The Pagosa Springs Community Development Corporation (PSCDC) has been awarded $20,000 from the Colorado Housing and Finance Authority’s (CHFA’s) Direct Effect Awards.
A press release from CHFA announced on July 31 that $1,362,000 would be donated to 104 nonprofit organizations around the state through the program.
The press release explains that award recipients include public housing authorities, cities, counties and local municipalities “whose missions align with CHFA’s work to strengthen Colorado by investing in affordable housing and community development.”
According to CHFA, the grant award “will help to build internal capacity by hiring staff to assist with grant execution and compliance.”
Housing update
At a regular board meeting held by the PSCDC on Wednesday, Aug. 14, Executive Director Emily Lashbrooke provided an update on the organization’s current housing project.
Lashbrooke explained that the Archuleta County Housing Authority (ACHA) is stepping in to provide income verification and deed monitoring services for the PSCDC’s workforce housing development in the Trails and Chris Mountain II neighborhoods.
The PSCDC plans to build 45 homes over three years, with 10 homes set to be completed and available for qualified buyers to purchase by the end of this year.
Lashbrooke went on to explain that the agreement with the ACHA requires the PSCDC to create a memorandum of understanding (MOU) outlining the ACHA’s role and responsibilities.
“I thought, ‘How bad could it be?’” Lashbrooke said in regard to the cost of having an MOU drafted, explaining that ACHA asked for the PSCDC to cover the costs.
She noted the total cost came out to approximately $3,300, commenting it is an unbudgeted expense for the PSCDC.
PSCDC president Sherry Waner commented, “Unfortunately, it’s pushing the cost up for the homeowners because we have to pass that cost on.”
Waner also noted that the ACHA is charging individuals $200 for a credit check and income verification, which the PSCDC is requiring in order to become an eligible buyer for the program.
Lashbrooke noted that the ACHA is not making any profit from that charge and that a third party is performing the credit check, which is causing the $200 fee to be collected.
Lashbrooke also noted that she does not understand the need for an MOU “because this is the job the housing authority should be doing,” but that she understands “the value of the document.”
Lashbrooke noted the only thing the ACHA will have to continuously monitor on the deed restriction for 33 years is that the home is owner-occupied.
Lashbrooke explained that the recent award from CHFA may be able to be used to cover the cost of the MOU.
She also noted the MOU establishes a five-year time frame with the option to renew.
Lashbrooke also briefed the board on another unforeseen costs associated with the housing project, explaining that the Pagosa Area Water and Sanitation District (PAWSD) and the Pagosa Lakes Property Owners Association have holding fees for water and sewer connections.
She explained that the holding fee for 35 lots that the PSCDC received from the county is about $9,000 per year.
Lashbrooke noted that this was not known when the lots were initially transferred.
“It keeps adding,” she said.
Waner commented on the topic, highlighting a main reason why the PSCDC first got involved with affordable housing projects.
“One of the biggest reasons we were asked to tackle this project was to, one, identify what the hurdles and the roadblocks are,” she said. “There’s probably an opportunity for a lot of different organizations to come together to help remove those barriers to entry for creating affordability in housing.”
Board member Brooks Lindner asked if PAWSD would be willing to waive the holding fees.
“Because they waived our capital investment fees, they are not willing to waive the holding fees,” Lashbrooke said, adding that the PLPOA has to go to a vote for the fees to be waived.
“That’s highly unlikely to pass for us,” she said.
“This seems like one that would be easy for them to waive,” Linder replied, noting this is “just [a] stagnant holding fee deal.”
Lashbrooke also noted that PAWSD would not be able to collect this fee if the PSCDC were not doing its housing project.
Lashbrooke mentioned that the CHFA award might be able to be used to cover the holding fee.
The PSCDC will be holding its first housing opportunity drawing today, Aug. 22.
At the meeting, Lashbrooke noted there are four eligible homebuyers for this drawing. She noted that the PSCDC will hold another drawing in September and possibly one in December or January 2025.
Business forum
At the Aug. 14 meeting, Lashbrooke introduced the idea of creating a business forum to help relay messages from the business owner community to elected officials.
“We hear from the electeds a lot that they’re not hearing from the business community,” she said.
Lashbrooke explained that due to the timing and location of PSCDC meetings, a lot of business owners are unable to attend and have to prioritize running their businesses.
Lashbrooke added that the business forum would “identify topics that our electeds would like to hear thoughts from our community on ... Just seek input from our business community about where our community is going.”
Lashbrooke noted the Town of Pagosa Springs is currently working on a strategic development plan and that business owners may want to weigh in on that.
Board member Warren Brown, who is also a county commissioner, commented that he’d like to see a forum developed and that it is good to have “open conversations” with business owners.
Lindner, who is a town council member, suggested that the overarching theme of the forum could be focused on growth of the community.
“It’s something that, we have a lot of constituents that are really concerned and freaked out about growth, and yet our businesses of course desire growth, so how do we balance that, and I think that would be an interesting topic,” he said.
Brown questioned if this is something that would be open to PSCDC members only, or open to any business owners.
“It would absolutely be open to all businesses. I think we would be doing a disservice if we didn’t ... every business has a voice in this community,” Lashbrooke said.
She indicated that the next PSCDC membership meeting is scheduled for Oct. 22, and that the forum might be presented then.
