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Housing Needs in Mancos

The Town of Mancos is prioritizing the shortage of workforce housing.  Community, school and businesses sentiment on the need for more types of housing at different price points and increased density are the most pressing concerns.  To respond to the burden a lack of attainable housing has on the resiliency of our community, the Town of Mancos has taken several steps towards better defining the issue through data collection, policy changes and exploring new partnerships with local and state organizations.  The Town of Mancos has opted into the Proposition 123 Commitment to increase the affordable housing stock by 9% over the next three (3) years to produce 15 additional units. 


How was the baseline affordable units determined?
The State of Colorado required that the baseline of affordable units be determined by data collected from The American Community Survey (ACS) or the Comprehensive Housing Affordability Strategy (CHAS). These data sets determined the number of households living at various income levels and how many units in each jurisdiction would be available and affordable for those household to rent or buy.

"Affordable" in this context means that an individual or family is spending no more than 30% of their annual income on housing costs. Families spending more than 30% of their annual income on housing are considered "cost-burdened."

Proposition 123 Background


Several hundred million dollars for affordable housing became available in the second half of 2023 due to the enactment of Proposition 123 by Colorado’s voters in 2022. Many of the current programs directly benefit private developers. This funding will be overseen by the Department of Local Affairs (DOLA) Prop 123 and the Governor's Office of Economic Development and International Trade (OEDIT).  and may be granted or loaned to the following types of organizations:
  • Non-profits
  • Community land trusts
  • Private entities
  • Local governments

 
Organizations are only eligible for this funding if their project or program take place in municipalities, counties, or tribes that have committed to increasing their affordable housing stock above a baseline amount; jurisdictions that have accepted commitment filings can be found at this link . Stakeholders should regularly visit DOLA to find explanatory articles and resources, and to offer feedback that shapes future materials, policies, and procedures relating to affordable housing commitments, and funding programs overseen by the Department of Local Affairs. 

The Colorado Housing and Finance Authority (CHFA) manages several of the Prop 123 programs for the State.  These include:
  • Land Banking:  grants available to local and tribal governments, and forgivable loans to non-profits
  • Equity Program:  provides below-market-rate equity investments to eligible for-profit and nonprofit entities for the construction or preservation of low- and middle-income multifamily rental developments.
  • Concessionary Debt:  provides loan options to for-profit, nonprofit, and governmental entities to support affordable housing investment.   
  • Innovative Housing and Modular Manufacturer Financing:  programs finance the development or expansion of innovative housing manufacturing facilities, including panelized, tiny homes, kit homes, and potentially 3D-printed (if there’s an offsite component). Timber Age Systems was awarded funding to build a facility in the Town of Mancos.  

Town of Mancos Housing Strategy

The Town of Mancos has invested resources to provide the Board of Trustees, the community and potential development partners with the best available data to make decisions that address the housing needs across a broad spectrum of ages and incomes.  In the past several years, the Town has taken the following steps:
  • Commissioned the Mancos Housing Needs Assessment in 2017.
  • Provided community outreach to determine the most desired types and density of new housing development.  
  • Received a DOLA grant to update landuse codes that incentivize affordable housing, including fast-track review affordable housing project applications. 
  • Partnered with the Mancos Commons and the Mancos Conservation District non-profits to act as a pass-thru for state housing funding resulting in the development of five affordable rental units.  
  • Developed a policy that allows the Town to negotiate development fees and other elements for affordable housing projects on a case-by-case basis subject to Board of Trustees approval.
  • Commissioned the Mancos Housing Demand analysis in 2024 to provide information on market demand for different types of housing for the Town.  

With Mancos opting into the Proposition 123 housing program and for the proposed site for a panelized housing manufacturing facility, it is important to define what affordability means within Mancos and Montezuma County. The term “affordable housing” is not very well defined and can vary depending on one’s perspective. When forming local housing policy, it is important to have a clear definition of “affordable,” “attainable”, and other housing terms as these become important when applying for grants and opportunities.

Housing affordability is determined by two main factors, housing size and household income. Household income is set by the Federal Department of Housing and Urban Development (“HUD”) and updated every year. HUD publishes the “Area Median Income” (“AMI”) tables which are used by the State of Colorado and the Colorado Housing Finance Authority (“CHFA”) to determine affordability criteria.  Mancos is subject to the AMI charts from Montezuma County.

AMI allows agencies and funders to determine eligibility for affordable housing programs, helps establish affordable rent and sale prices, and a method to determine housing costs across multiple markets. Understanding AMI levels in a community also helps to inform “housing burdened”, which occurs when households spend more than 30% of their income on housing costs. 


Mancos Housing Snapshot (2024)
  • The average monthly cost with a mortgage in the area is $1,500.00
  •  66.2% of residents in Mancos own their homes, while 33.8% rent.
  • Almost 50% of homeowners are between the ages of 45 and 74. 
  • Average sale price for homes (not including open lots or mobile homes) was $415,565 between April 2023 - April 2024. 
  • Comparing the ACS 2022 5yr home value data to the average home value since April 2023, homes prices have increased by 47.9% in the last two years. 
  • To meet current demand, Mancos needs 21-25 additional rental units, and 11 to 13 additional units for-sale depending on the price.  

See the below reports for details on housing and water sufficiency for the town.  If you have questions about the entitlement process, landuse, building permits or to discuss creative opportunities to partner, please contact the Community & Economic Development Director, Jason Armstrong, at jarmstrong@mancoscolorado.com or 970.394.4780.  
 

 
  

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