State now owns, operates Fox Run affordable housing complex in Fraser
September 27, 2009
The Colorado Housing and Finance Authority is now the owner of Fox Run, the 64-unit attainable-housing complex in Fraser.
Foreclosure proceedings closed on Friday.
“We were able to get in there and do reviews of what is needed to get the property ready for the upcoming season,” said the state authority’s Chief Financial Officer Tom Hemmings.
Tenants in the building continue to live there. The building is about 40 percent leased, Hemming’s said, with five units rented last week.
The Colorado Authority is presently determining the buildings’ capital needs, according to Lisa Lunger, the state authority’s manager of real estate services.
Fixing the buildings’ drainage may be the top priority to eradicate the cause of past mold problems at the 7-year-old complex, Lunger and Hemmings said.
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The state authority has hired environmental engineers to review all units and conduct air sampling to verify that thorough mold mitigation took place in the past and that buildings are, in fact, mold-free.
Meanwhile, unpaid water tap and sewer fees are being taken care of this week as part of the obligations of owning the property, Hemmings said.
Payments due to the town of Fraser include the last two years of water-tap payments in default in the amount of $21,200. Fox Run service fees for sewer and water service are also in default in the amount of $29,858.
About $53,000 will still be owed to the town for deferred water-tap fees from when Fox Run was built.
The state authority promised, “improving communications with residents and communities” about the project.
The former General Partner of the Fox Run complex, Fox Run Holdings Inc. – a nonprofit corporation responsible for the day-to-day operation of the Fox Run limited liability partnership that oversaw the project – is now due to be dissolved, according to county officials.
The Grand County Housing Authority – which includes the Cliffview Assisted Living Center, Grand Living Senior Homes, Silver Spruce Apartments and the Section 8 program and is overseen by a board made up of the three county commissioners – was the sole member of the nonprofit Fox Run Holdings Inc.
But, “the Grand County Housing Authority and its facilities will not be impacted by the foreclosures at Fox Run,” the county announced in statements released earlier this month.
The Colorado Housing and Finance Authority has several loans within Grand County, including those for single-family homes, multi-family structures and small business loans.
But Fox Run is the first property in Grand County the state lending arm will actually own and operate, Hemmings said.
“During the time we own it,” Hemmings said, the Authority “plans to maintain it the way the property should be maintained.”
The state authority was created in 1973 out of the Colorado Legislature’s attempt to address the shortage of affordable housing in the state. Since then, the Colorado Authority has been financing single family mortgages for qualifying homebuyers and supporting developments of apartments for low- and moderate-income residents.
The Colorado Authority foreclosed on the Fox Run partnership for defaulting on payments. The partnership owed to the state authority the unpaid principal balance of more than $3.75 million.
– Tonya Bina can be reached at 970-887-3334 ext. 19603 or e-mail email@example.com.