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A replicable model for workforce housing?

City of Durango purchased townhome, worked with lender to create affordable unit
HomesFund, a mortgage assistance group in Durango, has identified a buyer for unit 501 of the Animas City Park Overlook Townhomes on East 33rd Street across the street from Animas City Park. The city of Durango purchased the unit from developer Agave Group earlier this year in order to resell the home at a below-market rate, with the intent of providing an additional affordable workforce housing unit. The purchase is expected to be finalized in mid-July. (Jerry McBride/Durango Herald)

HomesFund, a mortgage assistance group based in Durango, and the city of Durango have found a buyer for an affordable workforce housing unit at the Animas City Park Overlook Townhomes on East 33rd Street adjacent to Animas City Park.

The buyer intends to close on the purchase of the townhome unit in mid-July. The purchase will bring the number of income-qualified deed-restricted units at the townhomes up to five, Eva Henson, Durango housing innovation manager, said at a City Council meeting earlier this month.

The purchase is unique, she said. Unlike the other units that were sold directly to buyers by developer Agave Group, the city purchased the unit to secure an additional deed-restricted unit for local workers.

The city is required to pass an ordinance for any conveyance of city-owned property. It held a public hearing June 4. In April, City Council authorized the purchase of Unit 501 for $547,000.

The unit was targeted at income earners making 125% area median income or less. For a two-person household, that’s an annual income of about $104,000. HomesFund approved the buyer, who was preapproved by a local lender, at a sale price of $399,999, she said.

“With this unit, there will be five income qualified units and three workforce units at ACPO (Animas City Park Overlook), Henson said in an email to The Durango Herald. “Seven are currently occupied by qualified households and pleased that local workers are able to live in town.”

Eighty-three households on waitlists, including 17 households from an initial lottery used to select prospective buyers for the workforce housing units in December 2022, were notified of the buyer’s intent to purchase, she said.

She said the city’s strategy of acquiring the unit, Unit 501, to resell it as an affordable workforce housing unit “creates a replicable model for future opportunities.”

The unit, about 1,250 square feet, is two stories and has two bedrooms and 2½ bathrooms. It comes with assigned parking and is equipped with a washer and dryer. Other unspecified appliances will also be included in the sale, she said.

cburney@durangoherald.com



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