Pitkin County authorizes agreement with Habitat for Humanity for Glenwood Springs affordable housing units

The Pitkin County Board of Commissioners unanimously approved on Thursday an emergency resolution authorizing an agreement with the Roaring Fork Valley Habitat for Humanity to support an affordable housing project.

The agreement, known as a memorandum of understanding, authorizes a $450,000 funding request from the Roaring Fork Valley Habitat for Humanity to Pitkin County to support Habitat’s purchase of an existing apartment building in Glenwood Springs.

The emergency resolution was needed to provide funds to Habitat for Humanity in advance of the property purchase close date, which is set for Oct. 10.

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“I think it’s a great opportunity for Pitkin County to show our willingness and our need for partnerships, and I think this is a perfect opportunity to show the community that we mean what we say when we want to find partnerships to provide for affordable housing needs,” Commissioner Patti Clapper said.

The $450,000 will be taken out of the county’s general fund. Pitkin County commissioners allocated $5 million of general fund dollars toward housing initiatives in 2023. Of that allocation, $4.5 million remains available to use toward this project.

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Clapper, however, asked the board to consider, if ballot question 1A is passed in November, whether the general funds will be reimbursed with funds generated from the ballot question.

Ballot question 1A asks voters to approve a new property tax for a mill levy of 1.5 mills up to the next 25 years. For homeowners, the tax is approximately a $121 increase per $1 million of property value annually. For commercial property owners, it is approximately a $435 increase per $1 million of value annually. This would bring in about $8.5 million to the county.

The Aspen/Pitkin County Affordable Housing Authority expressed their support for this ballot question during its Wednesday meeting. 

The Habitat for Humanity L3 Condominium Project, located at 253 Wulfsohn Road in Glenwood Springs, will obtain the apartment building’s 88 existing free-market rental units and will be converted into deed-restricted ownership units, mostly studio and one-bedroom apartments.

The county’s contribution would function similar to a grant award from the county to a regional nonprofit; however, a condition states that the county would also receive priority access to three housing units. County staff will then oversee the process for identifying eligible employees to purchase the units.

The cost per unit to gain priority access is $150,000, thus Pitkin County’s $450,000 contributed to the project.

If an employee leaves employment with the county at any time during their ownership of the unit and remains employed in the region, Pitkin County will receive priority access to a future vacant unit. If the employee leaves the region, then the unit will return to the county and be offered to a different county employee for purchase.

Another 53 units will be available for current tenants to purchase if they meet the deed restriction qualifications. Should tenants choose not to buy, Habitat has partners ready to assist with alternative housing options.

Current tenants will not be displaced, and existing leases will be honored until the current term ends.

Once the purchase is complete, including setting the sales price and ensuring monthly mortgage costs, Habitat will facilitate the transition away from tenants renting their units toward tenants purchasing their units at affordable rates, with subsidy from Habitat. Homeowners fees will not total more than 33% of the employee’s income.

The proposed unit prices for anyone at 80-120% Average Median Income (AMI) will be $320,000 for a studio (454 square feet), $360,000 for a junior one bedroom (535 square feet), and $388,000 for a one bedroom (722 square feet).

Despite voicing support for Habitat, Commissioner Francie Jacober also voiced concern over the units only being studio and one-bedroom apartments.

“I’m a little bit concerned that a married couple or young people who want to get married don’t see a lot of future in it,” she said.

In response, Roaring Fork Valley Habitat for Humanity President Gail Schwartz said that “this is entry level.” Those who are selected to buy these units will “build stability and wealth and be able to move into larger units.”

“Certainly be great for a couple, even a couple with a baby in a 755-square-foot one bedroom,” she said. “We’ve had several property assessment reports. We know what we’re getting.”

Each unit has a deed restriction. Habitat’s restriction caps annual appreciation at 3%. Buyers must also meet specific qualifications to purchase, with preference to employment in Pitkin, Garfield, and Eagle counties.

The city of Glenwood Springs has also granted financial support.

In June of this year, Glenwood Springs City Council unanimously voted to provide a $1 million grant in 2C funds to Habitat for the purchase of the 88-unit apartment building during their regular meeting.

By July, Habitat returned before council with an ask for $2 million in additional funding. 

The Glenwood Springs City Council held an hour-long executive session with Schwartz to discuss project costs, funding, and contributions from other partners.

The discussion was then brought to a regular meeting, where council voted to give Habitat a $500,000 grant from 2C funds for five additional priority units, along with a $1.5 million loan “with terms to be negotiated by staff … with funding sources to be determined.” Combined with last month’s contributions, the city has approved $3 million for the project (a $1.5 million grant and a $1.5 million loan) in exchange for 15 priority units.

“I think this partnership is really important. Not just the partnership with Habitat — that’s important — but also all the different public entities who are participating in this project,” Commissioner Steve Childs said. “This is a valley-wide effort, and I would be very glad to be a part of it. I was thinking, too, about our partnership with Habitat, and we worked on the project at the Basalt High School Housing Project, and we are hoping that have a good partnership with them on building things that is important to keep really good relationships and participate in projects with them when we are able to now.”

A confirmatory reading and public hearing is scheduled for Oct. 23.

Regan Mertz can be reached at 970-429-9153 or rmertz@aspentimes.com.