Newly Launched Housing Buy-Down Effort Gains Momentum

A new, regional effort to convert private residences into affordable housing has officially been launched and is gaining steam in the Roaring Fork Valley.

Aspen, Snowmass, and Pitkin County have so far contributed a combined $1.7 million to support what’s called the Good Deeds program being spearheaded by the West Mountain Regional Housing Coalition, a 501(c)(3) nonprofit started in 2020 that serves the Roaring Fork and Colorado River valleys.

On Tuesday, Aspen City Council voted to allocate $450,000 to Good Deeds. Glenwood Springs and Carbondale have also combined to appropriate $300,000 to support the effort. Meanwhile, Snowmass last year allocated $250,000, while Pitkin County has chipped in $1 million toward the program.

“It’s our way to increase our stock of deed-restricted homes in the valley, without building any more,” Snowmass Housing Director Betsy Crum told Snowmass Town Council on Monday.

The maximum purchase price for an eligible home varies by region. In Pitkin County, including upvalley of Basalt, the maximum purchase price is $1.5 million, according to Coalition Director April Long. In Garfield County south of Glenwood Springs, the maximum is $1.2 million. The remainder of Garfield County is $800,000.

The West Mountain Regional Housing Coalition will contribute 30% of the contracted purchase price to the purchase of a price-capped deed restriction on that property. A minimum down payment of 3% contributed by the buyer toward the purchase price of the property is required. Buyers will be allowed to access down payment assistance programs from other entities or sources. 

Once the property is purchased, a 3% simple annual interest will be recorded against the property. It will govern the future occupancy, use, and transfer of the property to an eligible household. 

“If you take, for instance, a $1 million home and we’re showing up with 30%,” Long told The Aspen Times on Tuesday, “that’s $300,000.”

She said Good Deeds aims to convert up to 30 free-market homes to deed-restricted residences by 2026. She also said purchase caps for housing in any given region can be increased based on the success of the pilot program.

“If we were able to have a lot more funding available, then yes, we could consider going into a higher price,” she said. “The balance there is that we’re also trying to take free-market homes and make them affordable. So we don’t want to get to a place where what we’re buying — even at our buy down-price — is still an unaffordable price for a working local.”

Amid hopes for Good Deeds to be successful, however, some elected officials are concerned it won’t create enough affordable housing opportunities regardless of how much is allocated, and that the program is not tailored specifically to its respective city and financial demographics. 

Aspen Mayor Torre also worried on Tuesday that allocating funds to Good Deeds could hinder the city from supporting its own regional housing program, the Aspen/Pitkin County Housing Authority.

“I’m very skeptical of the direct impact that it will have for our community, the taxpayers that pay these taxes. I don’t know that the return is there for them,” he said. “I just can’t find myself supporting almost a half a million dollars when our housing program has needs.”

Still, Aspen’s elected leaders ultimately decided a collective approach to tackling a buy-down program could benefit all regional partners.

“We look at our problems as regional problems,” said Aspen City Council member Ward Hauenstein on Tuesday. “And because the Western Mountain is a regional organization, I’m willing to take a risk on this.”

Single family homes, condominiums, town homes, duplexes, modular homes, or manufactured homes on a permanent foundation taxed as real property within Pitkin, Garfield, or western Eagle counties that don’t currently have deed restrictions will be eligible. 

The coalition will facilitate sales of units but will not act as brokers. Homeowners in the area who wish to sell their property may enter into the Good Deeds program. Buyers will need to meet eligibility requirements, including showing proof of employment within the coalition’s service area for an average of 1,400 hours worked. Anyone working more than 25% of time remotely for out-of-region employers will not be eligible.

Crum said the coalition partners are “taking a leap of faith” with the program. Leaders will host weekly webinars to answer questions for buyers and sellers, she said. 

The coalition is also exploring other funding strategies and seeking additional funding support from philanthropic contributions, donations, grants, and a workforce investment trust, according to a recent news release.

By: Lucy Peterson and Ray K. Erku I The Aspen Times I August 9, 2024