GRANBY — Granby trustees extended Nuche Village’s apartment acquisition agreement on Sept. 8 as a lower-than-expected appraisal threatened repayment of the town’s investment and pushed potential apartment move-ins beyond 2026.

The board unanimously extended its acquisition agreement to Nov. 17. Summit Housing Group is seeking to take over and complete 75 rental apartments in the workforce-housing development, but the financing and terms for reimbursing Granby remain unresolved.

Paul Capps, president of Summit Housing Group, said the company was pursuing a new appraisal and potential funding partners. Trustees approved additional time without committing more money or waiving repayment.

Nuche Village

The Colorado Housing and Finance Authority is evaluating a $7.6 million loan through Proposition 123, the state’s voter-approved affordable housing program.

In correspondence dated Sept. 2 included in the board packet, CHFA described an appraisal of $26.4 million and approximately $3.8 million in financing for land and improvements. That acquisition debt would be repaid only from available cash flow and would rank behind the project’s primary loan and Proposition 123 debt.

Granby’s repayment would depend on money left after operating expenses and other debt obligations — only a few hundred thousand dollars a year, Capps estimated.

Capps project costs put costs at $29.5 million and expected a new appraisal within about 30 days. A higher valuation could help repay Granby sooner, subject to CHFA review and lending requirements.

CHFA and state economic development officials agreed to let the primary and Proposition 123 loans reach 97% of the property’s value. CHFA’s loan committee had not approved the proposal, the letter said.

The town’s draft sale contract combined cash at closing with an 18-month note. Staff said it was not ready for approval and could change with the financing.

Capps and staff discussed potential funding with the Grand Foundation and Fraser River Valley Housing Partnership. Trustees also considered county housing funds and short-term-rental revenue. No commitments were announced.

Modular manufacturer Vederra had built 22 of the 75 apartments, Capps said. He had hoped to obtain certificates of occupancy by year’s end.

“That’s not going to happen now,” he said.

Capps outlined plans to finish two Nuche Village buildings, advance the separate Summit at Granby development and then complete Nuche Village’s remaining three buildings. Both projects could be completed by the end of 2027, depending on financing and construction, he said.

Summit planned to invest about $3.5 million in long-term equity in the other development and could not readily make a similar investment in both projects, Capps said.

Sky-Hi News reported in November 2025 that delayed home sales, unpaid project partners and stalled rental infrastructure had prompted the town to recalculate Nuche Village’s finances.

Trustees bought Rocky Mountain Workforce Housing’s planning work for $250,000 in March 2024 after an earlier development arrangement fell through. The town later turned to modular construction and town financing for homeownership units.

Trustees approved the framework for Summit’s apartment takeover in March 2026, targeting a June 9 closing and about $3.6 million in reimbursement to the town. Rising borrowing costs had prompted a shift from Colorado Middle-Income Housing Authority financing.

Sky-Hi News’ August 2026 coverage described a family that moved into a three-bedroom home in April, finding space for their children in a county where affordable options were limited.

Town staff told trustees that another closing on a duplex-unit was expected Sept. 11. An open house is planned for Sept. 27 from 10 a.m. to 2 p.m., according to the project update.

Staff reported two April home sales totaling about $955,000. Separately, the town had transferred approximately $1.2 million to $1.3 million toward repayment of a $5 million construction loan from its general fund, leaving about $3.8 million to be repaid. 

No third-quarter home sales had occurred as of Sept. 8, the finance director said. The internal loan is repaid through home sales, separately from the apartment land-and-improvements transaction.

Trustees established a hearing board for deed-restriction exceptions, including requests to rent to income-qualified tenants. Staff described a future shift toward resident representation.

When reached for comment, Paul Capps said he anticipates approval from CHFA for Nuche Village for the transfer of the prop 123 award within the next 60 days.

Other board business

 Representatives of Habitat for Humanity of Grand County said a missed public notice had delayed rezoning hearings for the organization’s Ten Mile Crossing housing proposal in Grandview. They reported new hearing dates of Oct. 5 before the Planning Commission and Oct. 27 before the Board of Trustees. Board members said that project and Nuche Village serve different income groups and expressed support for both.

Trustees unanimously approved making the alley from Zero Street to Fifth Street one-way, west to east, with signs to follow. Staff will return with information on drainage and options to slow traffic. Separately, business owner Mike Thompson said construction near 550 E. Agate Ave. had restricted access and hurt his revenueHe requested a schedule and compensation.

The financial update described the North Service Area Water Treatment Plant as under budget and on schedule for completion in September 2027, with about $3.8 million spent through the second quarter. Sales tax revenue was about 0.5% below the comparison period.

Trustees supported exploring a $2,500 Mediate Colorado package that would cover up to 10 resolved cases that the town submits to Mediate Colorado, potentially shared with neighboring governments. No final contract was approved. Department reports also included nine candidates for three trustee seats, preparations for the 2027 budget, police recruitment and a repaired sewer leak beneath the Fraser River.