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Habitat for Humanity outlines plan for regional modular factory in Rifle to cut housing costs
Summary
Habitat for Humanity presented a proposal to build a volumetric modular factory on leased land in Bridal/Rifle that would produce roughly 200 modular "boxes" per year to lower construction costs; presenters said they seek $3–5 million in startup capital and an additional tax-exempt bond to finance the facility.
At the Aspen City Council work session on Sept. 16, Habitat for Humanity representatives presented a regional strategy to lower housing costs by establishing a volumetric modular production facility in the Rifle/Bridal area. "Today, the best available solution for the region we think is a dedicated volumetric modular facility in the region to serve the region's needs," Josh Smith, the project's owner's engineer advisor, said during the presentation.
Presenters described a product-library approach and vertical-integration model intended to capture factory efficiencies, reduce schedule risk, and push down unit costs. Smith said factory operations and standardization could yield up to a 40% cost reduction when combined with year-round production and supply-chain optimization, and he outlined a design capacity of roughly 200 modular boxes per year (a production level Habitat estimated could translate to about 150 homes depending on unit makeup). "By designing a home like this, you're setting up owners for success," Gail Schwartz, president of Habitat for Humanity, said, citing prior net-zero, low-utility projects the organization has developed.
On financing, presenters said the project requires $3–5 million of equity and working capital to start and anticipates an additional financing tranche via tax-exempt bonds (presenters cited approximately $11 million) with Rifle acting as a conduit issuer; Habitat expects to finalize offering documents toward the end of November. Josh Smith said the model retires bond debt through box sales.
Presenters highlighted workforce benefits: an indoor factory would allow year-round trained labor, partnerships with Colorado Mountain College and Colorado River BOCES for training, and the potential to attract workers who live farther downvalley. They also argued the local factory would reduce transportation emissions versus long-haul modular plants and ease logistics across mountain passes.
The presenters acknowledged that state modular-funding rounds previously did not favor Western Colorado and said they plan to pursue the next Prop 1/2/3 funding round next summer. Councilmembers expressed strong support, asked technical questions about deed restrictions and rental versus ownership models, and discussed potential city-level contributions or priority purchases to secure units for local employees. Habitat said the Bridal site is leased at $1 per year for 10 acres and that hook-up to nearby water and sewer is feasible; additional fee concessions are still under discussion.
