San Juan County board approves affordability covenants for Anvil Townhomes
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Summary
The board approved deed-restricted covenants for Anvil Townhomes aimed at preserving affordability, including a 1% annual appreciation cap, owner-occupancy rules and county enforcement fallback if the housing authority dissolves; commissioners discussed AMI limits, funding stability and resale controls.
Silverton Housing Authority representative Anne presented nine affordability covenants intended to preserve public subsidies for the Anvil Townhomes and ensure the units remain housing for eligible residents.
"We increased it by 10% in 2 years, which is the fastest of any jurisdiction in Colorado," Anne said, describing the town's progress under state Proposition 123 funding and noting the authority used expedited review policies and state grant dollars to fill funding gaps.
The covenants submitted to the board include an annual appreciation cap of 1% compounded to limit resale gains, an owner-occupancy requirement with limited leave-of-absence exceptions, and a right for the housing authority to buy units in foreclosure to preserve restrictions. Anne said the county is granted enforcement rights if the housing authority "ceases to exist or fails to enforce these provisions." Commissioners asked how resale limits and AMI (Area Median Income) caps were set and whether the county could opt into Proposition 123 to support the ongoing position and programs funded by the measure.
Board members commended the draft as thorough; one commissioner asked about protections against speculators buying deed-restricted units and then acquiring additional properties to profit from rentals. Anne said the covenants control rent rates for these units and restrict resale to qualified buyers; she also acknowledged that deed-restricted homeownership is not a route to large speculative gains but does allow modest equity building.
After questions, a commissioner moved and the board voted to approve the covenants "as presented." There was no recorded roll-call in the packet beyond the verbal "all in favor" recorded in the meeting audio.
The authority noted four of the units are already spoken for and encouraged interested applicants to contact the housing authority or the designated transaction broker. Next steps include signing and notarizing the covenants and finalizing enforcement language for county record-keeping.
