Founded in 2021, the Rural Homes Project builds and sells homes to residents who aren’t eligible for traditional, subsidized affordable housing but make far less than what is needed to buy from the existing housing stock. Currently in a pilot phase, Rural Homes uses a combination of low-cost financing, land donations, and modular building processes to build affordable, deed-restricted homes.

The organization partners with philanthropic funders and local government entities, like school districts and counties, to secure donated land for development. It then uses low-interest program-related investments from philanthropic organizations as construction loans to build new homes. To help buyers, Rural Homes works with a local bank to provide below-market rate mortgages and connects buyers with up to $32,500 in down-payment assistance from state and local philanthropic programs.

Once homes are sold, the revenue generated replenishes the fund, which finances the next round of construction in another community.

Rural Homes uses a cost-effective, time-efficient modular home construction process, incorporating energy-efficient features like solar panels that reduce long-term costs for homeowners and ensure the homes are environmentally friendly.

All Rural Homes units are deed-restricted, meaning that all future owners of the homes meet Rural Homes’ eligibility requirements, and the homes stay affordable for years to come

Since 2021, Rural Homes Project has built 38 homes in two communities and is in the final stages of building 21 homes in another. Homes range from $225,000 to $410,000, half the price of the average home in the area.[4]

In the town of Norwood, which had a population of only 536 people in 2022, new houses created a 6% increase in total property tax revenue, which the town plans to use to improve its water infrastructure.[5] The Rural Homes Project estimates that their Norwood and Ridgway projects have generated about $6,400,000 each in economic impact for the surrounding communities through construction jobs and sourcing materials from local businesses.[6]

Communities experience many positive effects from ensuring essential workers stay in their communities long-term.[7] Longer teacher tenure at schools leads to increased student performance, and longer nurse tenure in hospital units results in higher-quality patient care.[8]

Typically, philanthropic support in the form of program-related investments is matched by the state government to create construction loan funds. Project-specific grants and other philanthropy allow Rural Homes Project to acquire land and fund subsidies for home-buyers. Additional support would allow the organization to expand its operations across more rural areas of Colorado. Learn more: https://www.ruralhomes.co/