Potentially first in the process is the Lake Fork Project with condos and apartments on town-owned Henson Street property north of Lake City Area Medical Center, conceptual modeling at right.
February 11, Town of Lake City Trustees and Hinsdale County Commissioners, along with members of the Town Planning & Zoning Commission, met at the Town meeting room to review the final draft of the Affordable Housing Plan.
Vision statement “To provide housing opportunities across all life stages, enabling residents to find appropriate homes as they begin careers, raise families, and retire in the community they love.”
The Housing Plan is a story built on numbers, the numbers that define the crisis, the numbers that paint the backdrop, and the numbers that may lead to a solution.
The presentation, led by Sarah McClain of Western Spaces, began with a review of how the plan was built by the community, with 97 household surveys and 21 employer surveys starting the process, shining a spotlight on the housing crisis. There were 20 working group meetings that included representatives of the Town and County and the consulting group. There were also three steering group meetings with more than 20 participants, including representatives from across the community.
There were four public meetings with members of the consulting group, the County Commissioners, and Town Trustees, together with members of the Town Planning & Zoning Commission.
Numbers further define the scope of the housing crisis.
The survey that began the planning process revealed there are 24 unfilled jobs due to lack of housing, and one in five households are in danger of being displaced. There are zero long-term rentals while there is a 72 percent housing vacancy rate due to the seasonal nature of the Lake City community. The population of Lake City has declined since 2010 while housing costs have continued to rise, with the median home price topping out at $563,000, up 25 percent since 2022. The student population has dropped as well, leaving the school short in funding from the state based on student counts.
The housing crisis affects every aspect of life in Lake City, from the seniors wanting to age in place to the families wanting their children to attend a supportive small-town school. Except there is no place for the seniors to downsize to, and no place for young families, and no place for new teachers or new government employees. With 52 percent of the housing share, couples without children dominate the housing market, while families with children make up only 18 percent.
According to the Employer Survey, “When there aren’t enough workers in the service industry, tourism begins to decline. Restaurants, hotels, shops, and entertainment venues either reduce their hours or shut down entirely.”
In-depth analysis of the crisis and examination of both the strengths and weaknesses in the local housing market, along with numerous conversations with stakeholders led to a series of recommended steps and strategies to chip away at the housing problem.
The goal of each strategy is to create housing opportunities. The plan estimates 20-40 units can be created or recovered through legislative steps, the easiest way to start.
The first strategy presented involves updating or implementing certain policy changes in the Zoning Ordinances of the Town of Lake City or in the Land Use Code of Hinsdale County. Specific steps include adopting a fast-track review policy for any proposed projects that include affordable housing, which have been adopted by both the Town and County. This fast-track review will encourage developers to include affordable housing opportunities in plans. Another step adding housing units to the existing inventory is to allow Accessory Dwelling Units (ADUs) in both new construction and existing residences. The Town Planning & Zoning Commission is analyzing options so they can make recommendations to Trustees to update how ADUs are addressed in Town ordinances.
The County has instructed its Planning & Zoning Commission and County Attorney to review the entire code to streamline and update. To that end, Colorado has recently provided small governments across the state with a detailed template for just such updates. These types of policies will create a path of least resistance to housing as modifications to existing regulations.
The next strategy presented is to optimize the existing housing inventory. This strategy aims, in part, to tap into the 72 percent vacancy rate in Lake City. The Town, County, or any of the large employers in the community could work to acquire and rehabilitate some of these empty houses for employee housing. Along those lines could be grants or low interest loans for emergency home repairs and weatherization to create year-round inventory.
The Household Survey states, “The town is shrinking per census and school enrollment, and year-round residents are left with a shell of a town.” Strategy 3 is all about the need to create sustainable income for supporting the housing effort. The most urgent step in the direction of sustainability is passing a small mill levy, which ties directly to the vacancy rate of 72 percent, as these second and vacation homes will bear the brunt on the mill levy. This housing tax of 4 mills would bring in approximately $232,000, about $25 per $100,000 in assessed value. Other funding ideas include impact or linkage fees, requiring fees from some new developments, and leveraging grants for specific projects. Predictable income allows for multi-year project planning and matching funds for grants.
This is where the cultivation of partners in the community, such as Lake City Community School (LCCS), will also contribute to the efforts to ensure their ability to maintain their own workforce. The Town and LCCS have purchased employee housing, and both the County and Town have plans to create employee housing in properties which both entities already own.
The Lake City community is ahead of similar communities now tackling housing issues in that the Town has held on to property located in the 700 Block of north Henson Street, in part waiting for the very opportunity offered by this plan, and a recent emphasis on housing as a priority by the State of Colorado.
While the first two strategies may produce ten or twenty new housing units, the proposed Lake Fork project will provide 28 units altogether, ranging from condos that can be bought by individuals ready to begin their adventure in ownership or partner organizations for employee housing, to one-, two-, and three-bedroom apartment units.
Some of these units will be income restricted and some will be reserved to seniors wishing to age in the community, but together this project will make a difference. This will be Lake City’s first purpose-built workforce housing project.
Employer Survey: “We just need more housing in general. Affordable or not, it just needs to be here.”
The linchpin tying together the County and Town is the possible creation of a Housing Coordinator position and establishing a Housing Authority. Both entities applied in late 2025 for eligibility to apply for a Local Planning Capacity Grant from Colorado Department of Local Affairs (DOLA). Per the plan and according to ongoing discussions, the Town and County will each apply for $50,000 and use the $100,000 to establish a Housing Coordinator, who will provide guidance as the participants work through the plan together and separately. That person will report to County and Town, handle grants, and engage the community on housing issues, although final details are to be worked out.
County Commissioners and Town Trustees paid close attention to the various elements of the strategies in the final draft of the Housing Plan, with Commissioner Borchers expressing concern about the urgency of the language of the plan and some worry about losing flexibility to apply each strategy in a way that best suits the community. “The language should be softened,” she told the consultation team.
Trustee Whinnery voiced trepidation about some of the proposed fees associated with the third strategy, building sustainable revenue. Jeff Moffat of Triple Point Strategic Consulting, one of the original members of the consulting team, assured him that the fees he was referencing would only come into play on very large projects, stating that “The way to think about this is that we can control when these fees would be appropriate.”
Plans for continuing joint workshops to implement the Housing Plan as adopted by both the Trustees and Commissioners followed up this joint workshop at their regular monthly meetings and adopted the Plan as presented by the consulting team, with edits by Sarah McClain to soften the language, making it less commanding and more suggestive. One more joint Workshop is planned for March 11 and then they will likely move to a quarterly schedule for Housing workshops.
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