Steamboat Springs officials are hoping short-term tax revenues between roughly $15 million and $21.5 million could be available to help fund the development of affordable housing units in the coming years.

The revenue information came from Steamboat Springs Finance Director Kim Weber earlier this month as City Council decided to green light a request for proposals process targeting developers interested in taking advantage of the local funding.

Steamboat voters approved a ballot measure in 2021 that placed a 9% tax on short-term rental bookings with the stipulation the money would go toward affordable and attainable housing projects.

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The decision to produce a finalized version of the request for proposals comes from direction provided by a temporary government body called the Ad Hoc Housing Advisory Committee. Created in May, the committee is charged with establishing a process on how to spend Steamboat’s short-term rental tax revenue and help to inform a larger affordable housing strategy.

Weber told council July 9 the city has “$15 million in the bank” from the tax on short-term rentals, but that number could jump to $21.5 million by the end of the year.

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“That is a game-changer by all stretches of the imagination,” City Council President Gail Garey said.

“Not until we spend it wisely — that is when it changes the game,” City Council member Joella West responded.

The 10-member advisory committee first met in June and consists of real estate professionals and individuals who are tied the housing market, according to Principal Planner Brad Calvert.

The committee’s roster includes Todd Pederson, a residential developer with Steamboat Sunlight LLC; Jessica Konrad, a Steamboat resident who works in the restaurant industry; Emily Katzman, a development manager for the Yampa Valley Housing Authority; Sarah Leonard, chief executive officer of the Steamboat Springs Chamber; and Calais Kruse of the construction and design business, Kruse Builders.

“They are heavy hitters,” Calvert said.

“They have done great work so far and they hopefully will continue to do great work over the next couple of months,” he added.

With direction from City Council earlier this month, the committee is working to finalize the request for proposals process with a plan to bring qualified candidates for final approval to council members in September.

Criteria for selecting the prioritized candidates include judgement from the temporary city housing committee and city staff over how a project’s proposed financial performance, leverage, community benefit aspects and risk management are weighed.

“There will be additional due diligence on any investment that City Council decides to pursue and (that would be) subject to future appropriations,” said Calvert, who noted council members would have the final say on any funding allocations.

“There are many steps even after September and before an investment is made directly into a development,” he said.

Members of the committee, city staff and a consulting firm hired to assist in the process are hoping the request for proposals process will bring developers with attractive housing projects for the city to potentially fund. It might also just give the city officials better direction in their pursuit of providing more affordable housing.

The money may be directed to support new affordable housing developments or the conversion of existing and permitted market-rate housing construction.

“It might be that we come through this and we say that there is really nothing that is meeting the bar for us and that will be part of the learning process,” said David Driskell, a principal with Community Planning Collaborative, the consulting firm hired by the city.

“At the same time if we put out a request for proposals and if we get some serious responses, we do want to give those consideration and not build a reputation as asking people to do work and we don’t respond,” he added.