Program Summary
The Innovative Housing Incentive Program helps address Colorado’s housing shortage by supporting the development and expansion of the state’s innovative housing manufacturing businesses.
The program includes two funding mechanisms: a grant and a factory loan. These mechanisms are described in greater detail below.
Program status:
OEDIT published program guidelines in November 2022 after a public comment period and consultation with other state agencies.
Program Guidelines, (Google Doc)
The grant program opened for applications in December 2022 and remains open for applications on a rolling basis.
The factory loan program opened for applications in fall 2023 and awardees were announced in February 2024. The factory loan program is a revolving loan program, and we expect to open applications in the next few years as loans are repaid.
Innovative Housing Incentive Program grant
The following two mechanisms are used in conjunction with one another and are part of the same grant application process.
- Operating expense reimbursement: Businesses are eligible for a grant that will reimburse up to 20% of operating expenses on a monthly basis. Businesses will be eligible for up to $350,000 in grant funding. Businesses in Tier 1 Just Transition Communities will be eligible for up to $450,000, plus the $50,000 bonus.
- Per-unit incentive: Housing manufacturers can receive between $1,500 and $6,000 for every unit manufactured and installed in Colorado. Units that are affordable and energy efficient will receive a higher dollar amount per unit.
- Affordable housing bonus: Businesses that commit at least 10% of their housing production to deed-restricted affordable housing may be eligible for a $50,000 affordable housing bonus.
To apply for the working capital grant and per-unit incentive, log into the OEDIT application portal and begin a precertification application. For more information on the grant application process, please read the application guide below.
Grant Application Guide, (Google Doc)
Factory development loan
Businesses may apply for a concessionary loan to support the development of a new factory or the expansion of an existing factory. There will be a competitive application process for the factory loan. Some of the factors the state will consider are: the percentage of affordable housing units to be produced, the energy efficiency of units to be produced, the number and quality of jobs created, the proposed terms of the loan, and the financial health and qualifications of the applicant. The Colorado Housing Finance Authority (CHFA) is administering the factory loan program in partnership with OEDIT.
The factory loan program closed for applications in November 2023, and awardees were announced in February 2024. We anticipate reopening this revolving loan program in the next few years as loans are repaid.
Overview
Type: Program
For: Businesses
Amount: $40 million available
OEDIT division: Business Funding and Incentives
Program Objectives
Program Objectives: Modular and manufactured construction can serve as a faster and more affordable housing solution, but the industry needs support from the State in order to be viable, sustainable, and increase the housing supply in both the short and long term for communities across the state. Leveraging one-time dollars for transformational, scalable change, the program will:
- Grow Small Businesses & Create Jobs in the Industry: The Innovative Housing Incentive Program helps grow small businesses that are operating in this industry and are at various stages in their lifecycle to ensure they can serve more Colorado communities with affordable housing. This will also create good paying year-round jobs and grow the construction talent pipeline for the longer-term.
- Increase the Supply of Affordable Housing Units: The program ties its portfolio of financial support options to the increase of affordable housing supply through per-unit incentives and the development of a housing factory required to produce a percentage of affordable housing units.
- Lower the Cost of Affordable Housing for Local Governments & Organizations: In addition to providing attainable homeownership opportunities, modular homes can be purchased and subsequently rented to lower- and middle-income households. This program aims to increase access to more affordable housing options to housing entities across the state.
Program Manager and Connect Further
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