Update. 8 a.m., Thursday, Nov. 21: This story has been corrected in one paragraph to differentiate between Archuleta County and the Archuleta County Housing Authority with regard to relisting homes for sale.
During a regular meeting held by the Archuleta County Board of County Commissioners (BoCC) on Tuesday, Nov. 19, the board unanimously approved and adopted the affordable workforce housing project master deed restriction for phase one of the Pagosa Springs Community Development Corporation’s (PSCDC’s) workforce housing project.
The first phase features 10 homes being constructed in the Trails and Chris Mountain II neighborhoods.
Earlier that day at a work session, PSCDC Executive Director Emily Lashbrooke briefed the BoCC on the master document, noting some of the main highlights of the deed restriction
“We put some real safety nets in place,” Lashbrooke said, explaining that the Archuleta County Housing Authority (ACHA) will oversee the deed restriction, “but any major decision will have to come back in front of the BoCC.”
She mentioned that part of the deed restriction outlines that if the community goes into “financial distress” and the house can’t be sold at the same area median income (AMI) level that it was purchased at, the BoCC has the right to waive deed restriction.
Lashbrooke also mentioned that two main reasons the deed restriction has to be in place is to supersede the original deed restriction the PSCDC assumed with acquiring the properties, “which had a 120 percent AMI tied to all of the lots donated to PSCDC.”
The other main reason for having the deed restriction is so that when the original buyer is ready to move out, they will have to contact the ACHA to get the maximum resale price, she explained.
Lashbrooke added that the homeowners can earn up to 5 percent annually on the home, or sell at the same AMI level the home was purchased for.
“That will keep that house affordable and in the market for 30 years,” she said.
Lashbrooke noted that these are beginner homes and that buyers would stay in the home for an average of 10 years before they are ready to move out.
The deed restriction also outlines the process of foreclosure situations and gives the BoCC the right to purchase a home at the remaining value, keeping the deed restriction in place rather than it being voided through a foreclosure process.
Lashbrooke explained that if a homeowner goes into a foreclosure situation, they must contact the ACHA, who will give notice to the BoCC.
County Attorney Todd Weaver explained that the county would then have 45 days to provide written notice to the bank of intent to purchase the property. If the county were to do so, it would then have an additional 60 days to close on the property.
“We did that because we don’t know what we don’t know,” Lashbrooke said. “This is a preventative measure to keep the deed restriction in place.”
She also noted that the ACHA will be in charge of making sure the deed restriction is transferred with every sale of the property.
Commissioner Veronica Medina asked what the main difference is between this master deed restriction and the original deed restriction being replaced.
Weaver explained that this is a much more detailed document, but the main difference is that it reduces the AMI restriction from 120 percent to 100 percent.
Weaver noted that the deed restriction goes for a 30-year term and still includes the restriction of the home not to be operated as a short-term rental.
Commissioner Warren Brown commented, “I’m tickled to see the [PSCDC] and our housing authority are working collectively to have this managed in an appropriate way.”
Commissioner Ronnie Maez asked for clarity in regard to the county’s option to purchase a home in a foreclosure situation, expressing concern for the allotted time the county would have to make a decision.
“We sit here and talk about things over and over,” Maez said.
Weaver explained that there are statutory limits on the amount of time the county would have to make a decision and that the bank would move forward with the process regardless.
He explained that the county has 45 days to decide if it would like to pursue the option of purchasing the home, and then an additional 60 days to actually close on the property, giving the county a total of 105 days to work through the process.
During the regular meeting, Weaver offered some more clarity on the document, stating that the master deed restriction “assures that the properties stay as affordable workforce housing at 100 percent AMI or lower for a period of 30 years.”
He also noted there is a process outlined for the event of a homeowner passing away and the property being transferred to someone though a will who is not qualified to live in the home.
Additionally, Weaver mentioned that parameters are set for who is a qualified buyer, noting that employers in the county can also purchase a home specifically to provide housing for its employees.
Medina asked if the PSCDC knows what the process would be for relisting a home that the ACHA purchases to prevent a foreclosure.
Lashbrooke explained that the PSCDC has defined that process, but that it cannot mandate the ACHA to follow it, though she hopes that the ACHA would continue to keep continuity with the program.
PSCDC invoice
During a regular meeting held by the BoCC on Nov. 12, the board unanimously approved a payment of an invoice received from the PSCDC for the amount $297,571 for the More Housing Now grant that is covering the cost of road repairs and electrical trenching in the Chris Mountain II and Trails neighborhood.
Earlier on that day, Development Director Pamela Flowers explained that the payment is for a contract with La Plata Electric Association to pull all electrical lines forward as planned and also includes survey work.
Flowers went on to explain that the county will be reimbursed 90 percent of that amount when the grant funds become available, leaving the county to pay just 10 percent, or approximately $29,000 for the work.
“So, we should get most of that back,” Flowers said.
Light Plant Road payment
Also during the Nov. 12 meeting, the BoCC unanimously approved its consent agenda, which included a payment of $81,451.57 to PAP LLC for the work done on Light Plant Road over the summer.
clayton@pagosasun.com
