Housing Catalyst is moving forward with a Section 18 disposition that will increase the number of affordable homes in Fort Collins. The agency currently owns and manages 70 affordable rental units throughout Fort Collins that are part of the U.S. Department of Housing and Urban Development’s (HUD) public housing program. Housing Catalyst plans to sell or reposition their public housing portfolio to expand the number of affordable homes available for rent or ownership.
Partnership with Elevation Community Land Trust
Throughout several phases in 2022 and 2023, Housing Catalyst plans to sell 44 homes to Elevation Community Land Trust, a Denver-based organization specializing in affordable home ownership. ECLT will renovate the homes prior to making them available to qualified individuals for purchase.
Current residents of public housing units slated to be sold will be eligible for Housing Choice Vouchers and offered relocation assistance.
Anyone interested in finding out when homes will be for sale, where homes are located, and how the ECLT qualification and purchasing process works, is encouraged to contact ECLT for more information.
Impala Community Redevelopment
Housing Catalyst plans to redevelop 11 existing public housing units, a project that will add 49 affordable homes rental homes to the agency’s portfolio. The proposed community would include two- and three-story buildings with eight to 28 units per building. The new rental homes would target residents making between 30% and 80% of the area median income, with a target average of 55% AMI. All public housing residents will be eligible for Housing Choice Vouchers and offered relocation assistance later in 2022.
The planned project also includes renovating the 24 duplexes that compose Housing Catalyst’s Village on Impala. Construction is anticipated to begin in Summer 2023. Housing Catalyst will work with current residents to temporarily relocate during construction.
Why sell public housing?
Because of decades of Congressional underfunding for the public housing program, there is a significant backlog of capital needs for these homes. The federal program’s restrictions prevent Housing Catalyst from using any of the methods a private owner would use to perform repairs and modernization, such as refinancing, grants, and tax credits.
Selling or repositioning these deteriorating properties will allow Housing Catalyst to build and operate more efficient, sustainable, and high-quality housing. Section 18 of the 1937 Housing Act allows housing authorities to apply to HUD for approval to dispose of public housing and convert to Section 8 voucher-based assistance. Net proceeds must be used to provide low-income housing or to benefit residents.
Housing Catalyst plans to use sales proceeds to renovate existing affordable properties, build new affordable housing developments, and fund Resident Services staff who will working with residents, property managers, and community partners to identify needs and coordinate referrals, resources, and community partnerships that promote the overall healthy communities.
