Affordable Housing in Ouray?

Affordable Housing on the Wane in Ouray County
by Kate Kellogg1 day 11 hrs ago | 83 views | 0 | 0 | | RIDGWAY – A new analysis of Ouray County’s housing needs, packed with facts and figures, provides the hard evidence of a growing dearth of affordable housing in Ouray County.

Consultants from Denver and San Miguel County presented their Ouray County Housing Needs Assessment to the public on Wednesday, April 16 at the Ridgway Community Center. In view of trends in wages and home prices, the assessment predicts that by 2015, 30 percent of new employee households in the county will need some form of affordable housing.

Nearly half of the 650 Ouray County households who responded to a survey on housing needs ranked affordable housing as one of the most serious problems facing the county.

The assessment was commissioned by the newly formed county-wide Affordable Housing Authority, an independent entity created to help locate, finance, build, and administer affordable housing in Ouray County. The authority is comprised of representatives from the county, City of Ouray and Town of Ridgway. Funded by a grant from the Colorado Department of Local Affairs, the housing needs assessment is the work of two consulting firms: the San Miguel County-based Affordable Housing Solutions and the Denver office of Economic & Planning Systems, Inc.

“One purpose of the assessment was to find out what residents want and need and to target appropriate housing prices,” said Affordable Housing Solutions’ Dawn Ibis.

The report highlights the growing disparity between income and housing prices. While real wages earned in the county have increased by 2.1 percent annually since 2000 (exceeding the rate of increase for the state), the increase in median value of Ouray County homes has risen 11.6 annually since 2003. The median price of a single-family home in Ouray County in 2006 was $395,000 and in 2007, $431,500. The average sale price for a condo or townhouse was $310,000 in 2007.

In 2006, the county’s area median income was $51,250 for a 2.5-person household. Not surprisingly, 26 percent of all renters and 33 percent of homeowners in the county are what the report calls “cost burdened,” meaning they spend over 30 percent of their incomes on housing. Moreover, 40 percent of all county households meet the Department of Housing and Urban Development’s definition of low income, as they earn 80 percent or less of the county’s median income.

Andy Knudtsen, of Economic & Planning Systems, attempted to “put a human face” on such affordability measures. He cited the report’s example of a household comprised of a teacher earning the average 2006 wage of $25,832 and a retail trade worker earning the 2006 average wage of $20,088. Combining their incomes, an affordable house would be priced at $157,400, far below the average available market unit from 2006.

That hypothetical household is earning about 90 percent of the area median income. Those 40 percent of the county’s population who earn 80 percent of the median could only afford a $140,000 home or a $1,000 per month rental unit.

One group that is apparently finding adequate housing is second home owners. While total housing units in Ouray County increased by an average of 112 per year from 2000-2006, the number of resident households increased by about 42 per year. Thus, 70 new housing units per year were either vacant or occupied by part-time residents.

A survey of employers in the county found that about 33 percent of Ouray workers and 75 percent of employees who work in Ridgway commute from other locations, both within and outside Ouray County. The 21 employers who responded attributed a number of employee losses to housing problems. About 25 percent of the employer respondents offer some form of housing assistance to their employees.

To prevent further shrinkage of the employee pool, essential workers should receive priority ranking as candidates for affordable housing, the study recommends. “Teachers, tellers and cops” broadly describes the cross-section of key service providers who may not be able to find affordable housing in the county, noted Knudtsen.

According to the study, the county’s current housing deficit is 165 units, a figure derived by adding the number of unfilled jobs countywide to half of the county’s in-commuters (assuming some employees commute for reasons other than housing costs). Based on employment projections, that deficit could grow to 881 by 2015.

A review of master-planned development projects highlighted the six affordable units planned for the Silvershield development in Ouray and 10 affordably priced units in Ridgway’s Parkside and Preserve developments. According to the assessment, none of the prices for any of these units will be below $220,000, or affordable for households earning less than 100 percent of the median income.

“All of these projects were initiated by developers,” said Ibis. “To achieve lower costs, such projects must be subsidized with state or federal grants.” She said the new affordable housing authority may eventually identify funding sources that will help fill the gaps.

The housing study recommends that Ridgway create a standard zoning requirement that developers set aside a portion of new units as affordable housing. Accordingly, the town should provide incentives to developers such as permit fee waivers, tap fee deferrals and density increases. It suggests that the city of Ouray could capitalize on its tourism economy by designating a fraction of sales or accommodations tax for affordable housing. Ibis noted that Telluride reserves .5 percent of its sales tax for that purpose. Since developable land in Ouray is limited, the city might provide incentives to include affordable housing in redevelopment sites.

Recognizing that the county and municipalities are protective of environmentally sensitive areas, the assessment recommends targeting areas of lesser growth, such as the Colona area, for affordable housing. The county might also use this approach for lands that immediately abut Ridgway and Ouray.

David Schwartz of Economic Planning & Systems commended the countywide attempts to address the area’s critical housing needs. “It’s great to see this collective community effort,” he said. “The challenge is to develop clear and consistent standards and generate public support for administration of future programs.”

Imogene Pass Run News Flash

Road Closures Sought for Next Imogene Pass Run
by Christopher Pike23 hrs ago

OURAY – Long-distance runners on the 17-mile Imogene Pass Run from Ouray to Telluride have experienced increasing conflicts with recreational motor vehicle users while participating in the race according to Rick Trujillo, a founding organizer of the annual event.

At a meeting on Monday, March 31, Trujillo told the Ouray County Commissioners that a greater degree of supervised temporary closure of the roads is now necessary.

Trujillo, president of Imogene Pass Run, Inc., explained that the emergence in recent years of more recreational and off-highway vehicles on the mountainous route during the race is interfering with the runners and threatening their personal safety. In particular, good weather in 2007 led to higher numbers of drivers on the route than in previous years, Trujillo said.

Motorized traffic enters the road from both the Telluride and Ouray sides, and voluntary measures that local businesses have undertaken in the past to control motorized traffic on an informal basis are no longer effective. Previously, Trujillo said, owners of jeep rental businesses, motels and other businesses advised their customers of the temporarily runner-congested roads during the race, and visitors voluntarily limited their use of the road. “But last year…there were lots of irate runners,” Trujillo said.

Trujillo asked the commissioners to provide at least two deputy sheriff personnel, posted signs and more pre-race publicity and notices so that the public will be made aware of the scheduled closures of Camp Bird Road (County Road 361) and Imogene Pass Road (Forest Service Road 869) to all but non-resident and race-related vehicle traffic during this season’s Imogene Pass Run, which this year will be held Sept. 6.

The county commissioners offered to do what they can, including coordinating the effort with the San Miguel County Sheriff’s office. A meeting will be scheduled with Ouray County Emergency Medical Services Chief Medic Norm Rooker and Sheriff Dominic Mattivi, as well as the Mountain Rescue Team to plan a temporary closure.

The Imogene Pass Run has grown in size from six participants in 1974 to over 1,250 runners and walkers from all over the country, according to Trujillo.

Ouray Ice Park Price Tag $870,000

Ouray Ice Park Price Tag: $870,000
by Christopher Pike7 - Ouray County Watch

OURAY – An unexpectedly high price of $870,000 is what an appraiser has attached to 40 acres of U.S. Forest Service land situated on the south edge of Ouray. The acreage, however, is choice: It is the site of the world-acclaimed Ouray Ice Park, the purchase of which has been a topic of negotiation between the forest service and Ouray officials for at least 18 months.

“The appraisal is a little higher than the city would like. We just got it back. We all have a real vested interest for this. We want to help the city,” Tammy Randall-Parker, forest service district ranger, told representatives of Ouray, Montrose and San Miguel counties at their quarterly Tri-County meeting on March 18 in Ridgway.

Both Ouray officials and the forest service would like the deal to be consummated, now that the details have been worked out. But is the late-arriving price out of reach?

City officials see the park as an essential component of Ouray’s reviving winter economy. However, with an already tight budget, and the 6th Street renovation about to break ground at a price tag of $478,000 (of which the city will pay approximately $150,000 out of pocket), acquisition of the ice park is likely to become more complicated.

“I thought there was going to be a land swap or buy/re-sell/trade. I thought it was for land, like an inholding,” said Ouray County Commissioner Keith Meinert.

“Yes, but for essential, critical needs,” replied Randall-Parker. “We can do land exchanges or an outright sale.”

Ouray Mayor Bob Risch told The Watchthat the city is still negotiating, but for less land. “There was not enough of an exchange value. We will have to reduce the size of the parcel. The appraiser is looking for the highest and best value to protect the public’s interest, even though we wouldn’t allow any real estate development… [Ouray’s acquisition of the ice park] is something everybody wants. The forest service doesn’t want the permitting challenges [associated with the ice park] either, including liability concerns.”

In other forest service news, some of the 22 existing range allotments for cattle and sheep in Ouray County could be permanently closed. “It’s down to 13 cattle and nine sheep allotments,” said Randall-Parker. Invoking the Range Rescission Act, the forest service and the Colorado Division of Wildlife have visited with all of the livestock permit holders and are instituting measures to reduce the risk of contact between bighorn sheep and domestic cattle and sheep, which can spread pneumonia to local populations of bighorn.

Randall-Parker also announced that the U.S. Forest Service plans to host field trips on Red Mountain National Historic District’s trails and roads to talk with user groups about management of the areas.

This summer Volunteer Outdoor Colorado will create a new campsite in Yankee Boy Basin for climbers approaching Mount Sneffels, and will eliminate others due to resource damage along the streams.

The forest service has also joined forces with Northern Arizona University’s Ecological Restoration Institute in a forest restoration project covering about 80,000 acres on the Uncompahgre Plateau, according to Randall-Parker.

Alternative Energy Could Make Ouray a Hotspot

OURAY – Energy independence and eco-tourism: these are two facets of Mayor Bob Risch’s new vision for Ouray. Risch presented his ideas to a receptive crowd at the Ouray Business Roundtable on Thursday, March 20 at the Ouray Community Center.

“I’d guess there’s a range of people here today, from those who think that global warming is a bit of a myth to those who think it’s a very serious problem and we’re not addressing it fast enough,” Risch said. “I happen to be on that edge of the range where people think it’s serious.”

Risch presented many possibilities, all focusing on development of the area’s alternative energy resources as well as promoting Ouray as a place where people who care about those sorts of issues can come.

“This is my vision right now: How many ways can we reduce our energy consumption, and then making this town known for that,” he said.

Risch began by citing Ouray’s abundant geothermal energy.

“We can use that energy in many ways,” Risch said, adding that new technologies make it possible to harvest energy even from cooler springs and tail water from the springs that are already in use, such as the hot springs pool. Risch said increased funding for alternative energy projects, especially from the Governor’s Energy Office, could help fund such projects in Ouray.

Risch also cited the century-old hydropower plant, owned by Eric Jacobson. He said that with newer equipment, the plant could produce up to one megawatt of energy, enough to power the city of Ouray.

Risch also said that the Ridgway Reservoir has significant energy-producing capacities.

“Even in low-flow years, there’s enough water there to create two to four megawatts of electricity,” he said. In fact, the dam was built with possible hydroelectric capabilities in mind, and the town of Aspen has expressed interest in partnering to make use of the site.

On the tourism front, Risch envisioned attracting people who want to leave a small carbon footprint when they vacation.

“Visitors to Ouray in the future will have it in their minds that this is important to them,” he said. “They’ll be looking for ways to vacation and recreate that don’t impact the environment unnecessarily.”

From the naturally heated hot springs pool to the numerous hiking trails in the region, there is plenty to draw the environmentally minded, Risch said. As a former member of the Red Mountain Task Force, he also has his sights set on the high country, where the U.S. Forest Service is looking at reopening old mining roads.

“What would we as a community like to encourage? Do we want to open it to everybody or is there some room for creativity? Maybe you can take a motorized vehicle up there, it just can’t burn carbon,” he suggested.

A big part of Risch’s plan would be to replace some of the streetlights with more efficient lighting, possibly high pressure sodium, which he said is two and a half times more efficient than the current mercury vapor lights.

The question and answer session that followed ranged from the idealistic to the mundane. While some citizens were interested in mandatory commercial recycling and changing out the city’s fleet to energy-efficient vehicles, others remained concerned with snow on the sidewalks and gravel on the streets. A newer resident asked if Risch expected flooding to be a problem this spring.

“The city is stockpiling sandbags,” he said. “It’s going to be an interesting spring.” Risch said that an area of particular concern is Skyrocket Creek, where a dam that formerly protected the hot springs pool is now gone and needs to be replaced.

Snow removal remained a hot topic of debate.

“We’ve just passed 17 feet of snow this year,” Risch said. “One or two more feet and we’ll break the record.” He said the city has gone through a record amount of diesel fuel hauling the snow, and that they’ve run out of places to put it. “It’s been a real strain on the city budget,” he said.

One main street business owner brought the discussion back to Risch’s new vision. “I think we’re on the edge,” she said. “I think this town is uniting, and it’s very exciting to me.”

Risch was encouraged by the public’s response to his ideas.

“It’s been rewarding for me to get the feedback that I’ve been getting, because I honestly didn’t know what was going to happen,” he said.

Another Great Day in Ouray

The sun is shining brightly in Ouray County today. The mountain snowpack is deep and the locals are out in force traveling to the backcountry to get some spring skiing in. There is a steady stream of cars snaking through Ridgway on the way to Telluride. Main street Ouray is busy with tourists walking about shopping and looking for real estate.

With investors quite nervous in the stock market, we recently have seen increased interest in Ouray, Ridgway and Ouray County property.

In 2007, the overall number of real estate transactions was down in Ouray County. Dollar values however increased. Single family sales numbers were down as well with the dollar values up. Vacant land numbers were down with the dollar values starting to increase over a drop off in 2007. The growth rate in Ouray County incresed by 10.7% over 2006 percentages. Single family median sales prices increased in Ouray County in 2007. This increase was attributable to several large dollar value sales in Ouray County last year. It seems that smart investors with cash reserves are taking advantage of the cooling real estate market nationally. Total numbers of vacant land sales declined in Ouray County in 2007. Vacant land total dollar sales increased from 2006 to 2007.

The total number of real estate sales in the City of Ouray increased 40% over 2006. Dollar sales volume in Ouray increased as well. Ouray saw a 8.75% decrease in the median sales price for the year.

The Town of Ridgway has seen a steady decline in the single-family dollar sales growth rate since 2004. Median sales prices however increased in the town of Ridgway.

Ouray Colorado Real Estate Report

The Ouray County Real Estate Market continues to impress the skeptics. Third Quarter Single family residential sales increased 13.3% over the same period in 2006. The City of Ouray saw an increase in sales numbers of 40% while the unincorporated area of the County experienced an increase in sales of 46.7% over the same period in 2006.

Single family dollar sales rebounded in the County overall through the 3rd quarter of 2007. The City of Ouray (20.4%) and unincorporated Ouray County (54.5%) both saw positive numbers during the 3rd quarter. The Town of Ridgway was the only sector with a decline which came in at 44.5%. In looking back over the data from 2006, the decline in Ridgway 2007 over the same period in 2006, may be attributed to the fact that the affordable housing sales were ticking along very strongly last year at this time in Ridgway. With most of those units sold, the market most likely is coming back to the norm.

For all your Ouray, Ridgway and Ouray County Real Estate needs please call Erin Eddy at 970-318-1376 or visit my website at www.ourayland.com. Sold on the Southwest since 1986

All information in this blog was provided by Lynn Vogel of Comparable Sales Research.

To: Customer of TCBC, builder of new single family homes in Ouray
Colorado

Subject: Price Projections

FROM: Kent Shields, TCBC

Thanks to you and wife for stopping by 207 8th Avenue and 731 2nd St. in
Ouray. Let me know if I can assist in your interest in the area real
estate. 207 8th Avenue could be used as rental property until a buyer is
ready to relocate / retire / summer home in the area. When furnished and
finished with a nice theater, it well could bring $2000k / week rental. You
would hope to get 10 weeks rental income. Five years later when you retire,
you repaint, etc. www.ourayrealty.com has rentals and other area properties
to look at through their MLS search.

FROM: CUSTOMER:

Thank you very much for showing us your two houses last Saturday. We are
very impressed with the quality of work you put into both houses.

It's interesting that you mention Ouray Realty. Inis and I went to Church
on Sunday Morning at St. Daniels Catholic Church, and while walking back to
the Best Western Twin Peaks, we saw a house for sale that happened to be the
home of Erin Eddy. As I'm sure you know, Erin is the Managing Broker for
Ouray Realty. Erin was outside, and Inis and I got to visit with Erin for
awhile.

We talked about Ouray real estate and the real estate market in general. I
told Erin about a 40 page article I read in the May 2007 issue of Money
Magazine about the current state of the real estate market, how it got to
where it is and where it's going. Erin asked if I could send him a copy of
the article and I said I would scan the article into my computer and email
it to him. It will take some time to scan 40 pages, but I hope to get it
done this weekend. The gist of the article is that the real estate market
is in a price bubble with prices considerably higher than they should be. I
can email a copy of the article to you too if you wish.

Inis and I are exploring the feasibility of buying or building a second
home. Prescott is still a nice place to live, but it's getting too big for
us and I'd like to retire to a much smaller town. I currently have 6 years
left to fly for Southwest Airlines, but the FAA is working to change the
retirement age from 60 to 65 and that would give me a total of 11 years left
to fly for Southwest.

We are looking for a small town in the mountains with a sense of community,
in a beautiful location, where we can walk to everything, with lots of
outdoor recreation and skiing, at a price that I can afford. Ouray fits all
the requirements except for its lack of skiing. Telluride has the skiing,
but not at a price that I can afford. Inis and I both like Ouray very much
even though it's an hour drive to go skiing. We like the house you built at
207 8th Avenue

Please let me know if you have any ideas or opportunities that you think I
may be interested in. Maybe we can get together during our next visit to
Ouray.


REPLY FROM TCBC:

I personally recommend my project for the quality construction and features.
However in-town living isn't for everyone, so I do recommend Erin Eddy. He
works hard and knows the local market. His years of work on the Ouray Ice
Park has helped our winter businesses. His website is www.eerealty.biz, and
the office phone number at Ouray Realty is 970-325-4141.

I don't foresee a price decrease in Ouray real estate and especially new
construction. All area construction labor forces are dedicated to the
billion dollars per year of construction permits set to go over the next
five years in Telluride. And petroleum price increases affect material
costs - material costs have been flat for a couple of years, but no
decrease - only increases. And of course, inside Ouray, there is a limited
supply of land. Resort markets can be different than the mainstream, but
certainly we are affected by the economy and do cycle a little bit. Ouray
specifically and the whole region is a pretty special spot, and with ten
coming years of a percentage of retirees looking to escape the large
metropolitan areas, I believe we are insulated from any downturn that may
happen nationally. In fifteen years, all bets are off, but even then I
remain optimistic based on what an incredibly special place SW Colorado and
specifically Ouray are.

The way I see builders achieve lower prices in new construction is what
frequently happens in the downside of the cyclical building industry - lower
finish levels and lower square footage. There has been a great improvement
in the looks of lower-end finish materials, and people end up with a very
nice look in a new home and get by with less sq. ft. as family sizes are
smaller. Nationally, last month, the median price of new homes fell. The
story behind the scenes (National Association of Home Builders) was smaller
homes and lower finishes, not more value for the dollar. By the end of the
year builders will have had almost two years of reducing inventory, and I
believe you will see an upturn based on an annual requirement nationally in
new housing of almost 2 million starts. Again, the new starts may be smaller
and with a lower finish level to keep the price flat.

Existing inventory, that is homes purchased twenty to thirty years ago, have
flexibility in price if the owner is willing to discount. I see these
prices staying flat, dropping in the northeast and midwest, but continuing
to rise where there is stronger demand. The western slope of Colorado has
strong demand.

In this area, I would purchase now, and rent the property through ORI. It
will almost cash flow. When I am ready to retire in 5-7 years, 1 year
prior, I would spend $50k and repaint, refloor, rebath, and rekitchen the
place so it is like new. If Telluride goes the way of Aspen to Carbondale
to Glenwood Springs, there will be a downstream effect in Ouray and Ridgway.
Your investment could be worth 50% more in those 5-7 years. The question
is, if there is a bubble, and you can question that premise, is it a
national bubble, or a bubble descending upon certain areas, such as Detroit.
Resort areas may be more of a ballon than a popping bubble.

Again, so very nice meeting with you and when you get up this way stop by
and we can chat again. Anything I can do to help in your search, let me
know.

Sincerely,

Kent Shields
TCBC
PO Box 1477
Ouray, CO 81427
480-220-1541 (cell)
skent3@qwest.net