At the meeting on April 5, 20203, Grand Junction City Council approved a Land Acquisition and Building Program (LAP) in response to a generalized shortage of affordable housing in Grand Junction. City Council has approved $3,373,337 from the $9 million in American Rescue Plan Act (ARPA) funds allocated for Grand Junction.
The primary purpose of the proposed LAP is to provide funds to assist developers and non-profit organizations in acquiring property and/or land to subsidize the cost of developing affordable housing to alleviate the housing shortage in the Grand Junction area. Property and/or building acquisition costs, especially in developed areas of the city, are a major component of the cost of developing affordable housing. In current markets, land and/or building acquisition is approximately 10-15 percent of the overall project.
The LAP program will allow applicants to apply for funding to purchase land or buildings on a project-by-project basis for the purpose of building affordable units or converting existing structures into affordable units. Projects will be assessed using a scoring matrix on four primary aspects including readiness and capacity, impact on housing needs, sustained and equitable support, and sustainable development. Projects must “meet expectations” in all categories to be considered for funding. Projects under $300,000, and that meet or exceed expectations in all categories, will be considered for funding through an administrative approval process and would not need to go to City Council for approval.