Community groups and municipalities met over breakfast Thursday to discuss workforce housing projects.
The Durango Chamber of Commerce Eggs and Issues Workforce Housing Forum included guest speakers Mike French from the La Plata County Economic Development Alliance, Durango City Councilor Kim Baxter, La Plata County Commissioner Marsha Porter-Norton, Interim Ignacio Town Manager Mark Garcia and Durango Housing Innovation Project Manager Eva Henson.
Housing has become increasingly expensive in Durango, Bayfield and Ignacio.
The median price for a Durango townhome is $762,500, which is a 97% increase from the $386,250 median price in 2017. The median price for a Bayfield townhome is $462,000, compared with $295,000 in 2017. And the median price for a home in the rural area of Ignacio is $360,000 compared with $299,000 in 2017.
In his presentation, French said La Plata County has been underbuilt since 2008.
He said the influx of retirees, remote workers and second homeowners that moved into the county during the pandemic only exacerbated the issue by drastically increasing demand.
In addition, mortgage rates are different from 2017. In 2017, the average 30-year mortgage rate was 3.99% whereas in 2022 it was at 5.34%.
“That puts a pinch on the consumer side as well as the developer side,” French said.
Henson addressed the different housing projects happening in Durango and the housing bridge that defines the demographic in need of workforce housing through area median income.
The housing bridge considers people who make between 80% and 120% of area median income and could apply for workforce housing. The same group of people, and those who make more, aren’t eligible for federal subsidies.
According to data presented by Henson, 80% AMI for a single-person household in La Plata County is $54,950 per year. For a four-person household, 80% AMI would equal $78,450 per year. Henson’s presentation indicates that households under 80% AMI would be eligible for federal subsidies, which is why there is an emphasis on ranges between 80% and 120% AMI.
Henson discussed construction of Animas City Park Overlook Townhomes which will provide 22 townhomes, 10 of which are deed-restricted. Four are for income qualified applicants for 125% AMI which would include a four-person household with an income of $122,578.
Another project is the Best Western adaptive hotel conversion at 21382 U.S. Highway 160. The project will offer a total of 120 units at or below 60% AMI which would include single-person households with a yearly income of around $41,212 or less, based on the AMI proportions given during the presentation.
“There isn’t one solution, strategy or initiative to address the housing shortage,” Henson said. “But what we can do is start to tackle this in stride.”
The Gauge Apartments, scheduled to be finished in September, will offer 89 rental apartments north of Home Depot. Fourteen of the units will be rent-restricted for households that fall in the 80% to 120% AMI category. Another project Henson discussed is the BLD Apartment project near the Maverik gas station by Three Spings which will have a total of 492 units, 25 of which will be rent-restricted for households between 80% and 125% AMI.
It is expected to take five years to develop in two phases with a projected completion date of 2028, according to Durango Planning Commission documents.
Bayfield Community Development Director Nicol Killian also presented on the state of the town’s housing issues. Killian said Bayfield used to be considered the affordable community in La Plata County, but that has changed.
She said there are many for sale housing options but not many rental units, and people may not commute from Farmington, Aztec or Durango to work in Bayfield.
“We need to figure out how to house our workforce or we’re going to start losing it because people will not travel that far for the wages that they earn,” Killian said.
To expedite the building process in Bayfield, the town amended its land-use code to get rid of one step of the approval process for all major subdivisions and planned unit developments.
Bayfield is reviewing over 800 housing units that have applied in 2022. Currently, there are 1,100 housing units in all of Bayfield.
“I’d be curious to see how many communities in the state are looking at doubling in size,” Killian said.
Two Bayfield projects presented Thursday are deed-restricted, including the Pine River Commons project and Cinnamon Heights. Pine River Commons is planned to be located west of Conoco gas station, south U.S. Highway 160. It is a 17-acre parcel with 68 single-family lots and is in the preliminary planning stage.
Cinnamon Heights will be located on Cinnamon Drive east of the Conoco gas station along Highway 160. It will offer 30-townhome units which is zoned for multifamily use.
Killian said while some of the lots aren’t the workforce housing Bayfield is striving for, increasing the town’s housing density in any manner will help with cost.
In Ignacio, Garcia said the town has been primarily focused on finding property with infill development. The town has acquired around 28 acres in or around Ignacio.
He said it is hard for Ignacio to grow because it is surrounded by the Southern Ute Indian Reservation.
“Our ability to deal with housing and development has to be infilled-focused,” Garcia said.
The town is currently working on developing a 5.7-acre parcel that will be called Rock Creek on the northern edge of Ignacio town limits which will offer 45 units. A single-family home on the site could cost an estimated $257,000, while an apartment could cost $140,000.
Ignacio is currently in the final grant process for a $2 million bid for the project with the Colorado Department of Local Affairs Division of Housing. The entire project would cost $2.9 million.
tbrown@durangoherald.com
