Housing authority agrees in principle to administer deed restriction for Felcrest project; staffing and deadlines remain

The Leadville Lake County Regional Housing Authority on March 19 reviewed a proposed deed restriction for a small rental project proposed by Felcrest Incorporated and agreed in principle to act as administrator — contingent on legal review and staffing.

Chapin Wissantz, planning director for the City of Leadville, summarized the project and the accompanying deed restriction, saying the city had approved a development‑agreement ordinance allowing increased density in exchange for public benefit and that the deed restriction in the packet would limit the units to households at 80 percent area median income (AMI). "Key terms being 80% AMI," Wissantz said when introducing the document for review.

Developer Victor (Felcrest Incorporated) and project consultants described the financing and covenant structure. Mary Coddington, a consultant connected to the Colorado Housing Assistance Partnership work, said the project will carry multiple covenants and financing restrictions: "There will actually be multiple, covenants on this project. There's this covenant, that goes along with the development agreement through the city of Leadville. There's also a covenant through the Colorado Housing and Finance Authority... and we're also applying for funds through the Colorado Division of Housing, which will also have a covenant on the property." She added that the CHFA loan would have a 40‑year term and that the deed restriction in the city exhibit is drafted in perpetuity.

Attorney Mark Berry told the board the owner's obligations are central to annual compliance: "The obligation, the onus of this, for, your purposes of, managing this is really on the owner to provide you the documents listed in section 4... and so that's helpful for you in managing this to see you don't have to go about trying to collect these documents. It's an owner's responsibility, and then it's just a matter of, reviewing that documentation of of these 4 units."

Board members and applicant representatives agreed on key next steps: the housing authority will formally consider administration at its next regular meeting on April 16; the deed restriction will be sent to the authority's attorney for review; and the project team said it needs clarity on a partner to administer restrictions before a May 1 application deadline for state funding. The developer's team said it expects certificates of occupancy around November or December 2025 and that lease‑up/verification would require the authority (or an interim partner) to perform annual eligibility checks a few months before occupancy.

City staff said the city could step in temporarily if the housing authority lacked staff, and the applicants said that transfer of compliance administration later would be possible. The board asked that the city attorney and the authority's counsel review the deed restriction language ahead of the April 1 second reading and before the April 16 action item.

What the deed restriction would require (as discussed at the meeting)

- Project scale: four rental units (developer stated intent). - Affordability target in city exhibit: 80% AMI stated in the deed restriction language under review. - Multiple covenants expected: city exhibit (deed restriction), CHFA covenant tied to financing (40‑year loan term), and a Division of Housing covenant if awarded. - Compliance: annual verification of household eligibility; the owner certifies and provides documentation for review. - Timing: applicants said occupancy/COs targeted November–December 2025; authority staff would need to be ready several months earlier to verify eligibility.

The board did not take a final vote at the March 19 meeting. Instead members agreed to place the deed‑restriction administration on the April 16 agenda as an action item, to forward the document to the authority—s attorney for review, and to try to confirm a partner for May 1 funding deadlines.