Ouray city councilors unanimously approved Tuesday night a plan to build 65 affordable homes at the north end of the city, clearing the way for the first large-scale affordable housing project in the city’s history.

The council signed off on the preliminary plat for the Waterview planned unit development, a project that will place a mix of single-family homes, duplexes and triplexes on a 9.2-acre parcel north of the former Biota building between U.S. Highway 550 and the Uncompahgre River.

During...