$2 million secures homeownership for 11 local workers through Good Deeds Program
In its first four months, the West Mountain Regional Housing Coalition's Good Deeds Program received $2 million to convert eight free-market homes to permanently deed-restricted, securing long-term stable housing through home ownership for 11 local workers.
The seventh home will be closed on Wednesday, and the eighth home will be closed on the last day of 2024, bringing the $2 million in contributions from various local governments down to $3,000 remaining.
"That is eight homes that are permanently more affordable to everyone in our community," said WMRHC Executive Director April Long.
Long and Ashley Perl, community resiliency director for Pitkin County and WMRHC board member representing Pitkin County, presented an update on the Good Deeds Program at Pitkin County Board of Commissioners and Basalt Town Council meetings Tuesday.
All of these price-capped homes are located in Garfield County. On average, each one of the eight homes' (a total of 22 bedrooms) deed price is $262,500. In addition to the 11 local workers becoming homeowners, two secured deed-restricted rentals, and one secured an affordable housing studio. Four out of the five workers in Glenwood Springs are within walking or biking distance of their jobs and schools.
The local workers include a nurse, an assistant principal, a landscaping manager, a social worker, servers, a ski patroller, a bike mechanic, local government and nonprofit employees, a grants writer, and architects. Five are first time home buyers, and eight buyers are moving out of rentals.
One buyer is moving from an income-capped deed-restricted home, which frees another affordable housing unit for a working local. Two buyers are renting bedrooms to other working locals.
The coalition, a tax-exempt nonprofit, formed in 2022 with the goal to increase availability and accessibility of affordable housing within the Roaring Fork and Colorado River valleys, from Aspen to Parachute.
WMRHC members include Pitkin and Eagle counties, Aspen, Glenwood Springs, Snowmass Village, Basalt, Carbondale, the Colorado Mountain Local College District, and the Roaring Fork Transportation Authority.
"I think what we're doing at the coalition is truly a regional approach to housing, breaking down jurisdictional boundaries, which can truly serve to build a more resilient workforce, which I think is something the board and the county is behind," Perl said.
Each of 2022 and 2023's eight members invested $10,000. Nine members invested $20,000 in 2024, and in summer 2024, WMRHC secured $2 million in contributions from the majority of its member jurisdictions to launch the Good Deeds pilot program. The following communities contributed to the program:
"In a balanced housing market, households earning low to moderate income are typically renting and households that earn above the median income begin to explore, and can achieve, home ownership," the presentation stated.
This is not the case for Pitkin County, where the area median income is $91,000 for a two-person household, and home ownership in the free market "is out of reach for even those earning 300% of the median income."
The average sale price for a home in Pitkin County is $7.8 million. The average sale price for a home in Garfield County is $885,000.
For that household to own a home and not be considered cost-burdened (spending more than 30% of income on housing), the home price would need to be around $300,000.
Because of this, moderate to high income households in the region have incomes that are too low to participate in the private ownership market yet too high to be eligible for most subsidized or assisted housing program requirements.
Another issue is a crowded rental market.
"The housing market in our region is noticeably shifted from that of a balanced housing market, forcing those higher-income earners to rent. This stresses the rental market, driving rental rates higher, and removing competition or options for movement within the market," the presentation stated.
Because of these issues, WMRHC launched the Good Deeds Program to bridge the gap between what is available on the open market and what is affordable to local buyers.
Through the program, WMRHC provides 30% of the purchase price at closing so the homebuyer gets the home at 70% of the asking price. The Good Deeds home must be the home buyer's primary residence with no other rentals, they must maintain full-time work for a local employer and requalify annually and own no other residential property. The homes earn 3% annual appreciation, and capital improvements are accepted.
The coalition's goal is to bring 30 homes into this program by 2026.
The current construction price for an affordable housing unit in Pitkin County is $800,000 to $1.2 million. If it was possible to acquire land and permits and complete the design and construction of 30 units by 2026, it would cost approximately $30 million to build these homes, not including the associated infrastructure and utilities.
Through the Good Deeds Program, however, WMRHC estimates the conversion cost of 30 free-market homes to affordable deed restricted homes in the region would be $8 million to $10 million, which does not require any additional land, utilities, infrastructure, or construction materials.
With little funds remaining in initial funding for the program, there are still 10 qualified households scouring the market for potential homes, as well as approximately 100 others that have requested applications.
"I get about one new request everyday for an application," Long said.
WMRHC will continue to gather expanding support from around the state and seek support from businesses, employers, individuals, philanthropy, and local governments.
Pitkin County has a property tax that begins in 2025 that goes toward housing, housing partnerships, and buy-downs, such as those in the Good Deeds Program.
The property tax, approved by Pitkin County voters in November, lasts for the next 25 years for a 1.5 mill levy. For homeowners, the tax is approximately a $121 increase per $1 million of property value annually. For commercial property owners, it is approximately a $435 increase per $1 million of value annually. This would bring in about $8.5 million to the county.
Perl came to the Pitkin County Board of Commissioners during a meeting about a month ago, where the county appropriated $9 million from the tax for affordable housing partnerships in 2025. These appropriated funds could include the Good Deeds Program.
"So, you have money appropriated in 2025 from the property tax, and then the board can decide in more detailed options of how it is spent," Perl said.