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Housing Authority approves direction for ground-lease option with IndiBuild, contingent on LIHTC funding
Summary
The Fruita Housing Authority voted 6-0 to direct staff to prepare a resolution (Res. 2026-1) authorizing terms and conditions for a ground-lease option with IndiBuild for property at 1130/1138½ Road, conditioned on 9% LIHTC funding or an acceptable alternative funding plan and other conditions precedent.
The Fruita Housing Authority voted unanimously to approve Resolution 2026-1 in concept and directed staff to prepare final language setting terms and conditions for an exclusive ground-lease option with IndiBuild for the development of affordable housing on property identified in the discussion (1130 and 1138½ Road).
City Attorney Mary Elizabeth Geiger told the Authority the draft resolution will include specific conditions precedent that IndiBuild must meet before the Authority would enter ground-lease negotiations: receipt of 9 percent Low-Income Housing Tax Credit funding in the February 2026 application cycle, required site plan approvals, and any necessary easements. "If IndiBuild is not awarded this funding, IndiBuild shall have 30 days within which it can present alternative funding opportunities to the authority," Geiger said. If the authority is not satisfied with the alternative funding plan, the option agreement would automatically terminate and the authority would retain the option payment.
Geiger also described an option term through July 31, 2027, with mechanics for extensions and for converting to annual option-payment cycles once funding conditions are met. Commissioners discussed the length of renewal terms, the 30-day alternative-funding window, and the potential requirement that a LIHTC award would obligate IndiBuild to include at least 40 affordable rental units as part of its LIHTC application commitments.
Several commissioners supported allowing IndiBuild to pursue funding and asked staff to prepare the resolution to include the clarified terms and the authority's ability to terminate the option if funding or other conditions are not met. The motion to approve the resolution direction and allow staff to execute the agreement if the developer accepts the conditions passed 6-0.
