Wednesday, October 28, 2009

New Information on Private Activity Bond Allocations

The Division of Housing is in the process of issuing new fee guidelines on Private Activity Bonds and fees. The Division plans to formally announce the new fee structure at the PAB Committee hearing on November 17. In order to allow for comments before the new fees are finalized, a summary is below. Please contact Ann Watts with comments at ann.watts@state.co.us.

New Guidelines on Direct Allocation Fees are as follows:

•All bonds issued from a local government and/or from statewide authorities’ direct formula allocations will be subject to an issuance fee.

•This applies to all direct allocations that have not yet been issued, including allocations from 2009 & previous years.

•The fee starts at 0.0057%, and be adjusted annually. Since most PAB issuances are for at least $3 million, the smallest fee would be $171. At the other end of the spectrum, a $100 million issuance would cost $5,700.

•Typically, 3 statewide authorities & about 47 local governments receive direct, formula allocations at the start of each calendar year.

Statewide Balance (SWB) Fees are unchanged:


•These will remain unchanged from current practice, & include a $750 application fee and a 0.25% issuance fee.

Comment period:
Please send any comments to Ann Watts by Friday, 11/6.

Implementation date:
We plan to formally announce the new fee structure at the PAB Committee hearing on November 17.

Last chance to take DOLA's housing and economic priorities survey

Click here to take the survey.

The Colorado Department of Local Affairs - Division of Housing is conducting a survey as part of the Division of Housing's Consolidated Plan. Please take a few minutes to complete the survey. The survey results will assist the Division in understanding how different communities view different community and housing priorities. We will depend on responses from representatives from housing, community, and local government organizations to ensure that we have a broad view of housing and community needs and issues in Colorado.

The survey will be open until the 30th of October, so please help us by completing the survey at your earliest convenience. The survey can be found online here.

New 2nd Q Metro Denver vacancy data posted

Due to joint ownership of metro Denver vacancy and rent data (shared with the Apartment Association of Metro Denver) Denver vacancy and rent data cannot be immediately posted.

The full report is always available from their web site, but county-level second quarter data is now posted at our site. Please see here for more info.

The 3rd quarter data will be available through AAMD in the next couple of weeks.

Click here for the 2nd Q data.

CORRECTED September Foreclosure Report

Due to some errors in the September El Paso County data, we have corrected and re-posted the September Foreclosure Report. See below.

The old report showed a decline in the month-over-month and year-over-year foreclosure totals in El Paso county. In fact, foreclosure sales at auction increased in September to a total of 225.

This also produced a small upward shift in statewide totals for completed foreclosures, and in general, means that there was slightly more foreclosure activity in September than was previously thought.

The corrected report is available here.

Wednesday, October 21, 2009

New videos posted on multifamily housing in Southern Colorado

At the Division's Youtube page, we've posted a new series of videos that looks at recent economic trends and trends in the apartment markets in Colorado Springs and Pueblo. There are 8 different videos, each ranging from about 2 minutes to 5 minutes.

Here's our Youtube page.

This video looks at the effects of recent troop movements to Colorado Springs:

Some recent grants awarded to regions in Southern Colorado

$225,288 Award for Alamosa County / San Luis Valley Housing Coalition – Housing Rehabilitation Program

DOLA's Division of Housing has announced that $225,288 in CDBG funds has been awarded for increasing the availability of affordable housing in the San Luis Valley.

Alamosa County, on behalf of the San Luis Valley Housing Coalition, Inc. (SLVHC), was awarded a grant of $225,288 to support the SLVHC Housing Rehabilitation Program from October 2009 through September 2010. This program will administer twelve (12) housing rehabilitation projects and one (1) replacement homes in Alamosa, Conejos, Costilla, Saguache, Mineral Counties and the Cities of Monte Vista and Del Norte. The SLVHC markets to potential program participants through other community organizations, the local governments and the building departments.

$221,000 award for development of Huerfano County / South Central Council of Governments Housing Rehabilitation Program

DOLA's Division of Housing has announced that $221,000 in CDBG funds has been awarded for increasing the availability of affordable housing in Huerfano and Las Animas Counties.

Huerfano County, on behalf of the South Central Council of Governments (SCCOG), was awarded a grant of $221,000 to continue the funding of their two-county (Huerfano and Las Animas) Single-Family, Owner-Occupied Rehabilitation Program. These grant funds will be used to provide low-interest loans for twenty (20) rehabilitation projects and two (2) essential repairs to households at 80% of the Area Median Income in these counties. This rehabilitation program has received funding from the Colorado Division of Housing since 1987 and has completed the rehabilitation of over 412 homes.

$185,755 award for development of Otero County / Tri-County Housing and CDC – Housing Rehabilitation Program

DOLA's Division of Housing has announced that $185,755 in CDBG funds has been awarded for increasing the availability of affordable housing in Bent, Crowley, and Otero Counties.

Otero County, on behalf of the Tri-County Housing and Community Development Organization (TCHCDC), was awarded a grant of $185,755 to continue the funding of their three-county (Bent, Crowley and Otero) Self-Help, Single-family, Owner-Occupied Rehabilitation Program for households at 80% of Area Median Income or less. The new grant funds will be combined with other sources to provide low-interest loans for eight self-help rehabilitation projects. These grant funds are combined with Rural Develop low-interest mortgages to assist first-time buyers become home owners. All households must attend first-time homebuyer training and contribute at least 20 hours a week of labor. This self-help housing rehabilitation program has received funding from the Colorado Division of Housing since 2005 and has completed a total of 25 homes to date.

$105,207 award for development of the Prowers County / Southeast Colorado Enterprise Development – Housing Rehabilitation Program

DOLA's Division of Housing has announced that $105,207 in CDBG funds has been awarded for increasing the availability of affordable housing in Baca, Kiowa and Prowers Counties.

Prowers County, on behalf of the Southeast Colorado Enterprise Development (SECED), received a grant of $105,207 to continue the funding of their three-county (Baca, Kiowa, and Prowers) Single-Family, Owner-Occupied (SFOO) Rehabilitation Program. These grant funds will be used to provide a minimum of the following; low-interest loans for 18 rehabilitation projects and 4 emergency repairs in these counties. This rehabilitation program has received funding from the Colorado Division of Housing since 1996 and has successfully completed the rehabilitation of over 250 homes.

$372,196 award for development of the Crowley County / Tri-County Housing and CDC – Single-Family Housing Rehabilitation Program

DOLA's Division of Housing has announced that $372,196 in CDBG funds has been awarded for increasing the availability of affordable housing in Bent, Crowley and Otero counties.

Crowley County, on behalf of the Tri-County Housing and Community Development Organization (TCHCDC), received a grant of $372,196 to continue the funding of their three-county (Bent, Crowley and Otero) Single-family, Owner-Occupied Rehabilitation Program for households at 80% of Area Median Income or less through November 2009. The new grant funds will be used to provide low-interest loans for 18 rehabilitation projects and 10 essential repairs. This SFOO Rehabilitation Program has received funding from the Colorado Division of Housing since 1991 and has completed the rehabilitation of over 400 owner-occupied homes.

A $75,000 grant and $800,000 loan for affordable housing in the City of Salida.

DOLA's Division of Housing has announced that $875,000 of federal and state funds has been awarded for increasing the availability of affordable housing in the City of Salida.

The City of Salida will receive a $75,000 CDBG grant to provide down payment assistance for homebuyers at the Crestone Heights Community Land Trust, which is being developed by the Chaffee Housing Trust. The Chaffee Housing Trust will also receive a Revolving Loan Fund construction loan of $800,000 for the project.

Crestone Heights is located within one mile of downtown Salida, at the corner of Crestone Ave. & Mesa Lane. The Chaffee Housing Trust is developing 5 homes in a tri-plex and a duplex. All units will be restricted to homebuyers at or below 80% AMI. There will be two 2-bedroom, 1.5-bath units; one 2-bedroom 2-bath units; and two 3-bedroom 2-bath units. The townhomes will be kept affordable in perpetuity using the community land trust model, with a 99-year land lease and resale restrictions.

Thursday, October 8, 2009

Completed foreclosures fall 5 percent in September

Click here for full report.

Completed foreclosures fall 5 percent in September

Foreclosure sales at auction in Colorado’s largest counties fell 5 percent last month as compared to September of last year. According to a report released today by the Department of Local Affairs – Division of Housing, completed foreclosures were down compared to the same period last year, but rose 21 percent from August to September of this year.

New foreclosure filings, which open the foreclosure process, increased 72 percent year-over-year. But, the Division’s report downplays the increase in filings as being partially driven by a statutory change that depressed the number of new filings during August and September of last year. According to the report, “the large difference in foreclosure filing totals between September 2008 and September 2009 is driven partially by statutory changes and only partially by actual conditions in the real estate markets.”

New foreclosure filings fell 0.5 percent from August to September of this year.

Mesa County reported the largest year-over-year increase in completed foreclosures, with a rise of 217 percent. Increases in other counties were much smaller with Adams County reporting an increase of 3.4 percent. Denver County reported the largest fall in totals of completed foreclosures with a drop of 29 percent, while Arapahoe County totals fell 13 percent.

From August to September, all counties surveyed except El Paso County reported increases. El Paso County’s total of completed foreclosures fell 1 percent while Mesa County rose 49 percent, Adams County rose 34 percent, and Denver County rose 17 percent.

Foreclosure rates in metropolitan counties vary considerably. Adams County reported the largest foreclosure rate with 540 households per foreclosure completed in September. Weld County reported a rate of 563 households per foreclosure, and Denver reported a rate of 876.The counties with the lowest foreclosure rates were Boulder, Mesa, and Larimer counties with rates of 2,360, 1,459 and 1,378 households per foreclosure completed in September, respectively.

For all counties surveyed, the overall foreclosure rate was 966 households per completed foreclosure.

The Division of Housing’s monthly foreclosure report surveys foreclosure activity in the twelve largest counties of Colorado. The report is a supplement to the Division’s quarterly foreclosure report that includes all counties in Colorado.

Tuesday, October 6, 2009

Colorado Springs area vacancies fall to 8.7 percent

Click here for report.

Apartment vacancy rates in the Colorado Springs area fell to 8.7 percent during the third quarter of 2009, led by sharp drops in average vacancies in southwestern Colorado Springs and in the Security/Widefield/Fountain area.

According to a report released today by the Apartment Association of Southern Colorado and the Colorado Department of Local Affairs - Division of Housing, overall vacancies fell in the Colorado Springs area from 9.2 percent during the third quarter of last year, and are down from this year’s second-quarter rate of 9.8 percent.

Vacancy rates fell significantly in the “Southwest” market area of Colorado Springs where vacancy rates fell to 5.3 percent, the lowest rate among all market areas surveyed. The rate in the Southwest region had been 9.4 percent during the third quarter of last year.

Vacancies in the “Security/Widefield/Fountain” market area fell from 24.4 percent during the third quarter of last year to 16.9 percent during the third quarter of this year.

Vacancy rates rose slightly in the “Far Northeast” market area, rising from last year’s third quarter rate of 6.4 percent, to 7.8 percent during the third quarter of this year. Rates also rose in the “Southeast” market area where rates rose from 14.4 percent to 20.5 percent during the same period.

Vacancy rates continue to be buoyed by high vacancies in apartment projects of 9 to 50 units where vacancies have increased over the last year, and now stand at 16.8 percent.

Colorado Springs vacancy rates have fallen .5 percent over the last year as rates across the rest of the Front Range have risen. Metro Denver’s second-quarter vacancy rate was 9.0, and rates in Greeley and Pueblo have also recently risen above 8 percent.

In general, a vacancy rate of 5 percent is considered an “equilibrium rate.”

In spite of falling vacancy rates, rent growth in Colorado Springs has been very limited. Comparing year-over-year, the third-quarter average rent level fell almost 4 dollars to $695.40 from $699.09. Third quarter rent levels are also below 2007’s third quarter average rent of $703.74.

The overall average rent level hit an all-time high during the second quarter of this year when they hit $717.65

The area that reported the highest average rents was the “Far northeast” region with an average rent of $801.54, and the areas with the lowest average rent was the “Central” region with an average rent of $513.38.

The Vacancy and Rent Surveys are a service provided by the Colorado Department of Local Affairs’ Colorado Division of Housing and the Apartment Association of Southern Colorado to renters and the multi-family housing industry on a quarterly basis. The Colorado Springs Area Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type. For more information, please contact the Apartment Association of Southern Colorado at http://www.aacshq.org ; or please visit the Colorado Division of Housing web site: http://dola.colorado.gov/cdh/

Friday, October 2, 2009

New historical graph on statewide vacancies in Colorado

Here's a view of multifamily vacancies in Colorado since 1995.

Prior to 2002, the median vacancy rate was 4.4. After 2001, the median has been 8.5. The overall median for all averages is 6.15.