Taxpayer-Funded “Affordable” Housing in Salida: Expensive, Inefficient, and Often Empty

Vince Phillips

The Chaffee Housing Authority’s March 2026 update to City Council paints a picture of progress: closed financing for projects like The Flour Mill and The Crossing, Molly House preparing for its first families, and expanded navigation services for the unhoused. But buried in the details is a troubling reality that Salida taxpayers deserve to understand: despite millions in public subsidies, newer “affordable” units like Jane’s Place sit partially empty months after opening. 

Jane’s Place (13 workforce apartments) received its Certificate of Occupancy in early January. By early March, only two studios and one one-bedroom were leased.

Winter leasing was “slow,” per CHA’s own memo, with seven one-bedrooms still vacant as interest picks up for the spring season. Rents? Studios at $1,260, one-bedrooms $1,460 to $1,575. These are marketed as “affordable” under federal guidelines, but the math doesn’t add up for the very people they’re supposed to serve. Here’s why.

First, the cost to taxpayers is staggering, and grants aren’t “free.” Jane’s Place and similar projects rely on massive state and federal subsidies: Proposition 123 equity, Department of Housing grants, and Low-Income Housing Tax Credits (LIHTC). Per-unit development costs routinely hit $335,000 to $440,000. CHA’s 2026 budget shows millions in spending against limited local revenue, drawing down their reserves. These housing units must be rented to generate revenue and sustain the system.  Note that these “Affordable Units” are also fully exempt from property taxes, shifting that burden directly onto the rest of us: homeowners, businesses, and working families who pay full freight.

Second, the units often stay empty (or lease slowly) because federal Area Median Income (AMI) rules create a structural mismatch. CHA properties follow HUD income tiers (30 to 80% AMI). For a single person in Chaffee County, 60% AMI is roughly $43,200. To afford Jane’s Place rent without exceeding the federal “30% of income” affordability standard, you’d need $50,000 to $63,000 annually, far above what many local service, retail, and seasonal workers earn. Even qualifiers at the lowest AMI levels often can’t cover Salida’s elevated living costs (groceries, utilities, no public transit) after rent.

This mismatch doesn’t just affect shiny new projects, it plagues decades-old affordable housing too. Properties like Riverbend Apartments (built 1997, 30 units at 1500 Holman Ave) now show signs of shorter waits or periodic openings rather than the perpetual full waitlists of the past. Affordable housing directories indicate Riverbend “probably doesn’t have a waiting list, and if it does, the wait times are most likely short,” with similar patterns in other CHA-managed or other older stock. 

Turnover exists, but the same rigid AMI verification, income disclosure rules, and rent-wage disconnect deter or disqualify applicants, leaving units vacant or slow to fill even after the complex has existed 25 to 30 years. These structural inequities keep existing supply underutilized, wasting past investments and underscoring why we must fix the process and fill existing housing before building more units.

Market-rate apartments in Salida (unrestricted units of similar size and condition) currently rent for more: studios typically $1,585 to $1,789, one-bedrooms $1,850 to $2,000 or higher. Jane’s Place rents are therefore 20 to 40% below market rates, which sounds like a meaningful discount. But that discount is largely irrelevant when the pool of people who can actually qualify under the strict federal AMI and verification rules is so narrow that many potential renters are excluded from the start.

Worse, the rules are rigid. All adult household members’ income must be fully disclosed and verified, no “qualify low, then add a roommate” loophole. New occupants trigger recertification. This prevents abuse but locks in the mismatch: the people who meet the strict federal criteria frequently can’t sustain life here, while higher-earning locals are priced out entirely.

This isn’t unique to CHA or Salida. Colorado mountain towns statewide report the same AMI skew: wealthy retirees and second-home owners inflate the AMI median, excluding the workforce these projects target. Jane’s Place isn’t a failure of management; it’s a symptom of a flawed, taxpayer-heavy model.

The red tape, mandatory verifications, rent caps, annual recertifications, and household rules, are real and entrenched because they protect federal funding streams. 

Bottom line: Many people believe these programs are primarily helping the poorest and most vulnerable residents, the low-wage workers and unhoused families who need the deepest support. But the goalposts have quietly been moved. New state reforms and funding streams increasingly prioritize “middle-income” households (80 to 120% AMI), teachers, nurses, and other essential workers who earn above the lowest tiers but still struggle. While that helps retain some workforce, it diverts limited public dollars and subsidies away from the truly low-income families who were the original focus. In many cases, the poor are taxed to subsidize housing for people who earn much more than they do.  All taxpayers funding these projects deserve to know the shift is happening and what it means for real affordability in Salida.

We need housing that works for Salida’s workers, not just federal box-checking. Billions in grants and tax breaks have produced some units and bridge services like Molly House, but at what ongoing cost to the broader community? Empty apartments don’t house locals; they waste public dollars.

The voters of Chaffee County must demand accountability: better metrics, cost-effectiveness audits, and a shift toward supply-side solutions that actually lower barriers without shifting burdens. Ribbon-cuttings are a great photo-op for local politicians and dignitaries. But asking the taxpayer to fund additional construction while existing affordable housing sits empty is a sure sign the system is broken.