Steamboat's Cottonwoods Condos Sell 62 Units to Local Workers

Steamboat Springs —Sixty-two units. That is the number that matters. The Yampa Valley Housing Authority (YVHA) reports that 62 of the 86 condos at The Cottonwoods at Mid Valley have closed. The project received its temporary certificate of occupancy in March. Since then, nearly 90% of the units sold have gone to first-time homebuyers.

This is Steamboat Springs’ first for-sale affordable housing development in decades. The units are deed-restricted condominiums priced from the mid-$200,000s to the mid-$400,000s. That is a discount to market rate of nearly 50%. The price break comes from $10 million in short-term rental tax revenue allocated by the Steamboat Springs City Council, plus internal funds from the housing authority.

Sales moved fast. Half the units closed within two months of the first closing in mid-May. YVHA called that a strong pace for a development of this size. The update, dated Sept. 16, says the absorption rate shows strong demand for affordable, for-sale homes. It also points to the effectiveness of the project’s workforce housing focus. Eleven units are currently under contract. Fourteen remain for allocation on a first-come, first-served basis. YVHA officials say the project continues to demonstrate strong market demand. They describe a course to full occupancy and completion.

Who is buying? Residents have retired locally or work in the community. The list includes nonprofit staff, service industry workers, civil engineers, firefighters, ski patrollers, and city and county staff. Steamboat Springs School District employees are part of the mix.

Buyers must meet local employment requirements. Income limits apply. Households can earn up to 140% of area median income (AMI). For a single-earner household, that cap is $135,940. Buyers cannot own any other property.

The AMI categories are specific. Units are assigned ranges from 100% to 140% AMI. For a single-person household, that translates to incomes between $97,000 and $136,000. The distribution is clear. Thirty-four percent of all units are designated at 100% AMI. Twenty-four percent are at 120% AMI. Nine percent sit at 130% AMI. Thirty-three percent fall into the 140% AMI category.

There is no asset cap. That is a detail worth noting. Eligibility is not limited by a household’s assets. As long as the other requirements are met, purchasing power can often allow buyers to buy up above their current income level. The update states this plainly.

Down-payment assistance is available. Two programs exist. One targets households earning up to 150% of AMI. The other serves those up to 120% of AMI. These offer up to $20,000 in silent second loans. Repayment is deferred for 15 years. Loans are due if the home is refinanced or sold. YVHA says this eases initial costs for the buyer.

The Steamboat Pilot reported the update. The facts are laid out. The sales are happening. The buyers are local. The money is coming from STR taxes. The restrictions are in place. The Cottonwoods is filling up.