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  What is an RFP and Why is it Important?

  7 months ago

  
  

  What is an RFP and Why is it Important?

  A Request for Proposals (RFP) is a structured process used by cities and organizations to invite qualified developers, contractors, or service providers to submit proposals for a specific project. Unlike a simple bid, an RFP goes beyond cost—it looks at qualifications, approach, and overall readiness to deliver.

  The RFP process is important because it:

  • Ensures Fairness and Transparency – Every interested party receives the same project details and is evaluated against the same criteria.

  • Encourages Competition and Innovation – Multiple perspectives and proposals help the City find the best mix of... Continue reading

  
  

  What is an RFP and Why is it Important?

  A Request for Proposals (RFP) is a structured process used by cities and organizations to invite qualified developers, contractors, or service providers to submit proposals for a specific project. Unlike a simple bid, an RFP goes beyond cost—it looks at qualifications, approach, and overall readiness to deliver.

  The RFP process is important because it:

  • Ensures Fairness and Transparency – Every interested party receives the same project details and is evaluated against the same criteria.

  • Encourages Competition and Innovation – Multiple perspectives and proposals help the City find the best mix of quality, creativity, and cost-effectiveness.

  • Protects Public Resources – A structured evaluation process ensures taxpayer dollars are invested wisely in qualified partners with viable plans.

  • Aligns Projects with Community Goals – RFPs let the City set requirements—such as affordability, timelines, or housing mix—so selected projects advance broader community priorities.

  Overview of the City’s RFP Process for the Salt Flats

  In early 2025, the City of Grand Junction, in partnership with the Grand Junction Housing Authority, launched a competitive Request for Proposals (RFP) process to identify development partners for the 21.78-acre Salt Flats site. The Housing Authority’s solicitation focused on selecting a partner for the northwest corner of the property, while the City’s RFP sought one or more developers to lead projects across the remaining acreage.

  Purchasing and Outreach

  Consistent with City purchasing practices, the RFP process was structured to ensure transparency, broad vendor engagement, and open competition. The solicitation was distributed through multiple channels, including BidNet Direct, outreach through local industry associations such as the Grand Junction Chamber of Commerce and the Western Colorado Contractors Association, and direct notification to vendors on the City’s secondary supplier list. Public notices were also published in The Daily Sentinel and on the City’s Purchasing website. In total, approximately 264 plan holders engaged with the solicitation, representing a wide range of potential partners.

  For the Salt Flats site, the City issued a Letter of Interest in January 2025 for formal RFP to identify development partners. The RFP set clear criteria and goals to ensure the project would:

  • Provide a mix of multi-family and homeownership opportunities with a variety of housing types.

  • Advance appropriate timelines for delivery of units.

  • Demonstrate clearly identified funding sources to ensure feasibility.

  • Show experience, capacity, and readiness to take the project forward.

  Through this process, proposals were carefully evaluated by a multi-disciplinary review committee. This ensured that final selections balanced affordability, feasibility, and alignment with community housing needs.

  Proposal Submissions

  By the submission deadline, the City received 13 proposals from a diverse pool of developers, including local nonprofits and regional and national firms. The strong response reflected both the importance of the Salt Flats site and the growing interest in housing development opportunities within the Grand Junction area.

  Evaluation Process

  Proposals were evaluated by a multi-disciplinary review committee composed of representatives from the City’s Finance Department, Community Development (Planning and Housing Divisions), the City Manager’s Office, the Grand Junction Housing Authority, and the Home Builders Association.

  Evaluations followed the City’s standard procurement procedures and scoring criteria, which included:

  • Responsiveness to solicitation requirements

  • Understanding of project objectives

  • Qualifications, experience, and credentials

  • Strength of strategy and implementation plan

  After the initial scoring, five development teams were invited to participate in interviews to further present their qualifications, approach, and vision for the project.

  Final Selection

  Through this thorough and competitive process, Brikwell (with Vertikal) and Rural Homes LLC were selected as lead partners for portions of the Salt Flats site, while the Housing Authority’s process contributed to additional team selection of the Volunteers of America/MGL teams. Together, four development teams were chosen to move the project forward—bringing a balance of local expertise, national experience, and a shared commitment to delivering a diverse, high-quality, and attainable community at the Salt Flats.
• Share What is an RFP and Why is it Important? on Facebook Share What is an RFP and Why is it Important? on Twitter Share What is an RFP and Why is it Important? on Linkedin Email What is an RFP and Why is it Important? link

  What is an RFP and Why is it Important?

  7 months ago

  A Request for Proposals (RFP) is a formal process that governments and organizations use to invite qualified developers, contractors, or service providers to submit proposals for a specific project. Unlike an informal request for quotes or bids, an RFP is designed to evaluate not just cost, but also experience, qualifications, and the overall approach a proposer brings to a project.

  The RFP process is important because it:

  • Ensures Fairness and Transparency – All interested parties have the same access to project details and are evaluated against the same criteria.

  • Encourages Competition – By reaching a broad pool of potential partners... Continue reading

  A Request for Proposals (RFP) is a formal process that governments and organizations use to invite qualified developers, contractors, or service providers to submit proposals for a specific project. Unlike an informal request for quotes or bids, an RFP is designed to evaluate not just cost, but also experience, qualifications, and the overall approach a proposer brings to a project.

  The RFP process is important because it:

  • Ensures Fairness and Transparency – All interested parties have the same access to project details and are evaluated against the same criteria.

  • Encourages Competition – By reaching a broad pool of potential partners, the City can compare different ideas and approaches, which often leads to more innovative, cost-effective solutions.

  • Protects Public Resources – A structured review process helps safeguard taxpayer dollars by ensuring funds are invested in projects with strong qualifications and clear plans for delivery.

  • Aligns with Community Goals – RFPs allow the City to set project-specific requirements—such as affordability, design standards, or sustainability—so that selected partners are aligned with long-term community priorities.

  In the case of the Salt Flats, the RFP process ensured that multiple qualified development teams were considered, community values were incorporated, and the final selections positioned the project for long-term success.

  Overview of the City’s RFP Process for the Salt Flats

  In early 2025, the City of Grand Junction, in partnership with the Grand Junction Housing Authority, launched a competitive Request for Proposals (RFP) process to identify development partners for the 21.78-acre Salt Flats site. The Housing Authority’s solicitation focused on selecting a partner for the northwest corner of the parcel, approximately 2.91 acres while the City’s RFP sought one or more developers to lead projects across the remaining acreage.

  Purchasing & Outreach

  
  

  Consistent with City purchasing practices, the RFP process was designed to ensure transparency, broad vendor engagement, and open competition. The solicitation was advertised through BidNet Direct—reaching nearly 6,000 registered suppliers—along with local outreach coordinated through the Grand Junction Chamber of Commerce, the Western Colorado Contractors Association, and direct distribution to a targeted secondary vendor list. Public notices were also published in The Daily Sentinel and on the City’s Purchasing website. In total, approximately 264 plan holders engaged with the solicitation

  Proposal Submissions

  By the deadline, the City received 13 proposals from a diverse pool of developers ranging from local nonprofits to national firms, reflecting both regional interest and the significance of the Salt Flats site.

  Evaluation Process

  All proposals were evaluated by a multi-disciplinary review committee, which included representatives from:

  • City Finance Department

  • Community Development (Planning and Housing Divisions)

  • City Manager’s Office

  • Grand Junction Housing Authority

  • Home Builders Association

  Consistent with City procurement standards, proposals were scored on criteria such as:

  • Responsiveness to solicitation requirements

  • Demonstrated understanding of project objectives

  • Relevant qualifications, experience, and credentials

  • Strength of strategy and implementation plan

    Salt Flats - purchasing notes

  Following initial scoring, five development teams were invited to interviews to further present their qualifications and vision.

  Final Selection

  Through this process, Brikwell and Rural Homes LLC were selected as lead partners for portions of the Salt Flats site, while the Grand Junction Housing Authority’s process contributed to additional team selection. Together, these efforts resulted in four development teams moving forward to bring the site to life, combining local expertise with national experience.
• Share What is an RFP and Why is it Important? on Facebook Share What is an RFP and Why is it Important? on Twitter Share What is an RFP and Why is it Important? on Linkedin Email What is an RFP and Why is it Important? link

  What is an RFP and Why is it Important?

  7 months ago

  A Request for Proposals (RFP) is a formal process that governments and organizations use to invite qualified developers, contractors, or service providers to submit proposals for a specific project. Unlike an informal request for quotes or bids, an RFP is designed to evaluate not just cost, but also experience, qualifications, and the overall approach a proposer brings to a project.

  The RFP process is important because it:

  • Ensures Fairness and Transparency – All interested parties have the same access to project details and are evaluated against the same criteria.

  • Encourages Competition – By reaching a broad pool of potential partners... Continue reading

  A Request for Proposals (RFP) is a formal process that governments and organizations use to invite qualified developers, contractors, or service providers to submit proposals for a specific project. Unlike an informal request for quotes or bids, an RFP is designed to evaluate not just cost, but also experience, qualifications, and the overall approach a proposer brings to a project.

  The RFP process is important because it:

  • Ensures Fairness and Transparency – All interested parties have the same access to project details and are evaluated against the same criteria.

  • Encourages Competition – By reaching a broad pool of potential partners, the City can compare different ideas and approaches, which often leads to more innovative, cost-effective solutions.

  • Protects Public Resources – A structured review process helps safeguard taxpayer dollars by ensuring funds are invested in projects with strong qualifications and clear plans for delivery.

  • Aligns with Community Goals – RFPs allow the City to set project-specific requirements—such as affordability, design standards, or sustainability—so that selected partners are aligned with long-term community priorities.

  In the case of the Salt Flats, the RFP process ensured that multiple qualified development teams were considered, community values were incorporated, and the final selections positioned the project for long-term success.

  Overview of the City’s RFP Process for the Salt Flats

  In early 2025, the City of Grand Junction, in partnership with the Grand Junction Housing Authority, launched a competitive Request for Proposals (RFP) process to identify development partners for the 21.78-acre Salt Flats site. The Housing Authority’s solicitation focused on selecting a partner for the northwest corner of the parcel, approximately 2.91 acres while the City’s RFP sought one or more developers to lead projects across the remaining acreage.

  Purchasing & Outreach

  
  

  Consistent with City purchasing practices, the RFP process was designed to ensure transparency, broad vendor engagement, and open competition. The solicitation was advertised through BidNet Direct—reaching nearly 6,000 registered suppliers—along with local outreach coordinated through the Grand Junction Chamber of Commerce, the Western Colorado Contractors Association, and direct distribution to a targeted secondary vendor list. Public notices were also published in The Daily Sentinel and on the City’s Purchasing website. In total, approximately 264 plan holders engaged with the solicitation

  Proposal Submissions

  By the deadline, the City received 13 proposals from a diverse pool of developers ranging from local nonprofits to national firms, reflecting both regional interest and the significance of the Salt Flats site.

  Evaluation Process

  All proposals were evaluated by a multi-disciplinary review committee, which included representatives from:

  • City Finance Department

  • Community Development (Planning and Housing Divisions)

  • City Manager’s Office

  • Grand Junction Housing Authority

  • Home Builders Association

  Consistent with City procurement standards, proposals were scored on criteria such as:

  • Responsiveness to solicitation requirements

  • Demonstrated understanding of project objectives

  • Relevant qualifications, experience, and credentials

  • Strength of strategy and implementation plan

    Salt Flats - purchasing notes

  Following initial scoring, five development teams were invited to interviews to further present their qualifications and vision.

  Final Selection

  Through this process, Brikwell and Rural Homes LLC were selected as lead partners for portions of the Salt Flats site, while the Grand Junction Housing Authority’s process contributed to additional team selection. Together, these efforts resulted in four development teams moving forward to bring the site to life, combining local expertise with national experience.
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  Unique Tools for Affordable and Attainable Homeownership

  8 months ago

  Owning a home has long been a pathway to stability, wealth-building, and stronger local economies. For families, homeownership means predictable housing costs and the chance to build equity that can be passed on to the next generation. For communities, it keeps the workforce rooted close to jobs, schools, and services. Yet today, both low-income and middle-income households are finding it harder than ever to buy a home. Rising construction costs and land prices have pushed homeownership out of reach for many, creating economic strain for families and challenges for employers trying to retain workers.

  To meet this challenge, communities... Continue reading

  Owning a home has long been a pathway to stability, wealth-building, and stronger local economies. For families, homeownership means predictable housing costs and the chance to build equity that can be passed on to the next generation. For communities, it keeps the workforce rooted close to jobs, schools, and services. Yet today, both low-income and middle-income households are finding it harder than ever to buy a home. Rising construction costs and land prices have pushed homeownership out of reach for many, creating economic strain for families and challenges for employers trying to retain workers.

  To meet this challenge, communities are using a mix of strategies to expand affordable and attainable homeownership opportunities.

  • Affordable Homeownership refers to homes that are reserved for households with lower incomes, typically priced so that housing costs do not exceed 30% of household income. These homes are often supported with programs like the Low-Income Housing Tax Credit (LIHTC) and Proposition 123 to ensure long-term affordability.

  • Attainable Homeownership is designed for middle-income households—often teachers, nurses, first responders, and other essential workers—who earn too much to qualify for traditional affordable housing programs but are still priced out of the market.

  Learn more about Affordability at the Salt Flats here.

  Together, affordable and attainable homeownership options create a healthier housing market by giving families across a range of incomes the chance to purchase a home. This not only strengthens neighborhoods but also helps ensure local employers can retain a stable workforce—an important driver of economic vitality.

  Why Land is Provided at $0

  One of the biggest barriers to affordable and attainable homeownership is the cost of land. By contributing public land at $0, governments significantly lower development costs. This ensures homes can be sold at prices that local families can realistically afford, reducing the need for higher wages just to cover housing.

  Importantly, this model does not create excess profit for developers. In these deals, developers have fixed rates of return—set by CHFA and other funding sources—that cap profits and ensure that public investments go directly toward lowering costs for families. As a result, buyers see the savings in lower home prices, reduced monthly payments, and more money staying in the local economy rather than going to land costs.

  Different Models at Salt Flats

  At the Salt Flats property, two development partners are demonstrating different ways to deliver affordable and attainable homeownership:

  • Rural Homes is using a fee-simple homeownership model, where buyers own both the home and the land. Instead of relying on an HOA, affordability is preserved through deed restrictions. This avoids HOA dues, keeps monthly costs lower, and allows families to build equity while ensuring homes remain affordable for future buyers.

  • Vertikal is developing a mixed-income homeownership model that blends affordable, attainable, and market-rate homes. The market rate homes cross subsidize the infrastructure and drives down the costs to make other units cost less. Their use of modular/off-site construction helps lower building costs and speeds delivery. By providing townhomes, small-lot single-family homes, and units with ADUs, Vertikal creates a variety of housing choices for households across the income spectrum. The result is a diverse, balanced neighborhood that reflects the local workforce.

  Why This Matters for Grand Junction

  The Salt Flats development is one of the largest affordable and attainable housing efforts in Grand Junction’s history. By leveraging multiple tools across the project including $0 land contributions, fixed developer returns, and deed restrictions, the project supports the local need for more affordable and attainable housing.

  For families, this means access to homes they can actually afford, with predictable payments and opportunities to build wealth. For the local workforce, it means living closer to jobs and schools without being priced out of the market. And for the broader community, it means a stronger, more stable economy where housing supports—not hinders—growth and opportunity.

  Learn More / Additional Resources

  Other communities across the U.S. are using similar models to expand affordable and attainable homeownership:

  • San Antonio, TX – Public Facility Corporation partnerships, where city-owned land is contributed to reduce costs and lock in affordability.

  • Austin, TX – Use of public land for LIHTC-supported homeownership projects that serve middle-income families.

  • Charlotte, NC – Partnerships with nonprofit and for-profit developers to reduce land costs and create deed-restricted ownership opportunities.

  These examples show how cities nationwide are using land as a tool to keep families housed and the workforce strong.
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  Why Explore Equity Partnerships and Parcel Conveyance for Affordable Housing?

  8 months ago

  In many communities, land is one of the most significant barriers to building affordable and attainable housing. Traditionally, cities or government entities have sometimes donated or sold land at a reduced cost to make a project feasible. While this approach can be very effective, it also means the community permanently gives up a valuable asset and receives little return beyond the housing itself.

  An emerging model is the equity partnership combined with parcel conveyance. Instead of giving away land outright, the government contributes the value of its land as an in-kind equity investment. This model is still new in... Continue reading

  In many communities, land is one of the most significant barriers to building affordable and attainable housing. Traditionally, cities or government entities have sometimes donated or sold land at a reduced cost to make a project feasible. While this approach can be very effective, it also means the community permanently gives up a valuable asset and receives little return beyond the housing itself.

  An emerging model is the equity partnership combined with parcel conveyance. Instead of giving away land outright, the government contributes the value of its land as an in-kind equity investment. This model is still new in Colorado but is increasingly being tested across the United States as a way to leverage public land for affordable housing while ensuring long-term community benefits.

  What is an Equity Partnership?

  An equity partnership allows the land value to be recognized as part of the project’s “capital stack”—the combination of all funding sources needed to finance construction. By contributing the land as equity, the government strengthens the project’s financial foundation and makes it more competitive for securing Low-Income Housing Tax Credits (LIHTC) and other subsidies.

  Unlike a donation, this model can provide the government with a form of ownership interest or residual return. While a public entity cannot technically operate for profit, any return generated from its contribution can be reinvested in future housing or community initiatives. This creates a revolving resource rather than a one-time subsidy.

  Why Parcel Conveyance Matters

  For LIHTC projects, long-term site control is a requirement. Developers must show they have ownership or equivalent control over the land in order to qualify for funding. Parcel conveyance—through sale or long-term lease—gives the developer the certainty needed to secure investors and lenders, while deed restrictions and affordability requirements ensure the community’s goals are protected.

  When paired with an equity partnership, parcel conveyance creates a balance: the developer gains site control to unlock financing, and the public retains accountability, affordability protections, and in some cases, a pathway to reinvestment.

  Why This Benefits Communities Without Dedicated Housing Funds

  For governments that lack a steady funding source for housing, this approach offers a way to put existing land assets to work. By investing land instead of cash:

  • Development costs are lowered, making homes more affordable.

  • Projects are stronger candidates for tax credits and grants.

  • Any future return on the land value can be reinvested into other initiatives, for housing or other community needs.

  This is not just a financing mechanism—it is a form of public-private partnership (P3). In a P3, the government brings resources such as land or infrastructure, while the private partner takes on financing, construction, and operational risk. Together, they can deliver affordable housing that would not otherwise be possible.

  Examples from Across the U.S.

  This model is being explored by a growing number of communities:

  • Austin, Texas has used publicly owned land in multiple LIHTC-supported projects, sometimes contributing it as equity to ensure deeper affordability while preserving long-term public benefit.

  • San Antonio, Texas created a Public Facility Corporation (PFC) that partners with developers, using city land as equity to receive a share of revenues while guaranteeing affordable units.

  • Charlotte, North Carolina has partnered with nonprofit and for-profit developers by contributing land value in exchange for affordability commitments and long-term oversight.

  These examples show how equity partnerships and parcel conveyance are becoming part of the national toolkit for cities working to address housing shortages.

  Doesn't this raise costs for the renters?

  Reducing development costs at the front end directly protects affordability at the back end. In LIHTC projects, rents are not set by how much it costs to build; they are set based on household income levels. When less debt service is required, the project does not need to layer in additional financing that could otherwise raise costs or make the deal unworkable. In fact, lowering upfront costs makes it easier for developers to lock in lower rents and keep them affordable for decades.

  A Path Forward

  By combining equity partnerships with parcel conveyance, a government entity can reduce upfront development costs, help projects secure critical funding, and preserve affordability for decades—without needing to draw from limited cash reserves.

  This model allows communities to treat land as a renewable resource: one that not only makes today’s housing possible but also generates value that can be reinvested in tomorrow’s solutions.
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  Why a 99-Year Land Lease Agreement for Affordable/Attainable Housing?

  8 months ago

  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... Continue reading

  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.
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  Understanding Private Activity Bonds (PAB)

  8 months ago

  A Tool for Financing Affordable Housing in Grand Junction

  What are PABs?

  Private Activity Bonds (PABs) are tax-exempt bonds issued by or on behalf of local or state governments to finance projects that provide a public benefit, such as affordable housing, infrastructure, or economic development. Because the interest earned by investors is exempt from federal taxes, PABs carry lower interest rates than conventional loans, making them an attractive financing option for projects that serve the community.

  Every year, the State of Colorado receives a federal allocation of PAB authority, called the volume cap, which is distributed to local governments... Continue reading

  A Tool for Financing Affordable Housing in Grand Junction

  What are PABs?

  Private Activity Bonds (PABs) are tax-exempt bonds issued by or on behalf of local or state governments to finance projects that provide a public benefit, such as affordable housing, infrastructure, or economic development. Because the interest earned by investors is exempt from federal taxes, PABs carry lower interest rates than conventional loans, making them an attractive financing option for projects that serve the community.

  Every year, the State of Colorado receives a federal allocation of PAB authority, called the volume cap, which is distributed to local governments based on population. In Grand Junction, annual allocations typically range between $3–4 million. If not used, local allocations can be reassigned, carried forward, or returned to the statewide pool.

  Why are PABs Important for Affordable Housing?

  One of the most powerful aspects of PABs is that they unlock access to the federal 4% Low-Income Housing Tax Credit (LIHTC) (non-competitive) program. Projects financed with PABs automatically qualify for these tax credits, which bring millions of dollars in equity investment to lower development costs and keep housing affordable. This combination is especially important given the shortage of affordable housing in Grand Junction for households earning less than $25,000 a year.

  Grand Junction’s History of Using PABs

  • 2020: $3.4 million assigned to the Colorado Housing and Finance Authority (CHFA) for its FirstStep homeownership program.

  • 2021: $3.6 million allocated to the Monument Ridge Townhomes, a 166-unit HUD Section 8 property undergoing significant renovation.

  • 2022: $3.6 million received but not designated; the balance was returned to the state.

  • 2023: Allocation of just over $4 million. Staff recommended prioritizing use for local affordable housing projects and began formalizing a process for applications. The City carry-forwarded their balance to be able to be utilized on an affordable rental housing project.

  • 2024: Allocation of just over $4 million. The City carry-forwarded their balance to be able to be utilized on an affordable rental housing project.

  • 2025: Allocation of just over $4 million. The City was able to take 2025 and combine it with 2023 & 2024 balances to award it to the Ascent Project at the Salt Flats. Additionally, Mesa County contributed their 2025 balance as well.

  This evolving approach reflects the City’s recognition that PABs are a valuable local tool, especially as interest rates rise and conventional financing becomes more expensive.

  Grand Junction’s Next Steps

  In 2023, The City:

  1. Formalized an application process – Developers can now apply for the balance of PAB that has been allocated to the City ----ensuring developers and community members clearly understand how to apply for PAB allocations.

  2. Adopted a carryforward policy – If a project is not selected in the year of the allocation, the unused allocations can roll into future years, keeping resources local and ensuring the ability to combine multiple year allocations so that projects are feasible.

  3. Prioritize affordable housing – While PAB allocations can be used for various purposes, City Council has prioritized use of PAB for affordable rental and homeownership housing - aligning with City Housing Strategies to expand and preserve affordable rental and ownership housing.

  Learn More

  • City of Grand Junction Housing Division: www.gjcity.org

  • Colorado Department of Local Affairs (DOLA) – Division of Housing: cdola.colorado.gov/housing

  • Colorado Housing and Finance Authority (CHFA): www.chfainfo.com

  • HUD – Tax-Exempt Bonds and Affordable Housing: huduser.gov

  ✅ In summary: Private Activity Bonds are a critical but often overlooked financing tool that help Grand Junction attract private investment into housing and community development. By leveraging PABs, the City and its partners can create long-term, affordable housing opportunities while keeping local resources working for the community.

  
  

  Q: Does the City go into debt when it allocates PABs?

  A: No. Allocating PABs does not create debt for the City. The bonds are issued for the benefit of the developer or project sponsor, and repayment is entirely their responsibility. The City acts as a conduit, making its allocation available to help unlock tax credits and financing, but it is not financially liable.

  Q: What happens if the City doesn’t use its allocation?

  A: If not used, the City can either carry forward the allocation for specific projects in future years or return it to the state pool, where it may be reassigned to other communities. Carrying forward allocations helps keep resources local.

  
  

  Q: Who decides how PABs are allocated locally?

  A: Allocations are reviewed by City staff, with recommendations made to City Council, which provides the final approval.
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  What is LIHTC and How Does It Help Create Affordable Housing?

  8 months ago

  Affordable housing projects are often financed through a mix of federal, state, and local resources. One of the most important tools in this mix is the Low-Income Housing Tax Credit (LIHTC) program.

  What is LIHTC?

  The Low-Income Housing Tax Credit (LIHTC) is a federal program created by Congress in 1986 to encourage private investment in affordable housing. Instead of direct government funding, LIHTC provides tax credits to developers who agree to build or preserve housing that is affordable to households at certain income levels.

  Developers sell these tax credits to investors, raising equity (cash) that reduces the amount of debt... Continue reading

  Affordable housing projects are often financed through a mix of federal, state, and local resources. One of the most important tools in this mix is the Low-Income Housing Tax Credit (LIHTC) program.

  What is LIHTC?

  The Low-Income Housing Tax Credit (LIHTC) is a federal program created by Congress in 1986 to encourage private investment in affordable housing. Instead of direct government funding, LIHTC provides tax credits to developers who agree to build or preserve housing that is affordable to households at certain income levels.

  Developers sell these tax credits to investors, raising equity (cash) that reduces the amount of debt needed to finance the project. With lower debt, the housing can charge lower rents while still covering costs like construction, maintenance, and operations.

  Why is LIHTC Important?

  • Largest source of affordable housing financing in the U.S. – LIHTC has helped finance more than 3.5 million affordable homes nationwide since its creation.

  • Keeps rents affordable – In exchange for tax credits, property owners must keep rents affordable for low- and moderate-income households, often for at least 30 years.

  • Supports community needs – LIHTC projects often include a mix of unit sizes and can target specific populations like seniors, veterans, or families.

  Types of LIHTC

  • 9% Competitive Credits – Highly competitive and typically cover a larger share of development costs (up to ~70%).

  • 4% Non-Competitive Credits – Paired with Private Activity Bonds (PABs), these credits are not competitive and cover a smaller share (~30%) of costs, but are critical for financing larger projects like the Salt Flats in Grand Junction.

  How does LIHTC work locally?

  In Grand Junction, both the City of Grand Junction and Mesa County contribute their Private Activity Bond (PAB) allocations to help unlock 4% LIHTC for major affordable housing projects. This is why LIHTC is so important — it leverages local resources to bring in millions of dollars in federal investment for housing.

  Where can I learn more?

  • U.S. Department of Housing and Urban Development (HUD): LIHTC Overview

  • National Council of State Housing Agencies (NCSHA): Understanding LIHTC

  • Colorado Housing and Finance Authority (CHFA): Colorado’s LIHTC Program

  • Local Information: Visit the City of Grand Junction Housing Division for updates on Salt Flats and other affordable housing initiatives.

  ✅ In summary: LIHTC is a powerful financing tool that brings public and private resources together to make affordable housing possible. It reduces costs for developers, ensures long-term affordability for residents, and helps communities like Grand Junction meet the growing need for safe, stable housing.

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  What is Landbanking?

  9 months ago

  Land banking is a strategy where cities or nonprofits acquire underused or vacant land and hold it until it can be developed for community goals—like affordable housing. Rather than speculation, this approach allows for strategic, long-term investing in land, enabling developments when conditions align and preserving affordability.

  Colorado’s Proposition 123: A Statewide Model

  Proposition 123, passed by Colorado voters in 2022, channels state funds into housing development.

  • 60% is managed by the Colorado Affordable Housing Financing Fund (via OEDIT and CHFA) for land banking, concessionary debt, and equity.

  • 40% goes to the Affordable Housing Support Fund via DOLA... Continue reading

  Land banking is a strategy where cities or nonprofits acquire underused or vacant land and hold it until it can be developed for community goals—like affordable housing. Rather than speculation, this approach allows for strategic, long-term investing in land, enabling developments when conditions align and preserving affordability.

  Colorado’s Proposition 123: A Statewide Model

  Proposition 123, passed by Colorado voters in 2022, channels state funds into housing development.

  • 60% is managed by the Colorado Affordable Housing Financing Fund (via OEDIT and CHFA) for land banking, concessionary debt, and equity.

  • 40% goes to the Affordable Housing Support Fund via DOLA for related programs

  • Additional Resources: Colorado Newsline Common Sense

  This structure helps ensure that land can be set aside for housing without waiting for private market timing—protecting public purpose while encouraging private-sector investment.

  Local Examples—

  • Aurora, Colorado
    The city has signed on to the Prop 123 land banking framework, positioning itself to secure land for future affordable housing without overburdening taxpayers. Learn more Here.

  • Fort Collins, Colorado
    Fort Collins employs a land bank focused on acquiring sites lacking infrastructure. By holding these parcels until development becomes feasible, the city promotes affordable housing in a cost-effective, market-aligned way: Time Article

  • Denver, Colorado – Urban Land Conservancy (ULC)
    In parts of the city, the Urban Land Conservancy acts like a land bank—acquiring property and preserving long-term affordability through ground leases. This model anchors private and nonprofit investment while keeping housing costs stable. Learn More Here.

  Why It Works—Especially for Market-Driven Priorities

  • Fiscal Stewardship & Predictability
    Planning development pathways ahead of rising land values preserves affordability—without resorting to permanent subsidies or regulatory overreach.

  • Enables Private Market Participation
    By resolving the land-cost barrier first, developers can use conventional financing tools, LIHTCs, or modular construction to build housing effectively.

  • Reduces Risk & Encourages Early Action
    Private developers can move confidently when land is pre-acquired, infrastructure is planned, and opportunities align with their business and community goals.
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  PROP 123: What is Means for Grand Junction

  9 months ago

  What is Proposition 123?

  In November 2022, Colorado voters approved Proposition 123, which dedicates a portion of state income tax revenue to support affordable housing across Colorado. The program is administered by:

  • CHFA (Colorado Housing and Finance Authority) and OEDIT (Office of Economic Development & International Trade) through the Colorado Affordable Housing Financing Fund (CAHFF), and

  • DOLA (Department of Local Affairs) through the Affordable Housing Support Fund.

  How Can Communities Use It?

  Prop 123 offers funding tools for cities, nonprofits, and housing authorities, including:

  • Land Banking Grants/Loans – to purchase and hold land for affordable housing (Grand... Continue reading

  What is Proposition 123?

  In November 2022, Colorado voters approved Proposition 123, which dedicates a portion of state income tax revenue to support affordable housing across Colorado. The program is administered by:

  • CHFA (Colorado Housing and Finance Authority) and OEDIT (Office of Economic Development & International Trade) through the Colorado Affordable Housing Financing Fund (CAHFF), and

  • DOLA (Department of Local Affairs) through the Affordable Housing Support Fund.

  How Can Communities Use It?

  Prop 123 offers funding tools for cities, nonprofits, and housing authorities, including:

  • Land Banking Grants/Loans – to purchase and hold land for affordable housing (Grand Junction used this tool to acquire the Salt Flats site with a $2.2M grant).

  • Concessionary Debt & Equity – lower-cost financing options to make projects feasible.

  • Homeownership Programs – down payment assistance and affordable mortgage products for local families.

  • Expedited Review Requirement – participating jurisdictions must streamline approvals for affordable housing projects to save time and cost.

  What Did Grand Junction Commit To?

  By opting in, the City committed to:

  • Growing affordable housing by 3% each year (per state guidelines).

  • Adopting expedited review procedures for affordable housing projects.

  • Using Prop 123 tools to help local developers and nonprofits reduce costs and unlock more housing opportunities.

  Opportunities for Our Community

  • Unlocks Outside Dollars: Rather than relying only on local taxes, Prop 123 allows Grand Junction to bring in statewide funding to lower costs for housing.

  • Land Banking = Feasibility: High land and infrastructure costs often stop projects before they start. Land banking grants make it possible to secure sites like Salt Flats for housing.

  • Supports Local Families: Homes built with Prop 123 are income-restricted, ensuring they remain affordable for teachers, nurses, firefighters, veterans, service workers, and seniors.

  • Stability for Developers: Flexible financing tools and predictable state support make projects more likely to succeed.

  • Community Investment: Projects like Salt Flats also bring upgraded infrastructure, sidewalks, bike lanes, and potential parks, which benefit the entire neighborhood.

  Challenges & Considerations

  • 3% Growth Target: Every participating community must increase affordable housing by 3% annually, which may be challenging in smaller cities or during slow building years.

  • Competitive Funding: Prop 123 funds are in high demand across Colorado — not every project will be awarded dollars.

  • Administrative Burden: The reporting and compliance requirements add work for local governments, especially without a dedicated housing funding source to support staff and due diligence (like environmental reports or geotechnical studies).

  • Market Pressures: High construction costs, limited labor, and rising interest rates can still make projects difficult, even with Prop 123 support.

  Why It Matters

  Despite challenges, Prop 123 is a powerful opportunity. It gives Grand Junction the tools to reduce barriers, bring in new state funding, and partner with private developers and nonprofits to build housing that reflects the needs of our community.

  By combining local leadership, state resources, and private investment, Prop 123 helps unlock housing that keeps our workforce, seniors, and families rooted in Grand Junction.

  Want to Learn More?

  • Colorado Affordable Housing Financing Fund (CHFA & OEDIT): https://coloradoaffordablehousingfinancingfund.com

  • DOLA – Affordable Housing Programs: https://cdola.colorado.gov/prop-123

  • CHFA – Colorado Housing and Finance Authority: https://www.chfainfo.com