“My husband and I, like the homeowners I have spoken with, were not told when we purchased our home that the definition of market net value would not apply for the formula for setting the maximum sales price for our home,” said Annaka Hogelin, a resident of Vista Ridge Condos which is a mix of affordable and market value condos, established by the Estes Park Housing Authority in the early 2000s.
Hogelin, who lives in one of the affordable units at Vista Ridge, discovered that what she can sell her unit for is a lot less than people who live in comparable market value condos in the same complex.
Two recent listings within the complex show the disparity. A market-value 2BR 2BA unit with 1541 square feet was listed for $509,500, or about $331 square feet, and an affordable unit with 2BR and 2BA was listed for $252,520, $217 square feet.
Other complex residents were on hand at the monthly EPHA board meeting to ask them to look into this, too. Executive director Scott Moulton explained that the units in question are restricted in three ways.
One restriction relates to a soft second loan EPHA holds on these homes, generally, $50,000, which reduces the amount a qualified purchaser needs to borrow. They are also restricted to 50% of the appreciation in the market value of the complex from the date they were purchased to the date they were sold.
“The one that has yet to be discussed today is that a qualified buyer meets 80% of area median income or below,” said Moulton.
The main driver for listing prices for affordable units in Vista Ridge is finding a buyer “who can qualify. I think that is a very important consideration to keep in mind,” said Moulton.
The relevant language of the deed restriction document further states that unless EPHA pre-approves improvements to the property, the cost of those improvements cannot be part of the resale price.
The board told the concerned residents that they would look into this and report back.
The EPHA board also approved a 3% rent increase for all properties except for the 60% AMI units at The Pines, lower than the 5% increases that occurred during the past two years, said Moulton.
“AMI levels and maximum rents change yearly. It starts with HUD and then comes down to State Housing Finance Authority or its equivalent, and then it’s distributed by them,” Moulton said.
EPHA received that information on April 9, which said that rents should be increased by 7.14%. However, since the AMI for Estes Park is considerably lower than the rest of Larimer County and in consideration of an uncertain future economy, he recommends the 3% increase for this year. Those who qualified for the Pines at 60% AMI will not have increased rent since it was set at the maximum allowable last year, Moulton said. By Colorado law, rents can only be changed once per year.
The Trailhead Downpayment Assistance Plan will give potential homeowners another chance to get downpayment assistance, reported Jeff Mabry, EPHA’s housing manager. The program, which was approved by the board, will offer a loan up to 20% of a maximum purchase price of $650,000.
Eligible buyers must contribute 1.5% of the purchase price in cash, or $6000, whichever is greater. Maximum loan-to-value will be capped at 105% of the purchase price, and the maximum debt-to-income ratio will be 45%. This program will be paid for with 6E funds and can provide funds for four houses with $520,000.
Mabry also reported on the 2024 pilot Workforce Rental Assistance Program, which concluded at the end of April. This program provided $400 monthly to help pay rent or provided the funds for a security deposit and first month’s rent for “458 combined household months,” lowering the participants’ debt-to-income ratio from an average of 49% to approximately 43% for rent.
This program is a partnership between Crossroads Ministry, which screens the applicants, and EPHA, which funded the pilot program. The board voted unanimously to continue the program.
This time, applicants will be considered for assistance funding for two years if their debt-to-income ratio is 35% or higher. Applicants must be full-time residents of the Estes Valley, and an annual requalification will be required at lease renewal. This program is not available for subsidized housing units.
The annual Housing Supply Plan was approved by the board unanimously. This document will be updated every year, Moulton said, and includes updates on properties managed by EPHA and the strategies the organization is taking to address the housing needs of the Estes Valley.
According to the document, “The population aged 65 or older grew from 25% in 2013 to 31% in 2020, while the population aged 17 or younger decreased from 15% to 11%.” According to a report from the Town’s management analyst earlier this year, this trend continues with the population aged 65 or older now 40% in the Estes Valley.
Pete Levine, EPHA’s real estate development director, gave development updates. He said that the design of the 12 rental units on Stanley Circle Drive for Town employees at 100% AMI must be changed because of two trees in the proposed driveway. The development at 775 Riverside Dr. has a “limited impervious area within the 50-foot wetlands setback,” said Levine in his report.
An update on the Fish Hatchery development will be given to the Town Board on June 10, with the goal of a June 19 submission, but the development has a long way to go, Levine said.
Wetland setbacks, wildland urban interfaces, permission to build on NPS land, and getting a consultant to complete a cultural, archeological, and architectural review were all areas where progress was made over the past month.
Moulton said EPHA offices are predicted to move to the former SkyView event center at Fall River Village by the end of August. In anticipation of the move, the organization’s current lease in the US Bank building has been converted to month-to-month.
The next EPHA board meeting will be held in the George Hix room in the US Bank building on June 11 at 8:30 a.m.
Disclosure: Estes Valley Voice Senior Writer Barb Boyer Buck, who covers community affairs including stories about the Estes Park Housing Authority, is a home owner of a condo in Vista Ridge.
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