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Pitkin County pledges letter of intent as Cavern Springs residents secure $4.5M grant for purchase
Summary
Pitkin County approved an emergency resolution to authorize a non‑binding letter of intent for up to $1.5M to support resident purchase of Cavern Springs Mobile Home Park after the Colorado Health Foundation awarded $4.5M to the project. The board said final approvals and disbursement will return to the board.
Pitkin County commissioners on June 10 authorized the chair to sign a non‑binding letter of intent indicating up to $1.5 million in local support toward a resident‑led purchase of the Cavern Springs Mobile Home Park, contingent on future board approvals.
Ashley Pearl, the county’s resiliency and housing director, said the letter of intent is non‑binding and is intended to show lenders and partners that local governments are committed to supporting a resident purchase if the purchase offer and due diligence conclude successfully.
April Long of the West Mountain Regional Housing Coalition announced that the Colorado Health Foundation has awarded $4.5 million to the transaction, with the Aspen Community Foundation administering the grant as a subsidy to support the resident purchase and lower debt service. That funding, staff said, increases the total subsidy package for the acquisition and reduces the county’s incremental burden should the transaction close.
Details and next steps Staff described the county contribution as part of a broader funding stack; the purchase price was discussed in the meeting by staff with figures around $23 million (purchase price) and a higher acquisition estimate (some participants cited $25 million) based on anticipated near‑term capital needs and a senior lender’s request for additional acquisition cushion.
The board approved an emergency resolution to authorize the letter of intent and scheduled a confirmatory hearing for June 24. Staff said the residents would need to submit an offer and complete due diligence; the closing timeline was described as approximately 120 days after an accepted offer unless otherwise negotiated.
Why it matters Resident purchase and conversion to a resident‑owned community are a preservation model the county has used to maintain long‑term housing affordability for mobile‑home residents. The newly announced $4.5M foundation award materially strengthens the project’s capital stack and improves its prospects of closing.
Provenance: topicintro SEG 1994; topfinish SEG 2163
