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Affordable and Attainable Housing Incentive Program
Development incentives for affordable housing are crucial in addressing the community's current shortage of approximately 2,100 units for working families and aligns with the City's adopted Housing Strategy 2: Explore New Incentives for Affordable and/or Attainable Housing Development. It also helps to reach the City's goal of developing approximately 125 units of affordable housing annually.
Incentives, such as fee waivers, help reduce the financial burden on developers, making it more feasible to create affordable housing units. By lowering costs, developers are more likely to participate in projects that align with community affordability goals, passing these savings on to local families. The incentives will include requirements for long-term affordability, ensuring that the units remain accessible to lower-income residents for extended periods. This approach not only increases the supply of affordable housing units available. but also enhances the community's overall housing stability and economic diversity.
Below is more information on the Affordable Housing Incentive Program.
For more information or questions about the Affordable Housing Incentive program or to schedule a pre-meeting, please contact the City of Grand Junction's Housing Division at housing@gjcity.org or 970-256-4081.
AFFORDABLE HOUSING INCENTIVE
On August 20, 2025, the City of Grand Junction adopted Resolution 45-25, which repealed the former incentive program Resolution 44-24 and replaced with an updated and expanded production incentive for Affordable and Attainable Housing Units to encourage developers to create affordable and attainable housing units. Developers utilizing the incentives must commit to long term affordability. Availability of fee waivers is contingent upon the allocated annual budget and may be limited accordingly.
The 2026 application deadline for Letters of Request closed on July 1, 2025. For the 2027 budget year, Staff will accept Letters of Request beginning June 1, 2026. The LOR will close on July 1, 2026.
Interested Developers should schedule an informational meeting with housing staff. To schedule a meeting, please email housing@gjcity.org.
Interested developers can submit a Letter of Request to assist city staff in estimating budget requests for the following year. Annual Budget years begin January 1 - December 31. Projects seeking funding for units that will be issued planning clearances in budget year 2026 should submit their Letters of Request prior to July 1, 2025.
Letters of Request will be accepted for the 2026 Budget Year beginning June 1, 2025 until July 1, 2025.
In future years, Letters of Request submittals will be accepted beginning no later than July 1 for the upcoming budget year, starting January 1.
Please note: submitting a Letter of Request does not guarantee funding; it merely aids in planning and budgeting for future expenditures. Projects will be invited to formally apply once the annual budget has been approved.
*Optional* Schedule a Pre-Submittal Meeting.
It is highly recommended that interested applicants schedule a pre-submittal meeting with Housing Staff for feedback on project and technical assistance before submitting a letter of request. Meetings can be requested by emailing housing@gjcity.org or calling 970-256-4081.
Submittal Requirements:
Please submit a formal letter of request to housing@gjcity.org beginning June 1, 2025 and no later than July 1, 2025, at 6 PM. Letters should be addressed to the Director of Community Development.
Letters of Request must include the following:
- Project Name, Ownership, and Developer Information
- Expected Date of Requested Funds
- Amount of Total Units Proposed in the Project
- Indicate whether the units will be for-sale, for-rent, or a mixture thereof.
- Specify the AMI (Area Median Income) proposed for the units.
- Number of Affordable Units
- Description of Sources & Uses for the Project
- Other Relevant Information
- Estimated Project Completion Timeline
- Any additional details that may demonstrate the ability and capacity to perform.
Eligible Fee Waivers:
Developers can receive waivers for the following fees:
- Development Impact Fees: Includes Transportation Capacity Payment (TCP), Police, Fire, Parks, and other impact fees as adopted.
- Enterprise/Plant Investment Fees: Includes City Sewer PIFS and Water Tap Fees. Applicable ONLY to City of Grand Junction water and sewer services. Fees for Ute or Clifton Water will not be considered.
Affordable and Attainable Housing Unit Requirements:
Projects approved for Incentives must commit to a minimum affordability term of 30 years. This requirement must be secured through an enforceable mechanism such as a recapture agreement, land use restriction, deed restriction, use covenant, or another comparable document commonly used in affordable housing. If a qualifying long-term affordability mechanism is already in place, no additional instrument may be required, pending review of the City's legal team.
Fee Waiver Details:
For Rental Projects: The City will waive and/or reduce impact fees (excluding water and sewer) for rental units up to 90% AMI, in the percentages shown below. For projects at or below 60% AMI, the City will require projects to apply for payment of City water and sewer fees on behalf of the project, and will be approved based on annual budget appropriation. For projects above 61% AMI, the developer is responsible for the payment of Water/Sewer Fees.
Rental Units AMI Levels Impact Fee Reduction City Water/Sewer Fee Payment 60% AMI and below 100% Developer must Apply through the Annual Letter of Request Process 61-70% AMI 100% Developer must pay 71-80% AMI 75% Developer must pay 81-90% AMI 50% Developer must pay For Homeownership Projects: The City will waive and/or reduce impact fees (excluding water and sewer) for homeownership units up to 120% AMI, in the percentages shown below. For projects at or below 100% AMI, the City will require projects to apply for payment of City water and sewer fees on behalf of the project, and will be approved based on annual budget appropriation. For projects above 101% AMI, the developer is responsible for the payment of Water/Sewer Fees.
Homeownership Units AMI Levels Impact Fee Reduction City Water/Sewer Fee Payment 100% AMI and below 100% Developer must Apply through the Annual Letter of Request Process 101% to 110% AMI 100% Developer Paid 111% to 120% AMI 50% Developer Paid The Grand Junction Housing Authority, and it's Special Limited Partners, are exempt from paying development related fees, and fees will not be backfilled by the City of Grand Junction.
For Prop 123 funding sourced projects: (including Equity, Concessionary Debt, and/or downpayment assistance Projects) regardless of AMI, the City will waive 100% impact fees. For Enterprise (City Water & Sewer Fees), the City requires developers to apply for fees to be paid on behalf of the project through the annual letter of request process.
Submission Process:
1. *Optional* Schedule a Pre-Submittal Meeting. It is highly recommended that interested applicants schedule a pre-submittal meeting with Housing Staff and/or Community Development Director for feedback on project and technical assistance before submitting a letter of request or application. Meetings can be requested by emailing housing@gjcity.org or calling 970.256.4081.
2. Submit a Letter of Request. Interested developers can submit a Letter of Request to assist city staff in estimating budget requests for the following year. Please note that submitting a Letter of Request does not guarantee funding; it merely aids in planning and budgeting for future expenditures. Letters of Request will be available no later than July 1 for the upcoming budget year, starting January 1.
3. Receive an Invitation to Apply for Funds. Once the annual budget allocation has been finalized, City staff will extend a formal invitation for projects to apply for the Incentive. This process will ensure that all eligible projects are considered based on available funding and program guidelines.
4. Application Review and Funding Reservation. Projects will be reviewed and a formal recommendation will be made to City Council for projects that demonstrate the ability and capacity to perform to the City Council for final approval and funding allocation.
Incentive Agreement:
Projects that are selected to receive an incentive by City Council, will have an agreement executed between the developer(s) and the City which shall include all of the following:
- The value of the maximum amount of the fee waiver
- Terms for the commencement and completion of the project
- Payment Schedule for fees by the City
- Remedy for Default
- Recording Memorandum
- For rental units: A land use restriction and/or deed restriction requiring affordability for a minimum of 30-year term.
- For-Sale units: A land use restriction and/or deed restriction requiring that the finished homes be sold to an eligible buyer and outlining how that document will be released at resale to an eligible buyer upon adequate documentation of compliance with the long-term affordability requirements (outlined in Afforability Section).
- Other provisions, as deemed appropriate by the City Attorney.
Maintenance of Agreement:
The City will require the developer or through a contractor to:
- Income Qualify renters and/or buyers
- Review and approve sample rental lease agreements on all affordable rental units verifying maximum rent (plus utilities and other expenses related to the rental unit) do not exceed 60% AMI or other rental caps for the unit. No unit or portion of the unit shall be sublet; and
- Conduct periodic audits at intervals deemed necessary or appropriate. Audits could include: compliance with long term affordability requirements, lease terms and income certification of all renters and buyers.
Long Term Affordability:
The long-term affordability requirement shall be enforced through the use of a document/documents recorded on the property pertaining to the applicable units, which may include:
- land-use agreement
- deed restriction
- regulatory benefit use covenant
- recapture provision
- restriction or other comparable documents commonly utilized in affordable housing models
- At minimum, the document shall include the following provisions:
- Provisions requiring the continued occupancy of the unit by an eligible renter or owner during the affordability period.
- The affordability period of at least 30 years.
- For rental units, a provision disallowing the unit as a short-term rental during the affordability period
- For sale units, a provision requiring ongoing owner occupancy during the affordability period.
For a full list of current program administrative procedures, click here.
Affordable and Attainable Housing Incentive Resources
Below is a list of informational tools, terms, and resources you may need to understand the Affordable and Attainable Housing Incentive Program and how it works. For any additional questions, please contact the Housing Division at housing@gjcity.org or 970-256-4081.
Area Median Income:
"Area Median Income" or AMI - means the area median income regularly determined and published for Mesa County by the United States Department of Housing and Urban Development (HUD), Colorado Division of Housing (DOH) or the Colorado Housing and Finance Authority (CHFA). For specific questions or to learn more about income-qualifying tenants please contact the Housing Division at housing@gjcity.org or 970-256-4081.
"Affordable Unit" means any primary or multi-family dwelling unit for rent for 60% AMI or below or a primary or multi-family dwelling for sale for 100% AMI or below for income-qualified households.
Fees:
Sewer Plant and Water Plant Investment Fees:
You can learn more about current Sewer and Water Investment Fees and view a current fee schedule by visiting the City's Utility Billing Department Website or calling 970-244-1520
1) Sewer Plant Investment Fee - means a plant investment fee (PIF) collected on behalf of Persigo Wastewater Treatment Facility. Does not include any fee collected by any other wastewater providers (Ute water, etc).
2) Water Plant Investment Fee - means a plant investment fee (PIF) collected on behalf of the City of Grand Junction. Does not include any fee collected by any other water provider (Ute water, etc.)
Development Impact Fees:
You can learn more about the current Development Impact fees and view a current fee schedule by visiting the City's Community Development website or by calling Community Development at 970-244-1430.
Development Impact Fees or Impact Fee - means certain fees now collected or as may be later applied and collected, also known as Development Impact Fee(s), for the purposes of fire, police, parks and recreation, transportation capacity and/or other governmental functions and services).