First resale on the books at West End
Last of deed-restricted townhomes sells
July 1, 2007
Steamboat Springs — After 18 months of marketing, listing Realtor Norbert Turek of Elk River Realty reports he has sold the last of the 10 deed-restricted units in West End Townhomes. The buyer was a longtime Steamboat Springs resident.
West End Townhomes are part of the larger West End Village subdivision, where 44 deed-restricted housing units were part of the city’s approval of the subdivision. The 10 additional “affordable” units in West End Townhomes were voluntarily deed-restricted by Jeremy MacGray and his partners in Capstone Endeavors, Brian Heit and Andrew George.
Turek said there are indications owners can realize equity in their deed-restricted townhomes but also reasons to question the demand for the units given how long it took to sell them.
The 1,120-square-foot, two-bedroom units and 1,360-square-foot three-bedroom units were sold at prices ranging from $240,000 to $285,000.
The deed restrictions at West End Townhomes do not place a price cap on resales, Turek said. However, they required that any buyer/occupant must be a “qualified resident” earning less than 120 percent of the median income.
The Yampa Valley Housing Authority confirmed the current income thresholds would allow an income of $61,800 for a one-person household, $70,680 for two people and $79,440 for three people.
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Turek said there has been some resale activity at West End Townhomes.
“One of the two three-bedroom, deed-restricted units has already been resold,” he said. “They bought it for $285,000 last year but then found out they needed to move back to the Front Range. They originally asked $330,000. I’m told they sold it for $320,000.”
Under the terms of the deed restrictions, the sellers had to reimburse the city of Steamboat Springs for deferred tap fees and building use tax (materials). The reimbursement restrictions are in place for original buyers who elect to sell their homes within the first five years of ownership.
Another three-bedroom unit is on the market for $359,000. Turek said the owners are planning to relocate to Idaho, where they hope to purchase free-market housing at an affordable price.
Turek said from a neighborhood point of view, he is happy with the mix of housing in West End Village. The preliminary application was submitted to the city in 1999. He pointed out that many people in the public and private sector worked hard to make the subdivision a reality.
However, he said, “for some enquiring minds, the time it took Capstone Endeavors and YVHA to sell out our most recent projects might call into question the real market for deed restricted housing at anywhere near the affordable price limits.”