If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

They'll request proof of income, proof of residency, and non-payment notice. 

@Heather Bailey When house hacking with a separate rental unit, ensure proper insurance by obtaining landlord or short-term rental coverage tailored for Airbnb activities, in addition to your primary residence policy.

Investment Info:Single-family residence fix & flip investment.

Once the rehab was done I refinanced out of the private loan into a conventional loan as a primary residence.

Just be sure to clarify that she isn’t a leaseholder but is authorized to reside in the unit.If you’re concerned about liability or want more peace of mind, you could ask the primary applicant for additional security, such as a higher deposit, depending on what’s allowed under Colorado law. 

Our primary residents also has some equity, I have a HELOC with $166,000 available funds.

However, consider STR seasonality, local regulations, and management demands, and ensure your equity loan and new primary residence costs fit comfortably within your budget.

Quote from @Khon Kounbandith: Investment Info:Single-family residence fix & flip investment.

my condolences on your recent lost.there are a few ways you can do this, as mentioned above you can take a heloc on your primary residence which will give you a second mortgage, first mortgage payment wont be impacted. you can do cash out refinance which will give you one mortgage and payment. it will pay the old mortgage and give you money in your pocket to pay for the rehab.or you can do a renovation refinance which is similar to cash out refinance but we would contractor involved  as part of the refinancing and they are paid through the loan