SMRHA Lottery
LOTTERY OPENS OCTOBER 30, 2026!
Deed Restricted Purchase Lottery
Acting on behalf of the Town of Telluride and the Telluride Housing Authority, the San Miguel Regional Housing Authority will be conducting one lottery for the following deed restricted property:
226 East Pacific Avenue, Unit H
(Spruce House H)
Tier 2 Town-Constructed Unit
3-Bedroom 2-Bath Condominium
Approximately 1,087 sq ft
Built in 2016
Sales Price: $453,000
- Applications Available: Thursday | October 22, 2026
- Informational Session: Wednesday | October 28, 2026 | 9:00 am | Ah Haa School For the Arts and Zoom.
- Unit Open Houses: Thursday | October 29, 2026 | 12:00 pm – 1:00 pm and 5:00 pm – 7:00 pm | Enter West Side of Building , 3rd Floor Unit H
- Lottery Opens: Friday | October 30, 2026 | 9:00 am
- Exception Application Deadline: | Friday | November 13, 2026 | 12:00 pm
- Exception Hearing: | Wednesday| November 18, 2026 | 9:00 am
- Lottery Closes: Friday | November 20, 2026 | 12:00 pm
- Qualified List Posted: Monday | November 30, 2026 | 5:00 pm
- Appeal Deadline: Wednesday | December 2, 2026 | 5:00 pm
- Appeal Hearing: Tuesday| December 8, 2026 | 9:00 am
- Lottery Drawing: Friday | December 11, 2026 | 10:00 am | @Hybrid / Rebekah Hall, 113 W Columbia Ave
Lottery Information Meeting Request
Schedule Lottery Application Submission Meeting Here (REQUIRED)
Telluride Affordable Housing Guidelines (“Guidelines”) as amended June 26, 2026
Lottery Fees | $40 Purchase Application Fee | $25 Exception Application Fee (if applicable) | Cash or check only
Lottery Applicants certified as Qualified Households are eligible for one (1) entry into the lottery. You may submit for additional entries. Review the Lottery Point System.
All applicants must have a lender pre-qualification letter. Borrowers are restricted to either conventional or government guaranteed mortgages with a fixed rate from commercial banking and lending institutions authorized to engage in mortgage lending practices in the State of Colorado. Local-Lender-List
Lottery Application | $40 application fee
Schedule Your Required Lottery Application Submission Meeting Here
Exception Application – Household Size (Deadline to submit November 13, 2026 | 12:00 pm) | $25 application fee
Exception Application – Unconventional Loan (Deadline to submit November 13, 2026 | 12:00 pm) | $25 application fee
Self Employment Client Verification
Self Employment Third Party Verification
Certification of Volunteer Hours
NOTE: Owners are subject to all amendments to the Guidelines adopted during ownership.
- What if I am a lottery winner but I decide not to purchase a unit? Lottery winners shall have three (3) days from the date contacted to determine if they will purchase the Housing Unit and to sign a purchase agreement. Once the purchase agreement is signed, you may only walk away from the purchase opportunity pursuant to the terms of that agreement, for example normal contingency items (financing or inspection issues), or may be responsible for forfeit of escrow.
- Must I be a U.S. Citizen to be eligible to own and occupy a unit? No.
- If I have not filed my taxes, may I submit a tax extension with my application? No. Applicants are required to submit 2025 completed federal tax returns including any and all schedules, worksheets, W2s, 1099s, etc. If you are self-employed or have any ownership interest in a partnership or LLC, business tax returns and profit and loss statements are also required. Please have your social security number redacted on your application.
- Can I use a monetary gift towards my down payment? Yes. For the purposes of initial qualification a one-time gift of up to thirty percent (30%) of the purchase price of a unit, used only as a down payment, may be considered in your net assets calculation, and not as Income. (Guidelines § 103.F.2)
- What if I own other property? Ownership of developed residential property outside of San Miguel, Montrose, Ouray and Dolores counties is permitted, while ownership within these counties is restricted. If you currently own such property, you may submit a Lottery Application but will be required to sell the developed residential property or must be granted an Exception to rent following purchase of the Unit. (Guidelines § 103.2.E)
- Can I rent my current primary residence, a deed restricted property, while I am selling it per the terms of the contractual agreement with the Town? Possibly. If the deed restriction for your current unit allows, you may be able to rent that property until it sells. Applicants who already own deed restricted property should be prepared to maintain multiple mortgages and ongoing qualification for the duration of the listing and sale of their current home. Any rental requires an Exception from the THA subcommittee and would include restrictions.
- Can I rent out my lottery unit while I sell my current primary residence? No. As a lottery winner, you must occupy your unit while selling your current residence.
- Can I rent out the unit short-term? No. Short-term rental of Affordable Housing Units is strictly prohibited. This prohibition includes the short-term rental of the entire unit and of individual rooms.
- Can I rent out my entire unit long-term? Qualified Households are required to occupy their housing unit for at least eight (8) of every twelve (12) months on a rolling 12-month basis. Rental of units is not allowed except when an owner has been granted a Leave of Absence by THA. (Guidelines § 105.4C.1).
- Does my roommate need to be qualified under the Guidelines? Yes. Each non-exempt person renting or occupying a room in a housing unit must be qualified by meeting employment and residency standards, and the Household must continue to meet earned income, property ownership and net asset standards. Only Immediate Family of the Qualified Employee are exempt from the employment standards.
- How would I sell my unit at a later date? If the Town of Telluride or Telluride Housing Authority do not exercise their option to repurchase the property, it would be sold by lottery conducted by SMRHA according to the lottery procedures set forth in the Guidelines at the time of sale.
- Is this unit subject to the Town of Telluride’s Real Estate Transfer Tax? No. Price-capped affordable housing units are exempt from the Town’s real estate transfer tax.
- Will I make money owning a deed restricted unit? As with any real estate purchase, there are no guarantees. Price-capped affordable housing units are subject to maximum resale calculations established in deed restrictions; the maximum growth is three percent (3%) per year but may be less depending on economic circumstances. (Guidelines § 108.2D).
- If Household circumstances change while I own my home, could I be asked to sell? Households must continue to meet the Continuing Household Qualification Standards according to the Guidelines or may be required to sell. Circumstances could change so significantly that you no longer qualify to own and would be required to sell. Should your Household net assets grow due to inheritance or other windfall, or should your Household acquire title to residential property in San Miguel County for example, you may be required to sell your home.
- Will utilities for the unit be subsidized? No. You will be responsible for the full price of utilities for the unit. Town does extend a discounted rate to deed restricted housing units for water and wastewater, however the water discount is only applicable to units 850 sq. ft and under.
- Should I budget for other expenses as part of homeownership? Yes. In addition to utilities, budget for property taxes, insurance, up-keep, and Homeowner Association dues. Estimates for expenses including Homeowner Association dues may be available, and property taxes may in fact be included in your mortgage payment.
- May I have pets? Yes, however homeowner association declarations take precedence and should be researched prior to purchase.
- What documents are accepted for Self-Employment verification? If you are self-employed, you will be required to show an accurate accounting of your working hours, location (including address) and income for the previous 12 to 16 months. In addition, a profit and loss, business tax returns, payroll verification, and other documentation may be requested to confirm your qualification. Third-party verification is recommended and may be required.
- Do I need to take a Homebuyers Education Class? Those seeking conventional loans are encouraged but not required to take a Homebuyers Education Class. Those pursuing unconventional loans, however, will need to apply for an exception, and are encouraged to take the Homebuyers Education Class available online at CHFA: Homebuyer Education
- Do I need a Pre-Qualification letter from my lender? Yes, applicants for a lottery are required to obtain a pre-qualification letter from a lender to ensure their ability to purchase at the price level.
- Must I complete all notary blocks in the application? Yes, notarization in all applicable areas is required.
Down Payment Assistance Fund | Telluride Foundation
First Time Homebuyers Assistance Fund | Telluride Association of Realtors
Lottery Notice of Appeal
If you wish to appeal a decision of the San Miguel Regional Housing Authority (“SMRHA”) staff with respect to your Qualification status or the number of entries assigned to you for an ongoing THA lottery review the Lottery Notice of Appeal above. For the lottery drawing to be held on Friday, December 11, 2026, this written Notice of Appeal must be submitted by Wednesday, December 2, 2026 at 5:00 pm MST, along with a $25.00 Appeal Fee payable by check to SMRHA, and submission of the Appeal Release & Waiver. Appeal applications will be reviewed by THA Staff for completeness and complete submissions will be forwarded to the THA Subcommittee for an appeal hearing to occur on Tuesday, December 8, 2026 at 9:00 am MST in person at Rebekah Hall, 113 W. Columbia Avenue in Telluride.
Results will be posted Friday | December 11, 2026 | by 5:00 p.m.
Certified Lottery Drawing Results