Flagstaff Development News

kaneui · December 7th, 2005, 06:14 AM

Similar to other fast-appreciating areas, condo conversions will give lower-income Flagstaff residents an opportunity to buy a home, where the median price is now around $350k (nearly $100k more than metro Phoenix):

Condos to go for $100K?
By RACHEL PETERSON
Arizona Daily Sun
12/06/2005

First-time and low-income homebuyers may have a shot in Flagstaff's market as the first apartments-turned-condominiums go up for sale this winter, opening the real estate market to units priced below $200,000.

The tentative plat for converting 310 units at The Pines apartments on West University comes before Flagstaff City Council tonight, and is expected to muster approval.

The units range from 500-square-foot studio apartments to 926-square-foot 2-bedroom units.

First priority for ownership will go to the existing tenants for as "minimum displacement as is feasible," said the development attorney William Ring.

Developer Dick Lund said, "We are going to bend over backwards to accommodate our tenants."

That will include any lending benefits available because of leasing tenure, such as down payment credits. The marketing and selling timeline -- anticipated to open in February or March -- also caters more to current Flagstaff residents. Developers also have met with agencies such as BOTHANDS to make them aware of the workforce-priced housing they are opening.

The intent of the developers is have 100 percent owner-occupied units, Lund said. "We're very sensitive and very proud to be able to deliver this product to the community. We think it's a very important stepping stone for home ownership," he said.

The development company Biltmore Pines is able to price the units so much lower than other similarly-sized units currently available in Flagstaff because there will be no structural changes to the 10-year-old buildings and the property is already owned; new construction is impacted by the escalating cost of building materials and limited available land in Flagstaff.

The only improvement to the units at this time will be the installation of a single-unit European style washer/dryer that conserves energy and water in each unit.

But even with the limited changes putting some units in the $100,000 range, it could be expected that many Northern Arizona University students who live in the complex won't qualify for lending to purchase their units, and will be forced to relocate at the end of their leases.

This is the first of several condominium conversion projects that could be approved. Other projects include the Dale Apartments, The Village at University Heights, and Timberline Village, though the latter two applied more recently, and therefore will have to wait for an ordinance that codifies the process and requirements of these units before seeking approval that will better address safety and utility concerns.

The biggest issue at hand is that many of the proposed apartments are older buildings and not built to the same fire code as condominiums, allowing fires to spread more quickly between the units. Other concerns pertain to water systems and how those will be metered for the individual units.

The ordinance is expected to be on the table at City Council's Jan. 3 meeting.

Meanwhile, those that submitted plans for conversion before Sept. 1 are allowed to move ahead, so long as they include a seller's disclosure that explains the building standards in reference to fire codes. That information will be provided with other purchasing paper work.

The developments also must obtain approval from the Arizona Department of Environmental Quality for potable and waste water systems, as well as meet other state and federal requirements.

Already Ft. Valley Apartments withdrew an application for conversion because the Arizona Department of Transportation would have required a traffic light at its location.

But The Pines buildings -- soon to be renamed Arbors Condominiums -- already have been painted in vivid hues as part of marketing the change.

The community also will have a homeowners' association that will be responsible for charging for water and trash from the master meter.

The idea for condo-conversions was first presented to city officials through development applications in February. The council, at an August workshop, was torn on the proposed ordinance: On one hand, it could create more affordable owner-occupied housing in Flagstaff's highly-priced market. On the other, it could displace those who rent them and feed the speculative investment housing market.

Council voiced support for Arbors Condominiums on Monday because of the developers' dedication to selling to non-investment buyers first.

Councilman Art Babbott said he favored the project, and told the developers to "go to the greatest extent possible to make sure they're owner-occupied."

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December 7th, 2005, 06:14 AM	#11
kaneui Reclaiming Paradise Join Date: Sep 2005 Posts: 161 Likes (Received): 0	Similar to other fast-appreciating areas, condo conversions will give lower-income Flagstaff residents an opportunity to buy a home, where the median price is now around $350k (nearly $100k more than metro Phoenix): Condos to go for $100K? By RACHEL PETERSON Arizona Daily Sun 12/06/2005 First-time and low-income homebuyers may have a shot in Flagstaff's market as the first apartments-turned-condominiums go up for sale this winter, opening the real estate market to units priced below $200,000. The tentative plat for converting 310 units at The Pines apartments on West University comes before Flagstaff City Council tonight, and is expected to muster approval. The units range from 500-square-foot studio apartments to 926-square-foot 2-bedroom units. First priority for ownership will go to the existing tenants for as "minimum displacement as is feasible," said the development attorney William Ring. Developer Dick Lund said, "We are going to bend over backwards to accommodate our tenants." That will include any lending benefits available because of leasing tenure, such as down payment credits. The marketing and selling timeline -- anticipated to open in February or March -- also caters more to current Flagstaff residents. Developers also have met with agencies such as BOTHANDS to make them aware of the workforce-priced housing they are opening. The intent of the developers is have 100 percent owner-occupied units, Lund said. "We're very sensitive and very proud to be able to deliver this product to the community. We think it's a very important stepping stone for home ownership," he said. The development company Biltmore Pines is able to price the units so much lower than other similarly-sized units currently available in Flagstaff because there will be no structural changes to the 10-year-old buildings and the property is already owned; new construction is impacted by the escalating cost of building materials and limited available land in Flagstaff. The only improvement to the units at this time will be the installation of a single-unit European style washer/dryer that conserves energy and water in each unit. But even with the limited changes putting some units in the $100,000 range, it could be expected that many Northern Arizona University students who live in the complex won't qualify for lending to purchase their units, and will be forced to relocate at the end of their leases. This is the first of several condominium conversion projects that could be approved. Other projects include the Dale Apartments, The Village at University Heights, and Timberline Village, though the latter two applied more recently, and therefore will have to wait for an ordinance that codifies the process and requirements of these units before seeking approval that will better address safety and utility concerns. The biggest issue at hand is that many of the proposed apartments are older buildings and not built to the same fire code as condominiums, allowing fires to spread more quickly between the units. Other concerns pertain to water systems and how those will be metered for the individual units. The ordinance is expected to be on the table at City Council's Jan. 3 meeting. Meanwhile, those that submitted plans for conversion before Sept. 1 are allowed to move ahead, so long as they include a seller's disclosure that explains the building standards in reference to fire codes. That information will be provided with other purchasing paper work. The developments also must obtain approval from the Arizona Department of Environmental Quality for potable and waste water systems, as well as meet other state and federal requirements. Already Ft. Valley Apartments withdrew an application for conversion because the Arizona Department of Transportation would have required a traffic light at its location. But The Pines buildings -- soon to be renamed Arbors Condominiums -- already have been painted in vivid hues as part of marketing the change. The community also will have a homeowners' association that will be responsible for charging for water and trash from the master meter. The idea for condo-conversions was first presented to city officials through development applications in February. The council, at an August workshop, was torn on the proposed ordinance: On one hand, it could create more affordable owner-occupied housing in Flagstaff's highly-priced market. On the other, it could displace those who rent them and feed the speculative investment housing market. Council voiced support for Arbors Condominiums on Monday because of the developers' dedication to selling to non-investment buyers first. Councilman Art Babbott said he favored the project, and told the developers to "go to the greatest extent possible to make sure they're owner-occupied."