Grand Lake, still reeling from East Troublesome fire, is being shaken again by mayoral recall over housing

 
 

Mayor Steve Kudron is the target of a recall election fueled by concerns over housing and keeping the mountain town’s character intact.

Like a dozen Grand Lake mayors before him, Steve Kudron smiled and waved at his constituents during the annual Buffalo Days parade last month.

But Kudron added a twist no one had ever seen in 74 years of Buffalo Days. The vintage Hummer he paraded in sported a sign reading: “Vote No! Stop the Recall of Mayor Steve.” The hubcaps were replaced with “no bully” logos. And the vehicle was flanked by people waving their own “vote no” signs.

This juxtaposition of the old with the new is at the heart of the Grand Lake mayoral recall election, which is scheduled for Oct. 5. On one side are longtime residents who are afraid the small town’s character and sense of community are being destroyed. On the other side are relative newcomers like Kudron who want to move quickly to address a changing town’s needs. 

And at the center of the conflict is a rising crisis that other mountain towns have faced for decades: how to provide affordable housing for workers and young families.

“It’s small-town politics, but it’s really a microcosm for the bigger world,” says Kirsten Heckendorf, a member of the Grand Lake Area Citizens Against Recall group.

A sign urging residents to retain Grand Lake Mayor Steve Kudron seen in town on Tuesday. (Hugh Carey, The Colorado Sun)

Lakefront boomtown

The 1-mile-square town of Grand Lake, which is wedged between Colorado’s largest natural lake and the western entrance of Rocky Mountain National Park, has a population of around 500 people. But some Grand Lake residents also view the thousands of second-home owners in nearby Grand County as part of the community. And that number is growing.

“A lot of people have discovered Grand Lake over the last couple of years,” Town Manager John Crone says. “It’s only two hours from Denver. People are realizing it doesn’t take any more time to get to Grand County than to Summit County.”

Within the past year, property values in and around Grand Lake have gone “absolutely crazy,” Crone says. “We’re seeing houses selling for $800 a square foot, with no view and almost no land.”

Many of those are second homes that are only occupied during the summer. Crone says Grand Lake has traditionally had a 16-week tourism season, from June through September. Winter visitors to Grand County have mainly focused on the ski town of Winter Park and, to a lesser extent, the nearby U.S. 40 towns of Fraser, Granby and Hot Sulphur Springs. But increasingly, cold-weather tourists are heading to Grand Lake to snowmobile, cross-country ski and ice fish. 

Crone says that’s resulted in more need for year-round, affordable workforce housing, which is in short supply throughout Grand Lake and Grand County.  A 2018 report said by 2023, Grand County would need 175 more affordable housing units. But that was before the coronavirus-fueled rush to the high country  and the East Troublesome fire that destroyed or damaged 366 homes.

How other towns cope

On Aug. 17, the Winter Park Town Council began discussing a proposal that would offer cash incentives to short-term rental owners willing to lease their properties to local businesses. The businesses would then sublease those rental units to their employees. 

If approved, the town would spend $325,000 on the program, with incentives ranging from $5,000 for a studio leased for six months, to $20,000 for a three-bedroom unit leased for a year. The goal is to create 40 new workforce housing units. 

In Granby, which has traditionally supplied much of the workforce housing for towns and resorts throughout Grand County, there’s land available for affordable housing—but no one to build it. Granby Town Manager Ted Cherry says the town was deeded 30 acres in 2006 as part of the Granby Ranch housing development annexation agreement, and there have been plans for years to build workforce and affordable housing on the land. 

But most private developers are busy building new, market-rate housing or rebuilding homes burned last fall in the East Troublesome fire. And trying to get Housing and Urban Development or Colorado Housing and Finance Authority funding for affordable housing is a bureaucratic nightmare, Cherry says.

Homes along the shoreline of Grand Lake with visible burn scars from East Troublesome Fire inside Rocky Mountain National Park in the background . (Hugh Carey, The Colorado Sun)

Grand County does have a housing authority, but it’s understaffed and underfunded. It mainly manages three senior affordable-housing facilities in Granby and Kremmling. But that may soon change. 

Sheena Darland, operations manager for the Grand County Housing Authority, says she’s been working with local town attorneys on intergovernmental agreements to form a regional housing authority that would be funded by a mill levy or sales tax. 

“We’ve been trying to get this done for a year, and it seems like we now have support or buy-in from all municipalities in the county,” Darland says. If all goes well, she says funding for the new housing authority could be on the November 2022 ballot. 

A grand property battle

In the meantime, Grand County towns are on their own when it comes to providing not only workforce housing, but also housing for younger, lower-income residents who are leaving town because they can’t find an affordable place to live.

“The reality is that people live in their campers, in the forest that got burnt,” Kudron says. 

He says that’s a big reason why the Grand Lake Town Board of Trustees moved quickly last year to buy 21 acres of undeveloped property in unincorporated Grand County, about a mile northwest of downtown.

Property owner Tom Stanley tried for over a decade to develop the 21 acres and annex it into Grand Lake, with plans to build about 100 single-family homes and duplexes. In mid-2019, he listed the property for sale for $1.3 million. 

In April 2020, Grand Lake residents voted in four new members to the town’s six-person board. Kudron, who moved to Grand Lake in 2012 and opened the Quacker Gift Shop, was elected to a four-year mayoral term by an 83-13 vote. 

“There’s new, fresh blood on the town trustee board, and we’re doing things differently,” says Ernie Bjorkman, the former Denver TV news anchor who’s part of the new wave of trustees. “The town has been talking for 20 years about affordable housing, but hasn’t been doing enough.”

The board reportedly discussed buying the Stanley property during its retreat in August 2020. About two weeks later, the board held a closed-door executive session regarding negotiations for the property. Two weeks after that, on Sept. 28, 2020, it voted unanimously in a public meeting to approve a contract to buy the Stanley property for $1.25 million. 

“Since we’re surrounded by national forests and parks, this is the only big piece of developable property left. We felt we had better take it and land-bank it,” Bjorkman says. “My thought is that we’d be better stewards of that land than a developer coming in and building 100 homes.”

Tom and Kathy Weydert, residents of Grand Lake of 34 years, pause for a photo at the town park. The Weyderts and several residents filed a petition to recall the mayor citing lack of transparency and communication in the town’s planning. (Hugh Carey, The Colorado Sun)

But some residents, including Tom Weydert, who has lived in Grand Lake for more than 34 years and served on the town board for 20 years before being defeated in the 2020 election, have concerns about how quickly the board voted to make such a big purchase and the lack of public input. In December, Weydert, who is also the Grand County assessor, and other residents circulated a petition against the property purchase.

About 325 people signed the petition, many of them second-home owners in Columbine Lake Country Club, a Grand County neighborhood that backs up to the Stanley property. Their outcry, along with a 107-page letter from a lawyer hired by Weydert, his wife, Kathy, and two Columbine Lake homeowners, led to a virtual town meeting on Jan. 19 that 144 people attended.

Some town trustees cited that opposition when voting during a Jan. 25 board meeting on a financing package to buy the Stanley property and a small park the town had been leasing. The package was approved by a 4-3 vote, with Kudron voting in favor. 

The town has since hired a consultant to determine the best use of the Stanley property. Along with forging a public-private partnership to build affordable and workforce housing, other ideas include relocating the town’s public works facility and preserving some land as open space. Kudron promises that the consultant’s plan will have plenty of opportunities for public input. 

But Weydert says the town should have worked out all of this, along with water rights, road access, an environmental study and other key development logistics, before buying the property. He would have liked the trustees to put down a retainer on the property, hold more public meetings and then have an election about the purchase. 

“The government used to listen to the citizenry,” Weydert says. “We need to be kinder, gentler and more transparent.”

“A very vocal face of change”

Kudron says Tom Stanley was only interested in a “straight sale” that didn’t involve a retainer. And Kudron opposed more delays. 

“I’m pretty adamant about things getting done,” he says. “Grand Lake is changing and while I didn’t cause it — the world caused it — I am a very vocal face of change.” 

And now he’s the face of a recall. In June, Kathy Weydert and three other residents filed a petition with the town to recall Kudron, citing improper leadership, fiscal irresponsibility, violation of Colorado open meetings laws and insufficient financial and comprehensive planning. Many of the charges have to do with the Stanley property purchase. 

After a challenge from Kudron’s allies about improper signature collecting, an independent hearing officer ruled the petition was valid and the recall election could proceed.

Voters who are residents of Grand Lake will decide whether Kudron should be recalled and whether Judy Burke, the only person who filed to be mayor as part of the recall election, should be elected. Burke, who owns Grand Realty and was Grand Lake’s mayor from 2004 to 2016, says she’s on the ballot because “I feel like we need to get things straightened out quickly. I have the background and I know how to do that.”

Town Manager Crone says ballots will be mailed to the approximately 300 registered voters in mid-September. He estimates the recall election will cost about $10,000, plus up to another $50,000 in staff time and professional and legal fees. 

Read the full article on The Colorado Sun.

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Housing CEO details 'the safest bet in real estate'

 
 

When it comes to getting the best return on investment in the housing market, one real estate investor swears on student housing.

“I think that's the safest bet in real estate,” said Rogers Healy, CEO and Owner of Dallas real estate company Rogers Healy and Associates.

The student housing market is what initially drew Healy to real estate: He gained his footing in the real estate market as an undergraduate at Southern Methodist University in 2001.

“If I could go do it all over again, I would have taken what I learned pretty early on as a college student about helping find my friends an apartment and I would have parlayed that into doing some development deals,” Healy said. “I think it's as guaranteed money as you can get, whether the school is paying for it, the parents are paying for it, or they have some kind of scholarship or stipend.”

The focus on student housing may seem counterintuitive given the drop-off in college enrollment during the pandemic and the increase in students taking a gap year. But Healy maintained that finding housing for undergrads is still "easy money."

"I know that right now, college applications are at an all-time low," he said. "But I think those trends are going to shift here in the next few years as well because people my age who went to college want their kids to go to college because we're getting older."

'Millennials are the driving force' 

Sending children off to university is just one way millennials could shape real estate in the coming years. Zillow forecasts that 6.4 million more households will be formed by 2025 as the largest U.S. generation and hits 34 — the prime age for first-time homebuyers.

“I'm 42 years old, and I've been in real estate half of my life. And for the first half of my real estate life, millennials were the enemy,” Healy said. “They were the ones that were driving rent prices, and they weren't able to go and afford property. And next thing you know, you know, whether it was pandemic fueled or not, millennials are the driving force, where we have almost 50% of buyers nationwide, especially in a city like Dallas, they're the ones that are making the decisions.”

Millennial wealth has doubled since the COVID-19 outbreak from $4.55 trillion at the end of 2019 to $9.13 trillion by the end of 2021, according to the Federal Reserve.

However, housing costs have also surged for millennials who are just now getting their foot in the door of the American dream of homeownership. The reality of higher mortgage rates, a lack of affordable housing, and low inventory means buyers may not be able to afford their forever home yet. And renters are also facing an uphill battle.

“So, interest rates, obviously, are higher than they were a month ago, higher than they were a week ago. But we still have rising rental rates as well,” Healy said. “So if people want to go and get into the American dream, and they want to go own real estate, they're going to have to shift their mindset and realize that you might not live there for 10 years. You might be there for two years.”

That’s good news if you’re a realtor looking for sustainable success as buyers seek out their next move at a faster pace.

Like student housing, Healy also expects the commercial market to come roaring back as workers return to the office and pent-up demand outstrips consumers' inflation concerns.

"I think commercial usually is two to three years behind the trends of residential, and we do a lot of commercial deals here in [Dallas-Fort Worth]," Healy said. "And I think, again, whether it's expanding our office space here, where 2 and 1/2 years ago... if someone would have told me we were going to 5x our space in two years, I would have said, 'You're crazy.' But now we're literally busting at the seams because people want to come back to the office."

“The experience we missed out on with retail, with going to dinner, going to get frozen yogurt, to a coffee, whatever, those things are starting to catch up as well," Healy said. "So we see a significant shortage of office space, retail, but especially industrial."

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The Most Popular Houseplant in Each State

 
 

If it seems like literally everyone has a monstera plant, well, you wouldn’t be totally wrong. In fact, it’s the most popular houseplant in 16 states, according to All About Gardening, which analyzed Google Trends data from the last five years to determine which houseplant each state had searched for the most.

After the monstera, also known as the Swiss cheese plant, the next most popular plant, according to the study, was the fiddle-leaf fig with seven states searching for it, followed by the Chinese money plant with six states. Surprisingly, the hardy snake plant (one of our personal faves) was the most popular in just two states. The most popular plants in each state seemed to have surprisingly little regionality, indicating that plant parents searched for plants based on their own personal preferences, and less so based on the specific climate conditions of an area.

Here are the most popular houseplants in each state, and if you’re wanting to add another to your mix, here are our favorite places to shop for plants.

Monstera

This easy-to-grow favorite likes bright, indirect sunlight, and enjoys massive popularity from 16 states around the country.

Alaska, Arkansas, California, Connecticut, Hawaii, Indiana, Kansas, Massachusetts, Minnesota, New Hampshire, New York, North Carolina, Ohio, Utah, Vermont, West Virginia

Fiddle-Leaf Fig

This ficus can be a bit temperamental, but give it a good soak every two weeks and lots of indirect sunlight, and it'll be happy as a clam.

Alabama, Wisconsin, Idaho, Iowa, Oklahoma, South Carolina, Tennessee

Chinese money plant

Originally from southern China, this plant with coin-shaped leaves and thin stems is as attractive as it is easy to care for. Cuter still, new leaves are called pups!

Missouri, Nevada, Georgia, North Dakota, Oregon, Washington

Calathea

There are many species of calathea (including the prayer plant that shows up later in this list) and most have broad leaves with colorful variegation for unexpected pops of color.

Arizona, Colorado, Texas

String of Pearls

A pretty vining succulent that needs very little watering, the string-of-pearls—an accurate description—brightens the higher-up spaces of the home.

Louisiana, Maryland, Michigan

Spider Plant

This low-maintenance plant constantly creates offspring, making it easy and fun to send guests or visitors away with a little gift. Don't worry, this is one spider that you won't mind hanging around your house.

Illinois, Montana, New Jersey

Bamboo

With its impressive height and large, fluttery leaves, the bamboo palm exudes a sense of calm and peacefulness for folks in two states.

Rhode Island, Wyoming

Dracaena Fragrans

Like something out of a Dr. Seuss book, this dracaena is unique and can flower with the right conditions. When it does, you'll see why it's named how it is.

Maine, New Mexico

Money Tree

The pet-friendly money tree is said to bring you wealth and good fortune, even for furry friends who can be major troublemakers.

Kentucky, Nebraska

Snake Plant

One of the hardiest plants we've ever cared for, the snake plant almost thrives on neglect. Water it thoroughly every few weeks, keep it around indirect sunlight, and let it surprise you with lots of growth.

Pennysylvania, Virginia

Aloe Vera 

Though only Delaware and Mississippi chose this as their favorite, aloe vera’s healing properties make it a useful plant to have around.

Delaware, Mississippi

Prayer plant

The plant gets its name from the movements of its leaves. Known as nyctinasty, the leaves move in accordance with light and humidity, perking up during the day and lowering at night.

Florida

Pothos

This vining plant grows quickly, and doesn't require much water. In fact, you should only water when its leaves start drooping to avoid root rot.

South Dakota

Get more like this on Food52.

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What Is a Carriage House? Horses Not Included

 

(Martine Hamilton Knight/ArcaidImages/Getty Images)

 

What is a carriage house? If you’re thinking this sort of building has something to do with horses, you’re essentially on the right track.

“If you hear the term ‘carriage house,’ it’s probably the real thing: an historic building that at some point housed horses and carriages,” says Joshua Zinder, principal of Joshua Zinder Architecture + Design in Princeton, NJ.

And while horse-drawn carriages haven’t rolled down most streets for years, the architecture that accommodated them still exists in houses today. Just as homeowners like to preserve crown molding or other unique architectural details, many carriage houses have been restored and modified for another use. From guest suites to home offices, renovated carriage houses can add a lot of value to a property.

The original carriage houses were popular in the Northeastern United States and served dual purposes. These two-story structures housed the horses and their gear downstairs while their caretaker resided above them on an upper floor.

“This was a self-sustaining structure with a small kitchen and bathroom,” says Michael Menn, principal of Michael Menn Ltd., based in Northbrook, IL. “The stableman typically resided in the carriage house.”

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5 predictions for the second half of the 2022 housing market

 
 

While housing market trends in the first quarter of 2022 resembled the previous year’s trend — buyer frenzy, homes selling over the asking price and continued home price appreciation — much has changed in the spring, which will impact some of the previously forecasted scenarios. 

Deviations from economic predictions

Most significantly, the Federal Reserve evolved from a gradual removal of monetary accommodations in 2022 to an aggressive forward guidance on how it plans to reel in stubbornly elevated inflation measures. Currently, bets are on two, 50 basis-point hikes in May and June meetings, followed by 25 basis-point increases through the end of the year. 

Similarly, balance sheet runoff is also likely to take a more aggressive timeline than initially anticipated. As a result, markets were quick to respond, driving mortgage spreads and rates much higher than most experts expected by this time of year. At over 5%, mortgage rates are now the highest they have been since 2010.

Looking ahead, the outlook for mortgage rates and the larger economy is uncertain, particularly as we consider the ongoing conflict in Ukraine, its rippling effect on the world economy and the faster removal of monetary accommodation. Mortgage rates should hover around 5%, but there may be more oscillation than we have seen recently. 

The impact on housing markets

As a result of surging mortgage rates and more aggressive tactics from the Fed, buyers flocked to the housing market during the early months of the year, pulling spring home-buying demand forward. However, inventory of for-sale homes for sale continued to lag in prior years, and despite posting some seasonal increase, barely offered relief for frantic home buyers. Homebuyer competition and bidding wars peaked again, and the share of homes that sold over the asking price reached last summer’s high, with 6 in 10 homes selling over the asking price in March. 

Though widely anticipated, the inventory of for-sale homes, unfortunately, does not look promising for 2022, particularly given the surge in mortgage rates and the general sense of being “locked in” by existing homeowners. While we may see some increase in new listings in out-migration markets (such as those in Northeast and northern areas of the Midwest), markets that have experienced strong buyer demand (such as Mountain West and Sand States) are not likely to experience a similar relief. 

While surging interest rates and lack of inventory are expected to have a dampening effect on demand, there are still many buyers who can afford the rising costs of homeownership and hence will compete for limited properties.

Additionally, after a decline at the end of 2021, we continue to see elevated levels of investor activity in 2022. In March, investors made up 28% of single-family home purchases. Motivated by the continued rise in single-family rents, investors were likely snapping up these homes to turn them into rentals. The CoreLogic Single-Family Rent Index increased to yet another high at the beginning of 2022 and registered a 13.1% annual increase in February. 

Market considerations  

Given the competing demand and historically low supplies, home price growth — which gained more steam in 2022 — is likely to remain robust and continue to clock in at a double-digit rate of growth through the remainder of the year. The CoreLogic Home Price Index Forecast is now predicting the annual average rise in the national index to be 17% in 2022, up from 15% in 2021. On the other hand, re-acceleration in home price growth, coupled with higher mortgage rates, will take a bite out of home sales activity. The previous forecast of a 1% rise in home sales for 2022 has been revised to a 3% decline.

Cash-out refinancing

Higher mortgage rates will also continue to impact refinance originations. Again, with much higher mortgage rates than previously expected for the year, refinance origination volume is likely to have a notable decline, possibly by more than 70% compared to 2021.

Refinance incentive has been largely removed with rates above 5%, given that 90% of current outstanding mortgages have a rate that is less than or equal to 5%. Nevertheless, the share of borrowers who are looking to cash out will continue to increase. This is due to homeowners tapping into the record amount of home equity wealth they’ve accumulated during the recent years of double-digit home price growth. 

The cash-out share of total origination dollar volume has already reached the highest level since the late 1990s, with the latest March 2022 reading at 22%. At the 2004 pre-Great Recession peak, the cash-out share of volume originations reached 17.7%. As we’ve noted before, refinance borrowers will likely have slightly lower average credit scores, as borrowers with Federal Housing Administration loans refinance into conventional loans with a loan-to-value ratio of 80% or less to eliminate the mortgage insurance premium.

Additionally, these borrowers will also have a longer average loan term to keep the monthly payment low. The availability of home equity wealth will also likely lead to an increase in home equity line of credit (HELOC) loans, which will allow owners to borrow against the available equity in their home without giving up the low mortgage rate. 

Employment and income

Lastly, strong employment and income growth have helped to keep new delinquencies at a very low level. The 30-day delinquency rate remains at its lowest in a generation, while foreclosure rates has ticked up slightly in January as foreclosure moratoria and the CARES Act forbearance program ended. Nevertheless, at 0.24%, the foreclosure rate remains at half of the average rate seen in a decade prior to the Great Recession. The areas that may see an uptick in distressed activity are along the Gulf Coast and some parts of the Northeast.

The road ahead

Taken together, 2022 will still be a strong year for housing, albeit more challenging than previously anticipated — particularly for potential buyers who aren’t able to afford the increase in monthly mortgage expenditure due to higher mortgage rates and home prices.

Summary of predictions:

  1. Interest rate on 30-year fixed-rate loans is projected to average 5% through the rest of 2022.

  2. Home sales to decline in 2022 from 2021’s 16-year high.

  3. Single-family home price growth to remain robust, averaging 17% for the year.

  4. Less refinance loans, but with a larger cash-out share and more HELOCs.

  5. Loan delinquency remains low, but with some uptick in distressed sales.

Read more like this on Housing Wire.

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