Affordable senior housing development proposed near South Academy Boulevard and Chelton Road

Sugar Bowl Grove would offer more than 150 units for adults 65 and older, with rents starting just over $1,000 a month for qualifying residents.

Originally published at KOAA News5 June 4, 2026, by Michelle Reyes

COLORADO SPRINGS, Colo. (KOAA) — A proposed $58 million affordable senior

housing development could bring new housing, services and community space to

Colorado Springs seniors if developers secure the funding needed to move the project

forward.

The development, called Sugar Bowl Grove, is planned for a vacant 3.5-acre site near

South Academy Boulevard and Chelton Road. The project would have 157 units

designed for residents ages 65 and older and would be built in two phases.

"We looked and we saw that there was a huge need for affordable senior housing that

was designed specifically for the needs of seniors," said Carl Szanton, president of the

Szanton Company, the developer behind the project.

Sugar Bowl Grove would include affordable apartments, walking paths, community

amenities and a Silver Key activity center offering services such as classes, meals and

social programs. Jason DeaBueno, CEO of Silver Key, emphasized how critical these

resources are for seniors.

“We have seniors that are trying to make ends meet with utilities, with paying for

medications, actually even just food,” said DeaBueno.

For Sue Blythe, who has lived at the Silver Key Apartments at South Murray Boulevard

for two years, affordable housing is more than just about rent, it's about stability,

independence and having a place to call home.

“I’m free," said Blythe. "I am just so happy to be able to live in a place that I can

afford.”

Blythe says the impact goes beyond finances.

“I don't have to worry about anybody breaking in. I sleep soundly,” said Blythe.

One of the primary goals, Szanton said, is helping seniors remain independent while

combating social isolation.

DeaBueno echoes the importance of social connection.

“If you have a way for people to connect and be able to be engaged, that's actually the

cure for isolation and loneliness,” said DeaBueno.

Developers estimate the two-phase project will represent roughly a $58 million

investment in the property.

What does "affordable" mean?

A common question surrounding affordable housing developments is how

affordability is determined.

Szanton explained eligibility for the apartments will be based on residents’ income

levels compared to the area's median income. Most units would be reserved for seniors

earning between 40% and 60% of the Area Median Income (AMI).

For example, a single person could make no more than $40,000 a year to qualify.

Estimated rent for a one-bedroom unit will be a little more than $1,000.

These income limits are established annually through federal housing guidelines and

are used nationwide to determine eligibility for many affordable housing programs.

Funding remains a key hurdle

While developers have spent several years planning the project and working with local

partners, construction cannot begin until key financing pieces are secured.

The project relies heavily on low-income housing tax credits awarded through the

Colorado Housing and Finance Authority (CHFA).

"Without housing tax credits, this project is not feasible," said Szanton.

Developers are also working with the Colorado Springs Urban Renewal Authority on a

potential tax increment financing arrangement to help support construction costs.

Szanton said discussions with local partners have been ongoing for years and

developers remain optimistic.

"We identified this site about three years ago," he said. "It's a long, long process."

Improving walkability and access

Some community members have raised questions about how the development could

affect traffic and walkability.

Szanton said the project is designed with pedestrian access in mind.

“We’re building more than half a mile of walking paths, we’re planning on also

building new sidewalks on Delta Drive,” confirmed Szanton.

The location was also selected for its proximity to the following:

• public transit

• grocery stores

• parks

• a Mountain Metro transit stop

• shopping

• public library

• the Sand Creek Trail

"We're really excited to improve the neighborhood and create better walking

connections for our residents and the broader community," said Szanton.

Plus, the Silver Key activity center inside will offer meals, classes, and social programs,

making Sugar Bowl Grove a hub for seniors looking to stay healthy and connected.

Blythe urges fellow seniors not to wait.

“Quit waiting," said Blythe. "Apply right now.”

The project is still in the planning phase, and construction depends on securing state

housing tax credits and additional financing. If approved, developers hope to begin

construction within the next one to two years.