Demand grows for West End
Thirteen families already on list for 10 deed-restricted units
April 1, 2006
Units in West End Townhomes have been on the market for little more than a week, and developers already have a list of 13 people who may want to live in the affordable units.
The list likely will grow, but even if it doesn’t, a lottery will decide who gets to buy the 10 townhome units. The list of interested buyers will be compiled until April 21.
“I wasn’t sure if the market would have 10 families,” said Norbert Turek of Elk River Realty who is working with the developer. “It looks like it just might happen.”
Buyers must meet income restrictions to buy one of the units, which range from $240,000 to $285,000. Two and three bedroom units are being built and offered with deed restrictions.
Construction of 10 townhomes to be sold at typical market prices is scheduled to begin in August after the affordable units are complete.
The units are being built in West End Village, which is north of U.S. Highway 40 on the west end of Steamboat Springs.
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To be eligible, buyers must be employed in Routt County, use the townhome as a primary residence and they cannot have a net worth of more than $250,000.
Buyers must also earn less than 120 percent of the Routt County median income, which is figured according to the family size. For a family of four, income cannot exceed $87,240.
Half of the units in West End Village must be affordable housing. Some concessions are made to developers, such as subsidized permit fees.
For JSM builders Jeremy MacGray and his partners J. Brian Heit and Andrew George, this means selling the townhomes at close to what it costs to build them.
“We knew we were going to eat it on these front buildings,” MacGray said.
Despite not making any money on the affordable townhomes, MacGray said they are constructing them using high-quality materials and are installing high-quality finishes.
“(We) try to keep costs down for maintenance, but you also want it to be a high-quality product that people want to come home to,” MacGray said.
Owners who decide to sell their townhomes will be allowed to sell them based on a 5 percent rate of appreciation.
The deed restrictions are being finalized, but there also likely will be a penalty if a buyer decides to sell the townhome within the first two years. The owner will have to pay the city back for the building subsidies plus interest. Turek estimated this would be about $7,000.
MacGray said building affordable housing in Steamboat means sacrifices not only by builders, but the community as a whole, he said.
Some developers think providing affordable housing will inflate market prices. MacGray said this likely will be the case with the 10 market-priced townhomes he plans to build next.
“I would have potentially left more on the table if we would have made money on the front buildings,” MacGray said.
For more information about the townhomes, call (970) 879-8103.