A city-owned townhome intended for workforce housing in north Durango is back on the market. But this time, it is listed by real estate agencies.
The city of Durango pulled the unit off the market in June after it decided to get ahead of a perceived conflict of interest in how a purchaser for the deed-restricted, below-market rate townhome was selected. The prospective purchaser was a city employee in a romantic relationship with another employee in the city’s housing division.
The relationship itself was not problematic, City Manager José Madrigal told The Durango Herald at the time. But when a supervisor, former Housing Innovation Manager Eva Henson, decided not to disclose the relationship after learning about it, the city pulled the brakes.
This time around, the city is using a random selection process to determine a qualified purchaser, Madrigal said Friday. The unit will also appear in home listings and will be advertised as a deed-restricted unit.
The unit is already listed on popular real estate brokerage websites such as Zillow, Realtor.com and Redfin. On Redfin, the listing stands out on a map as significantly cheaper than many other properties for sale. It’s tagged in red at $400,000 among a sea of real estate tagged green with prices well into the millions of dollars.
The deed-restricted property’s exact sale price is listed at $399,000, the same price it was originally offered at.
The city stepped back and reorganized its process for rolling out the townhome offering after the controversy in June that led to Henson’s resignation.
Madrigal attributed the quick turnaround for getting the townhome back onto the market to Michael French, former executive director of the La Plata County Economic Development Alliance, who the city contracted to assist with housing and tourism projects after Henson’s departure.
French said city staff laid out all the groundwork. The city hired a realtor to host the property on Multiple Listing Service, show the unit and help ensure candidates are qualified, especially first-time homebuyers.
Once prospective purchasers are rounded up, HomesFund will again verify qualifications and hold a randomized selection process using a computer to generate numbers and assigning awardees, he said.
According to a city news release, prospective buyers must meet the following criteria:
- Buyers must have an annual income at or below 125% La Plata County’s 2024 annual median income. For a two-person household, that’s about $110,500 or less.
- Buyers must purchase the home to live in as their primary residence.
- They must work at least 32 hours a week for a local employer or have lived in La Plata County for at least one year.
- Buyers must complete an in-person homebuyer education class at HomesFund by Sept. 21.
- And, buyers must obtain a preapproval letter from a lender for the purchase.
Prospective buyers who have not completed a HomesFund homebuyer education class must act fast. They can register at HomesFund’s website for upcoming classes in Cortez on Aug. 17, Durango on Sept. 7 and Pagosa Springs on Sept. 21, the release says.
Their maximum annual incomes must also not exceed:
- $96,750 for a one-person household.
- $110,500 for a two-person household.
- $124,375 for a three-person household.
- And $138,125 for a four-person household.
Despite the setback in June, the city considers the Animas City Park Overlook townhome project a huge success. The development includes 12 market rate units and 10 deed-restricted units, six of which are workforce-qualified and four of which are income-qualified for workers earning less than 125% area median income, the release says.
The development was acknowledged with a “Best Project” award in Downtown Colorado Inc.’s annual Governor’s Awards in May last year for “meeting a critical community need through creative partnerships,” according to the city.
cburney@durangoherald.com
