Commissioners approve funding request for utility connections for housing project

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During its regular meeting held on Tuesday, April 7, the Archuleta County Board of County Commissioners (BoCC) unanimously approved a funding request in the amount of $40,000 for the Pagosa Springs Community Development Corporation (PSCDC) to be used for utility connection costs for its workforce housing project.

Earlier that day, the BoCC heard from PSCDC Executive Director Emily Lashbrooke, who explained that the organization is now in phase 2A of its workforce housing project, with five homes currently under construction in the Trails neighborhood.

Lashbrooke explained that “due to the delay” in the Pagosa Area Water and Sanitation District (PAWSD) utility fee waiver request that started in September 2025 and the PSCDC only recently received an answer on, “we have not been able to draw down on our $675,000 grant due to the fact that we couldn’t guarantee that we would be able to build to the 100 percent [area median income] which that funding is required to do.”

Lashbrooke then mentioned that the Pagosa Springs Town Council will be considering a request for $50,000 to go toward covering the utility connection costs for the project at its regular meeting scheduled for today, April 9, at 5 p.m. at Town Hall.

Lashbrooke also indicated that the total cost owed to PAWSD for the project’s utility connection fees is $150,000.

She noted that the PSCDC has also applied for a grant through the Colorado Housing and Finance Authority (CHFA) for $40,000 that could go toward covering the utility connection fees.

Additionally, Lashbrooke noted that the PSCDC has budgeted $15,000 for the project, as well.

Lashbrooke explained that the request to the county is for funds in its workforce housing fund that was established by the BoCC in March 2021.

She also explained that, moving forward, the PSCDC has decided to switch its product from stick-built homes to modular homes.

“I want you to know that the [PSCDC] board will review a budget for our next five homes; we will move to a modular product,” Lashbrooke said.

She mentioned that by moving to modular home products, that will not provide a return on community investment “like we had planned to do,” with the modular home builders being located outside the county.

“With the move to the modular build we can actually afford to pay those fees and still keep the houses affordable,” Lashbrooke said.

Lashbrooke also noted that this request to the BoCC would be a onetime ask.

Commissioner John Ranson offered some comments on the matter, mentioning he has already expressed his displeasure with PAWSD, stating, “that they don’t participate” in community projects.

“I’m all for the county helping where we can,” Ranson said, adding that it’s too bad there is a group that “offsets all of this.”

Ranson also expressed gratitude to the town for considering a similar request.

Commissioner Veronica Medina expressed concerns about the PSCDC’s housing project as a whole, noting that it’s been difficult to find buyers for the first 10 homes built.

“I’m really concerned about the product overall,” she said, asking if the community is going to be in a similar situation in phase 2 of the project with facing difficulty getting the homes sold, “because of that price point.”

Medina also asked about the PSCDC homes being all-electric and if that has any influence on the cost of building the homes.

Lashbrooke explained that the decision to build the homes with all-electric appliances was due to the fact that there is more grant money available if all-electric, high-efficiency appliances are used.

“We feel like we’re delivering a more sustainable product,” Lashbrooke said, explaining that homeowners could change out appliances to be able to use propane or natural gas if they so chose.

Medina then asked County Manager Longinos Gonzalez about the amount of money in the county’s workforce housing fund, to which Gonzalez indicated that there was more than $40,000 in that fund.

Commissioner Warren Brown commented that it is “incredibly generous” of the town and CHFA to offer up funds in order to help cover the cost of the project, noting that the $40,000 request to the county is less than what he anticipated it might have been.

Brown also noted that the county’s workforce housing fund had about $56,000 in it.

He then spoke about the limitations put in place under Proposition 123 about who could qualify for a home.

“Unfortunately, the challenge of selling the houses comes with Proposition 123 legislation that was put out that did not have any flexibility whatsoever,” he said, noting that some applicants were denied due to making $200 too much annually.

Brown also noted that he is all in support of providing the funds to the PSCDC because it is a “have-to moment.”

During the regular meeting, Ranson commented that the request to the county, the town and the CHFA grant from the PSCDC “is because PAWSD isn’t willing to do their fees.” 

Ranson then motioned to approve the funding request, which was seconded by Medina and unanimously approved.

clayton@pagosasun.com