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Frequently Asked Questions (FAQs) for The Cottonwoods at Mid Valley

Background

The Cottonwoods at Mid Valley is YVHA’s next housing development which will offer ownership to Routt County’s local workforce and retirees.

Phase I’s two four-story buildings will offer 86 condos with one-, two- and three-bedroom units. The Cottonwoods at Mid Valley offers a rare and exciting chance to secure our workforce’s future and help them build equity.

The Cottonwoods is more than just a housing development — it’s a community built on the belief that affordable, high-quality housing strengthens the fabric of our town, benefiting current residents and future generations alike.

Deed Restriction

Deed restriction: Buying a condo with YVHA is different than a typical market rate buying experience. Housing authorities usually use tools like deed restrictions to ensure the long-term affordability of homes for present and future homeowners. The deed restriction was developed by a combination of lessons from past deed restrictions, research from other mountain towns, and a local blue-ribbon panel of experts.

Below are frequently asked questions about deed restrictions, as well other key elements of buying at The Cottonwoods at Mid Valley. YVHA advises all those interested in buying to become familiar with the deed restriction.

FAQ Groupings

FAQs

Introduction

A market rate home and a deed-restricted home differ primarily in how they are priced and who can buy and occupy them. Here’s a breakdown:

A Market Rate Home:

  • Pricing: The price is determined by market conditions, such as supply and demand, and is not subject to any restrictions. Prices can increase or decrease based on the housing market.
  • Eligibility: Anyone who can afford the home can purchase it, regardless of income level or occupation.
  • Appreciation: The homeowner can sell the property at full market value, often resulting in significant financial gains if property values rise.
  • Purpose: Typically aimed at buyers seeking to maximize investment potential or those with sufficient resources to buy without restrictions.

A Deed-Restricted Home:

  • Pricing: The price is intentionally kept below market value to ensure affordability for local workers, families, or individuals within a specific income range. Government and philanthropic subsidies further reduce the price for buyers.
  • Eligibility: Buyers or renters must meet specific criteria, such as income limits, local residency, or employment requirements. These criteria aim to prioritize housing for the local workforce or other targeted populations.
  • Appreciation: The home’s resale price is capped, often tied to Area Median Income (AMI) or a set percentage increase, to maintain long-term affordability for future buyers.
  • Purpose: Designed to address housing shortages, support local workers, and sustain community diversity by ensuring housing affordability in areas where market prices are high.

In summary, market rate homes are unrestricted and driven by profit potential, while deed-restricted homes are regulated to preserve affordability and serve the needs of the workforce, local retirees and specific community members.

The Cottonwoods is where modern mountain living meets sophisticated design. Phase I’s two four-story buildings offers 86 one-, two- and three-bedroom condos that combine spacious open layouts with timeless details, including wood cabinetry, sleek countertops, and Energy Star-certified appliances. Every home is designed for comfort, sustainability, and lasting value. Each unit features a private balcony and covered parking and is centrally located—just minutes from vibrant local shops and the Steamboat Ski Area, easily reached by free bus, bike, or on foot. There are 22 one-bedroom units, 50 two-bedroom units, and 14 three-bedroom units designated for the local workforce and retirees at different prices. See the pricing guide for more info.

Understanding the pricing of the condos at The Cottonwoods starts with an important fact: the cost to build housing for local workers is the same as building any market-rate home. What makes it affordable isn’t lower construction costs—it’s the public subsidies and community support that reduce the final purchase price for local buyers.

Unlike private developers, the Yampa Valley Housing Authority (YVHA) is able to access local, state, and federal funding to offset those costs. At The Cottonwoods, that support includes:

  • $4 million in state grants
  • $1.84 million from the local mill levy
  • $10 million from the City of Steamboat Springs short-term rental (STR) tax fund

Together, these investments allow YVHA to offer homes at well below market value, while still covering the true cost of construction.

Pricing ranges from the mid-$200,000s for one-bedroom units to the mid-$400,000s for three-bedroom units. Sales prices can be reviewed here.

Eligibility

To qualify, individuals/households must meet three criteria:

  • Employment: One member of the household must work or be retired from an employer physically located in Routt County.
  • Income: The applicant’s household income cannot exceed the 140% Area Median Income range.
  • Sole Residence: The applicant must prove that the household intends to live in the condo full time. No one in the household can own another home, condo, or mobile home in the state of Colorado, or if they do, it must be sold within 180 days.

No, YVHA learned from other deed restricted units that asset tests limit who can buy homes. Retirement accounts and savings will not be taken into consideration.

Applicants must meet one of the following criteria:

  • Currently Employed: At least one member of the household works at least 30 hours per week, on average, for an organization physically located in Routt County. This can include businesses, nonprofits, or government agencies. This can also include an employment contract from an employer planning on hiring an employee.
  • Retired: The applicant is retired but worked for a Routt County organization for at least 30 hours per week, on average, for at least five consecutive years before retiring.
  • Partially Retired: The applicant is partially retired, currently working at least 15 hours per week, on average, for a Routt County organization, and previously worked for at least 30 hours per week, on average, for at least seven consecutive years before partially retiring.
  • Disabled: The applicant is unable to work due to a disability but previously worked for a Routt County organization for at least 30 hours per week, on average, for at least five consecutive years, or the applicant has never been able to work due to a disability.
  • If the applicant is self-employed or works from home, the business must:
    • Be based in and serve Routt County,
    • Require a physical presence within Routt County to perform tasks or provide services,
    • And generate earnings at or above minimum wage, with an average of at least 30 hours of work per week annually.

These documents will be considered for employment verification:

    • Most recent tax returns, and
    • Four most recent pay stubs, and/or
    • The W2(s) from your employer(s), and/or
    • An employment contract or other documents deemed necessary, and/or
    • Signed affidavit from employer verifying employment.

Yes, all applicants need to meet the eligibility requirements to buy a condo. For Phase I of The Cottonwoods at Mid Valley, income restrictions mean that applicant’s household income cannot exceed 140% Area Media Income (AMI). These income levels are updated every year by the Colorado Housing and Finance Authority (CHFA). For 2025, the 140% AMI range is:

  • $127,400 (individual)
  • $145,600 (household of two)
  • $163,800 (household of three)
  • $182,000 (household of four)
  • $196,560 (household of five)

Numbers updated in May 2025.

The individual(s) owning the unit and any dependents living together are related by blood, marriage, adoption, or guardianship.

These documents will be considered to determine income eligibility:

    • Previous year’s tax returns, and
    • Employment wages, salary, overtime pay, commissions, fees, tips, bonuses and/or other compensation.
    • Unemployment benefits.
    • Veteran’s Administration, GI Bill, or National Guard/military benefits/income.
    • Retirement benefits from Social Security.
    • Supplemental Security Income (SSI) or Social Security Disability Income (SSDI).
    • Unearned income from family members aged 17 or under (example: Social Security, trust fund disbursements, etc.).
    • Disability or death benefits other than Social Security.
    • Public housing assistance/rental assistance.
    • Public assistance income (example: TANF).
    • Child support payments
    • Alimony/spousal support payments.
    • Periodic payments from trusts, annuities, inheritance, retirement funds or pensions, insurance policies or lottery winnings.
    • Income from real or personal property.
    • Cash or expense assistance from family, friends or any other person or organization outside of your household that help you meet needs.
    • And any other sources of income.

To have a sole residence, means that the applicant intends to live in the unit full time and no one in the household owns another home, condo, or mobile home in the state of Colorado. If any members of the household own other real estate, improved land, or a mobile home they must sell within 180 days of closing.

YVHA will require the following to prove sole residence:

  • Primary residence proof: A signed affidavit stating that the Qualified Buyer intends to live in the unit as their primary residence.
  • Nothing else owned: A signed affidavit that no members of the household own other real estate, improved land, or a mobile home in the state of Colorado or will sell within 180 days of closing.
  • Listing to sell other property: Proof of active listing agreement will be required if other real estate is owned by Qualified Buyer.

Purchasing a Condo/Lottery

Due to expected demand exceeding supply, opportunities to buy condos at The Cottonwoods at Mid Valley is via weighted lotteries. Entrants must first meet the eligibility requirements described in the deed restriction, before entering the lottery. The first lottery for unit selection was mid-February 2026 and the lottery for Building Two is almost complete as of March 2026. Lotteries for Building Two start in April. To find out if you are eligible fill out the Homeownership Pre-Screening Form.

The Cottonwoods has a Homeowners’ Association (HOA) that is managed by the local business, Steamboat Association Management.

The Agency, a premier real estate firm in Steamboat Springs, serves as the transaction broker for the sale of condos at The Cottonwoods to facilitate the sales of deed-restricted condos. Under this collaboration, YVHA oversees buyer eligibility for these deed-restricted condos, ensuring they are reserved for local workers and retirees who meet specific qualifications. The Agency serves as the transaction broker, offering buyers expert guidance and seamless service throughout the home-buying process. YVHA issued a Request for Proposal (RFP) for a transaction broker on October 1, 2024 and after all the responses were submitted, and interviews were conducted, The Agency was selected as the transaction broker.

Here are the documents needed to prove eligibility for the lottery:

  • Valid Government ID
  • Qualification letter from YVHA that household meets Deed Restriction requirements

(Employed/retired from Routt County employer, AMI income requirements, sole residency, no STR)

  • Proof of completing home buying education course
  • Proof of savings of $5,000 to cover closing costs and other related fees.
  • Loan Pre-Approval letter from mortgage lender
  • Length of residency/ employment documents (lease agreement, W2’s, utility bills, school records, etc.)

YVHA recommends that you talk to your lender about a home buying course.  Often, lenders require a specific course for first time home buyers to take.

No, YVHA does not recommend specific lenders. However, we recommend asking prospective lenders if they are familiar with YVHA’s deed restriction for The Cottonwoods.

No, YVHA is a not a lender and prospective buyers need to reach out to a lender who understands deed restrictions and can work with you to help you understand your buying power.

The YVHA Board adopted the lottery policy, called The Lottery Implementation Plan in November 2025. The lottery plan states that:

  • Once, an applicant is verified by YVHA as eligible for the deed restriction they have one (1) entry into the lottery.
  • There are two other ways to get additional entries:
    • If they have worked for a Routt County employer for 5 years or more, they get an (1) additional entry
    • If they are a household of four or more, they get an (1) additional entry.
  • If the applicant is selected in the lottery than they would begin the transaction process of submitting a down payment and working with YVHA’s transaction broker to purchase the condo.
  • The initial lottery was for Building Two, which includes 43 one-, two-, and three-bedroom condominiums. Lotteries are conducted in phases based on Area Median Income (AMI) to ensure equitable access across income levels. Building Two includes*:
    • 11 homes at 100% AMI – $91,000 (for an individual) up to $140,400 (for a family of five)
      • Lottery opened Feb 24 and closed March 3

      • The automated lottery draw was on March 4 and the winners can be found here:

        o 100% AMI Building 2 Lottery Unit Results

        o Please note that identifying information is not provided to protect the privacy of the homeowners

    • 9 homes at 120% AMI – $109,200 (individual) up to $168,480 (family of five)
      • Lottery opened March 4 and closed March 11

      • The automated lottery draw was on March 12 and winners can be found here:

        o Results to be posted soon!

    • 4 homes at 130% AMI – $118,300 (individual) up to $182,520 (family of five)
      • Lottery Opens March 10, will remain open for one week
    • 19 homes at 140% AMI – $127,400 (individual) up to $196,560 (family of five)
      • Lottery opened March 19 and closed March 17
      • The automated lottery draw will be March 19
  • The Building One lottery, which includes an additional 43 homes, is anticipated to open in April.
  • Keep up to date on the Yampa Valley Housing Authority website, newsletter, and social media channels.
*Dates subject to change

If you recently submitted your pre-screening form, please note that the deadline for the first 100% AMI lottery (Building Two – 11 homes) has now passed. But this does not mean you have missed the opportunity to participate in our next lotteries. We are doing everything we can to process your applications as quickly as possible so you can enter as many lotteries as possible. As we work through the many documents we receive, we need you to do your part and fill out the pre-screening form, complete your application and submit the appropriate documents.  If you get a request from us for additional information or documentation, please respond as soon as possible.

Some links on our website can help you through the process:

Lotteries are being conducted in phases based on Area Median Income (AMI) to ensure equitable access across income levels.

For Building Two (43 condos total):

  • 100% AMI – 9 homes
    Lottery opened Feb 24, closed March 3
  • 120% AMI – 9 homes
    Lottery opened March 4, closed March 11
  • 130% AMI – 4 homes
    Lottery opened March 10, closed March 17
  • 140% AMI – 19 homes
    Lottery opens March 26, closes April 2

In addition, Building One (43 condos) will have a lottery in April and includes:

  • 100 % AMI – 13 homes
  • 120% AMI – 5 homes
  • 130% AMI – 4 homes
  • 140% AMI – 21 homes

If you are currently working through document corrections or eligibility review with YVHA staff, you will continue through the process for upcoming lotteries.

Possibly, yes.

Even if your household income qualifies at 100% AMI, you may have sufficient savings or financial capacity to purchase a condo at the 120%, 130%, or 140% AMI level. We strongly encourage you to speak with your lender to understand your full purchasing power before deciding which lotteries to enter. YVHA may ask for proof of your ability to pay.

For Phase I of The Cottonwoods, household income cannot exceed 140% AMI. For 2025, 140% AMI is:

  • $127,400 (individual)
  • $145,600 (household of two)
  • $163,800 (household of three)
  • $182,000 (household of four)
  • $196,560 (household of five)

(AMI levels are updated annually by CHFA.)

 

  1. Submit all required application documents to YVHA as soon as possible.
  2. Wait for your qualification letter confirming which lotteries you are eligible to enter.
  3. Meet with your lender to confirm your purchasing power.
  4. Review the Cottonwoods Pricing Guide to explore available units and AMI levels.

Being prepared before the next lottery opens is the best way to ensure you are ready to enter when your income category becomes available.

The down payment will depend on the cost of the condo and will need to be submitted if selected in the lottery.

The Yampa Valley Housing Authority (YVHA) has established a Down Payment Assistance Program to assist local home buyers by providing 10% or $20,000 of the purchase price of a home.

Yes, YVHA will work with prospective buyers and their lenders to allow financial gifts for down payments as long as the individuals giving the gift sign an affidavit that they have no intention of living in the condo.

The Homeowners Association (HOA) for The Cottonwoods is up and running and is managed by Steamboat Association Management.  The monthly HOA dues are based on square footage of each condo. The costs per month will be approximately:

  • $350/month for a one (1) bedroom condo
  • $480/month for a two (2)  bedroom condo
  • $575/month for a three (3) bedroom condo

The Cottonwoods are available by appointment only, contact sales@yvha.org to set up your time to see these one, two and three bedroom condos.

Here are the steps for purchasing a condo through the lottery process.

Step 1: Email Invitation

  • If you are eligible for a specific lottery, you will receive an email invitation when that lottery opens.

Step 2: Choose your eligible condos

  • The email will link to a personalized page showing all condos you are eligible for based on your income tier.
  • You may choose to enter the lottery for any or all of those condos.

Step 3: Use your lottery entries

  • If you qualify for more than one lottery preference, you will receive multiple entries per condo.
  • Example:
    If you qualify for additional entries (either employment length and /or household size) you will receive an entry for all that apply. Up to three entries max.

Step 4: Lottery Results

  • Lotteries are run using a secure, computer-generated system.
  •  selected in the lottery, you will be notified by email within 24 hours and then you would begin the transaction process of submitting a down payment and working with YVHA’s transaction broker to purchase the condo.

Yes, if buyers met the deed restriction when applying to buy the condo, they can remain in the condo.  They need to continue to meet maintenance responsibilities and all the resale rules if they want to resell in the future.

Yes, there is a $50 application fee. This will be collected when you submit your application.

Compliance

Here are the rules on occupancy:

  • Primary Residence: The unit must be the primary home of the owner and their dependents, unless stated otherwise in this agreement.
  • Extended Absence: If the owner stops living in the unit as their primary residence for more than 90 consecutive days and they have not listed the unit for resale through YVHA as required, YVHA may take steps to sell the unit.
  • Military Service Exception: Owners on active duty with the United States Armed Services will not be considered to have stopped occupying the unit, even if they are away for an extended period.

Yes, this process ensures that homes stay within the program’s guidelines and continue to serve the community’s housing needs. An owner may request an exception to the occupancy requirements by following these steps:

  • Submit a Request:
    • Provide a written explanation of why the exception is needed (e.g., temporary relocation for work or to care for an ill family member).
    • Include supporting documents or evidence that confirm the reason for the request.
  • YVHA’s Review Process:
    • YVHA will review the request and decide within 30 days of receiving the complete application and all required information.
  • Decision Criteria:
    • YVHA has the authority to approve or deny the request.
    • Approval is based on whether the situation justifies an exception and if strictly enforcing the occupancy requirement would cause significant hardship to the owner.
  • Conditions and Timeframe:
    • If the exception is granted, YVHA may set specific conditions the owner must follow.
    • YVHA will also specify how long the exception will last.
    • This process allows for flexibility in special circumstances while maintaining the integrity of the occupancy requirements.

The restrictions have been put into place to ensure that owners live in their residences at The Cottonwoods. There are the rules on renting:

  • No Short-Term Rentals:
    • Units cannot be used as short-term rentals (e.g., Airbnb, VRBO),
  • No Full-Unit Rentals:
    • Owners cannot rent out the entire unit, even for long-term rentals.
    • If a unit or any part of it is rented in violation of this rule, the lease is invalid.
  • Room Rentals Allowed (With Approval):
    • If the owner lives in the unit full-time, they can request permission from YVHA to rent out one bedroom.
    • YVHA has the sole authority to approve or deny such requests.
  • Conditions for Approved Rentals:
    • Eligible Renters: Only “Residents” as defined by YVHA are allowed to rent approved bedrooms.
  • Affordable Rent: Rent must comply with YVHA’s published rental rate rules at 50% Area Median Income (AMI) (subject to change).
  • Lease Requirements:
    • Rentals must use YVHA-approved lease agreements.
    • The lease must be for a minimum of six (6) months.
    • Each bedroom can only be rented to one person or one couple.
  • Occupancy Limits: The rental arrangement must comply with the city’s maximum occupancy standards.

The following will occur:

  • Notification of Violation:
    • If a homeowner doesn’t follow the rules, YVHA will send them a written notice explaining the problem.
    • The homeowner will have a chance to fix the issue within the time frame listed in YVHA’s published rules (usually at least 14 days).
  • Penalties:
    • Breaking the rules could result in monetary penalties as outlined in YVHA’s guidelines.
    • If a unit is in violation, YVHA may temporarily pause any increases to the home’s allowable resale price until the issue is resolved.
  • Inspections:
    • If YVHA suspects a violation, they can inspect the unit.
    • Homeowners will get at least 24 hours’ written notice (posted on your door if necessary).
    • By agreeing to these rules, homeowners give YVHA permission to enter the unit under these conditions.

If there are repeated violations, there will be a forced sale for violations. Here is the process:

  • Sale Requirement for Restriction Violations
    • If a Unit is occupied, vacated, owned, transferred, or leased in violation of this Deed Restriction—or if any other violation of this Restriction occurs—YVHA may, at its sole discretion, require the Owner to sell the unit. Before acting, YVHA will provide notice of the violation and an opportunity for the Owner to address (or “cure”) the issue. If the violation is not resolved, YVHA may notify the Owner to immediately list the unit for sale.
    • YVHA or its designated listing affiliate will charge a real estate commission of six percent (6%) for managing the sale.
  • Owner’s Obligations During Forced Sale
    If a forced sale is required, the Owner must:

    • Agree to sell, convey, or transfer the unit to a Qualified Owner as defined by this Restriction.
    • Sign all necessary documents to facilitate the sale.
    • Cooperate reasonably with YVHA to complete the sale, including taking any actions required to finalize the conveyance or transfer of the unit.
    • To ensure the sale proceeds smoothly, the Owner appoints YVHA as their legal representative (attorney-in-fact) with full authority to take all actions necessary to carry out the sale.

Resale

When it’s time to sell a condo at The Cottonwoods, the Maximum Resale Price is the highest price an owner can sell it for, based on the following three elements of this formula:

  • The Original Purchase Price: This is the price paid when the condo was bought.
  • Annual Increase: The homeowner can add an annual increase, whichever is the greater of:
    • 2% per year (calculated monthly for partial years) (Note: These increases are calculated yearly and do not compound over time)

                  OR 

    • 50% of the average annual increase in Area Median Income (AMI) during the time the homeowner owned the condo.
      (Note: These increases are calculated yearly and do not compound over time.)
  • Qualified Capital Improvements: If the homeowner made eligible improvements to the home, they can add their cost to the resale price, but this addition is capped at 1% of the Original Purchase Price for each year they’ve owned the home. (Qualified Capital Improvements are defined by YVHA

This formula ensures that the home remains affordable for future buyers while allowing homeowners to gain some value from their investment.

Yes, the deed restricted units at The Cottonwoods build equity. There are two ways to build equity.

  1. 2% Appreciation cap: There is an appreciation cap of 2%.Let’s take an example of a local worker who buys a deed-restricted home at $400,000 and has a 2% a year appreciation cap. If the worker puts 5% down, which is $20,000, and finances the remaining $380,000, the worker can sell the home at these prices and build equity instead of renting.
  • After 1 year: $408,000, the equity increases from $20,000 to $33,119
  • After 2 years: $416,160, the equity increases from $20k to $46,687
  • After 3 years: $424,483, the equity increases from $20k to $60,723
  • After 4 years: $432,973, the equity increases from $20k to $75,247

2. 50% of average increase in annual AMI: We cannot predict future AMI’s but we can show an example of the same local worker who buys a deed restricted home at $400,000 and uses the 50% of increase in annual Area Median Income. If the worker puts 5% down which is $20,000 and finances the remaining $380,000 at a 6.8% interest rate over 30 years. Based on the AMI rates since 2020, the worker can sell the homes at these prices and build equity instead of renting.

If an owner decides to sell their home, here’s how the process works:

  • Notify YVHA: Let the Yampa Valley Housing Authority (YVHA) know in writing that the owner intends to sell their home.
  • Listing the Home: The owner must list their home for sale through YVHA or their designated listing affiliate. The commission for this service is 2% of the sales price, and the listing will follow other reasonable and standard terms set by YVHA.
  • Lottery System: YVHA may require the home to be sold using a lottery system to ensure fairness. Details about the lottery process will be available on the YVHA website in March 2025 and may be updated from time to time.
  • Eligibility for Buyers:
    • The home can only be sold to a Qualified Owner(someone who meets the eligibility criteria defined by YVHA and is approved by them).
    • The sale price cannot exceed the Maximum Resale Price, which is calculated according to YVHA’s guidelines.
    • The home must be listed with YVHA.
    • These rules are designed to ensure that the home continues to be affordable and is only sold to a qualified buyer.

Each homeowner is responsible for keeping their unit in good condition when it is sold. Normal wear and tear are acceptable, but the unit must meet these standards:

    • Basic Maintenance:
      • The unit should be clean and free of any major issues.
      • Necessary repairs and upkeep must be made to items like plumbing, mechanical fixtures, appliances, flooring, and paint.
    • Appliances:
    • All original appliances must remain in the unit, or they must be replaced with appliances of equal or better quality.
    • Safety and Compliance:

The unit must not have any unresolved health or safety violations.

If someone inherits a home at The Cottonwoods, here’s what they need to know:

  • Notify YVHA: They must notify YVHA within 30 days of inheriting the home.
  • Determine Eligibility:
    • They can request YVHA to evaluate whether they qualify as a Qualified Owner(meeting local residency and income requirements).
    • They’ll need to provide any necessary information for YVHA to make this determination.
  • Time to Qualify:
    • They have 12 months from the date of inheritance to qualify as a Qualified Owner.
    • If they don’t meet the qualifications within this time and haven’t listed the home for resale through YVHA, YVHA has the right to sell the home on their behalf (as outlined in their policies).
  • No Occupancy Until Approval:
    • They cannot live in the home until YVHA approves them as a Qualified Owner.
    • During this period, the home’s value will not increase under the usual appreciation rules (this is called an “appreciation pause”).
    • They cannot rent the condo while waiting for approval.