Carbonate Street Development

Project title: Carbonate Street Development

Project purpose or justification: With vacancy rates for rental properties falling below 5%, the average Chaffee County tenant has seen a 43% increase in their rental agreement since 2016. In response, 110 Low Income Housing Tax Credit (LIHTC) units have been constructed; however, they exclusively serve households earning less than 60% of the Average Median Income (AMI). A recent Housing Needs Assessment (HNA) indicates that 91% of Chaffee County households still view home-ownership as, "out of reach." In fact, area experts recommend 440 new rental units (county-wide) simply to ‘catch up’, or balance the rental market. The problem boils down to this: More than half of Chaffee County residents (61%) are caught in between subsidized housing options, meaning they are either unable to afford the market-rate for home ownership and they make too much money to qualify for the available rental assistance. In the end, finding a place to live in Chaffee County is extremely difficult.

Project scope: Carbonate Street is composed of two phases.

Phase I of Carbonate Street directly addresses the first, second, third, and fourth desired outcomes by creating 60 deed restricted housing units partially owned by the Chaffee Housing Authority along with a stand-alone childcare center building. The Affordability Covenants (i.e. ‘deed restrictions’) create a structure and allow for master leases to local businesses for their employees, and the RFP for childcare services discussed later herein states a prefence for serving children 0-5 years old. Early in the site planning and community engagement process (Spring of 2022), it was determined by the Board that a commercial space in Carbonate Street outside of childcare was infeasible.

While Phase I required a single owner (an entity jointly owned by the Chaffee Housing Authority and Fading West) for all 60 rental units, Phase II offers the opportunity to allow for individual ownership of the finished housing units.

Carbonate Street Phase II will

For Sale: 29 Units

13-3 Bed/ 3 Bath

16-2 Bed/ 2 Bath

Parking:

Off-Street Parking: 33 Spaces

On-Street Parking: 30 Spaces (Along Carbonate Street)

Project objective: Directly targeting the local need, The Carbonate Street Project will be a public-private partnership in which the Town contributes the land, and a private-sector developer builds and manages the buildings. The Buena Vista Board of Trustees has approved the development of two parcels of land for attainable and workforce housing. The desired outcomes of development on the Carbonate Street Lots are based on the data collected, and should be affirmed (or tweaked) by the Board to guide the actions taken regarding the development of Lots 1 and 2.

Project deliverable:

1. Create a minimum of 65 new units of various types of housing with rents or sale prices serving households earning between 60 – 140% AMI. No short term lodging allowed; condominiums prohibited in perpetuity through either a ground lease or deed restriction.
2. Preferential treatment for local employers and employees in tenant selection process and criteria.
3. Long-term ownership & management turned over to Chaffee Housing Authority.
4. New childcare space built to serve children 0 – 5 years old.
5. New commercial space(s) built aimed at cultivating and supporting local year-round entrepreneurs and businesses

Project stakeholders:

• Town of Buena Vista,
• Atmos Energy
• Buena Vista Sanitation District
• Buena Vista Town Attorney
• Buena Vista Water Clerk
• Chaffee County Fire Protection District
• Aristata Communications
• Sangre de Cristo Electric Association (SDCEA)
• Buena Vista Public Works Department
• Buena Vista School District R-31
• Buena vista Engineering and Planning Consultant
• Chaffee County Building Department
• Charter Communications
• Lumen (Formerly Century Link)
• Fading West

Project timeline: A high-level overview of the project schedule, including significant milestones and deadlines.

July 25, 2023 - The Carbonate Street Apartment Major Site Plan was unanimously approved by the Planning & Zoning Commission

General Funding - Complete

August 10- Mobilization
August 15- Start Construction
October 1- Project Complete
October 15 - Groundbreaking Ceremony

Project budget:

13 Different Funding Sources

Budget Impact: There may be up to $10,000 of consultant fees needed to survey and plat the easement vacation for the right of way adjacent to Lot 2. If the Board would like to proceed with Option 1 or Option 2, a budget adjustment of $10,000 utilizing ARPA funds is required. Larger budget impacts related to the development itself are a part of the proposed 2022 capital budget already.

Rep. Brittany Pettersen (Department of Housing and Urban Development)

Childcare and Community Projects Funding Grant