HomeMy WebLinkAboutmemoaspenwestMEMORANDUM
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TO:
FROM:
'I;HRU:
THRU:
DATE:
RE:
Mayor and City Council
Cindy Christensen, Housing Operations Manager
Maureen Dobson, Housing Executive Director
Ed Sadler, Assistant City Manager ~/
September 21, 2005
CHANGING A CATEGORY J UNIT TO A CATEGORY 3
ISSUE: Approval is being requested to increase a Category 1 unit to a Category 3 uuit.
.BACKGROUND: On March 2, 2005, the Housing Board approved the unit owner at Aspen West
#5 the ability to recoup the costs from a major remodel at the time of resale. This unit is the only
deed-restricted unit in a free-market complex. The unit is a Category 1 two-bedroom unit.
Currently, without the additional $38,000 of proposed remodel, the unit is being listed for
$101,594. With the additional $38,000 remodel, the price will be increased to $139,594. In the
current Guidelines, the maximum sales price for a Category 1 two-bedroom is $51,000; a Category
2 two-bedroom is $114,000; and a Category 3 two-bedroom is $167,000.
The Housing Board, City Council and Board of County Commissioner~ approved a new policy
when accepting buy-downs as follows:
1. Future buy-down proposals for deed-restricted units shall only be accepted in existing
complexes at Category 3 or above, if at all, and shall be reviewed on a case-by-case basis.
In any new project that consists of free-market and deed-restricted units, the homeowners'
assessments shall be based on the value of the free-market unit compared to the deed-
restricted unit (sample spreadsheets attached). This language shall be required in the
approval and in the Covenants associated with the project. No changes to these
requirements would be allowed without APCHA's approval.
Any current unit that is located within a free-market complex that has had to pay special
assessments for the upkeep of the building could recoup the costs of the special assessments
in the sale price with APCHA's pre-approval, even though the expenses may not be
specifically classified as a capital improvement and/or the homeowner has exceeded the
limit as stipulated in the deed restriction.,
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The urJt, at the time of sale, would be assessed as to the value and category. If found to be
too h/gh for the category and/or is determined not marketable through APCHA's rourine
lottery process, a request shall be made to the Board of County Commissioners or the City
Council to either buy-down the unit to the original category or to increase the category to
match the elevated sales price of the unit.
RECOMMENDATION: Staff is requesting the City Council approve the request to increase
Aspen West Unit #5 fi-om a Category 1 to a Category 3 where at the rime of resale, a new deed-
restriction will be recorded indicating the category change and the funds for the remodel will be
held in an escrow until such time the remodel is completed.
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