To preserve naturally occurring affordable housing units and allow several Goldenites to stay in their homes, the City of Golden is buying six apartment units at 1501 Ford St.
During its Nov. 12 meeting, the City Council approved buying four two-bedroom units and two one-bedroom units for $1,350,000 total, or $225,000 per unit, which staff members said is in line with local market prices.
The city will use American Rescue Plan Act funds it received during the COVID-19 pandemic to buy the units, and staff has recommended setting aside an additional $500,000 in ARPA funds to do future property improvements.
The property owners were scheduled to complete some improvements to the property by Dec. 1, and the closing date was slated for Dec. 18.
Steve Glueck, assistant to the city manager, said the current tenants all live on month-to-month leases and are anxious to stay in their homes. He told the councilors these six households would otherwise be displaced if the city didn’t buy the property, and the current owners wanted to work with the city to ensure the current tenants could stay.
While the city has focused before on building affordable housing and/or workforce housing units, Glueck said preserving existing units is a worthwhile goal that can be equally difficult to achieve.
“One of the problems we face … is that once things go on the market, things go very quickly, and oftentimes it’s difficult to compete,” he said. “In this case, the property owners were committed to trying to work with us.”
He later explained how this purchase represents a first for Golden, as the city has never bought existing affordable housing units before.
The city owns two single-family homes at 230 Depot St. and 1020 Archer St., both of which it purchased in 2021 as inholdings from Molson Coors related to the forthcoming Heart of Golden project. Glueck stated he expected the homes would eventually “be replaced by other uses.”
Golden also owns the land under the Canyon Gate affordable senior housing project along Eighth Street, however Foothills Regional Housing owns and operates the building, he said.
Foothills Regional Housing also manages the 230 Depot St. and 1020 Archer St. properties on the city’s behalf and will do the same for the 1501 Ford St. units.
Glueck confirmed that the current tenants’ monthly rents vary from $900 to $1,500 based on unit size and tenure.
Once the current tenants transition to new leases with the city and Foothills Regional Housing, Glueck said total rent from the Ford Street units should be about $7,300 a month. The city’s property management agreement states Foothills Regional Housing receives 8% of rental revenue and reimbursement for any direct repair or improvement costs.
Glueck told the councilors rental revenue will go into the city’s Housing Trust Fund.
The councilors believed it was crucial to preserve the city’s existing affordable housing units, while also partnering with developers to ensure new units are built. They voted 6-0 to authorize the purchase, with Mayor Laura Weinberg being absent.
Mayor Pro Tem Rob Reed, who led the meeting in Weinberg’s absence, felt it was a win-win-win, as buying 1501 Ford St. would preserve the existing structure, allow Goldenites to stay in their homes, and protect the neighborhood by ensuring a developer didn’t buy the property.
Councilor Paul Haseman added: “Additional housing of any kind is good, but this preserves some that is already (affordable). I’m very pleased that we can allow people that work in Golden to live in Golden. … It’s good for sustainability, and it’s good for Golden.”