City decides against Lazy K lottery for institutions

Phase one to be complete this summer


Phase one of Lazy K, which includes 12 single-family cottages and the RTA’s five-plex, are expected to be complete within the next three months.

As construction at the Lazy K quickly picks up speed, Gunnison City Council considered holding a lottery for institutional buyers within city limits — like the school district, hospital and Western — as the lack of affordable housing available for local employees continues to cause labor shortages throughout the valley.

Out of the 65 units planned for the Lazy K project on West Tomichi Avenue, 44 will be deed restricted to provide access to low-income residents. Twenty-six are restricted to owners who earn no more than 80% of the area median income (AMI), while 18 are set at 120% AMI. Five of those are dedicated to the Gunnison Valley Rural Transportation Authority. 

The Gunnison Valley Regional Housing Authority, along with the City of Gunnison, held its first lottery to select homeowners for phase one in December of 2021. City staff eyed a four-plex on Lot 15 for an independent lottery for local institutions in an attempt to relieve some of the pressure on local employers. Nearly a year ago, the RTA purchased five apartments within the development to provide long-term housing for its employees. As those units neared completion, council members considered giving other institutions a similar opportunity to secure housing. 

“You can build probably anything in this (area) and there’ll be a demand for it,” said City Manager Russ Forrest during a regular meeting on May 10. “Do you want to do something that would be equitable for other institutions or make it available to individuals?”

Council member Mallory Logan said that although she thinks the city could find qualified buyers in both the private and public sector, the institutions aren’t struggling financially. 

“The families are,” Logan said. “This is like an easy way for institutions to plug money into something that’s already been built, but perhaps that’s not what our purpose is with Lazy K.” 

Although the individuals renting the units would also need to meet the minimum qualifications of the deed restriction, Mayor Diego Plata said his hesitation with this approach is that larger employers such as Gunnison Valley Health — which has already began to purchase housing for its employees in other developments like the Paintbrush Apartments  — will have an easier time financing units than an individual resident. 

“But I know they are going to be housing the local workforce too,” he said.

Upon reviewing the deed restriction for 120% AMI units, City Attorney Kathy Fogo clarified that businesses and institutions could enter the lottery for these units, giving them a fair opportunity to compete with individuals.
City staff also pushed to raise the upper limit of the remaining 13 120% AMI units to 140%, both increasing the pool of residents that could qualify for a housing unit and helping offset climbing material and labor costs. Forrest said that raising the maximum income limit would also reflect the county’s recently increased AMI. A formal decision will be made at a future council meeting. 

If increased to 140%, a two-person household could now make up to $99,000 and still qualify for a home at Lazy K. An individual could make up to almost $87,000 per year. 

Next lottery approaching 

Phase one of Lazy K, which includes 12 single-family cottages and the RTA’s five-plex, are expected to be complete within the next three months, according to Crested Butte-based developer John Stock. He estimated that phase two would be finished by May 2023. 

Four families have moved into the Lazy K neighborhood, and hopefully in three months it will have nine more, Stock said. The date for the next lottery will be announced in about two weeks, which will include four houses, three of which will be up for rent. 

Construction crews are also making progress on the first phase of the Lazy K park buildout. The 15-acre community park to the south of the development will feature a playground, an open space and several trail segments that will run through the park and provide river access. After an extensive planning process, the park was made possible through a Great Colorado Outdoors (GOCO) grant received by the city. Parks and Rec Director Dan Vollendorf said he expects the park to be complete by the end of August. 

(Bella Biondini can be contacted at 970.641.1414 or bella@gunnisontimes.com.)

Support local journalism!

Please consider making a donation to The Gunnison Country Times and help keep local journalism thriving!