The Archuleta County Board of County Commissioners (BoCC) will be going to the Pagosa Area Water and Sanitation District’s (PAWSD’s) board meeting in February to request a waiver of capital investment fees for the county’s grant requirement of building affordable homes.
During a work session held by the BoCC on Jan. 20, Pagosa Springs Community Development Corporation (PSCDC) Executive Director Emily Lashbrooke explained that she had spoken with all three commissioners individually “about the issue with PAWSD and our [Department of Local Affairs] grant” on building home ownership in the Chris Mountain II and Trails neighborhoods.
Lashbrooke explained that she previously went before the PAWSD board with the PSCDC to request the fee waivers for phase two of the county’s and PSCDC’s affordable housing program.
In 2023, the county donated 35 vacant lots to the PSCDC to have homes built that are affordable for residents to purchase who make 80 to 100 percent of the area median income (AMI).
The PSCDC completed phase one of the project in 2024, building 10 homes, of which nine have sold. Phase two of the project will consist of building five homes in 2026.
“We are only building five homes in phase two, due to Travelers Circle was not complete when we started phase two and that’s where we own the rest of the properties,” Lashbrooke said.
She went on to explain that when she asked for the fee waivers from PAWSD for phase two, the PSCDC had already been awarded a $675,000 grant through DOLA through Proposition 123 for home ownership funds.
She later explained that the grant would allow for $65,000 to be taken off of the purchase price of each home to help keep the total cost for buyers in the affordable range.
“This is for 100 percent AMI and below,” Lashbrooke said, explaining that with the raw cost to build a home and the capital investment fees added on phase two, “it knocks us out of the affordability piece.”
She noted that would take a three-bedroom home from $330,000 up to $360,000, “and our 100 percent AMI, the cap on the house they can afford is [$298,000].”
She added, “So, it knocks us out of affordability, which would also knock me out of the $650,000 dollar grant if I can’t build these houses affordably.”
She went on to mention that in speaking with a specific PAWSD board member, it was suggested to her that the BoCC should be making the fee waiver request to PAWSD, as she is “simply just a contractor for the county building housing.”
She clarified that the DOLA More Housing Now Grant is the county’s grant.
“So, I am here today to officially request if the county commissioners could see if in your vision to go forward to the February PAWSD meeting to request a waiver of these fees for phase two,” Lashbrooke said.
She noted that the PSCDC will factor in the PAWSD capital investment fees as the project moves forward with the commitment to build 35 homes, “unless anything changes between now and then.”
However, having to factor in the capital investment fees for future builds would likely mean moving away from stick-built homes to some sort of modular or “panelized” home, Lashbrooke mentioned.
“We probably would most likely have to change the product that we bring to the market,” she said, “because we can’t hit the number that we’re required to hit.”
Lashbrooke also mentioned that Colorado Sen. Cleave Simpson is working on a bill to raise the AMI levels outlined in Proposition 123, “so we don’t have to disqualify 35 people for under $1,000 a year.”
Lashbrooke then mentioned that “there is some sort of misunderstanding between PAWSD and the [PSCDC]” with the fee waiver request for phase one of the project.
She explained that the PSCDC thought when it applied for fee waivers for phase one, that it applied to 80 to 100 percent AMI levels,“however, the minutes reflect 80 and below.”
She indicated that at the February meeting she will need to re-ask for the phase one fee waivers.
In response to a question from Commissioner John Ranson, Lashbrooke noted that the total cost of fee waivers for the first 10 homes is about $250,000.
Commissioner Warren Brown commented, “That’s disappointing; that was not my recollection, and I was at the meeting.”
He noted that if the request were for 80 percent and below, it would have been the same as Habitat for Humanity projects, “and clearly this is not the same project.”
Ranson commented that in meetings with DOLA representatives and PAWSD board members, what he got out of those meetings is that “the county needs to put the best foot forward.”
He explained that it is the county’s responsibility to do what it can to help with PAWSD.
“If we’re not working together, we’re not gonna be able to build affordable housing,” Ranson said, indicating that he is “all for” going to the next PAWSD board meeting. “To me, it’s a little bit ridiculous that we can’t work together, especially on something like this. It’s just been very trivial in the past, and I’m kind of fed up with it.”
Regular PAWSD board meetings are held on the second Thursday of each month at 5 p.m. at 100 Lyn Ave. For additional meeting information, visit www.pawsd.org/district-business/public-meetings/.
>