Declining housing prices have permitted some people who signed up for affordable housing to buy homes on the open market, said Michael David, executive director of the Valley Adams Regional Housing Authority.
Four of the 92 applicants to VARHA for lower-cost housing provided by the agency have withdrawn from the list because they have purchased homes on their own, David said.
The agency accepts applications for residents in Valley and Adams counties.
New lending products are part of the reason, and so are grants for low interest down payment assistance, David said. But the softening real estate market has been an additional boon to prospective home buyers who could not buy into the market when home prices were skyrocketing, he said.
The housing chief is happy to see applicants to VARHA set out on their own.
"I'm fully in support of people gaining the ability to procure market housing," David said.
VARHA functions as a real estate agent, lining up applicants for affordable homes.
Its first project is nine single-story modular homes on McCall Avenue being built by the city of McCall and Neighborhood Housing Services.
VARHA applicants who approached banks to finance a McCall Avenue home discovered they could buy on the market instead, Deputy Director Stephanie Millar said. Millar has lost at least three hopefuls to a condo in McCall and homes in New Meadows.
"We're certainly not in a state of panic; we have a big list we can open up," David said. "When we lose someone like that, we've got to call someone else up."
At the October groundbreaking, it was announced the first of the McCall Avenue Homes would be ready for occupancy in February, but weather and other problems have caused delays.
New units ready this month
Millar said the two-bedroom dwellings, which arrived first, would likely be ready for occupancy by mid month, and the three bedroom homes would be ready by June 1.
VARHA board Chairman Greg Lovell has been concerned about the length of time already put into getting the homes ready.
With the delays, site-built homes could have been erected just as quickly, Lovell said.
The experience with the McCall Avenue homes should be factored into a decision on whether or not to use modular homes the next time around, he said.
During a VARHA board meeting last month, board member Steve Millemann asked the facts about the McCall Avenue project be carefully tracked for member municipalities.
Millemann also suggested setting a deadline when owners could be released from deed restrictions and gain equity that would enable them to move into the open market.
"I think the jury is still out on how intimidating the deed restrictions can be or how chilling they are going to be on the population we are trying to serve," he said.
Millar saw the homes as a stepping stone toward market entry, with homeowners buying out of deed restriction as the housing authority builds up its inventory.
VARHA has available a three bedroom, two-bathroom home at the Meadows at West Mountain near Donnelly. The price is $161,000, plus $165 per month in homeowner association dues. So far, there have been no takers, Millar said.
