Aspen City Council is reviewing a contract to build new affordable rental units.
“Urgency is high and staffing resources are scarce,” according to a staff memo regarding the Aspen Pitkin Housing Authority’s ability to serve as a developer for new units. Instead, a contract is on the table for an outside company to lease city land for $10 a year, build new deed restricted units, and manage the property. The developer, Aspen Housing Partners, is a company set up specifically for the project, a joint venture of two national real estate development firms that specialize in affordable housing and tax credits.
Three parcels within city limits are owned by the city and marked for affordable housing: 802 West Main Street, 517 Park Circle and 488 Castle Creek Road. The overall cost is expected to be $23 million if the units are developed by the city, $24 million if a public private partnership is formed with Aspen Housing Partners.
With such a close bottom line, city staff recommends the partnership, thus entering into joint liability and saving city resources.
Council reviewed the options at its meeting Monday, Oct. 31 in council chambers.
