The Department of Local Affairs Awards Over $28M In First Round of the Transformational Affordable Housing Grant Program

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Media Contact: Chynna Cowart | 303-656-7464

The Colorado Department of Local Affairs (DOLA), through the Division of Housing (DOH), recently awarded $28.345M in funding across seven counties in Colorado. 

These eight Transformational Affordable Housing Grant (TAHG) Program awards will provide an estimated 595 additional affordable housing units to the state.

Transformational Affordable Housing Grant Program Awardees

Larmier, Montrose, San Miguel, Gunnison, Mesa, Boulder, and Eagle counties are among the communities receiving funding in this round.

Applicant County DOLA Grant Award Project
Loveland Housing Authority Larmier $3,729,000 Crossroads Church Land Acquisition
CASA of the 7th Judicial District Montrose $5,590,000 The Village on San Juan
Telluride Housing Authority San Miguel $2,000,000 VooDoo Apartments
Gunnison County Gunnison $10,000,000 Whetstone
Grand Valley Catholic Outreach Mesa $4,706,000 Mother Teresa Place
Habitat for Humanity of Mesa County Mesa $400,000 Hoffman (Phase III)
Habitat for Humanity of the St. Vrain Valley Boulder $720,000 Sugarmill Affordable Housing Development
Habitat for Humanity Vail Valley Eagle $1,200,000 3rd Street Eagle
Project Descriptions

1. Crossroads Church Land Acquisition 

The Loveland Housing Authority (LHA) has been awarded $3.729M to acquire an approximately 50-acre parcel partially donated by Crossroads Church. 

There will be 216 or more affordable units developed as a result of this acquisition. This award will fundamentally shift the landscape of affordable housing in the Loveland/Fort Collins metropolitan area by providing a continuum of affordable housing for over 300 households with incomes of 30%-120% of the Area Median Income (AMI), providing both rental and home ownership opportunities.

2. The Village on San Juan

The Village on San Juan proposes 45 units that are a mix of permanent supportive housing (PSH), workforce housing, and bridge housing in Montrose. 30 of the units will be PSH units aimed at youth exiting the foster system that are considered "high risk" due to circumstances including previous foster care involvement, experiencing homelessness or at imminent risk for homelessness, and behavioral health needs. Although the units are aimed at youth through age 25, CASA of the 7th will not end a tenant’s lease when they reach age 26 unless a new housing opportunity is obtained. Instead, CASA of the 7th staff will work with individuals as they near the end of the program to identify personal exit strategies and provide the support necessary in assisting with a successful transition. 

Additionally, 15 of the units will be aimed at seniors aged 62 and above who face barriers to obtaining or maintaining housing, homelessness or are at imminent risk for homelessness, and behavioral health needs. CASA of the 7th will partner with Region 10's Area Agency on Aging to provide services to the senior population.

3. VooDoo Apartments

The Telluride Housing Authority (THA) has been granted funding to construct 27 rental units,  with some commercial space, in downtown Telluride called the VooDoo Apartments. 

The land is owned by the Town of Telluride and has been leased to THA for 100 years, at a cost of $10 per year, for the purpose of constructing the rental project. The project is shovel ready and will begin construction immediately. 

The units will serve 110-170% AMIs with unit sizes from 1 to 4 bedrooms. Located within the Town’s commercial core, close to employers, the post office, a market, the library, and the Gondola, the project will bring affordable housing to the Telluride ski area.

4. Whetstone

Whetstone is located 1.5 miles south from the Town of Crested Butte. The future development anticipates new construction of 231 housing units that will be a mix of rental and homeownership units. Gunnison County is committed to restrict 80 - 100% of the units up to 170% AMI. Currently, 40% of units are proposed to be restricted at 120% AMI or less and 10% of units are proposed at 170% AMI or less.

The development will comprise eight neighborhood zones to create a cohesive community. These include a few zones of townhouses with enclosed garages, garden courts, pitched roofs, and architectural character that responds to the agrarian history of the surrounding area. 

5. Mother Teresa Place

The project, called Mother Teresa Place, was granted funding for the construction of a three story building containing 40 supportive housing units. Each unit is a fully furnished one-bedroom, one-bathroom apartment serving individuals at 30% AMI or below.

40 fully furnished, one bed apartments (including ADA units) will be distributed over three floors with eight units on the first floor and 16 on the next two floors. Each apartment will have oversized windows to increase natural lighting, a full kitchen, one person bedroom, dining and lounging area, bathroom, and storage space. Furniture, household items, and window coverings are included. Laundry rooms will be located on each floor. 

A communal area, commercial kitchen, exercise room, bike shop, offices for case managers, health providers, directors, and a security area are all proposed as part of the development. Each floor will have a meeting room to be used by residents or care providers, trash disposal, and maintenance room. Access to each floor will be facilitated by both stairwells and an elevator. Interior construction will be designed to facilitate easy cleaning and to mitigate the impact of destruction from fires or other activity. 

Mother Teresa Place is located at Ute and 4th Street, which is located across the street from a city park and in the heart of downtown Grand Junction.

6. Hoffman (Phase III)

Habitat for Humanity Mesa County was awarded $400,000 to build 8 single family homes, with 3- or 4- bedrooms depending on the number of people in the household of the qualifying families. The proposed site is within Phase III of the Hoffman Country Estates Subdivision in Grand Junction, CO. The land is currently owned by Habitat for Humanity of Mesa County and is shovel ready for building with all infrastructure development completed.

To minimize costs, the homes do not include garages, but each one will have a cemented 2-car driveway. The homes are designed based on the lot dimensions but are typically one-story homes that are designed to be energy efficient based on the energy star rating system and include spray foam insulation, energy star windows, and appliances. When a homeowner requires special accommodations, this is also taken into consideration when the house is designed, and the home is built to ensure that such specific needs are met.

The homeowner’s first mortgage is based on their income and is not more than 30% of their monthly income. The amount of the mortgage that is above 30% of their income is written as a silent second that is forgiven after 30 years with no payments to be made unless they sell the home before that time frame.

7. Sugarmill Affordable Housing Development

Sugarmill Affordable Housing Development will include 12 townhomes of for-sale homes in 6 duplex buildings. The homes will be built in partnership with 12 families or individuals, supported by community volunteers. Families who earn between 30-60% of Boulder County's Area Median Income (AMI) will invest 250-500 hours of "sweat equity" in the construction of their homes and those of their neighbors. Families also complete 9 required courses on financial management and homeownership prior to moving in. 

Once the home is completed, it is sold to the family at the cost to construct and St. Vrain Habitat provides a mortgage at 0% interest. The mortgage and HOA fees are set at no more than 30% of the family's income. 

The Sugarmill homes will become part of Longmont's Permanently Affordable Housing stock and are being built adjacent to 100 market-rate paired homes. The vacant land is within the city limits of Longmont and had at one time been agricultural land. The market-rate developer has since completed infrastructure for all homes in the development. 

The units will be built on foundations and be 2 stories tall. Depending on the needs of the family selected for each home, there may be modifications to support accessibility for individuals with disabilities. Each unit will have their own garage with a zero-entry doorway. Buildings will be built to high energy efficiency standards with each unit having solar power on its roof.

8. 3rd Street Eagle

The 3rd Street site is infill development on an ~2-acre parcel donated to Habitat for Humanity Vail Valley (HFHVV) by Eagle County Schools. 

All sixteen units will be 3-bedroom units sold to families earning between 35-100% AMI and will remain permanently affordable through an affordability covenant that runs with the land. The mortgage and HOA fees are set at no more than 30% of the family's income.

On the northern portion of the site, four duplex buildings will provide adjoining one-car garages (forming the party wall) with residential units on either side. Being on the flat portion of the site, these units will require minimal site grading. On the southern, sloping portion of the site, the buildings are benched into the hillside, with the garages serving as a retaining wall. These buildings also have adjoining garages (forming the party wall) with residential units directly above. The modular homes from Fading West Building Systems are all electric and will be delivered ‘net zero ready’.

This project will be an in-fill development half a mile to public transit, close to jobs, shopping and with easy access to I-70. This project is adjacent to an elementary and middle school and is only a few blocks and walkable to downtown Eagle. Other surrounding uses include a Fire House, a large open field and residential neighborhoods.

It has quick access to local businesses, major employers such as Eagle County and the Town of Eagle as well as Eagle's well developed network of hiking and biking trails.

About the Transformational Affordable Housing Grant Program

The aim of this Transformational Affordable Housing (Homeownership and Workforce) Housing Grant Program is to provide funds and resources to assist eligible applicants in developing, creating or preserving affordable housing opportunities in their communities.

The Program is informed and DOLA was appropriated funds by the passing of HB22-1304 ($138M) and HB22-1377 ($105M), which followed the recommendations of the Affordable Housing Transformational Task Force, the Economic Recovery and Relief Task Force, and Governor Polis’ affordable housing and homelessness priorities, as well as the State of Colorado’s Playbook on Making Homelessness History in Colorado.

In addition, DOH launched a statewide public engagement process alongside Housing Colorado and the Colorado Housing and Finance Authority (CHFA) during the summer of 2022. These engagement sessions as well as numerous other meetings with stakeholders around the state provided ideas and feedback regarding the rollout and parameters of the new funding.

Stay tuned for the second round of Transformational Affordable Housing Grant awards later this month.

Learn More About TAHG

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