Project 102, a Town of Pagosa Springs project to bring 102 workforce housing units onto the rental market, was officially changed to Project 64 on Aug. 4.
The project’s name change came about after the town had placed bids on three properties in a bankruptcy auction, but was the successful bidder on only one property, Village Pointe Condominiums.
On Aug. 4, Housing Coordinator Jeff Sams told the Pagosa Springs Town Council that while the building currently has only 32 condo units, these would be converted into 64 rental units.
He explained that the current 32 units each have a complete lock-off one-bedroom, one-bathroom unit that can be converted to separate units.
The new rental units would be aimed at what Sams called “middle income” workforce housing, 60 to 120 percent of the area median income (AMI) level.
But, he explained, the rental rates of the units would ultimately be based on the cost of buying the building, $4.9 million, and the renovation costs it will take to convert the condos into 64 rental units.
The town will be buying the condos from Wyndham Resorts, which it planned to liquidate through a bankruptcy auction process in which the town was the successful bidder on the Village Pointe condos.
Sams and Town Manager David Harris have explained that the closing date on the property will be many months away, perhaps March 2027.
Sams noted that this is a “unique” opportunity for the town to get into the workforce housing business, rather than building from scratch, since most of the units are “move-in ready.”
“By repurposing existing housing, rather than building from the ground up, the town can bring quality workforce housing online much more quickly and at a significantly lower cost than new construction,” he said.
Wyndham has been “good partners” in the process, and will continue to do upkeep on the building and the grounds until the town finalizes on the property and becomes the owner, he added.
On the uniqueness of the property, he also said that “we might have the only waterfront affordable housing units in the nation.”
He added, ”These are quality units.”
Council member Brooks Lindner added, “When I toured them, I thought they were incredible.”
Council member Gary Williams also suggested that these units are unique in that renters will be able to “stand out on the balcony, overlooking the water, looking out at the mountains.”
He also mentioned that most of the units would have a washer and dryer included.
Mayor Shari Pierce said that they are “fully furnished,” as well, and would attract teachers, police officers and firefighters.
“These will pay for themselves into the future,” she said.
“The goal was to provide affordable housing and have the project pay for itself through the rental income,” a statement on the matter states.
Sams noted the town will be advertising and posting its “talking points” on these units on its website.
Harris added that it’s “exciting,” and that it “looks like we are going to get these” condominiums.
Once the town closes in the upcoming months ahead, “with the interiors of the units in move in condition, we plan to start leasing and moving tenants in right away,” a town document states.
derek@pagosasun.com
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