The town of Granby is moving forward with a new financing structure for the rental portion of the Nuche Village affordable housing development that shifts long-term ownership and debt responsibility to the state’s Middle-Income Housing Authority, according to an ordinance passed at their Oct. 14 Board of Trustees meeting.

Under the new partnership, the housing authority will own and operate the Nuche Village apartments and will assume responsibility for repaying $7.6 million in concessionary debt, according to Assistant Town Manager Nicole Schafer. The housing authority is also expected to issue a revenue bond to refinance the loan and cover long-term operational costs.

The project’s 75 rental units were selected in December 2024 to receive the low-interest concessionary debt funding through Proposition 123, a $300 million statewide affordable housing fund approved by voters in 2022. The funding is allocated by the Office of Economic Development and International Trade and administered by the Colorado Housing and Finance Authority.

Granby will remain involved through a housing committee role in construction and management decisions, but will not be financially responsible for the debt. The apartments are planned to be delivered through modular construction, with the first move-ins targeted for fall 2025.

Schafer said the new financing structure protects the town from risking financial exposure. Granby adopted a “moral obligation” ordinance, meaning that if the apartments fall short on revenue and cannot cover the bond payments, the town could potentially provide its own funds. However, she said it is unlikely the town will have to do so, due to its financially cautious rent schedule for the apartments.

“We have provided MIHA a very conservative rent schedule that does not provide any rent revenues for 12-months and uses a 7% vacancy rate,” she stated in an email.

Without the $7.6 million concessionary debt loan, construction would be halted, pushing back move-in dates for tenants, Schafer said. However, the loan is still moving through approvals. To prevent construction delays, the state arranged an advanced deposit for Granby to receive roughly half of that amount upfront.

There were delays in closing the loan, according to Schafer, because Nuche Village is the first project to use the Proposition 123–backed financing program. Without the advanced deposit, production delays could push move-ins back to spring 2026.

Buildings 42 and 43, located at the corner of Rodeo Road and Sculpin Drive, would be the first Nuche Village apartments completed as the project moves forward under the new plan.

Nuche Village is expected to become the first Middle-Income Housing Authority project to welcome tenants. In July, the housing authority sold its first tax exempt bonds to support the acquisition and construction of Galena Apartments in Frisco. Nuche Village will be the authority’s second bond-supported project.

Funding from the Colorado Division of Housing allows townhomes to be priced at $329,000 for buyers earning around 100% of the Area Median Income, Schafer said. Buyers who close before the funding becomes available in February 2025 will receive a one-time mortgage principal payment of $15,000 to reach the lower price point.

Granby officials attend weekly coordination meetings with the Middle-Income Housing Authority, the Department of Local Affairs, the Colorado Housing and Finance Authority and other partners “to ensure alignment” as financing and construction move forward, Schafer said.

Applications for Nuche Village opened in July 2025. Construction on Phase 1 began this spring, and project partners continue to target initial occupancies in fall 2025. Eight for-sale units are currently under contract, Schafer said.

Lindsey Morrow of Keller Williams Top of the Rockies, the exclusive listing agent for the project, said the for-sale side of the development has seen “steady progress” despite changes that could affect its timeline.

“Big Valley Construction continues to do excellent work setting and finishing each unit,” she stated in an email. “While construction timelines can shift with weather and logistics, things are moving forward smoothly, and we’re optimistic that the first for-sale homes will be available soon.”

The next application deadline is November 10, and interested residents are encouraged to reach out or visit the town of Granby’s website for details, Morrow said.

The multi-phase workforce housing development is located east of U.S. Highway 40 near the Flying Heels Rodeo grounds. The project will ultimately include 228 units, with 75 apartments and 29 for-purchase homes currently under construction.

Eligible renters must have at least one household member working 32 hours per week or 1,200 hours annually in Grand County, or provide proof of future employment in the county. The unit must be their primary residence, and their total income must not exceed 120 percent of the area median income for their household size.

Sales prices for home buyers are determined by the buyer’s area median income. Buyers who earn 160 percent or less of the area median income for Grand County are eligible to purchase any housing type.

At least one Granby trustee expressed concern with the approval of the emergency loan at the Oct. 14 meeting.

“We are being forced to make an emergency loan in order to effectively continue the project with the manufacturer, and at the same time, it’s an emergency loan, because things at the state have not exactly been going the way we thought they would,” Trustee Seth Stern said. “So when you are asking me for a contingency loan that depends on everything going correctly and relatively efficiently, and the state government is involved, I am highly concerned with the ramifications of the state’s efficiency and competence.”