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Steamboat Springs — The Yampa Valley Housing Authority has no intention of closing its doors in the coming years, but the organization made no secret of its need for additional funding to carry out more meaningful work.

Housing Authority board President Ed MacArthur and Asset/Program Manager Mary Alice Page-Allen presented an annual report and a recently developed strategic plan for the organization during a joint meeting of the Steamboat Springs City Council and Routt County Board of Commissioners on Monday.

Last year, the Housing Authority's troubled finances forced it to lay off its existing employees, reduce its staff to one full-time position and scale back operations. In its "survival mode," the Housing Authority focuses on managing its existing properties, monitoring deed restrictions and administering programs such as down-payment assistance.

In its strategic plan, the organization contemplates eventually ramping its efforts back up to include the actual construction of affordable homes.

The strategic plan also includes an exit strategy, but MacArthur and Page-Allen stressed that was simply a worst-case scenario in the event that the organization's revenue completely dried up. Instead, the Housing Authority hopes to become the point organization for affordable housing in Routt County.

To accomplish its goals, the Housing Authority is relying on continued funding from the city and county.

The organization is requesting $80,000 from each in 2010, which is the same amount it received this year. But to reach its higher goals, the organization also is counting on the city of Steamboat Springs to hand over the money it collects from its affordable housing ordinance.

"If money doesn't flow, we don't get past basic services," MacArthur said. "Money has to flow."

Councilman Steve Ivancie raised concerns with that idea. He said the city has a responsibility to make sure the fees it collects are used appropriately, and he questioned how that would be ensured if affordable housing fees were simply passed through to the Housing Authority.

Most council members, however, voiced support for the idea.

Nancy Engelken, the city's community housing coordinator, said she is working on developing a process to allow money to be made available quickly to the Housing Authority while also making sure the city is leveraging its fees to the greatest extent possible.

Also critical to the Housing Authority's success is the successful development of its Elk River Village project. The Housing Authority borrowed $2 million to purchase a parcel on Elk River Road. In May 2008, the City Council approved a development plan for 48 rental units and 13 single-family home lots. Page-Allen said the holding costs on the property are "killing us."

MacArthur said the Housing Authority is working with partners to buy a portion of the property and help develop the project using tax-credit financing. MacArthur said he is hopeful the plan will work, and Page-Allen said the Housing Authority will ask the city for help paying for pre-development costs.

If development of the project doesn't begin, the Housing Authority will be subject to a $202,845 curtailment of its loan in 2010.

"If we're not able to put something together with the partners we're working with, we're going to be in trouble," MacArthur said.