The town of Ignacio, Colorado, like many rural communities, has long struggled to meet the housing needs of its local workforce. In La Plata County, where Ignacio is located, the median home price hovers around $475,000—an unattainable figure for many working families. Renters, including young families and essential workers, are often priced out of homeownership, creating long-term instability for the community and workforce alike.
In response, the town launched the Rock Creek housing development, a 21-home modular community designed to deliver affordable, family-friendly homes in two phases. Phase I includes 10 three-bedroom homes, each 1,300 square feet, aimed at families earning up to 140% of the area median income (about $154,700 for a family of four). The homes are being developed in partnership with Colorado-based modular homebuilder Fading West, alongside down payment assistance and homebuyer education provided by HomesFund.
At the heart of making the project pencil out—and move forward ahead of schedule—was First Southwest Bank (FSWB), a mission-driven, FDIC-insured CDFI bank and CNote Impact Cash® Partner with deep roots in rural Colorado. FSWB provided a two-part financing solution to keep the development on track: a $2.2 million loan to the town’s new housing authority at a below-market rate, and a $1 million loan through the bank’s Affordable Housing Investment Fund (AHIF) at a fixed 3.0% rate. These creative financing terms helped lower the overall development cost, ultimately reducing the sale price of each unit, a key factor in ensuring that families could afford to stay in their hometown.
“First Southwest Bank’s support has been key to making the Rock Creek housing project a reality,” said Mark Garcia, Ignacio Town Manager. “Their CDFI designation, which allowed us to access low-cost 3.0% AHIF funding, is helping us create affordable homeownership opportunities for local families, strengthening our community.”
A Legacy of Lending for Good
First Southwest Bank’s commitment to affordable housing is grounded in its long-term investment in rural development. Headquartered in Alamosa and serving rural communities across Colorado, the bank was awarded a $10 million grant in 2023 to launch its Affordable Housing Investment Fund, with a focus on rural housing solutions. Rock Creek marks the second deployment from that fund, following a multifamily rental project in Walsenburg, Colorado, and preceding additional projects now underway in Chaffee County and Silverton.
The Rock Creek project reflects the bank’s longstanding belief that innovative partnerships are vital to serving rural markets. As a Community Development Financial Institution (CDFI), FSWB is uniquely positioned to take on projects that traditional lenders may avoid, offering flexible, values-aligned capital that can fill critical funding gaps. The bank often works alongside other institutions, including non-CDFI banks, to build collaborative capital stacks, but in this case, FSWB led the financing independently.
Its approach extends beyond lending: FSWB launched a nonprofit affiliate in 2015 to support borrowers who need additional capital or technical assistance to make deals viable. Whether through gap financing, low-rate products, or creative financial structuring, the bank aims to meet communities where they are and help them grow.
How the Project Took Root
The Rock Creek project came to FSWB through a relationship built on trust and history. Town Manager Mark Garcia, well-acquainted with FSWB’s mission and CDFI designation, reached out to the bank after years of prior collaboration through Region 9 Economic Development. President and CEO Kent Curtis, alongside Senior Lender Paul Broderick, had worked with Garcia for more than two decades, relationships that laid the groundwork for quick collaboration when the housing opportunity emerged.
At the time, the Town of Ignacio was in the early stages of launching a new housing authority to administer the project. But the development timeline became suddenly urgent when Fading West, the modular homebuilder, had an unanticipated opening in its production schedule. This created an opportunity to accelerate the build—if the town could quickly secure financing.
Creative Financing, Tangible Savings
FSWB’s interim financing allowed the town to purchase the modular units and get the project underway even before the new housing authority was fully operational. The timing was critical. Without the bank’s quick action, the town would have incurred a $40,000 payment penalty and lost the opportunity to keep costs low.
By securing funding on an accelerated timeline, Ignacio saved not only the penalty but also avoided passing additional costs to future homebuyers. It’s estimated that the cost-saving maneuver prevented a $4,000.00 per-unit increase in home prices. Potentially, the difference between homeownership and being priced out for many working families.
The partnership also supported the small Colorado business behind the homes. Fading West, based in Buena Vista, is still in the early stages of scaling as a rural modular home producer. Keeping their production line active with the Rock Creek contract supported local jobs and increased their chances of long-term sustainability, furthering regional economic resilience.
What Comes Next
With Phase I nearing completion, Ignacio is already planning a second phase to add 11 more homes by the end 2025, continuing its push to make homeownership more attainable for local residents. Town officials are actively pursuing additional funding, and the new housing authority is poised to play a central role in managing ongoing and future development.
At First Southwest Bank, the Rock Creek story is one of many unfolding across the region. As the Affordable Housing Investment Fund continues to expand, the bank remains committed to using its capital to close critical gaps and advance rural solutions.
“This project embodies the essence of why we exist as a community CDFI bank,” said Paul Broderick, Commercial Loan Officer, SVP, First Southwest Bank. “Working with borrowers to drive positive economic change in the communities we serve.”
From helping families stay rooted in their hometown to advancing collaborative rural solutions, Rock Creek is more than a housing development—it’s a model for what’s possible when community need meets mission-driven finance.
