Summit County officials have landed on pricing and income requirements for their newest deed-restricted housing development — with applications poised to open as soon as next week. 

During a Tuesday, June 4, Summit Board of County Commissioners work session, officials discussed details for the 15-unit, for sale development known as Nellie’s Neighborhood, which is currently being constructed on a 2-acre site within the historic Bill’s Ranch neighborhood near Frisco. 

While officials worked out most of the requirements for who will be eligible for the homes during a previous commissioners’ meeting last month, a recent update to deed restrictions by the Summit Combined Housing Authority led county officials to reconsider income targets for the project. 

According to Housing Planner Brandon Howes, the housing authority, which administers deed-restrictions, changed its price formula for the homes during a May 20 meeting to better reflect current interest rates and homeowners association fees — both of which have increased in recent years.

Howes said the assumed interest rate for homeowners was increased from 5.7% to 7% while the assumption for homeowners association fees went from $350 per month to $500.

“This has a significant impact on the for-sale pricing and the (area median income),” Howes said. “And so we wanted to come back to the board (of county commissioners) and see what your comfort level was moving forward with Nellie’s Neighborhood pricing.” 

Initially, county officials had sought to target the homes to residents making between 85% and 110% of the area median income based on 2023 figures, with for-sale prices ranging from $278,000 to $490,000 based on unit size. The average median income figure for the project was set at 95%

Officials also allowed for some flexibility in the income-scale of up to 30%, meaning those earning as much as 140% of the area median income could still be eligible for a home. According to 2023 figures, 80% to 140% median income translates to $62,080 to $108,640 for an individual. 

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Under the price-modeling changes made by the housing authority, and with newly released 2024 income figures, the home prices of Nellie’s Neighborhood are now targeted toward an average median income of 105%. 

The income spectrum would range between 95% to 121%, or just over 150% when accounting for the 30% flexibility. That represents an income between $81,035 and $127,950 for an individual. 

If the county were to lower the median income eligibility to be closer to the original target, Howes said officials would need to further subsidize the project by as much as $667,000. 

Under one scenario presented by Howes, if the project targeted an average area median income of 95% — the original proposal — sale prices would need to decrease by 12%, or by $28,500 to $52,505 depending on the unit. That would require an increased county subsidy of just over $667,000. 

According to Howes, the county has currently approved $2.5 million in subsidies for the full project, with the $667,000 bringing the total subsidy to more than $3.2 million. Under another scenario, if the average median income were to be 100%, the county’s additional subsidy would be lower at $345,000 for a total subsidy of $2.9 million. 

Finance Director David Reynolds said of the $19 million approved for spending in the 2024 housing fund, $250,000 remains as a fund balance. Commissioners signaled hesitancy about using more money for the Nellie’s Neighborhood project given that another program, one that provides home buydown assistance, is also in need of more funding before the end of the year.

“These are still $500,000 (and less) homes for sale. They’re still very inexpensive no matter what,” Waters said. 

Commissioner Tamara Pogue said “As we’ve talked about this project, we have weighed heavily that there really is no other product at this price point for sale in Summit County,” adding, “As we open this wider, we get more folks in the lottery and less opportunity.”

Commissioners ultimately decided to keep the same sale price for the units, ranging from $278,000 to $490,000, with the targeted area median income spectrum increasing to 95% to 150% based on the price-model changes and the 30% income flexibility. 

“If we had more money in the housing fund I’d say let’s lower (the prices),” said Commissioner Eric Mamula. “But there’s just too much other work to do.”