Our View: A win-win result
Wednesday, August 29, 2007
In the ongoing debate about whether - or how - to provide affordable housing in Steamboat Springs, Monday's news that the Yampa Valley Housing Authority closed on its purchase of the Fish Creek Mobile Home Park is cause for celebration.
The Housing Authority, buoyed by a $954,000, no-interest loan from the city, paid $3.2 million for the 8-acre neighborhood. A $550,000 safety upgrade for the railroad crossing in the park raises the total purchase price to $3.75 million.
What it means is long-term security for the 68 households in the exclusively owner-occupied neighborhood. And for some of the residents, the Housing Authority's purchase brings with it the opportunity to become Steamboat Springs landowners. Mobile home owners typically rent the land on which their homes sit, but Housing Authority officials say part of their agreement with the city is to work with Fish Creek homeowners on land acquisition.
Mary Alice Page-Allen, president of the Housing Authority's board, said Fish Creek owners won't be forced to buy the land under their homes, and that no one would be evicted.
"Nobody's going to lose their home in any conversion process," Page-Allen said.
There's no doubt that comes as a relief to the families who call Fish Creek home. Those residents can now focus their energy and money on their homes instead of worrying about when their neighborhood would go the way of Westland Mobile Home Park.
The City Council has taken numerous steps in the past year - inclusionary zoning and linkage ordinances immediately come to mind - to generate funds for the creation of affordable housing. But as we've noted before, it appears easier to hold on to the community housing we already have than it is to create new housing opportunities for residents at the lower end of the income scale. The Housing Authority's acquisition of Fish Creek Mobile Home Park was an important, needed step and can provide a blueprint for future deals.
Credit must be given where it is due, and at the top of the list are Bob and Audrey Enever, the longtime locals who purchased the mobile home park in 1975. The Enevers thought of the Housing Authority first when they considered putting the development on the market, and they patiently allowed the Housing Authority to secure the necessary financing. The City Council also played a significant role - providing the Housing Authority with a no-interest loan for five years. The $954,000 loaned by the city came from funds designated for affordable housing from a previous deal made with developers who bought and eventually tore down the Westland neighborhood to make room for a mixed-use development along the Yampa River in downtown Steamboat. This is the sort of collaboration between the city and the Housing Authority that we've previously called for. Finally, the Housing Authority should be commended for seizing an opportunity to keep affordable housing units within the city limits - an outcome that strikes at the heart of its primary mission.
We hope the future brings continued collaborative efforts between government agencies and private developers and landowners.
Comments
rodcarew 5 years, 9 months ago
This is generally good news. I do have one question, though: do the individual owners have to purchase the land underneath them, from YVHA, at fair market (or below market) value, or does the land automatically become theirs through a gift from the YVHA? If the land is being purchased at fair market value, then I believe the property should be unrestricted with respect to long term affordability. If, however, the land is gifted to them or if they're buying at below market, then their land has suddenly become a lot more valuable then it was previously. Can they turn around and sell the property as a free market unit or will they be restricted in some manner, so that the land always remains "affordable" to justify the subsidy?
Hadleyburg_Press 5 years, 9 months ago
Look for the lots to be sold at below market value with deed restrictions. Just a hunch. This would in essence create an affordable "rental" with some equity accrual through low percentage value increase per annum and cost of living savings as compared to the general public.
spukomy 5 years, 9 months ago
As it stands now, there is no way for residents to purchase the land. The City's minimum lot requirements won't allow it. Under the current rules, all mobile homes would have to be pulled out. Then the roads, water, sewer, gas lines, ect, would have to be replaced. And only 31 of the now 68 homes could be let back in.
A Variance would solve this issue, but since Jim Cook's bankroll isn't involved that probably won't happen.
fish 5 years, 9 months ago
I will bet you 10 bucks the city council will turn around and sell this land to Jim Cook or another developer within a few years.
jeannie berger 5 years, 9 months ago
The city owned part of the Westland mobile home park right of way, this is not the same as the deal with Fish creek mobile home park. The Enevers sold it to the housing authority with the hope of protecting the low income housing that exists there. Hopefully the residents will be able to purchase the land that their mobile homes sit on and continue to live and work in Steamboat. The city has allowed mobile home owners to buy lots smaller than what the norm is in the city limits. Hopefully this will be the case again when it comes to Fish Creek. I applaud the housing authority and the Enevers for their work to save these 68 houses and the families that live there.
jack legrice 5 years, 9 months ago
Just another can of worms opened by the city council. Where can I get in line for an interest free loan. They just act on inpluse .Too many loose ends on this mess. I do feel for the people who live there. BUT they knew when they bought the trailer they only rented the lot. Something is wrong with this picture. Sick of the whinng that I want to live here but can't afford it,so someone help me.
rodcarew 5 years, 9 months ago
It's zoned Community Commercial, which will have to be rezoned to Mobile Home (which allows 3,000 s.f. min. lot size).
I support the concept of buying the park to retain existing affordable housing over the long term. My only point is will this truly remain affordable over the long term or, will land values begin to rise significantly with the benefit of the land underneath and people having the confidence to invest in improvements in their houses, such that when they go to sell, they are no longer considered affordable? If there is a public subsidy, then it should come with some sort of resale restriction to justify the subsidy in the first place. Otherwise, it's a just a handout. In the trailer park in Aspen, this resulted in one lot (albeit a completely new structure) to be sold for over one million dollars.
spukomy 5 years, 9 months ago
Rod, If tenants were able to but the land, I'm sure values will rise. Mobile Homes by the school are going for 100K+. Put the same structure in Dream Island and see it go for 15-20K.
A resell restriction may keep some tenants from wanting to buy the land. And the HA is on record as saying nobody will be evicted if the land becomes available and they don't want to buy it. It may be easier to sell the structure, in the future, if the incoming tenant doesn't need to pass all the qualifications of the HA.
I've heard of high end mobile homes in Aspen and Vail. Some have basements. Right now in Fish Creek, 2 bdrm, 1 bath, 500 sq ft, on the tracks, are selling in the $45K area. Certainly doubled from a year ago, but not quite a million dollars.
rodcarew 5 years, 9 months ago
I agree the resell restriction may keep some tenants from wanting to buy - it would give all a pause - but, at the same time, I wouldn't want to see public money used to enrich someone. If they bought the trailer for $25,000, then turn around and sell it for $200,000 or more, because of discounted land, then I would think most people would have a problem with that and I think it should come with some sort of restriction.
Now, if they pay fair market value for the land, then they should be free to get whatever they can get, but let's not fool ourselves into thinking that it will stay "affordable" for too long after that. Then, what was the purpose of YVHA purchasing it in the first place?
thecondoguy1 5 years, 8 months ago
rod was not kidding the mobil home park in the middle of Aspen has homes selling for upwards to 1Mil, this is no joke at all. On another note regarding Jim Cook buying this land, I say why not he has already paid for it........... We may have just made 68 wonderful folks millionaires, I hope they are not griping abour Mr. Cook.
wissbecklarry 5 years, 8 months ago
If you're considerting an investment here, remember: You can hear the whistle blow 500 miles. But at 500 yards it can be REALLY ANNOYING.
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