Fraser affordable housing complex looks for way to fund mold remediation

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Fraser affordable housing complex looks for way to fund mold

remediation

Sky Hi Daily News - Granby,CO*

By Tonya Bina

Sky-Hi Daily News

The Fox Run Holdings Inc., the general partner of workforce housing

units in Fraser, is searching for ways to remediate mold

contamination costing the project money it doesn't have.

Discovering mold in various crawl spaces of the 64-unit housing

project this spring led Fox Run management to allow tenants to break

leases and move out if they wished.

As many as 23 of the units now sit vacant, costing the project a

$36,000-plus shortfall in lost rent.

It was found that a total of 26 units have " varied degrees of fungal

growth, " including 16 with " minor mold. "

Fox Run board members are using a $30,000 Grand County Housing

Authority grant toward clean-up efforts. The board's immediate goal

is to mitigate those with mold to a lesser-degree and make them safe

to rent to aid the project's cash flow.

In July 14 minutes from a special board meeting on the issue, the

Fox Run board stated it has a draft of a release form for tenants to

sign relieving the housing authority board and Fox Run of any

liability.

" The only units that will be left vacant are those that have major

mold, " the minutes state.

In all, complete remediation of all mold-affected units is estimated

to cost $92,851, according to Housing Authority Executive Director

Jim Sheehan. To permanently fix the problem so that is does not

return, meaning attention to drainage and more advanced ways to keep

water out of unit crawl spaces, that estimate jumps closer to

$262,000.

" We put sump pumps in units last May to help keep the water from

collecting in the crawl spaces, " Sheehan said.

It was hoped a Colorado USDA Rural Development grant would come

through to help cover the cost of a permanent fix to the mold

problem, but no funds were granted, according to Sheehan.

Fox Run board members have been looking to the project's limited

funding partner, Housing Outreach Fund, for a safety net.

Housing Outreach invested nearly one-third of the cost of the

project when it was built , around $2 million, with limited

ownership interest for a 15 year period. By doing so, the limited

partner gained tax credits for building affordable housing.

" We're still working with the funding partners (The project's

mortgage lender Colorado Housing and Finance Authority, the Colorado

Division of Housing and Housing Outreach), hoping they can step up

to the plate and help us deal with this, " Sheehan said.

A Colorado Division of Housing Community Development block grant was

key to the $7.3 million project when it was built, allowing it to

keep rents below market value.

As much as $3.4 million is still owed on the 6-year-old project.

The Fox Run board is contemplating refinancing to help open up funds.

The board also plans to meet with the towns of Winter Park and

Fraser, Grand County and Winter Park Resort for other solutions.

Aggravation of drainage issues may point to snow storage on Wapiti

Drive on the hill above Fox Run buildings.

" If we had our druthers, the (Fox Run) project would be sitting on a

different site with perfect drainage, " Sheehan said.

— Tonya Bina can be reached at 887-3334 ext. 19603 or e-mail

tbina@....