An affordable-housing developer with investment in Montrose got news last week that it would receive $8 million toward a new project that would mean 60 new units, only available to individuals and families that make a percentage of the area median income (AMI) in the area.
That exciting news came as the developer, RealAmerica puts plans together to finish its first Montrose development — also AMI housing — next month.
“This (new project) would be a standalone project, but it would sort of be a complimentary second phase to that existing development,” Michael Surak, executive vice president for Indiana-based RealAmerica, told the Montrose Business Times this week.
The project being finished now is called the Residences at Dry Cedar Creek and is located on Ogden Road, behind the Montrose Recreation Center.
The Residences at Dry Cedar Creek, scheduled to take occupants next month at 1910 Ogden Road. (Justin Tubbs | MBT)
That project was made possible largely due to a program through the Colorado Housing and Financing Authority (CHFA) which granted RealAmerica 9% in tax credits, or about $1.3 million.
Those apartments, described essentially as “workforce housing” by Surak, consist of more than 60 units available to individuals and families making between 30% and 60% of the average median income in Montrose, which is determined by the U.S. Department of Housing and Urban Development (HUD).
Monthly rent for those apartments will run from around $450 a month for a one-bedroom apartment to $610 for a three-bedroom apartment, well below the average cost of rent in the area.
Surak said, despite the apartments being incomplete at this point, have received around 100 applicants, meaning there would likely be await list for many once they are complete and open.
The project announced last week is still in the early phases, but it is being called Black Canyon Flats.
Shortly after beginning development on the Residences at Dry Cedar Creek, RealAmerica invested in an adjacent lot with the idea they may be able to develop it in the future.
Surak said the Black Canyon Flats project will likely cost a little around $22 million, and the $8 million awarded, through CHFA and the Colorado Office of Economic Development and International Trade (OEDIT) comes via the Proposition 123 Affordable Housing Programs that were approved by voters in 2022 and passed into law in 2023.
The Montrose project was named as a winner in the very first round of funding that resulted from Prop 123.
“They awarded six projects for a total of $39 million, which is incredible because we got $8 million which represents more than 20% of the total allocation,” Surak said. “The fact that the city of Montrose is getting 20% of those funds is a huge win for the community and the residents that need it most.”
These newly announced apartments will be primarily for those making between 80% and 100% of the AMI.
Surak said RealAmerica has taken an interest in Montrose as they’ve seen a need for affordable housing here and have found the City of Montrose easy to work with.
“We’ve had a very good relationship with the city,” Surak said. “They recognize the need for affordable housing and housing of all types. Any development is difficult, so to have a partnership like that with the city is crucial.”
Justin Tubbs is the Montrose Business Times editor. He can be reached by email at justin@montrosebusinesstimes.com or by phone at 970-765-0915 or mobile at 254-246-2260.
