Last Friday, I called up Emily Lashbrooke, executive director at the Pagosa Springs Community Development Corporation (PSCDC) to get the latest update on perhaps the most ambitious housing project in our community since Rose Mountain Townhomes broke ground in 2020, in the midst of a global health crisis.
PSCDC has posted an invitation to local and regional builders to submit a letter of interest by January 5, if they are capable of building 10 homes, to be completed by the end of 2024 in the Pagosa Trails and Chris Mountain subdivisions. PSCDC will donate 10 lots to the selected builder, with utilities at the property line, and will additionally provide logistical and financial support.
PSCDC is a Colorado non-profit, and has applied for four grants that will hopefully help the project pencil for the builder. The homes must be priced at between $280,000 and $320,000, and will be deed-restricted to ensure that they benefit working families over the long term.
Ms. Lashbrooke provided some information on how the project is progressing.
“We were given this initiative last February, from our highest-level membership, and they specifically asked us to work on helping to find a solution to building more workforce housing. What better way to do that than to insert ourselves right into the process. In the meantime, Prop 123 passed, and now all this funding is coming into play, to help us offset the high cost of building, and be able to build affordable homes.
“I don’t think there’s anywhere in Pagosa right now, where you can buy a house for less than $300,000.
“Without this Prop 123 funding, we would have to do a lot more grant writing. We’re going to have to do more grant writing anyway, but Prop 123 should help…”
The PSCDC was originally formed, back in 2010, specifically to write and accept grants that were available to non-profits, but not to governments. I believe 2023 marks the first year that PSCDC has seriously pursued grants aimed at addressing our housing crisis.
Prop 123 was approved by Colorado voters last November, and an estimated $300 million was earmarked to be spent on housing in 2023. As part of Proposition 123, local and tribal governments were required to file a commitment letter to the Colorado Department of Local Affairs, promising to increase their available stock of affordable housing by 3% per year over three years, for a total of 9%. Both Archuleta County and the Town of Pagosa Springs have filed those commitment letters.
The Division of Housing (DOH) saw a tremendous response from local governments and received Prop 123 commitments from more than 202 of the 336 jurisdictions throughout Colorado. These jurisdictions account for about 88% of the state’s population. A list of jurisdictions that have made this commitment can be found here.
Ms. Lashbrooke continued:
“What this process is doing, is lending more capacity to the CDC, to be able to help the Town and the County simplify the process for builders and developers who want to build affordable housing — because we are going through the process ourselves. So we can give honest feedback… and we can say to the Town and the County, ‘Say, here’s where we’re finding an obstacle; what if we were to go this way instead?’
“The Town and the County are completely open to any kind of feedback, about how we can get more affordable units into the market.
“We could have never guessed, when we were handed this strategic initiative, where it would take us.”
The 10 vacant parcels earmarked for 2024 are shown in the image below:
Three of the parcels are in Chris Mountain II subdivision, and seven are in the Pagosa Trails subdivision.
My own research into affordable housing suggests that housing choices exist in a continuum.
At one end of the continuum, we find what might be called “camping”. Living in a tent, or in an RV. Also sometimes referred to as being “homeless”. Not a great opinion in the Colorado Rocky Mountains during the winter, where sub-zero temperatures can linger.
At the other end of the spectrum, we find market-rate single family homes.
Here’s an illustration from RISE, a housing organization in New York:
Because our community generally does not allow camping as a permanent housing choice (although it’s acceptable for tourists visiting temporarily) our local governments have focused on supporting other types of housing — specifically, Affordable Rental and Affordable Home Ownership. The Rose Mountain Townhomes on Hot Springs Boulevard are an example of Affordable Rentals. PSCDC appears to be aiming at the Affordable Home Ownership category.
Ms. Lashbrooke noted that PSCDC has applied for grant funding to hire a regional housing coordinator, with the cost possibly shared with the Town and County governments.
“The eventual home buyers will be selected by lottery. They will be able to apply to purchase one of these homes, and it will all be done through a lottery process.”
I asked Ms. Lashbrooke if PSCDC had considered modular homes as an affordable option. She explained:
“We’re really trying to keep all of our money local, and trying to use our local builders. So we’re trying to find out if — between our grant funding and our local builders partnering on this project — if we can get the homes in the right price range…
The RFQ is available here. As noted, letters of interest are due by this Friday, January 5. PSCDC will announce two finalists on January 12.
“The public will be invited to a presentation by the finalists on January 31. I think it’s important for the public to know what’s being built, so they can decide if they want to put their name in the hat…”