Park City developer proposes restricted housing for $160,000 earners
August 8, 2018
A Park City developer intends to build residences restricted to the workforce that could be priced at nearly $570,000 and attract buyers with annual household incomes that could be capped at just more than $160,000, dollar figures that are set through a formula but ones that could nonetheless attract attention at a time when City Hall is pursuing a program of social equity.
The developer of Kings Crown, a firm known as CRH Partners, LLC, outlined plans for the restricted housing in a submittal to City Hall in anticipation of a Park City Planning Commission meeting scheduled Wednesday. The panel previously approved the overall project, and construction has commenced, but the developers must return to the Planning Commission with the plans for the restricted housing.
CRH Partners secured an earlier approval involving 27 lots for houses, 23 condominiums and seven townhomes at market price. City Hall's housing rules require a project of that size to include seven units of workforce housing. The King's Crown developers, though, also pledged to build eight units considered to be priced at attainable levels, bringing the total number of units that will be restricted through income to 15. The attainable units will be priced higher than the ones required under City Hall's housing rules and will have income restrictions that will also be higher than those required by City Hall.
The prices of the units are set based on a formula that relies on the area median income, as calculated by the U.S. Department of Housing and Urban Development. According to City Hall, the federal department in the spring determined the area median income for a household with four members in Summit County was $107,100. The developer used the number to set the prices and income levels.
The most expensive proposed units — $569,338 – are designed for households earning up to 150 percent of the area median income, or up to $160,650 annually. The units are three-bedrooms suitable for households of four and are considered in the attainable classification. The lowest-priced unit is proposed to cost $182,188 and is designed for a household earning 60 percent of the area median income, or up to $51,408 annually. It is a one-bedroom suitable for a household of two and is one of the units required by City Hall.
Hans Fuegi, one of the figures leading the King's Crown development, said the Park City real estate market is difficult for young professionals like the ones who could qualify to buy one of the restricted units.
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"It's a tough market. For somebody moving to town … It's still very difficult," Fuegi said, adding, "It's not easy, even for young professionals."
Early work has started on King's Crown, which is located off Lowell Avenue close to the Resort Center. The project is on the slopes of Park City Mountain Resort. The 15 units that will be set aside for workforce housing will be contained within one building that will be situated closest to the Marriott's Mountainside at PCMR.
Fuegi anticipates the ground for the building will be excavated in the fall with vertical construction starting as early as the winter. He expects there will be high demand for the units. The building will not generate profit for the developers, he said, describing the financial scenario as "break-even at best."
"They should have a shot at being able to qualify for something here," he said about potential buyers of the restricted units.
Jason Glidden, the housing development manager at City Hall, said the residences will be priced at a "significant discount" compared to the market. There is an "unmet market" for young professionals who cannot afford places on the open market but whose incomes are too high to qualify for restricted workforce housing like the project's lower-priced units, he explained.
The Planning Commission meeting is scheduled to start at 5:30 p.m. at the Marsac Building. A hearing is planned. The panel could forward a recommendation to the Park City Council acting as the Park City Housing Authority in this instance.
Park City leaders for years have required developers of larger projects include workforce or otherwise affordable housing in an effort to reduce impacts like commuter traffic. City Hall, meanwhile, has pursued its own housing program with similar goals. Housing is seen as one of the important aspects of the municipal government's broad efforts centered on social equity.