The Glenwood Springs City Council held an in-depth discussion Thursday regarding proposed updates to Habitat for Humanity’s The Confluence project, a six-unit affordable housing development planned along Eighth and Midland Avenue. Rising costs and changes to the project scope prompted Habitat to seek adjustments to the 2022 memorandum of understanding (MOU) between the organization and the city.

Project background and changes

Initially slated to be an eight-unit development, The Confluence plan was scaled back to six units due to site constraints. The two buildings now consist of four two-bedroom units and two three-bedroom units, offering a mix of options for families.

“This is final, final,” Community Development Director Hannah Klausman said. “This is moving to actual construction phases. These are not concepts up for debate tonight.”

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Klausman explained that a second parcel, located on Airport Road, was removed from Habitat’s plans after significant challenges arose.

“There was a large change in Habitat’s plans,” Klausman said. “The second parcel had significant geographic constraints that made it really challenging to pull off. Habitat spent significant amounts of time and financial investment to determine it wasn’t financially feasible.”

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The council unanimously approved updating the MOU to reflect the reduced unit count and remove references to the Airport Road site.

Financial challenges and requests

Habitat representatives provided details to the council about the financial difficulties tied to rising construction costs and changes in financing options. Habitat CEO Gail Schwartz clarified the project’s financial gaps and funding structure during the discussion.

Schwartz explained that the financial gap for each unit is $221,000, which Habitat plans to cover through various means, including grants, donations, and state funding. She noted that Habitat initially considered asking the city for $340,000 for two priority units but ultimately settled for $150,000 for one unit. The $150,000 covers only the right for the city to have an employee purchase the unit, with the employee responsible for buying the home at an average price of $350,000, depending on its size.

“These units will be deed-restricted to ensure long-term affordability, allowing them to appreciate by only 3% annually,” Schwartz told the Post Independent. “This way, the city retains the ability to nominate employees for future purchases while maintaining affordability for the community.”

Debating priority units

The council spent much of the meeting debating how many priority units should be allocated and who should be eligible. Priority units allow specific employers, such as the city or other organizations, to ensure housing for their employees.

Klausman explained the reasoning behind the city’s approach to priority units.

“We wanted to make sure it wasn’t all dominated by employers that owned them as priorities,” Klausman said. “At least some of the units should be for any community member who works in the area and meets the criteria.”

Klausman explained that the MOU currently ties Habitat’s ability to sell priority units to the number the city purchases, capping the total at four. Habitat sought permission to sell up to four priority units regardless of the city’s purchases, a move aimed at closing the project’s financial gap.

Councilor Jonathan Godes questioned whether this approach might limit access for smaller employers and local workers.

“The idea is about the small employer,” Godes said. “I think that is where we’re trying to keep the community in mind.”

Ultimately, the council approved allowing Habitat to sell three priority units total: one to the city and two to other employers, leaving three units available for general community access.

Expanding eligibility criteria

Habitat also requested raising the area median income (AMI) limit from 80% to 100% for The Confluence project. The increase would expand eligibility to include families earning slightly more, which Habitat said would help reduce the financial gap.

“Going to 100% AMI helps make the project more viable,” Klausman said. “It opens it up more to members of the community who fit into that above 80% range.”

The council approved the AMI increase after a discussion about its implications for affordability and community access.

Funding and timeline

During the meeting, councilors discussed potential sources of funding for the city’s contribution to the priority unit, including the Acquisition and Improvement fund, a source of revenue for the city that is used for capital projects and infrastructure improvements. Schwartz acknowledged the challenges in securing the remaining funds needed to complete the plan.

“We’re still working on grants and fundraising,” Schwartz said. “This is a scenario where we need every possible funding source to make this project viable.”

Despite the financial hurdles, Habitat emphasized its commitment to moving forward.

“We had a contract fundraiser and we didn’t have a robust fundraising effort associated with the project,” Schwartz said. “We expected $1.2 million, and we actually ended up with about $300,000 so this is where we’re continuing to fundraise. We’re continuing to pursue grants. We’re continuing to bring our efforts to the table. But just to be totally transparent that there was a shortfall there on the fundraising side, and we would love the community to step up.”

Schwartz added that Habitat’s enterprise zone designation allows donors to receive accelerated tax benefits when they identify specific projects, such as The Confluence, as the recipient of their contributions. 

“Several gifts have already come to us for The Confluence project, and we will continue applying for state grants and seeking additional donations,” Schwartz told the Post Independent.

To donate or help fundraise for The Confluence project, visit, habitatroaringfork.org