Report by Mia Rupani Staff Writer via Telluride News
Photo via Corey Robinson
Proposed new program would better assist first-time homebuyers
Telluride Town Council undecided on contributing requested funds Telluride Town Council undecided on contributing requested funds
The Telluride Foundation hopes to better assist first-time homebuyers in the region through the “Workforce Homeownership” initiative.
Elaine Demas, Telluride Foundation’s vice president of initiatives, gave an overview of the project to Telluride Town Council on Tuesday, Oct. 8.
Demas said the Telluride Foundation hopes to launch the program in the first quarter of 2025.
The Telluride Foundation bills itself as being committed to enriching the quality of life for residents in the region.
In addition to being instrumental in the construction of three affordable housing developments in Norwood, Ridgway and Ouray, the Telluride Foundation also provides down-payment assistance for homebuyers.
“We’ve been fundraising and managing the Housing Opportunity Fund, which provides down payment assistance up to $5,000 to qualifying homebuyers,” Demas said.
The Workforce Homeownership initiative, a two-year pilot program, is designed to offer both education and financial support to regional workers, ultimately helping them purchase a home.
“The program will offer a three-pronged approach to providing that support,” Demas said.
Support involves educational programs with quarterly workshops to help people navigate the homebuying process. Topics will include the importance of credit scores and understanding debt-to-income ratio.
The foundation aims to provide financial support up to 20% of the cost of a home, but not to exceed $50,000 for any one household.
“This support is in the form of a shared appreciation loan with no payments required until the home is sold or refinanced, at which point the full loan…will have to be paid back,” Demas said.
Additionally, with support from regional governments, people may be eligible for an additional $50,000.
Demas said the final component of the program is to provide mortgage-rate buydown in the form of a low-interest loan, which will allow homebuyers to “buy-down” the interest rate charged for their mortgage, lowering their monthly payment.
All funds awarded will be in the form of low or no interest, or shared equity loans. As loans are paid off, funds will be redistributed to other qualified homebuyers.
“We will monitor the program closely over the course of two years and based on the impact, assess how to move forward,” Demas said.
In order to qualify for the program, home buyers must work full-time in the Telluride Foundation’s service area, cannot presently own any property and must meet certain income criteria. A couple, for example, cannot earn more than $131,532 per year.
Eligible properties must be deed restricted and the purchase price cannot exceed $850,000.
The Telluride Foundation requested the Town of Telluride’s support in starting the program, which includes a financial contribution of $200,000 in 2025 and $100,000 in 2026.
The money could be provided in one lump sum or over time as funds are needed. Should the program be terminated, any money contributed by the Town of Telluride and other local governments would be returned as the remaining loans are paid off.
“Our total fundraising goal to launch the program is $2.4 million, so it’s a small piece of that, but we’d really like to talk to you about supporting our efforts,” Demas said on Tuesday.
The majority of Telluride Town Council members, while overall supportive of the program, were hesitant to contribute the requested funds.
Councilmember Ashley Story Von Spreecken raised concerns about people being restricted to purchasing homes priced at $850,000 or less.
“I just want to be sure we can be as effective with our money as we can,” she said. “I’m thinking about the number of homes that are in Lawson Hill that exceed this $850,000 mark…and the reality is, those make up a pretty significant chunk of the available housing.”
Demas said the Telluride Foundation is trying to be “realistic” about raising the necessary funds to assist homebuyers.
“When you start talking about assisting a family with buying a million-dollar home, the resources just aren’t as available at that price point,” she said.
Other council members, such as Geneva Shaunette and Dan Enright, thought developing new affordable housing units should take priority.
“I feel personally pretty strongly that we could be using the money…to make more units,” Shaunette said.
Councilmember Jessie Rae Arguelles, on the other hand, had fewer concerns with the program.
“It seems like a great opportunity for the region,” she said. “Maybe it’s [the program] not perfect right now, but I think it’s worthy of continuing the conversation.”
Demas acknowledged the Town of Telluride’s efforts to provide more affordable housing, but noted the majority of units are rentals.
“Our goal is to help our regional workforce put down roots and buy a home,” she said. “We want to help the people who perhaps don’t even apply for the lottery, because they know if they were to get picked, they couldn’t make the down payment.”
The Telluride Foundation is also requesting financial support for the program through the Town of Mountain Village and San Miguel County.
Telluride Town Council, though undecided about providing any funds, agreed to revisit the discussion after speaking with the San Miguel Regional Housing Authority.
The Telluride Foundation’s Workforce Homeownership program promises to make a significant impact on the local housing market, potentially helping many achieve their dreams of owning a home in this beautiful mountain town. Stay tuned for updates on the council’s decision and how this program might shape the future of Telluride real estate. For more information on available properties, contact Anne-Britt Ostlund and the team at Mountain Rose Realty, your trusted experts in Telluride homes for sale.
