Funds to be used to purchase land for affordable housing subdivision

MONTE VISTA — The City of Monte Vista is applying for a $3-$4 million Community Development Block Grant (CDBG) to purchase approximately 62 acres of land in the Trosper Ranch annex to bring much-needed affordable housing to the city.

An informational public hearing was held on Thursday, Feb. 1, at City Hall led by City Planner DJ Enderle. The public hearing was to provide information and answer questions on the grant proposal. Enderle explained that the public hearing was part of applying for a CDBG.

Enderle said, the CDBG is authorized under the housing and community development act of 1974 public law 93-33AS amended under 42US code program, is money that is a non-matching grant fund where the funds can be used multiple times as long as the project funded is all within the CDBG program guidance.

According to the US Department of Housing and Urban Development, the CDBG program supports community development activities to build a stronger more resilient community.

“At this time, it's our intent to apply for between $3 and $4 million for the acquisition of approximately 62 acres located in the Trosper Ranch annex to design a subdivision which can be developed in phases,” Enderle said. “With the acquisition of this land, combined with the land the city already owns, we will be able to design a new 83-acre subdivision.”

This subdivision could create about 400 housing units over its various phases. These housing units will be split between apartments, townhomes, and single-family residences with both rental and ownership opportunities.

“These units will be considered affordable housing which will benefit low- to moderate-income persons from 80 to 100% area median income,” Enderle said.

Enderle said this was important for the community because 60% of its homes are greater than 50 years old and some of its apartment complexes were built in 1988.

“We are in need of the missing middle housing where the average family can purchase a new home,” Enderle said. “High school graduates don’t have to move to another city to find apartments. We can have desirable housing options for our workforce.”

Enderle explained that by utilizing CDBG the city would sell the land to developers and then turnaround and use these on the infrastructure.

Enderle added that if after buildout there was money remaining it could be used to assist with downpayments.

“We can take and create a down payment assistance fund until those funds are exhausted as long as we keep using the money in the same fashion the CBDG has authorized, we can keep using it over and over,” Enderle said.

Enderle said that the city is working on a design for the infrastructure and hopes to turn in the application in March and receive funds in the third or fourth quarter of 2024.

Due to the nature of the public hearing, no action from the council was needed. The council thanked Enderle for the information.