents will range between $650 and $920 a month depending on the unit.

According to Gunnison Valley Rural Housing Authority executive director Karl Fulmer, 14 full applications have been processed, five are still pending, and about 25 have not been fully completed by the applicants. “We anticipate being fully leased by mid-August. We are increasing our outreach to the current applicant pool to ensure that they complete their application process,” he said. “The GVRHA is not allowed to assist applicants in finalizing materials, however.”

Based on the application process, Fulmer said so far 12 people have been formally accepted into Anthracite Place. He anticipates six to eight additional acceptances in the near future.

Fulmer said the applicants have been primarily people living in Crested Butte. “Roughly 80 percent are from Crested Butte, 15 percent from Gunnison and 5 percent are from out of the county but who are relocating for a job opportunity,” said Fulmer. “We definitely had more people under 50 percent of AMI than the under-60 percent demographic.”

Fulmer said there have been some bumps with the overall project along the way but the authority feels it is on a smooth transition at this point. “It’s been a lot of learning for our property manager, but once we got our computer system into place and worked out a few of the bugs it seems to be going very smoothly now,” Fulmer said. “We would certainly do this again. This type of housing is needed in our valley and the GVRHA is happy to provide it! With all of the rules and regs, there has been a learning curve. The GVRHA is now fully prepared to entertain the construction of another LIHTC [Low Income Housing Tax Credits] property in the near future.”

Because it is a government project, applicants don’t need to meet local affordable housing requirements such as residency requirements. The apartments will be leased on a first-come, first-served basis for those who can fill out the application and fall into the income requirements. Fulmer sent out a request to those who started the process a while ago but haven’t completed the paperwork.

“If you were sent a letter with a request for supporting documents, please get it in to us quickly. The apartments are starting to lease up, and we would hate for anyone who started the process months ago and is still in need of affordable housing to miss out because they got their paperwork back to us too slowly,” Fulmer said.

The grand opening will take place Friday, July 22, and be attended by representatives from CHFA and the Front Range, lenders and local representatives from each government or entity that helped make Anthracite Place a reality.

But CB on the move to address situation

by Mark Reaman

It will come as a surprise to no one who has been paying attention that it is becoming more and more difficult to find a place to buy or rent in Crested Butte. The housing market is tight, rents are increasing and home prices on the market are climbing well out of reach of the working local. Summer has lately been the focus of the situation and this year the upcoming summer crisis is already rearing its head.

It is currently the slowest of Crested Butte times but town planner Michael Yerman is already seeing what could be a crisis situation as the calendar gets closer and closer to June. “I’ve had 12 folks come in my office this past week looking for rental housing for the summer,” he said. “Many of them have stated they are losing their current rentals to the rental by owner ‘RBO’ market for the summer.”

The town has long been aware of the situation and with regional partners has put several plans into motion. Applications for those interested in purchasing a deed-restricted lot in Blocks 79 and 80 on the northeast side of town are due by May 9 to the Gunnison Valley Regional Housing Authority. Deed-restricted lots will be offered for sale in mid-June through a lottery system. Eventually 61 units will be sold to qualifying locals over five years.

Yerman hopes locals apply for this opportunity even if they are not sure they would qualify for the lots immediately. “Once someone submits an application, they will be qualified for future lotteries if a unit opens up. My hope is to have an applicant pool ready and financially qualified as units are developed over the next five years,” Yerman said.

The new rental complex across from Clark’s Market, Anthracite Place, is taking shape and completion in slated for July of this year. That project will provide 30 units of low-income workforce housing for the community. Income limits based on annual median income apply to those who would qualify for one of the new units. For example, a single person hoping to rent one of the units could make no more than 60 percent of the AMI or $28,920 annually.

“The building is really beginning to take shape,” said Karl Fulmer, executive director of the Housing Authority. “As of now, we have more than 30 applicants for units in Anthracite Place. We expect more to apply as the building gets closer to completion. We encourage all who are interested to continue to apply, as not everyone who has applied to this point will be able to qualify.”

Crested Butte has also started another accessory dwelling unit (ADU) survey. Last year the Town Council passed new regulations on the enforcement of the restricted covenants on these units, which included the provision that units not rented long-term for a period of three months or more are out of compliance and may be fined up to $100 per day. Many ADUs in town were given a financial break on the water-and-sewer tap fees in exchange for agreeing to rent the units to long-term locals.

“In years past, we have had very good compliance with a majority of these units,” said Crested Butte building and zoning director Bob Gillie. “But the council felt even more could be accomplished by taking a stronger line. This year the town will be enforcing the restrictive covenants once the survey is completed.”

On the short-term rental front, the council directed town staff at the last council meeting to create a “RBO committee” to look at the impact RBOs are having on the community. The committee will be focusing in on four primary issues including community impacts, neighborhood impacts, safety and fairness, and process.

The town is accepting applications for two community-at-large members until Friday, April 22. Anyone interested in participating can find the application on the town’s website.

Yerman also maintains an active email list with monthly updates on affordable housing projects and educational classes on home ownership. To get on the list, those interested can email Yerman at myerman@crestedbutte-co.gov. “Home ownership is a big financial commitment. The more we can do to ensure our citizens are educated about what it takes to buy a home the more successful they will be in their housing in the long run,” he explained. “I’m expecting it to be a busy summer and the town has worked hard for the past two years to create new housing options for our local workforce.”

Applications for both the Block 79 and 80 lot sales and the applications to get a place in Anthracite Place can be found on the Housing Authority website, gvrha.org.

Priority to essential services workers and longtime residents

By Mark Reaman

The Crested Butte Town Council is on board with a new series of affordable housing regulations and guidelines that basically match up with the county and other municipalities in the area. The council approved the new regulations at the February 1 meeting.

Town planner Michael Yerman and Gunnison Valley Regional Housing Authority executive director Karl Fulmer went over the changes and broad guidelines for the council. Under the new system, a Master Deed Restriction will be recorded against the property but reference the guidelines. That is meant to allow more flexibility for any governing body to adjust the guidelines but not have to go through the major process of changing a deed restriction.

Fulmer said having a shared set of guidelines with the county and other municipalities would lead to less confusion for buyers, renters and lenders of affordable housing properties.

The basic guidelines include income and asset limitations, employment requirements, and the need for the property to be a renter’s or buyer’s primary residence. Other residential properties cannot be owned by those seeking affordable housing accommodations. Opportunity to qualify for an affordable housing unit is increased by the length of time someone has spent in the valley.

Councilman Jim Schmidt wanted to make sure that those living in affordable housing units in Crested Butte had jobs in the north end of the valley. “Who are we trying to help?” he asked. “The goal is to provide housing for those people who have jobs up here.”

“We don’t want to narrow down the employment restrictions too much,” said Fulmer. “Someone could have a job with Crested Butte Mountain Resort when they first qualified and then get a job at the hospital, for example. If we do that too narrowly, it limits the effectiveness of the overall housing program.”

“I agree with Jim,” said councilman Chris Ladoulis. “The spirit is that if we are going to be subsidizing housing, it should be for our workers.”

“It’s not in the spirit of a regional housing program,” countered Yerman. “Would Gunnison then want to restrict their units to people who only work down there?”

“We are an up- and down-valley community,” said mayor Glenn Michel. “That’s just the way it is.”

Ultimately the guidelines for Crested Butte will prioritize essential service providers such as firefighters, plow drivers and bus drivers who work in the north end of the valley. If a lottery is needed to select people for affordable housing, more chances are given to people who have lived in the valley the longest.

The council agreed to the new affordable housing guideline criteria and that will now be used to qualify people hoping to purchase deed-restricted lots in blocks 79 and 80 in the town of Crested Butte.

Hope for council vote in January

by Mark Reaman

The Crested Butte Town Council spent a two-hour work session on December 7 discussing how to implement an affordable housing budget, along with tightening up affordable housing guidelines.

The goal is to get about 90 more deed-restricted affordable housing units in town over the next five to seven years. The primary projects are the Anthracite Place rental complex at the entrance to town, which should be ready next summer, and installing infrastructure on blocks 79 and 80 for affordable units on the northeast side of Crested Butte. But the staff is admitting it needs partners to make the affordable housing plan a complete reality.

The town currently has about $35,000 in its affordable housing budget “and that has definitely impacted our abilities,” said town planner Michael Yerman.

He outlined some ways to increase the budget over time. Selling some lots in Paradise Park in 2016 will be the biggest contributor and start the ball rolling. Some of that revenue will go toward design and architecture costs for blocks 79 and 80. The town will also be increasing its contribution to the Gunnison Valley Regional Housing Authority (GVRHA) to have them help with the process of qualifying potential buyers and renters.

Yerman re-emphasized, “There is a serious need for town employee units.” The town currently owns seven such units and plans to add nine more to the mix. That will cost about $1.8 million. Some of the other lot partnerships will be done through a Colorado Department of Local Affairs “Space to Create” grant that focuses on housing for working artists. There are some lots set aside for local private businesses to own for employee rentals, a lot for the Fire Protection District, the county and Community Rebuilds, which is currently focused on a Mt. Crested Butte project.

Joe Rowan of the non-profit group Funding Partners gave the council several suggestions on how to manage the construction phase of the project. He suggested the town hire a so-called “Master Developer” to take the development burden off town staff. He said having an independent third party facilitate processes such as financing and construction organization could keep the project moving smoothly. It would also alleviate some state TABOR restrictions and provide access to additional funding mechanisms to help facilitate construction. He suggested that the housing authority could act as the Master Developer.

GVRHA executive director Karl Fulmer said that could be a possibility. Fulmer explained how it was his goal to tie in all the affordable guidelines across the county into a simple basic document. While the guidelines could be tailored to each community, they would start with some general commonalities.

“The stricter deed restriction would reference the guidelines and those guidelines could be changed upon an annual review,” Fulmer explained.

“Think of the guidelines as being the qualifications and the deed restrictions are there to keep things affordable,” said Yerman.

“The guidelines we have certainly aren’t perfect,” said Fulmer. “We learn more every year and make the adjustments as a result.”

Guidelines address income limits, the need to be a worker in Gunnison County, asset limitations, the length of time someone has resided in the county, and the need for the unit to be the primary place of residence.

Those who qualify would be entered into a lottery. People who have essential service jobs might get additional entries into the lottery.

As a note of clarification, people who hope to rent at Anthracite Place will not be selected through a lottery. Fulmer said because of federal regulations, those who qualify first would be given priority.

Yerman said those hoping to qualify for purchase or rental of deed-restricted property need to be educated. A couple of classes have already been offered. Yerman said it is not cheap to build even an affordable house. And once built, there are cap limits to how much you can sell it for. Credit concerns and the ability to obtain a construction loan all come into play.

As for the timeline, Yerman said next year would be spent qualifying those who had an interest in purchasing or renting the affordable units. Some lots would then be sold in 2016 and buildings would start going up in 2017. A similar plan would take place in 2018 and 2019 with years five to seven of the plan being focused on some rental units and perhaps developing block 76 next to Rainbow Park for more affordable housing units.

“We need details of these guidelines to be settled and in place soon,” said Yerman. “We are shooting for a lottery this spring. The [Gunnison Valley Regional Housing Authority] will be the qualifying agent and there is a lot of paperwork to go through. Our goal is to have the council vote on the guidelines at the January 4 meeting.”

Yerman said there are already about 150 people who have expressed interest in qualifying for the affordable housing lottery this spring. People interested in housing opportunities in blocks 79 and 80 should email Yerman at myerman@crestedbutte-co.gov to get on the town’s affordable housing waiting list.

Pilot project moving forward

By Alissa Johnson

The Mt. Crested Butte Town Council has formally entered into a partnership with Community Rebuilds to bring a pilot affordable housing project to the town. As a Moab-based nonprofit, Community Rebuilds provides affordable workforce housing that is energy efficient and sustainably built, with a focus on sustainable building practices and education.

The plan is to build a duplex in the Prospect Homestead Subdivision for two preapproved community members. The council had expressed support for the partnership at a September work session, and over its last two meetings formalized the partnership.

On October 20, community development director Carlos Velado brought a motion to the council asking them to support the partnership. Velado explained that the project had been progressing through the design process. The Prospect design review board had given preliminary plan approval earlier that day and the Mt. Crested Butte Planning Commission would review it the following day.

“As it’s moving further along in the process, we need to formally approve the relationship between the town and Community Rebuilds,” Velado said.

As part of the motion, he also asked the council to allow three-bedroom units in the duplex. The original schematics for the lot in question showed two-bedroom units, though Velado said the PUD (planned unit development) and the design guidelines allowed that to change.

“[The motion is] just to formally allow us to continue moving forward with the process because the last thing we want to do is pull the rug out,” Velado said.

Town manager Joe Fitzpatrick explained that more paperwork would be forthcoming, but it would be complicated. While the town originally believed that it owned the lot in question, staff had been working from old drawings. The plats showed that Crested Butte Mountain Resort (CBMR) owned the lot; the resort is now donating the lot to the town. Mt. Crested Butte will in turn give it to the new owners through a contract of sale for $0.

At its November 3 meeting, the council approved a resolution accepting the land from CBMR and authorized the town mayor and manager to move forward with the sale. The process allows CBMR to count the project toward its requirements for community housing and will allow the town to retain some level of input in the building process.

Knowing that the organization hoped to put in the foundation this fall, councilmember Danny D’Aquila had a question for engineer Dodson Harper. Harper sits on the Community Rebuilds board of directors and helped bring the affordable housing project to Mt. Crested Butte.

“When we talked last time, you were hoping to get in the foundation so you could cap it, build and try to do another foundation next year. Where does this leave you now?” D’Aquila asked.

“From the design process we’re really close… We’re confident we can get it done if all these agreements can take place,” Harper said.

“And the weather cooperates,” said mayor David Clayton.

“Of course,” Harper said.

While this week’s snow could signal the coming of winter and become a factor in the timing of construction, the closing for the lots is expected to take place early this month.

In the meantime, the council reiterated its point of view that if the pilot project becomes a long term partnership, Mt. Crested Butte residents and resort employees ought to get priority when it comes to applying for the housing.

How much money can people make and still qualify?

by Mark Reaman

Guidelines to qualify those hoping to get into affordable housing projects in Crested Butte are being worked out by the Town Council and staff. At a work session on Monday, October 19, the council cleared up a few questions but left several others to be determined.

“The last meeting, we looked at these from the 100,000-foot level,” town planner Michael Yerman told the council. “Now we are looking at it from 10,000 feet. Next time we will be on the ground with details. The goal is to put people in successful housing situations.”

To meet that goal, the town will hold a couple of home ownership classes to make very clear what is involved with qualifying and what is expected from new homeowners going into deed-restricted housing. “It is essential for people to know what they are getting into,” Yerman emphasized.

The council wanted some background on the lot pricing in blocks 79-80, which Yerman will compile. At the moment, the idea is to sell lots for as little as $25,000, but the price could go over $75,000 depending on the size of the lot.

“We are trying to keep the lots affordable but also get some money for the town affordable housing fund,” explained town manager Todd Crossett.

One major area of discussion was determining who would qualify based on income. Using the Gunnison County Average Median Income (AMI) figures, the question to the council was whether to allow people making 200 percent of AMI to qualify for any deed-restricted housing in town. For example, a couple with a combined income of $91,840 makes 160 percent of AMI. A couple making $114,800 is at 200 percent of AMI.

Yerman said using town as an example, a couple with jobs similar to town department heads make above the 160 percent AMI. Middle managers probably come in below that figure. He said one local couple, a nurse and a carpenter, came in to ask about affordable housing and they came in over the 160 AMI but below the 200 percent figure.

“I would advocate for the 200 percent,” said Crossett. “When recruiting a town department head, it will help them find a place to live.”

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“People still need to qualify for construction loans so they have to make decent money,” added Yerman. “The banks are saying for construction loans, they will need $40,000 down. Anyone above 200 AMI wouldn’t qualify for affordable housing in town. The higher end would be for self-builds or about six of the upcoming lots. The second tier would be for people coming in below the 120 percent AMI. These units would be town-built units or micro-lots and other lending options could be available to help people with financing.” That would calculate to a couple making less than a combined $68,880.

Councilman Glenn Michel said he was struggling with allowing the higher 200 percent AMI to qualify. “They could buy a house in Crested Butte South and it would be a better investment,’” he said.

“They might want to live in town and not do the commute,” responded Yerman. “The value of having employees living in town is high.”

Councilman Jim Schmidt postulated that two married teachers might make too much to be under the 160 percent AMI, so he was leaning toward allowing the upper limit of the 200 percent figure. The rest of the council was hesitant about that and instructed Yerman to stick the with 160 percent AMI figure for the time being.

Council agreed that deed-restricted housing would go to people with at least one year in the valley and they would have to earn 80 percent of their income in the county. Those who telecommute for a living would have to be in the valley at least five years, since their income would not be primarily derived in-county.

How to deal with people owning residential property and how to sell that property before qualifying for a deed-restricted property will be discussed later.

While expressing some reservations, the council appeared okay with allowing those in such deed-restricted housing to short-term rent the property for no more than a month. That is meant to perhaps help people with their mortgage.

Maximum house sizes were discussed in an effort to keep resale costs low, so 1,500 square feet would be the maximum size allowed for self-built houses on blocks 79-80.

Maximum cost limits would also be imposed in order to keep the initial price of the homes low. The homes would not appreciate at the free-market level but would rise at no more than 3 percent annually.

After more than an hour of discussion, Yerman did not get to all his questions on the affordable housing guidelines so the council will return to the topic next month.