Yampa Valley Housing Authority makes its pitch for federal income tax credits to help fund 48 affordable apartments
July 14, 2015
Steamboat Springs — Yampa Valley Housing Authority Executive Director Jason Peasley was in Denver Tuesday with representatives of the Overland Property Group presenting plans for The Reserves at Steamboat affordable apartment project before the Colorado Housing Finance Authority.
"I believe it went well," Peasley said after the 30-minute presentation. "I think we made a compelling case for CHFA to invest in Steamboat."
The proposed 48 affordable apartments in The Reserves at Steamboat would be built on land owned by the Housing Authority on lower Elk River Road and made available to households earning 40 to 60 percent of the median income here. The project is among 31 around Colorado seeking an award of federal income tax credits this spring from CHFA . The tax credits would be sold to investors to enable the non profit Housing Authority to bring more equity to its partnership with Overland, which has successfully developed a number of apartment complexes across the Midwest.
Peasley told Steamboat Today in May that, without an award of income tax credits, the project could not be built. He sounded optimistic on Tuesday, but he won't know the outcome until July 24, at the earliest, and maybe not until Aug. 1.
"I'm confident we're in the running to be awarded tax credits," Peasley said Tuesday.
YVHA board president Kathi Meyer said communities on Colorado's Front Range that were seeking CHFA's help in replacing housing lost to the floods of September 2013 have already gone through their own round of awards, so Steamboat was not in competition with them this week.
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Her sense is that, should the Steamboat project not be awarded tax credits this go around, the Overland Group has invested sufficient energy and money into the project that it would return for another go in 2016.
She pointed out that, among the 31 application's in the same group with Steamboat this week, were two projects that were unsuccessful last year.
Peasley told Steamboat Today in early May that rental rates at The Reserves would vary on a scale based on renters' household income. As of May 2015, monthly rent for the two-bedroom units would have ranged from $710 to $1,065, and three-bedroom units would have rented from $820 on the low end to $1,230 at the top of the scale.
Assuming median incomes here are destined to change before the apartment buildings are completed, so too are rental rates.
While the apartment project has gained conceptual approval from the city of Steamboat Springs, not all of the entitlements are in place, and construction is unlikely to begin before spring 2016, if the tax credits are granted to Steamboat.