Lake County housing authority weighs land transfer, tight timeline to keep 24-unit Leadville project on track

The Leadville–Lake County Regional Housing Authority met in special session to review the status of a planned 24‑unit housing development in Leadville and to consider transferring county-owned land to the authority so a private contractor can build and sell the homes.

The authority’s project lead, Jackie Lillehan, told the board that a lottery held Feb. 10 produced 17 qualified buyers from 20 applicants and that the pool is largely local: 16 of the 17 currently live in Leadville and one lives outside Lake County. Buyers’ employers include the National Mining Hall, Colorado Mountain College (Leadville), Full Circle, St. Vincent General Hospital, Lake County government (including the sheriff’s office, assessor’s office and human services), the city of Leadville, fire rescue and Lake County School District. The buyer pool’s average income was about 93% of area median income. Household size among qualified buyers was listed as 10 single‑person households, 5 two‑person households and 2 three‑person households. Seven units remain to be filled.

Why it matters: the developer who initially won the county’s selection, Adam Berger, could not secure construction financing and fell out of the project, Lillehan said. Oakwood Homes, the second‑choice developer, has proposed a structure intended to avoid the financing hurdle: the regional housing authority would take title to the land, Oakwood would act as contractor and purchase modular building “boxes” from Bonneville (the manufacturer previously proposed by Berger) and Oakwood would be made whole at each buyer’s closing rather than carrying conventional construction financing. That structure seeks to keep the project within the price points originally marketed to qualified buyers.

Timing and conditions: Lillehan said Oakwood needs final pricing by March 11 and that Bonneville needs the box order by April 15 for delivery to support a July construction sequence. Lillehan also said the parties are aiming for an agreement in place by about April 1 to preserve those timelines. Oakwood has said it can self‑finance and is willing to buy the Bonneville product and to build all 24 units now, but Oakwood’s willingness to accept title depends on environmental due diligence results.

Environmental and liability concerns: the project site is in an area affected by historic mining and has been subject to remediation work funded in part by a DOLA grant, Lillehan said; the team removed contaminated soil and completed work that complied with Colorado Department of Public Health and Environment (CDPHE) guidance. Nonetheless, Oakwood’s counsel has said the company will not accept property title without seeing the final soil certification and cap work completed, and Oakwood raised CERCLA/Superfund and remediation timing as obstacles to taking title in time to meet the April/May schedule. Lillehan said the proposed land‑transfer arrangement would keep the authority in the chain of title during construction so Oakwood would not assume that environmental title risk.

Legal and board concerns: Kendra, the authority’s legal counsel, told the board she had not yet seen the agreements and voiced concern about shifting title and long‑term liability for construction defects and environmental exposure. “I’m super concerned about Oakwood,” she said publicly, noting prior litigation and performance issues she has observed with Oakwood in other jurisdictions and urging caution before the authority accepts title or construction risk. Kendra asked for an executive session to review legal risk and requested full contract documents before the board accepts any change in title or role.

Next steps and staff assistance: Lillehan said Oakwood can provide a construction bond or a letter of credit and that Oakwood has proposed warranty language and is willing to structure the sales so Oakwood is paid at buyer closings. Lillehan also offered to support project management until the authority has an executive director. The board and staff agreed to gather contract drafts, environmental reports and pricing details and to schedule legal review. The authority’s legal counsel and staff plan to meet before the authority’s regular meeting on March 19; Lillehan said she expected Oakwood’s internal pricing decision by March 11.

Action taken: the board did not vote to transfer land or to change title at the meeting. Instead members directed staff to produce the contracts, environmental documentation and pricing so the authority’s counsel can advise the board in an executive session at a later, properly noticed meeting. The authority also approved a motion to seat Tracy Fletcher as an at‑large board member and approved modified minutes from a prior meeting; both items were moved, seconded and carried by voice vote at the meeting.

Quotes from the meeting include Lillehan’s summary of the buyer pool: “We had 20 applicants, 17 qualified buyers … 16 out of 17 currently live in Leadville.” Kendra told the board, “I’m super concerned about Oakwood … I can’t recommend this at this point until I see something more.” Board chair Christian said the board needed legal advice before making any transfer decision and agreed to place the matter on the March 19 agenda.

The authority will return with contract drafts, environmental certification or soil‑management updates, and finalized pricing. If Oakwood cannot provide acceptable pricing or cannot accept title, the authority and county will examine alternatives, including pausing until the next building season; Lillehan warned that delays could require repeating buyer qualification under new tax returns and may reduce the likelihood that some currently qualified buyers remain available next year.