Surprise, surprise: Castle Ridge rents will remain in perpetuity
As Aspen town officials continue to consider how to prevent the expiration of deed restrictions on hundreds of affordable housing units, it has become evident that much of this inventory, Castle Ridge Apartments, would remain rent-controlled.
Aspen-Pitkin County Housing Authority officials, along with the city’s elected leaders, felt the 80 apartments in Castle Ridge would become a free market in 12 years.
Castle Ridge was believed to fall under a 50-year-old restriction of acts sunset clause from the time they were approved to which other complexes in the APCHA inventory are subject.
But recently, APCHA attorney Tom Smith and local attorney Rick Neiley, who represents Castle Ridge Associates LTD, discovered that such a clause does not exist and that the restrictions in the act are in perpetuity.
This was confirmed in the latest Amended Statement of Covenants, Restrictions and Conditions for Castle Ridge, which dates back to 1988, according to documents filed with the Pitkin County Clerk and Archivist’s Office.
The St. Louis, Missouri-based ownership group purchased the land and complex, located across from the Aspen Valley Hospital, from the city in 1982 for $ 4.2 million.
According to the Amended Covenants Document, a gross annual rental rate cap for the entire 58,856 square foot resort was $ 918,153 in 2000.
The price cap per square foot can increase by 4% per year after 2000 as long as Castle Ridge Associates owns and operates the apartments, according to county clerk documents.
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