Grand Junction City Council moved forward with a significant affordable housing project on Wednesday, September 16, granting approval for the first 48 homes in the Salt Flats subdivision. The council’s 6-0 vote allows Grand Junction Homes LLC, an affiliate of the nonprofit Rural Homes Colorado, to proceed with construction over the next year.
The development, situated off 28 Road near Grand Avenue, marks the initial phase of a larger vision for the Salt Flats subdivision, where officials anticipate around 450 homes will eventually be built. Council members’ approval came after an hour of discussion and public comments, primarily focused on the planned homes' potential selling prices, which are designed to be tied to buyers' income levels rather than fixed dollar amounts.
Mayor Laurel Lutz addressed the pricing debate, stating, "I feel like us sitting and going back and forth about the price of the units is not really necessary. If it’s too high, they’re not going to sell." Lutz added that her personal opinion on pricing was "a little bit of a moot point, at this moment," suggesting that market dynamics would ultimately resolve such issues.
According to David Ware, CEO and President of Rural Homes Colorado, the houses planned for the area will be "modular," meaning they will be manufactured offsite and then assembled in Grand Junction. Once complete and on the market, the sale price of these homes will be governed by specific deed restrictions aimed at maintaining affordability.
These deed restrictions include several key stipulations. Buyers must have an annual income no greater than 100% of the Area Median Income (AMI). Based on 2025 data, this translates to $71,400 for a one-person household or $81,600 for a two-person household. Furthermore, the maximum sale price of a home is capped so that a buyer's combined monthly housing payments—including mortgages, interest, property taxes, home insurance, and association fees—do not exceed 35% of their annual income at the time of closing.
Resale of these homes is also restricted for the next 40 years. Any future sale must adhere to the same 35% monthly payment stipulation for the new buyer, or the price cannot represent a growth of more than 3% per year since its last sale, whichever amount is lower. These limitations are designed to preserve the affordability of the properties over time.
Despite the specific requirements, interest in the Salt Flats properties appears high. David Ware indicated that Rural Homes Colorado currently has "over 300 people on the interest list for these 48 houses." He also affirmed the developer’s flexibility, stating, "If we have to make price adjustments, we will. I don’t want the inventory to sit there any more than anybody else."
Among those interested is Grand Junction resident Keith Pierce, who spoke during the public hearing. Pierce shared his desire to remain in the Grand Valley with his fiancée, noting their challenges in the current job market. He expressed hope that a program like Salt Flats could allow them to "make a go of it here in this town, could give back to our community."
The city's involvement in the project includes selling a parcel of property to Rural Homes Colorado for $0. This followed the city's acquisition and preparation of the larger 21.78-acre site, an effort that cost approximately $5.75 million. City staff reported that about $2.55 million of this sum came from Grand Junction’s municipal budget through grant matches, incentive payments, and infrastructure spending, with the remaining funds sourced from a mix of outside grants.
These grants came with specific requirements, notably a state-imposed obligation for Grand Junction to implement deed restrictions on the properties. Interim City Attorney Jeremiah Boies confirmed that "these deed restrictions were the subject of much negotiation over the last several months." He added that the parties had "come to a (common) ground amongst all the parties."
The project experienced delays leading up to the council's vote. A groundbreaking ceremony for Rural Homes’ project, initially planned for August 15, was postponed just over a week before it was scheduled. Action items related to the subdivision had been listed for City Council consideration multiple times in recent months but were consistently pushed to later dates with minimal public discussion, indicating the complexities involved in finalizing the development agreement.
