Affordable options
Regional Housing Alliance puts ownership within reach

Susan Logue and her husband, Charlie Johnson, chat outside their new home in the Tierra Vista subdivision on Tuesday. The pair was able to buy their new house through the Regional Housing Authority’s Fair Share program./Photo by Steve Eginoire

by Leslie Swanson

Like most of the country, Durango’s foreclosures and falling prices have made home ownership possible for many new buyers. Those with cash can take their pick of the bargains but, for everyone else, Durango’s prices are still too high and loans are now harder to get. Even people with steady jobs and good credit can find the prospect daunting. If you fall into that second group, take heart. Where there’s a will - and a little bit of help from the Regional Housing Alliance - there’s a way.

The Regional Housing Alliance (RHA) was created in 2004 as a “multi-jurisdictional housing authority” working with La Plata County, City of Durango and the towns of Ignacio and Bayfield. Its purpose is to find ways of increasing access to affordable housing and help address La Plata County’s housing and wage discrepancy. Its programs include fair-share housing, lending, homebuyer education, developer support and policy advocacy.

RHA’s most far-reaching service is homebuyer education, free to any La Plata County resident. Classes run for 7.5 hours and cover such topics as credit, understanding the underwriting process, closing a sale and home maintenance. Attending the Homebuyer Education class is a prerequisite to qualify for RHA and first mortgage lender special loans.

Director Jennifer Lopez explains, “We love to see ready homebuyers, but recognize that some people may decide not to buy a home after learning what the purchase involves. Others need help managing credit issues or saving for a down payment before they can take the next steps.”

Fair Share Zoning is another key strategy of the RHA. In Durango, all new development needs to include at least 16 percent affordable housing, which is set aside for people who go through RHA’s program. At this time, more than 70 such homes have been built inside city limits. Developers who prefer to make a comparable contribution in cash or land can do so in lieu of the homes, and the monies go to fund the loan program.

This year, the group is launching a Development Support Program aimed at creating affordable rental housing. Using an existing low-income tax credit, RHA is looking to find developers who are willing to build low-cost rental units. RHA helps acquire the credit, and, if

“We need to facilitate rental development,” Lopez says. “We have to keep up; the rental housing market has gotten tighter over the past two years.”

The group hopes to find a site suitable for eight to 12 units for special needs housing and another site good for 50 or more units of low-income rentals.

Graduates of RHA’s Homebuyer Education Class can apply for one of the group’s most successful programs – their “silent second” loan. These loans average around $40,000 and are not due until the home is refinanced or sold. They help fill the gap between what local applicants can afford and the price tag on in-town Durango homes.

While RHA faces its share of economic challenges, it has been able so far to find funding. Recently, the state gave $440,000 for its programs. RHA is now seeking federal dollars for rural housing. Ideally, says Lopez, the group would be able to establish a county-wide trust fund.

“Until we can develop subsidies, we will always be scratching the surface,” she explains, adding that the RHA is hoping to reach out to local employers, since most of its Durango applicants are seeking homes close to their workplace.

Countywide, RHA is striving to expand programs to partners in Ignacio and Bayfield. RHA board member and Ignacio town manager, Balty Quintana, recognized his community’s need for more affordable housing and commended RHA’s strategy.

“The Town of Ignacio does not have the means to hire housing staff just like we do not have the means to provide other services,” he said. “We ultimately partner with our La Plata County or Southwest Colorado regional neighbors to pool resources and services.”

While Ignacio and Bayfield homes are much more affordable than those in Durango, each area has its own issues. Ignacio, for example, has plenty of land but limited infrastructure. Bayfield has an over-supply of well-priced houses, but not enough jobs to support residents.

To solve some of these issues, the RHA works with county, city and towns to develop policies that will enable more low-cost housing development. The group helped to write the housing development portion of the county’s new comprehensive plan, which includes higher-density zoning in selected areas. But without infrastructure such as central water and sewer, and with the scarce state of loans, such low-cost communities are not in the county’s immediate plans. In the meantime, the RHA is doing its best to help residents into home ownership despite the recession.

“There are two ways to create affordable housing; either through density or subsidy,” Lopez points out. For now the group is focusing its efforts on the latter and, for many people, the program has worked.

Ignacio resident and town maintenance supervisor, James Brown, recently bought a home with RHA’s help. Based on his experience, he recommends that new applicants be patient and committed to the process even if it takes a while.

“My credit was less than perfect,” Brown admits. “The RHA worked with me for two years to get it clear. All the people I dealt with on the way were very helpful … Home ownership is a great thing, too bad everyone can’t do it.”

Jeb and Luisa Holt bought a foreclosure in the Crestview area with RHA’s help. Jeb, a teacher, and Luisa, a nurse, attended the homebuyer classes and then continued on to purchase their first home.

“They taught us the process,” Jeb says, noting that the classes included guest speakers from many angles of the housing industry; bankers, mortgage brokers, real estate agents, etc. “After the class, they were with us throughout the entire procedure,” he adds. “They walked us through the whole thing. We could call and get help or advice. It’s nice to have someone on your side who’s not in it for the money but just wants to help you buy a home.”

What’s in the RHA’s immediate future? The group is currently expanding to Silverton (on a fee-for-service basis) and, as part of its Developer Support program, is working with local developers to make more low-cost homes available in Durango. The RHA is also promoting a little-known benefit that allows first-time homebuyers to claim up to 20 percent of their mortgage interest as a federal tax credit. Qualifying candidates need not have an RHA loan but must attend the class. The class is free to La Plata County residents. •

For more information on the Regional Housing Alliance and their programs, call 970-259-1418 or visit www.rhalpc.org.