Fruita Housing Authority accepts purchase contract and Prop 1-2-3 grant assignment for affordable housing site

The Fruita Housing Authority voted to accept assignment of a city purchase-and-sale agreement and the associated Proposition 1-2-3 grant commitment so the authority can acquire property intended for an affordable housing development.
Mary Elizabeth (staff) told commissioners the city originally applied for the Prop 1-2-3 funds as the city because there was uncertainty whether housing authorities fit the applicant eligibility. “When the housing authority was formed, the mission was to partner with entities for light tech projects,” Mary Elizabeth said, explaining why assignment to the housing authority is consistent with its mission. She said CHFA and grant administrators agreed to the assignment.
The resolutions accepted the transfer of the purchase-and-sale contract for Lot 2, IndiBuild Minor Subdivision and Lot 4, Bernheid Estates Filing 1 (as read during the meeting) and authorized acceptance of the Prop 1-2-3 grant commitment. Commissioners discussed whether the housing authority bylaws need to be revisited to reflect the authority’s role; staff suggested a housing-authority workshop in September to review bylaws and next steps.
Why it matters: Moving the contract and grant to the housing authority positions that entity to serve as the buyer and grant recipient, streamlining closing and grant administration for a potential low-income housing (LIHTC or similar) development on the parcel.
Supporting details: Council earlier adopted a related resolution authorizing the assignment to the housing authority. Staff emphasized that the Prop 1-2-3 grant funds are what will be used to purchase the property; the project is intended to advance an affordable housing effort connected to the authority’s light-tech mission.
Outcome: The housing authority approved both resolutions during its meeting. Commissioners asked staff to schedule a bylaws review and to continue coordinating grant and acquisition steps; no developer was identified in the meeting record.