At its Jan. 29 meeting, the Pagosa Area Water and Sanitation District (PAWSD) Board of Directors approved $101,580 in capital investment fee (CIF) waivers for four homes that Habitat for Humanity of Archuleta County plans to construct in 2026.
Habitat for Humanity of Archuleta County Executive Director Leah Ballard presented the request to the board, which had requested that she present a fee waiver request at its December 2025 meeting.
She began by explaining that the request was for the four homes that are part of the fifth year of Habitat’s initiative to build 15 homes in five years.
She indicated that the homes are purchased by families with incomes between 40 percent and 80 percent of the area median income (AMI).
She explained that the application process for these homes includes ensuring that applicants have reliable income and credit to successfully purchase a home, and homebuyer education courses.
Ballard indicated that the homes are financed by U.S. Department of Agriculture Rural Development 502 Direct mortgages, which provide longer-term, low down payment and low-interest financing, and are covered by deed restrictions that are designed to ensure that they remain affordable in the future.
Habitat uses modular construction to minimize home prices, Ballard explained, adding that Habitat currently works with a home supplier based out of Albuquerque, N.M.
She noted that, for the 2025 build season where the organization built four homes, Habitat received 4,594 volunteer hours of assistance from the community, and 34 local businesses and organizations contributed about $73,000 in in-kind labor.
Ballard added that Habitat also brought $250,000 in Colorado Department of Housing grant funds to the community and took other steps to promote affordable housing at a regional and national level.
During her presentation, Ballard also introduced members of two of the families who will partner with Habitat to build and purchase a home in 2026.
Both spoke of the stability that owning a home would provide and how Habitat would make that possible for them.
She then made her request for a waiver, asking that PAWSD waive the CIFs for four homes, including $36,908 in water CIFs and $64,672 in wastewater CIFs.
She added that the families who will occupy these homes make between 59 percent and 78 percent of AMI.
PAWSD board chairman Gene Tautges commented that he is an “apartment person” and that he believes that many people in the community are starting their careers and cannot afford a home.
He asked if Habitat would be able to consider building apartment complexes.
Ballard stated that this would be possible, but that Habitat had been tasked by Archuleta County with building homes on lots the county donated within the Pagosa Lakes Property Owners Association (PLPOA), where getting the exceptions to the homeowners’ association rules needed to build apartments is likely unfeasible.
Following more discussion of the feasibility of building apartments in the PLPOA, Tautges commented that one person he talked to told him that he needed a job more than he needed a house and suggested that community development should focus on getting more stores and apartments in the community.
He added that younger people in the community living in apartments is “normal.”
PAWSD board member Glenn Walsh commented that providing housing to lower AMI residents requires much more “faith” and “trust” than providing it to wealthier residents.
“I always compare it to volunteering to be a math tutor, but I only want kids who are 140 percent of the … average state score,” Walsh said.
Walsh added that he also has increased trust in Habitat since it consistently reports to PAWSD if the income of one of their partner families rises above 80 percent AMI, which the board has previously designated as a threshold for its willingness to provide fee waivers for affordable housing projects.
PAWSD board member Bruce Jones moved to grant Habitat’s request for waivers, which was seconded by board member Alex Boehmer.
Boehmer stated that he previously voted against granting fees waivers for Habitat’s 2025 projects, although he voted yes on a subsequent vote on waivers for the same projects.
He commented that he is pleased that the homes are being built in Chris Mountain Village II since that helps move forwards toward meeting the requirements for an infrastructure development grant that the Pagosa Springs Community Development Corporation obtained for the area.
Boehmer added that he feels that Habitat are “the best partners to work with.”
He stated that the projects also benefit the PAWSD ratepayers by helping accomplish the goals of the grant and helping Archuleta County meet its grant obligations.
“I want to see the county honor their grants so that we can continue to get more grants so that we can make this as affordable of a place as we can to live,” he said. “I’m not going to say affordable, because it’s not.
“I’ve appreciated your honesty and your integrity and your willingness to talk with me even when we disagreed, and I think you guys do an amazing job.”
Tautges then spoke, noting that his comments were “not going to be real popular, I’m sure.”
He questioned the board and Ballard about what the interest rate on the Colorado Housing and Finance Authority loan he received in 1976 was.
Following several guesses, Tautges revealed that the interest rate was 8.75 percent.
He then commented that he was “thankful” and “proud” to hear Habitat’s presentation and that he believes that Habitat is “bar none, the most efficient, quality entity in this county, and we’re glad you’re here.
“But, full disclosure, what you’re actually askin’ for is $101,580 for these four units.”
Tautges then urged Habitat to pursue options to develop apartments, reiterating his interest in developing apartments and his belief that working on apartments would increase the number of people who benefit from Habitat’s work.
The board then voted on granting the waivers, with four board members voting in support and Tautges voting in opposition.
josh@pagosasun.com
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