Workforce Housing Incentives

HousingProgram Objectives

City of Montrose workforce housing incentives are targeted at creating housing opportunities that are “below a $250,000 purchase price or 33% of median county household income per month in rent.” The program incentivizes builders and developers to keep pricing “attainable” so current and potential residents making a “working” wage can afford housing. In turn, more readily available and attainable housing makes Montrose a more attractive community for talented professionals who may have difficulties finding comparable opportunities elsewhere. By showcasing its workforce housing program and quality housing that is available to these professionals, they are more likely to choose our community over another.

The City of Montrose provides workforce housing incentives for projects within the city limits, with special emphasis on the historic downtown core and the city's "REDO District" to:

  • increase build density and help prevent “urban sprawl”
  • create a larger population of residents who are within walking distance of downtown amenities as a built-in customer base for downtown businesses 
  • promote a healthy community through increased walkability and bikeability
  • reduce traffic and parking issues
  • make efficient use of public services and infrastructure
  • increase efficiency of building use on Main Street by promoting a mixture of retail, service, and residential use

Mixed Use Building Incentives- Renovation to Existing Structures

These incentives are intended to mitigate risk and cost for building owners to renovate their buildings while producing the added benefit of providing apartments/lofts in the downtown core. Incentives are available for the following types of renovation projects:
  • External improvements to the overall building
  • Asbestos abatement
  • Costs associated with historic preservation: windows, façade, and interior restoration. Must be registered on the local historic register- Once the city becomes a CLG. Consider matches or supplements to state and federal credits received by building owner.
  • Building permit and tap fee abatement - Consider combining tap fees
  • Parking provisions (most applicable on Main Street and blocks connecting to Main)
  • Improving the “curb appeal” (sidewalks, landscaping, signage, blight removal, and other requests on a needs basis)

New Construction

Housing incentives for construction of new residential units are intended to mitigate risk and cost for developers/contractors that are considering purchasing land and building new housing units within city limits. The program is intended to provide housing units for purchase or rent at an attainable price (see above). Incentives could include the following, depending on the nature, location, and circumstances of the proposed housing project:
  • Demolition of existing structures
  • Building permit and tap fee abatement
  • Assistance with construction of sidewalks and/or parking lots
  • Allowances for landscaping and green space
  • Soil testing
  • On-street parking allowances
  • Other items considered on a case-by-case basis

Incentives Requirements

  • Project Plan (simplified business plan)
    • Include projected sale or rental price (must be under $250k/33% median county income in rent)
    • Include ways the project will address workforce housing needs, number of units provided and overall concept
  • Site Plan
  • Project cost
    • Project must be at least 20% self-funded (non-loan or incentives funds)
  • Formal written request for incentives
  • Project must include at least three housing units
  • Two years tax returns (personal or business if applicable)