La Plata County is in the midst of an affordable housing challenge. Rising costs and limited availability increase housing costs making it difficult to retain a workforce. Pine River Commons and Rock Creek Housing Project hope to alleviate the housing shortage with new workforce housing. By Sadie Smith. This story is sponsored by La Plata Economic Development Alliance.
Transcript
Hi, I’m Sarah Tober, Executive Director of the La Plata Economic Development Alliance, where we believe in the power of partnership and economic growth to drive meaningful change in our communities. Together, we can shape a thriving, resilient La Plata County. We are proud to present this edition of “Community Insights.”
La Plata County’s population is growing rapidly, creating pressure on the affordable housing market. Pine River Commons and Rock Creek Affordable Housing are wrapping up construction on several affordable family units to provide some relief for the local workforce.
Our housing’s very dated, and there’s virtually no rental housing or housing for home ownership in the affordable realm.
Pine River Commons in Bayfield is finishing up construction on 66 single family townhomes, and Rock Creek Affordable Housing in Ignacio is finishing up construction on 21 single family homes.
It’s affordable housing for workforce, whether they’re teachers or first responders, police officers, employees working for the tribe. I think it gives an opportunity for that type of individual family that needs housing.
Homes are restricted to La Plata County residents, who make 140% of the area median income. Mortgages come with a 30-year deed restriction to ensure the homes remain affordable.
There’s two key elements in the deed restriction. One is that they can’t be sold to an investor to rent. They can only be sold to a buyer who’s going to occupy the unit.
The deed restriction includes a 4.5 annual appreciation, and the homeowner keeps 25% of the gain when they sell. The remaining 75% helps keep the homes price lower for the next buyer.
People rent an apartment or a house, they don’t have any equity gain at all, and if they’re able to buy a house, they, they have this gain in equity of, well, let’s say three and a half percent a year. The other thing that it accomplishes by a person buying a unit is that they don’t have to worry about rent increases.
According to current home listings in La Plata County, the median home price has skyrocketed to $870,000, a cost that’s out of reach for most workers. The result? Employers can’t retain employees. Pine River Homes start at 365,000 and Rock Creek starts at 299,000. Units are available for purchase. Additional details may be found on their websites. We’re proud to present “Community Insights,” powered by the Local News Network and sponsored by the La Plata Economic Alliance. The Community Insights Mission fosters a stronger and more connected community in La Plata County and beyond. For more information about this and other stories, visit durangolocal.news. Thank you for watching this edition of “Community Insights.” I’m Sadie Smith.
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