Loveland seeks to add thousands of affordable housing options as demand rises
The City of Loveland and the Loveland Housing Authority are working to try and secure more affordable housing, as the demand for such housing options continues to rise across the northern part of Colorado's Front Range. According to the Loveland Housing Authority, there are thousands of families still seeking affordable options to purchase a home in the city alone.
Jeff Feneis, executive director of the Loveland Housing Authority, told CBS News Colorado the surge in home valuations in the last decade has caused many once-affordable homes to now be out of budget for many.
"There is over 4,500 homes (in Loveland) that used to be affordable for lower income that have been lost due to market appreciation," Feneis said.
Feneis and his peers helped launch the Loveland Affordable Housing Task Force, a group of around 20 community members, elected officials, home builders and more. The goal of the team is to explore creative ways to improve access to affordable housing.
"We are really just trying to brainstorm different ways to build different types of affordable housing products," Feneis said. "We know the need is there."
Feneis said one challenge is securing funding for affordable housing, noting the business model for an affordable housing initiative is often very different than that of a business model for a developer or builder.
"We have enough land and water rights to build about another thousand (affordable homes). But we are limited by funding," Feneis said.
Jammie Sabin, co-owner of Aspen Homes, is one of those who joined the task force. His company teamed up with the Loveland Housing Authority to commit to building more affordable homes on one of their properties. He took CBS Colorado to a new development in the northwest corner of the city.
"Twenty percent of the homes in this neighborhood will be a deed restricted home," Sabin said.
A deed restricted home is a home that is reserved for someone who makes less than the average income and qualifies for purchasing a home. The home is then restricted to how much it can sell for at a later date in an effort to keep it as affordable housing in the future.
Sabin's team has built a series of duplexes, where each half is identical to the other. However, when it comes to cost, one half is nearly $400,000, whereas the other half is closer to $250,000.
"Our business model is to provide the exact same product to both the market rate and the affordable homes," Sabin said. "Anyone who qualifies for these has to make 70% of the area median income, or less."
Sabin said the task force is also exploring ways to make purchasing a home more equitable by lowering prices on fees. He noted there are many fees that are one flat rate no matter the size of the land or the home. He said the task force is looking into making people pay a fair fee based on the size of their lot and home.
Sabin says his company will take a small hit by selling these homes for a lower rate.
"But, we feel there is a benefit to the community and to us," Sabin said. "I think it is a real service and something that needs to be done. I have seen through, my own life experience, having a stable place to live can have a dramatic impact on your life."