22 May Mountain Village: Rural Homes to Develop Workforce Housing
Town of Mountain Village selects Rural Homes to develop workforce housing in Ilium Valley.
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The Town of Mountain Village has selected Rural Homes, a subsidiary of the Paradox Community Trust, as its development partner for the Ilium Valley Community Housing project.
The partnership is expected to result in up to 49 deed-restricted units at two sites in the Ilium Valley, addressing a critical shortage of affordable housing for the employees and workforce families of the Telluride Mountain Village region.
Rural Homes is a nonprofit, vertically integrated developer with a track record of delivering affordable workforce housing in Colorado mountain communities. The organization has built and sold 59 homes across three neighborhoods in Norwood, Ridgway and Ouray over the past two years, each completed on time and within budget.
Rural Homes will initially serve as the consultant and Owner’s Representative in a Phase 1 Pre-Construction Contract to lead a deep dive into entitlement strategy, funding, and constructibility. Phase 2 of the contract is projected to cover the construction and delivery of the homes through 2028.
“We are very excited to partner with the Town of Mountain Village to transform this parcel into a little neighborhood owned by folks who make this community function: the workforce,” said Sheamus Croke, Director of Sales and Marketing at Rural Homes. “By leveraging modular construction and affordable financing, we can deliver high-quality homes quickly and cost-effectively, which means we can build homes priced for those who work in the community and want to grow roots here.”
The Town issued a request for proposals in early April, received 9 submissions, and interviewed the top 3 finalists, including Rural Homes.
“We are grateful to the applicants for providing such a solid and experienced suite of submissions,” said Interim Town Manager Michelle Bulson. “While there were several strong submissions, we ultimately selected Rural Homes for their relevant experience and cost-effectiveness. I’ve watched Rural Homes mature as a non-profit developer of affordable housing in the region. They stood out for the housing selection committee and we are thrilled to partner with them to realize such important work.”
Through this partnership, the Town and Rural Homes will revisit the market study completed in 2024 and work together to determine what unit type and mix is most appropriate for our region. The project aims to construct a mix of for-sale and for-rent units with deed restrictions similar to those in other Mountain Village projects.
“The Town and Rural Homes are mission aligned,” said Bulson. “We both have realized that there is no reason to build deed-restricted housing if it lacks affordability. This is what we will strive for.”
Under the proposed structure, TOMV will contribute the development parcels, and Rural Homes will lead all phases of development — from feasibility and entitlement through construction and home sales. The project is structured to minimize financial risk and ongoing obligations for the Town. Rural Homes brings its own low-interest construction loan funding and has secured access to state and foundation grant sources that can further reduce home prices.
“The lack of affordable housing in Mountain Village directly affects all employers’ ability to recruit and retain employees and threatens the long-term stability of our community,” said Mayor Scott Pearson. “This partnership with Rural Homes gives us a clear, credible path to homeownership for the people who make this community work.”
The project hopes to break ground on Phase 1 in fall 2027, with first move-ins in late 2028 and Phase 2 completions in 2029. Homes will be pre-sold to qualifying TOMV employees and local workforce buyers prior to construction. However, in advance of this aspirational timeline, feasibility and a county entitlement process will begin.
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