Three years after the Marshall Fire destroyed 1,105 homes in Boulder County, about two-thirds have been rebuilt — far outpacing the national average of 25% rebuilt within five years of a wildfire. Yet, for the hundreds still without homes, the road to recovery remains fraught with challenges, and time is running out as critical funding expires next year.
If someone hasn’t recovered yet, “this is the point where you likely will not be able to recover in a way that will move you forward,” said Jeri Curry, executive director of Marshall ROC, a coalition supporting long-term recovery.
As of December 2024, official recovery dashboards for Louisville, Superior and unincorporated Boulder County report 712 homes rebuilt. This marks significant progress compared to last year, when only 25% of homeowners had returned to rebuilt houses on their original lots. This year, that number has risen to nearly 50%.
Not all rebuilt homes are occupied by their original owners. Most survivors were underinsured, and some chose not to rebuild due to high costs, emotional trauma or fear of future wildfires, among other reasons. Nearly 200 lots have been sold, with most sales signaling permanent departures from the neighborhood, according to Katie Arrington, a recovery and resiliency project manager for Boulder County. In some areas, large new homes have replaced more modest ones that once stood there.
Recovery progress is uneven across Boulder County. About 70% of homes in Louisville and Superior have been rebuilt, while unincorporated Boulder County lags at only 34%.
“They’re three very different building models,” Arrington said.
In Superior, the fire mostly affected builder-grade neighborhoods with similar floor plans, streamlining rebuilding. Louisville had a mix of builder-grade and custom homes. In unincorporated Boulder County, nearly all rebuilding involves custom designs, requiring more time and resources for planning, building and permitting, Arrington said.
‘Trauma on top of trauma’
For many still struggling to rebuild, the financial burden remains the biggest obstacle. At least two-thirds of households faced insurance gaps, with the average shortfall exceeding $100,000, according to Colorado’s Division of Insurance. Only 76 of 951 total loss claims in 2022 from the fire had guaranteed replacement coverage policies.
Private and public funding has helped fill some gaps but remains insufficient. The Community Foundation Boulder County allocated $20 million from its wildfire fund for rebuild grants, starting at $20,000. Low-income households and other vulnerable groups can receive additional funds, with total support reaching nearly $50,000. While the foundation raised a substantial amount compared to other fire-hit communities, it’s still a small fraction of the overwhelming need in a disaster where insured losses from the disaster exceeded $2 billion.
Government funding has been both insufficient and delayed.
As of September 2024, for instance, 190 of 593 households that applied for Colorado Housing Recovery Program funding, which helps people rebuild after disasters, remain under review. Without this funding, many of these applicants are unable to move forward with their rebuilding plans, or have made financial commitments to builders they can’t fulfill, according to Curry. She said some people are hesitant to apply for building permits, which could qualify them for more aid but can cost up to $10,000.
Some residents committed to rebuilding based on anticipated federal loans but received much less than they were expecting, according to Curry. Federal rules prohibit duplicating aid benefits from charities or government programs, so funding from tax rebates or grants reduced their loans.
“The net result is you’re getting a lot less than the program actually originally promised,” Curry said. “If you had good insurance and lots of assets of your own, you could absorb that. But if you were relying on that funding and now it’s been reduced, there’s no way to rebuild even a modest home.”
Some residents have turned to borrowing from retirement accounts or family to keep construction going.
“Trauma on top of trauma is the best way for me to describe it,” Curry said. “The fire was traumatic enough, but the process of financial recovery is retraumatizing for many.”
Paralyzed as funding runs out
Mortgages are adding to the financial strain for some residents, especially those with lower incomes. Some are navigating a tough rental market while still paying mortgages on burned homes. Others who owned their homes outright now face taking on a new mortgage alongside rent to rebuild.
“Some households don’t have that possibility for whatever reason,” Arrington said. “They were retired, or disabled, or caring for a disabled family member.”
Insurance companies often withhold full payouts to homeowners with mortgages unless they commit to rebuilding, making selling and relocating difficult.
“There’s residents that feel the task of figuring out how to rebuild is so overwhelming, they are not starting the process,” Arrington said. “Unfortunately, there’s a lot of resources going away at the beginning of the year.”
Many relied on Additional Living Expense (ALE) insurance to help pay rent and other critical bills after the fire, but most ALE benefits expired in early 2024. The Community Foundation provided extensions to households with greater financial need, but even those will end by late 2024.
Other funding streams have also dried up. Colorado Housing Recovery Program grants stopped accepting new applications in 2023, and Boulder County’s Use Tax Rebate, which offers up to $4,200 for rebuilding permits, expires in January 2025. The Community Foundation’s rebuild fund, which has distributed $15.1 million to nearly 650 households, will stop accepting applications in June 2025, with less than $5 million remaining.
“It’s just a really sad situation,” Curry said. “Some have recovered and are moving forward, and some are really struggling. There’s a huge difference between someone that’s struggling to build their house, and someone who really can’t see a path forward for their life.”
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