Deed-restricted homeownership is a tool for maintaining long-term affordability where legal covenants are recorded in a document called a “deed” which places limits on the home’s resale price, future buyer qualification, and use of the home.

Purchasing a deed restricted home offers access to the benefits of homeownership in Chaffee County where the median house price is out of reach for the majority of community residents. Unlike paying rent, deed restricted homeownership can build homeowner equity through the value of your downpayment, monthly principal payments, and a share of the home’s appreciated value. Contact CHA today to find out how you can become a homeowner!

Purchasing a deed-restricted home has a few more steps than a traditional home purchase. In Chaffee County, there is more than one organization selling affordable homes. CHA is the manager for the City of Salida’s Inclusionary Housing Program (IHP). CHA advertises all available homes but please be sure to look for which organization is the seller as the qualifying requirements may be different. 

In general:

1. Assess your credit, how much you can afford, and learn about the homebuying process. CHA highly recommends that interested homebuyers for Salida Inclusionary Housing Program complete the online, self-paced CHFA Homebuyer Education program. The Chaffee Housing Trust (CHT) requires all interested homebuyers to participate in a homebuyer education workshop. CHA highly recommends that interested homebuyers take the online, self-paced CHFA Homebuyer Education program. Participation in these programs will help you understand your credit worthiness prior to going to a bank and help identify eligibility for down payment assistance. If credit is a barrier, talk to CHT or CHA about easy steps you can take to repair your credit.

• https://www.chfainfo.com/homeownership/homebuyer-education

• CHT Homebuyer Education Workshops

2. Determine eligibility as a qualified buyer. Check eligibility in How Do I Know If I Qualify below for Salida Inclusionary Housing Program. 

3. Talk to a lender about pre-qualification for a mortgage. This step is not a loan commitment but rather the bank assessing your financial situation to determine how much home you can afford. A pre-qualification letter will help expedite the process when an affordable home becomes avaialble. There are a lot of lenders, but you can use CHFA as guidance. 

• https://www.chfainfo.com/homeownership/how-to-get-a-chfa-program-loan

4. Apply for an affordable home. When an affordable home becomes available for sale, follow the process outlined by the seller. For the City of Salida IHP, applications to be approved as a buyer are submitted to the CHA. See How Do I Apply below. Once approved as a “qualified buyer”, applicants are either approved to move to the next phase or entered into a lottery if there is more than one interested buyer.

5. Making an offer.  If selected as the approved buyer, the applicant moves forward with the lender from pre–qualifed, to mortgage qualification, and making a legitimate offer on a home. This step is like any other homebuying process.

Criteria to determine eligibility for Salida’s Inclusionary Housing Program include:

1. Gross Household Income

Qualifying income maximums will be determined by the Area Median Income (AMI) restriction recorded in the home’s deed. Income requirements are based on both (1) gross household income and (2) number of people in the household. To identify your AMI, view the City of Salida IHP income guidelines here. 

The City of Salida IHP allows for a 19% buffer between a home’s designated AMI level and a maximum income. For example, if the home’s AMI restriction is 120% AMI, then the maximum eligible income with the buffer will be a household earning up to 139% of AMI. 

2. Employment In Chaffee County

At least one household member must work a minimum of 30 hours per week each year or have a verifiable job offer in Chaffee County. If self-employed, the applicant may still qualify if their tax records demonstrate their business is located in Chaffee County.

3. Retirees

For people over age 60 who are no longer working, they must have maintained their sole and primary residence in Chaffee County and have earned 80% or more of their primary income from an employer or business in Chaffee County for the 4 years preceding retirement.  

4. Disabled

A person must have maintained a principal place of residence in Chaffee County for a minimum of 4 consecutive years immediately preceding occupancy.

5. Assets Must Not Exceed Limits

Net worth (assets minus liabilities) must not exceed three times the Area Median Income (AMI) assigned to the deed restricted home. For example, assets to purchase a home restricted to 140% AMI cannot be more than three times the household maximum income for that AMI range. Retirement accounts may be excluded from asset calculations. Buyers may not own other improved residential property(ies) in Colorado at the time of purchase. 

6. Home Must Be Buyer’s Sole and Primary Residence

The buyer must intend to use the home as their sole and primary residence. CHA conducts annual residency compliance verification.

7. What If I Do Not Qualify?

Written notification will be sent within three weeks notifying the applicant of why they were not qualified. If an applicant feels this judgement is incorrect, they should call the CHA.

All interested buyers must first submit a Homebuyer Eligibility Pre-Approval Application to the CHA who will determine eligibility to purchase a deed-restricted City of Salida IHP home. If pre-qualified as an "eligible buyer”, the applicant will be added to the CHA Interested Homebuyer List. 

Once a specific home is available for sale, applicants on the Interested Homebuyers will receive notifications when units will become available for sale in their price range. At that time they can submit a complete Homebuyer Application to the CHA for a specific home. 

Homebuyer Eligibility Pre-Approval Application

Qualified homebuyers are selected by the following process:

• CHA will accept applications for 21 days after the initial sales notice. 

• After 21 days, CHA will select the first three complete applications based on the earliest date and time stamp. Incomplete applications will not be considered.

• CHA will select 1 eligible applicant, at random, to be considered as the qualified buyer. The qualified buyer will be notified in writing within 1 business day of being selected. 

• The selected buyer will have 21 days to commit to purchase the home. 

• The other 2 buyers will be given priority, in order of their date/time stamp, if the 1st buyer does not purchase the home. If the 1st buyer does purchase, the 2nd and 3rd qualified buyer will be placed at the top of the wait list for future opportunities. 

• If none of the 3 selected qualified buyers commit to purchase. CHA will work down the remaining wait list to offer an opportunity for purchase. 

• New applications will be accepted throughout the process and added to the wait list with a date/time stamp.

CHA manages a Homebuyer Wait List for the City’s IHP homes.

When a complete application is submitted, CHA provides written confirmation or denial of City of Salida IHP qualified homebuyer eligibility. A letter determining homebuyer eligibility for an IHP home is valid for 120 days. 

If more than 120 days has passed since an approval, you will not lose your place on the waitlist. However, if a new homebuying opportunity becomes available, CHA will request updated financial information to recertify eligibility for applicants already on the wait list. Submission of requested information to CHA is required within 10 days or you risk losing your place. Note that if your income has changed substantially, it may change the Area Median Income qualification. If you know that a new homebuying opportunity is forthcoming, you may also submit updated information in advance of CHA making a request of you.

CHA sends a monthly newsletter out announcing all affordable homes for sale from CHA and CHT. You can also view homes for sale by scrolling down this page.