Telluride Foundation launches shared equity down payment assistance program with new funding model

In a recent meeting of the San Miguel County Board of Commissioners, significant strides were made towards addressing the pressing issue of affordable housing through the approval of a Memorandum of Understanding (MOU) with the Tyrett Foundation. This partnership aims to launch a shared equity down payment assistance program designed to help families secure homeownership in the region.

The initiative, presented by Mike Bordonia, is a response to the limitations of previous down payment assistance programs that had not successfully deployed funds since 2018. The new program seeks to provide up to $100,000 in down payment assistance to qualifying families, a substantial increase from the previous maximum of $5,000 offered through forgivable loans. This shift is intended to better meet the needs of families struggling to afford homes in a competitive market.

Elaine Dines, representing the Tyrett Foundation, elaborated on the program's structure, which operates as a shared appreciation loan. Borrowers will not pay principal or interest until they sell or refinance their homes, at which point they will repay the loan along with a share of the home's appreciation. This model not only aids families in purchasing homes but also ensures the sustainability of the fund for future applicants.

The meeting also highlighted the collaboration with local governments, particularly the Town of Mountain Village, which has opted to expand its existing equity share program rather than contribute cash to the new initiative. This decision allows for a broader reach, as the Mountain Village program will now include properties outside the R-1 school district, thereby increasing the potential for homeownership across a wider area.

As the program gears up for launch, with hopes to begin by the end of the month, the board is also awaiting final approval from the Town of Telluride, which is expected to be discussed in an upcoming meeting. The success of this initiative could significantly impact the housing landscape in San Miguel County, providing much-needed support to families seeking to establish roots in the community.

In conclusion, the approval of the MOU with the Tyrett Foundation marks a pivotal step towards enhancing affordable housing options in San Miguel County. As local governments collaborate to address housing challenges, the anticipated launch of the shared equity down payment assistance program could serve as a model for future initiatives aimed at fostering homeownership in the region.