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Steamboat Springs — October has been a long month for 30 families hoping to move into the affordable homes at Fox Creek Village Condominiums.

Now, there's renewed hope that the federal mortgage assistance they need is falling back into place.

"If you had called me two weeks ago, I was not feeling good," Elizabeth Black said. "They were waiting for their units, but there wasn't any money, so it was heartbreaking. But we had five closings (Thursday) and hope to have five more in the next week or so."

Black is the executive director of the Yampa Valley Housing Authority, which developed the 30 condominiums for low and moderate income families on Hilltop Parkway, just removed from the U.S. Highway 40 corridor.

An open house for the project was held in September with considerable fanfare, and the authority obtained certificates of occupancy for the condominiums in mid-September. However, as the end of federal fiscal year approached on Sept. 30, Congress failed to appropriate funding for a direct loan program that 13 of the families were counting on, Black said.

For a time, it appeared the families, who make 80 percent or less of the Routt County median income, had lost their loans.

To date, only a handful of families have moved into the housing development, Black said. But that should begin to change.

Black said a USDA housing official in Lakewood, Jamie Spakow, recognized how long Steamboat families have been waiting for their new homes and aggressively sought funds to make their dreams possible.

"I've thanked her for representing us," Black said.

Only a handful of families have moved into Fox Creek Village so far. One woman, who preferred not to give her name, said Thursday that she likes her new home and is enjoying the convenience of being close to downtown Steamboat. She purchased a market rate condominium and did not require financial assistance.

Black said the most difficult part of putting together financing for the new residents has been helping the 13 households who make 80 percent or less of the annual median income in Routt County. In 2006, 80 percent of the AMI is $40,600 for a single person and $46,400 for two people. For three people, the 80 percent level moves up to $52,200 and for a household of four, it is $58,000.

Of the 13 households, Black said four have been converted to conventional mortgages and the USDA has confirmed direct loans for three more. Black is expecting more good news to follow.

Housing loans are falling back into place more readily for households making 120 percent of the AMI, she said. But there is still paperwork to be completed. The guidelines lending institutions follow assign higher risk to multi-family housing projects, Black said. That makes it difficult for local lending institutions to underwrite loans at Fox Creek.

She recently completed applications to obtain Freddie Mac and Fannie Mae approvals that would clear the way for loans initiated locally.

- To reach Tom Ross, call 871-4205 or e-mail tross@steamboatpilot.com