Grand Lake may buy foreclosed condos for affordable housing
March 18, 2009
As Grand Lake condominium seekers face foreclosures and default on a multi-million construction loan from New Frontier Bank in Greeley, the town of Grand Lake is exploring the chance to turn foreclosed units into affordable housing.
A total of 14 condominiums in Grand View Villas’ final phase have not been released by the bank, and a long list of investment buyers are still on the hook for $3.1 million of an original construction loan of $3.7 million, according to county documents.
The condo owners currently in foreclosure bought the Grand View Villas Phase 2 units through Upstreet Developments, a company listed in a lawsuit filed in District Court that alleges fraudulent real-estate activity.
Buyers helped finance the construction of the 18-unit building bound by a Limited Liability Partnership called Grand View Investments, LLP.
Even as Grand View Villas condo owners work through foreclosure, the town of Grand Lake is taking its first steps toward an opportunity to purchase units.
Last week, Grand Lake trustees toured the units, then instructed Town Attorney Scott Krob to investigate the town’s ability to purchase three or four of them to supply deed-restricted affordable housing in town.
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“We’re trying to provide housing for those who are employed, living full-time up here,” said Dan Korkowski of the Town of Grand Lake.
Although the town’s idea of buying up units is still in its infant stages, through the town’s affordable housing program called the “Local Employee Residency Program,” qualified home buyers who live in town would be first preference, Korkowski said, and potential buyers from outside of the town limits could also be considered. As part of eligibility, home buyers cannot own developed property elsewhere.