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City of Durango News Flash

Posted on: October 27, 2023

Residences at Durango breaks ground on affordable housing development


Durango, CO: The City of Durango, TWG Development, LLC and stakeholder partners gathered onsite at the former Best Western Motel, 21382 US Highway 160 West, for a groundbreaking event to commence construction for this innovative adaptive reuse project, called Residences at Durango, to create 120 affordable housing units in Durango.

Ground breakingTWG is moving forward with plans to rehabilitate the existing 72-room motel and construct 48 new units, resulting in a vibrant affordable rental housing community that will serve households earning 30%-60% Area Median Income. It is the first hotel-to-residential conversion in the state to utilize tax credit financing and is the largest tax credit project in Southwest Colorado. 

It will be a mix of studios, one-bedroom, two-bedroom, and three-bedroom units. Amenities will include a community room/kitchen, business center, exercise facility, on-site management, central laundry facility, playground, picnic area, common area Wi-Fi, and community space for non-profit service providers at no additional cost for use.

“The Residences at Durango motel conversion project is part of the city’s multi-pronged strategy to address housing challenges throughout our community,” said Eva Henson, housing innovation manager for the city. “Housing is a top priority for our city council, and increasing the community’s inventory of below-market housing units is crucial to ensure that everyone in Durango has a secure, affordable place to call home.” 

This project took shape along with many other housing initiatives to address the mounting housing crisis. In mid-2021 city council and the city manager formed and funded the Housing Innovation Division to lead Durango’s housing efforts. Numerous partners have contributed to this motel conversion project:

  • TWG staff and their attorneys,
  • La Plata County Commissioners and staff for contributing their private activity bonds, 
  • Staff from U.S. Sens. John Hickenlooper and Michael Bennet’s offices, and the federal Housing and Urban Development office,
  • Staff at the Division of Housing, Department of Local Affairs, and the Colorado Housing and Finance Authority for grants, low-interest loans, private activity bonds, and low-income housing tax credits,
  • The board and staff at the Montezuma County Housing Authority,
  • City staff from community development, engineering, utilities, and the city attorney’s office for facilitating the project reviews and ensuring transparency throughout the process,
  • Project Moxie staff,
  • And many others who have touched on this project in one way or another.

This is the first affordable housing development in the Highway 160 West corridor and will provide much needed affordable units within one mile of downtown Durango. Construction has begun and the project is anticipated to be completed in early 2025.

For more information on the city’s Housing Innovation Division, please visit our website. 

Do you have a comment, question or suggestion regarding this topic or others? ------------> Check out our "Connect and Engage" webpage and let us know!
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City of Durango logoMedia Contact
Tom Sluis
Public Information Officer 
Phone: (970) 375-5090


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