In an innovative move to address the pressing issue of housing affordability, Colorado officials have set their sights on modular homes as a quicker, less expensive solution. Governor Jared Polis, alongside the state’s economic development office and the Colorado Housing and Finance Authority, announced a significant push towards bolstering the modular housing sector within the state. This initiative aims to substantially increase Colorado’s supply of affordable housing by facilitating the construction of 4,755 modular homes annually across various locations, including Denver and Aurora.
The state has earmarked nearly $38 million in loans for eight developers, featuring below-market interest rates, to jumpstart this ambitious project. These loans, drawn from the Innovative Housing Incentive Program and the Affordable Housing Financing Fund, underscore Colorado’s commitment to innovative housing solutions. The beneficiaries include three established housing manufacturers within the state, two local startups, and three companies from outside Colorado, collectively expected to generate 1,280 jobs.
Among the projects, Littleton-based Huron Components and Azure Printed Homes from California are set to produce housing units out of Denver. Furthermore, Vederra Building Systems has announced plans to revamp a factory in Aurora for the production of more energy-efficient modular homes. These efforts represent a diverse approach to modular housing, covering panelized homes, tiny homes, kit homes, and 3D-printed homes, which aligns with Colorado’s broader goals for employment growth and housing affordability.
Colorado’s housing market has been under strain, with prices soaring above the national average. The reliance on out-of-state modular homes, which constituted about 88% of the factory-built homes in 2022, has been a costly affair for Colorado, both financially and in terms of lost job opportunities. This initiative not only aims to reduce these costs but also to reinvigorate the local manufacturing base that suffered a significant blow following the housing crisis of the 2000s.
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The strategic investment in companies like Huron Components and Azure Printed Homes is particularly noteworthy. Huron Components has secured an $8 million loan to construct 2,000 homes annually, while Azure Printed Homes is set to utilize nearly $4 million in financing to create over 350 tiny homes in Denver using innovative 3D printing technology. These technologies promise to enhance the efficiency and sustainability of home construction, potentially transforming the affordable housing landscape in Colorado.
Vederra’s $6 million loan to develop 316 units annually in Aurora stands out as a cornerstone of this initiative. The Aurora City Council’s recent resolution to streamline modular housing development underscores the city’s leadership in this area. Vederra’s focus on net-zero homes aligns with broader environmental and economic goals, promising a significant impact on the state’s housing market and economy.
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This concerted effort to boost modular home production in Colorado is not just about addressing the immediate housing shortage. It represents a broader shift towards sustainable, affordable housing solutions that can serve as a model for other states grappling with similar issues. As Colorado embarks on this ambitious journey, the potential for modular homes to redefine the housing market is immense, offering hope for more affordable, accessible, and environmentally friendly housing options for all Coloradans.
