A new affordable housing program aimed at lowering the price of existing homes for qualified buyers in the Roaring Fork and Colorado River valleys, without the burden of new construction, could launch as soon as this summer.
The West Mountain Regional Housing Coalition (WMRHC) outlined plans for its Deed Restriction Purchase Program at a housing forum in January. Also at that forum, attendees voted on a new name for the program, which will be called “Good Deeds.”
Commonly referred to as a buydown program, the WMRHC effort is modeled after a similar program that goes by the same name in Eagle County.
The way it’s structured, WMRHC will partner with buyers who have employment in Garfield, Pitkin or Eagle counties to defray the cost of a free market home, up to a certain price point, by 30%.
Price points are $1.5 million for homes in the Basalt area and upvalley to Aspen and Snowmass, $1.2 million for homes in and around Carbondale and Glenwood Springs, and $800,000 for homes in western Garfield County.
In exchange, the buyer will agree to place a permanent price-capped deed restriction on the property, allowing 3% annual appreciation. The buyer also must not own other property, and must live in the home as their primary residence.
“From our research, even if you earn median or just above median income in our area, the housing market is still too far out of reach,” said April Long, programs director for the WMRHC. “So, essentially anybody who works here can’t afford to buy a home here.”
If a buyer can participate in the free market based on their income, they should, she emphasized.
“This program is for those who really need assistance in purchasing a home, and are okay with the deed restriction requirements,” Long said.
To qualify, a buyer must prove that they work for a local employer and are not working remotely for a company located outside the area.
Buyers do not need to be in a certain income category to qualify, unlike other affordable housing programs.
The formal launch of the program is still dependent on the final funding pieces falling into place.
To date, the Town of Carbondale has committed $100,000, Snowmass Village $250,000 and, just last month, Glenwood Springs said it was in for $200,000.
Pitkin County has tentatively committed to put up $2 million, but details are still being worked out, Long said. A work session with the county commissioners is scheduled for May 28.
Talks are also ongoing with Aspen and Basalt, she said.
The initial fundraising goal is $3 million, which the coalition has estimated could buy down seven to 15 homes. With $6 million, the number of homes increases to around 30.
“Our hope is that once we secure funding from local governments we can use that as leverage to seek matching funds from local philanthropists or donors,” Long said. “The goal is to show that we are all in together, and that our local governments are taking a leadership role in approaching this regionally.”
Glenwood Springs City Council Member Shelley Kaup said she and her fellow council members saw value in funding the Good Deeds program as a regional solution beyond what the city may be able to accomplish on its own.
“We realize how expensive and unattainable housing prices are for people who want to live and work in Glenwood Springs and make a life here,” Kaup said. “If we can help some people get into homes who don’t qualify for other assistance, that’s a plus.”
She continued, “The whole point of the program is to get more homes in deed-restricted status, so that they can stay attainable for people who want to live and work here.”
Glenwood Springs’ funding for the Good Deeds program will be separate from the dedicated funds for affordable housing that were approved by voters through measure 2C in 2023. Those funds, generated through a lodging tax, can only be used for workforce housing in Glenwood Springs exclusively, whereas the buydown funds will come out of the city’s general fund, she explained.
Kaup also represents the Roaring Fork Transportation Authority Board of Directors on the WMRHC board. RFTA became a member of the coalition last fall, also in recognition of the need for a regional approach to housing.
The coalition is also exploring other programs, such as rental assistance and potentially partnering with local jurisdictions to build more deed-restricted housing in the future.
Prospective homebuyers who are interested in considering the Good Deeds program should contact WMRHC via email at info@WMRhousing.org