Program Summary
Proposition 123 (Prop 123) created the State Affordable Housing Fund, dedicating 40% of funds to the Affordable Housing Support Fund administered by the Department of Local Affairs (DOLA) and 60% to the Affordable Housing Financing Fund overseen by the Colorado Office of Economic Development and International Trade (OEDIT) to fund housing programs. OEDIT selected Colorado Housing and Finance Authority (CHFA) as the third-party administrator in a public process, defined by Proposition 123 statute under CRS 29-32-104, (docx).
Visit the Colorado Affordable Housing Financing webpage to learn more about Proposition 123 Affordable Housing Finance Fund Programs. This site is dedicated to the Affordable Housing Financing Fund, which supports land banking, equity, and debt investment to advance affordable housing across the state. To learn more about DOLA's Proposition 123 programs, visit DOLA's Proposition 123 Implementation webpage.
The initial step in qualifying for access to these funds is a Local Government Affordable Housing Commitment which includes a requirement to increase existing affordable housing units by 3% a year and an expedited review process for Affordable housing developments. More information and the Local Government opt-in form can be found on Proposition 123 Affordable Housing Commitment.
In addition, HB23-1304 established a process for rural resort communities to petition DOLA's Division of Housing (DOH) to use different percentages of area median income than those percentages specified for eligibility for certain affordable housing programs funded through the Financing Fund. More information on the petition process can be found at DOLA's Proposition 123 Implementation webpage.
For more information on Prop 123 programs and to receive updates on application cycles and news, sign up for the Colorado Affordable Housing Financing Fund eNews and Colorado’s Division of Housing eNews.
Land Banking - Provides grants to local governments and loans to non-profit organizations to acquire and preserve land for the development of affordable housing.
Affordable Housing Equity - Provides equity investments in low-and-moderate income multi-family rental developments. This program will also make investments in existing affordable housing projects including multi-family rental units for the purpose of ensuring that the projects remain affordable.
Concessionary Debt - Provides debt financing of low-and-moderate income multi-family rental developments and gap financing in the form of subordinated debt and pre-development loans for projects that qualify for Federal Low-Income Housing Tax Credits (LIHTC). The program also provides debt financing for modular and factory-built housing manufacturers.
More information on these programs can be found at the Colorado Affordable Housing Financing web page.