Brandon Leuallen, The Business Times

The Grand Junction City Council approved a $400,000 funding agreement with Housing Resources of Western Colorado to help acquire land for a workforce-homeownership development near St. Mary’s Hospital.

The resolution, which was approved on the council’s consent agenda without public comment, authorizes the city manager to execute an agreement supporting the acquisition of approximately three acres currently being subdivided from property at 631 26 1/2 Road. According to city staff, the project is expected to result in between 16 and 24 homes for sale to households earning at or below 120 percent of Area Median Income.

In a staff report prepared by Housing Manager Ashley Chambers for the March 4 City Council meeting, city staff wrote the infill site near St. Mary’s Hospital “supports efficient land use and aligns with the city’s housing production goals.”

The land is currently owned by American Lutheran Church and is in the process of being subdivided. The city’s funding is contingent on completion of the subdivision before the acquisition closes, according to the staff report. 

Under the funding agreement, the city will provide the $400,000 at closing to assist Housing Resources with purchasing the land. The nonprofit will then construct a minimum of 16 homes on the property.

The agreement says that as the homes are sold, the initial acquisition funding will be recaptured and converted into down-payment assistance loans for buyers. Those loans will be administered through Com Act Housing Corporation, a subsidiary of Housing Resources of Western Colorado, with the total assistance provided required to equal or exceed the original $400,000 award.

The agreement also establishes a 30-year affordability covenant requiring the homes to be sold to households earning no more than 120 percent of area median income or in accordance with Proposition 123 housing guidelines or the city’s affordable-housing definitions.

The funding had already been approved as part of the city’s 2025 budget through Ordinance 5240, allocating one-time funds to support the acquisition.

According to the staff report, Housing Resources first sought funding for the project through the city’s American Rescue Plan Act process in 2023. At the time, the ARPA Housing Review Committee recommended that acquisition proposals be routed through a formalized city process.