Why a 99-Year Land Lease Agreement for Affordable/Attainable Housing?

In 2023, City of Grand Junction voters approved Ballot Measure 2B, which authorized the City to lease City-owned or purchased land for up to 99 years for the purpose of developing affordable and attainable housing.

This measure was a critical step in addressing the community’s housing needs. It allows the City to partner with housing developers and nonprofits by providing access to land on long-term leases, rather than requiring the sale of land outright.

What is Affordable and Attainable Housing?

• Affordable Housing is typically defined as housing that costs no more than 30% of a household’s income, including rent or mortgage and utilities.

• Attainable Housing refers to housing that is financially accessible to middle-income households who may not qualify for traditional affordable housing programs but are still priced out of the current market.

To learn more, See Affordability at the Salt Flats (link).

Why 99-Year Leases?

1. Funding Requirement
Most affordable housing funding sources—including Low-Income Housing Tax Credits (LIHTC), Proposition 123 programs, state housing grants, and federal funding streams—require developers to demonstrate long-term site control. A 99-year lease is considered equivalent to ownership in the eyes of funders, giving developers the ability to apply for and secure critical financing.

2. Lower Development Costs
By leasing land at little or no cost, the City helps reduce one of the largest barriers to affordability: the cost of land. Without land purchase costs factored into the price of development, projects can be built and offered at much lower housing costs.

3. Long-Term Affordability Protection
A 99-year lease ensures that the property remains dedicated to affordable and attainable housing for generations. This prevents land from reverting to market-rate uses after a short affordability period, protecting the community’s investment and preserving affordability.

4. Community Benefit Without Losing Ownership
Through a lease rather than a sale, the City retains ownership of the land while still unlocking its use for housing. This creates a balance of stewardship, accountability, and long-term public benefit.

The Role of Land Banking

Another important tool in the affordable housing toolkit is land banking. Land banking allows the City to purchase and hold property today for future affordable housing development. By proactively acquiring land or utilizing city-owned land, the City can “get ahead of the market,” ensuring that suitable sites are available for housing even as land prices rise.

When paired with the 99-year lease authority, land banking ensures that the City can:

• Secure key parcels before they are lost to speculation or higher-cost development.

• Reduce costs for future projects by removing land acquisition from the equation.

• Align housing development with long-term community planning, ensuring that future projects are located near transit, jobs, and services.

Together, long-term leases and land banking give the City powerful tools to reduce costs, leverage outside funding, and create a pipeline of affordable and attainable housing opportunities that will benefit Grand Junction families and workers for decades to come.

To learn more about Landbanking click here.