Yampa Valley Housing Authority works to finance Fish Creek Mobile Home Park infrastructure project
February 17, 2014
Steamboat Springs — The Yampa Valley Housing Authority continues to work toward a plan to replace the aging water and sewer infrastructure below Fish Creek Mobile Home Park, and on Thursday, executive director Jason Peasley updated the board on financing progress for the project.
Peasley said there are a lot of moving parts that have to fall into place to make the project affordable.
The housing authority is looking to refinance the Wells Fargo loan used to help purchase Fish Creek Mobile Home Park and restructure the loan from the city of Steamboat Springs that helped support the $3.2 million deal in 2007. The mobile home park is located along the Yampa River east of downtown.
The loan adjustments are necessary for the housing authority to fund the infrastructure project with a loan from the Colorado Water Resources and Power Development Authority.
If the housing authority receives financing from the state agency, it would need to commit a portion of the lot rents at the park to paying back the loan, but currently, all the park's revenue is committed to the Wells Fargo note.
Yampa Valley Housing Authority board President Kathi Meyer and the authority's staff have been working to refinance the Wells Fargo loan and allow revenue to be committed to the Colorado Water Resources and Power Development Authority.
The structure of any new note also could change based on requirements mandated by the Taxpayers Bill of Rights.
The housing authority now is conducting an income survey of Fish Creek Mobile Home Park residents to determine if it could qualify for either low cost financing or principal forgiveness from the Colorado Water Resources and Power Development Authority.
"We are continuing to reach out to the community there," Peasley said Thursday about the income surveys. "We have about half, but we need more."
The results of the survey go directly to the state, he said.
The housing authority also is seeking to restructure the loan that the city of Steamboat Springs issued for the Fish Creek Mobile Home Park purchase in 2007, which now stands at about $750,000.
It was interest free for the first five years, but now accrues at 3 percent per annum.
Peasley said he is working with City Manager Deb Hinsvark to reach a new deal that would make payment of the loan contingent on the mobile home park's available cash flow and make it interest-free, including wiping out the about $30,000 that already has accrued.
City Council member and housing authority board member Scott Myller said the city does eventually want its money back, but it's not an immediate need.
Any changes to the loan from the city would need to be approved by City Council.
The housing authority also must negotiate with the city about how to split the costs of what's become a joint project.
The city will be replacing a sewer interceptor under the mobile home park and would save money by sharing the costs of the site work with the housing authority.
The engineering estimates for the work list a total cost of $1,252,791. The housing authority's share is $851,227, according to the estimate, which allocates 73.8 percent of the site work costs to the housing authority.
Peasley said he is meeting with city staff this month to review the cost estimates.
"It is a bit subject to negotiation with the city," he said about the total cost to the housing authority.