A public-private partnership between developer Overland Property Group (OPG) and the Yampa Valley Housing Authority (YVHA) has been a catalyst for affordable housing in Steamboat Springs, a skiing destination in northern Colorado.
The city, home to the Steamboat Ski Resort, has a stable population and industry year-round but hasn’t done a good job creating low- and moderate-income housing opportunities over the past couple of decades.
“The need for affordable housing locally is off the charts,” says YVHA executive director Jason Peasley.
YVHA purchased a piece of land on the western side of Steamboat Springs in 2007 with plans to develop for-sale income-restricted condos. However, the Great Recession struck, and the housing authority came under financial stress from holding the land.
But then Leawood, Kan.–based OPG, which had previously worked in the Colorado mountain town of Leadville, suggested a potential new use for the site. It partnered with the housing authority to develop the site, creating the first 9% low-income housing tax credit (LIHTC) project in the area.
“I felt the demand there was so large, and it was a great opportunity to partner with a young housing authority that didn’t have the opportunities—to make it have feet under them financially,” says Matt Gillam, a managing partner at OPG. “We were able to take a piece of real estate that was a financial detriment to the housing authority’s books and turn it into a real asset for its community.”
The 48-unit Reserves at Steamboat Springs opened in summer 2017 and serves households earning 40%, 50%, and 60% of the area median income (AMI). The $16 million development received a Colorado Division of Housing grant, funds from the city and county through the housing authority, permanent financing through the Colorado Housing and Finance Authority, and LIHTC equity from American Express through syndicator Enterprise Housing Credit Investments.
The Reserves opened a lot of doors for the housing authority, including the passage of a property tax levy to fund the development of affordable housing in 2017. “It was that development that demonstrated to the community what high-quality affordable housing looks like,” Peasley says.
The partnership between OPG and the housing authority continues. Currently under construction is the 72-unit Alpenglow Village, near the ski mountain. Set to start leasing late spring, this development includes 48 units targeting households at 30%, 40%, 50%, and 60% of the AMI, while the remaining units serve households between 61% and 120% of the AMI. It is the first development to use funds from the levy. The $24 million development also includes 9% LIHTCs purchased by Wells Fargo and a Colorado Division of Housing loan.
Another project between the partners is in the predevelopment stage, and it will include 100 units for households between 30% and 80% of the AMI.
“I think there’s a lot more work to be done,” says Gillam. “The demand was at a critical nature for the whole region before The Reserves happened.”
“Our goal is to build 600 units over the next 10 years—Alpenglow is the first 12% of our goal,” Peasley says. “We’re working on filling the pipeline of developments right on its heels to break ground next year and another the following year. Our goal is to build a project a year.”
The public-private partnership has been a win-win for both OPG and the housing authority.
Gillam says a strong team has been created to develop these complicated affordable housing deals, with each bringing its own strengths to the table.
“We don’t have the capacity to handle developments from concept to completion,” Peasley adds. “We really rely on the partnership with OPG and other development partners to boost our capacity to make these developments happen.”
