Polis Administration Announces Grant Recipients to Support Creation of Over 1,000 New Affordable and Workforce Housing Units
DENVER – In his State of the State address, Governor Polis outlined his vision for Colorado and how to address housing challenges. Today, Governor Polis and the Business Funding & Incentives division of the Colorado Office of Economic Development and International Trade (OEDIT) announced the first three recipients of the Innovative Housing Incentive Program (IHIP) grant. This grant is in line with the Governor’s plans to help create a house for every Colorado budget and invests in companies working to support Colorado to achieve more housing. The first round of grant funding will directly incentivize the creation of over 1,000 affordable and attainable housing units across Colorado and contribute to the recipients’ work to create more than 4,000 units over the next three years.
“It is no secret that Colorado is a great place to live, and we need more housing options now for every budget in every community. The three companies receiving this new funding are finding innovative and efficient ways to expand the housing supply across the state and will create more than 1,000 homes people can afford better with this investment,” said Governor Jared Polis. “This grant will create more housing options and ensure companies have the resources they need to create more housing now.”
IHIP supports the development of modern, innovative, factory-built housing in Colorado. Compared to traditional building practices, modular, manufactured and kit homes may be produced more efficiently, with less waste and at a lower cost while also creating stable, year-round, high-quality jobs. IHIP working capital grants are performance based incentives that reimburse eligible, Colorado-based innovative housing manufacturers for up to 20% of monthly operating expenses, up to $350,000 or $450,000 in Just Transition Communities. Additional funding is available for manufacturers that produce affordable housing and/or build and install units in Colorado.
The recipients announced today are experienced Colorado companies that produce affordable, attainable and energy efficient housing for distribution within Colorado:
Key Structures - Pueblo, Colorado - A producer of modular housing, Key Structures produces high-quality housing for median-income households. By building units in a controlled environment, the company is able to complete a house in one week that would otherwise take a month to complete in the field. Key Structures qualified for additional funding as a company located in a coal transition community and was awarded up to $1.5 million for the construction of 250 housing units over three years.
Fading West Development - Buena Vista, Colorado - Fading West produces modular housing in a controlled manufacturing environment that allows the company to build a two-story home in as little as 18 days, with site work completed at the same time. This can reduce overall project timelines by as much as 50% with cost savings up to 20% when compared to traditional site-built homes. The company has been awarded up to $1.4 million for the construction of 333 housing units over three years.
Simple Homes - Denver, Colorado - Simple Homes provides general contractors and homebuilders with turnkey panelized offsite construction that reduces framing time by 50-75%. Since opening its first manufacturing facility in Denver's Globeville neighborhood in late 2019, the company has delivered over 650 units across Colorado. Simple Homes was awarded up to $1.3 million for the construction of 450 housing units over three years.
“The companies recognized today demonstrate the potential of IHIP to make a difference across Colorado. From Pueblo to Buena Vista, innovative housing manufacturers know how to provide affordable and attainable housing for Coloradans and with the support of IHIP can continue to do their great work,” said Eve Lieberman, Executive Director of OEDIT.
Applications for the IHIP grant are currently being accepted on a rolling basis. IHIP, which was announced in January 2023, will also launch factory development loans to support the development of new factories or the expansion of existing factories. The application window for factory development opens in coming months. A competitive application process will consider energy efficiency, the percentage of affordable housing units to be produced, the number and quality of jobs to be created, the proposed terms of the loan, and the financial health and qualifications of the applicant.
“These first three companies to receive IHIP grant awards demonstrate the breadth of innovative housing solutions across the state. Each takes a unique and creative approach to solving Colorado’s housing crisis while creating steady jobs and positive impact on their communities. We’re thrilled to announce these three awards and are eager to see the next wave of applications coming in,” said Jack Tiebout, Senior Program Manager at OEDIT.
A total of $40 million in funding, allocated from the State’s General Fund, has been set aside to implement IHIP. The program will be administered by OEDIT in partnership with the Department of Local Affairs (DOLA) and the Colorado Housing and Finance Authority (CHFA), and with input from Colorado Energy Office and the Governor’s Office. Learn more at https://oedit.colorado.gov/innovative-housing-incentive-program
IHIP is part of an emerging suite of OEDIT-affiliated programs that offer housing financing tools to help increase the supply of affordable and attainable housing across Colorado. These programs include the Proposition 123 Affordable Housing Financing Fund, staffing of the Middle Income Housing Authority and work by the Colorado Creative Industries Division via the Community Revitalization and Space to Create programs.
About Colorado Office of Economic Development and International Trade
The Colorado Office of Economic Development and International Trade (OEDIT) works with partners to create a positive business climate that encourages dynamic economic development and sustainable job growth. Under the leadership of Governor Jared Polis, we strive to advance the State’s economy through financial and technical assistance that fosters local and regional economic development activities throughout Colorado. OEDIT offers a host of programs and services tailored to support business development at every level including business retention services, business relocation services, and business funding and incentives. Our office includes the Global Business Development division; Colorado Tourism Office; Colorado Outdoor Recreation Industry Office; Colorado Creative Industries; Business Financing & Incentives division; the Colorado Small Business Development Network; Cannabis Business Office; Colorado Office of Film, TV & Media; the Minority Business Office; Employee Ownership Office; and Rural Opportunity Office. Learn more at oedit.colorado.gov
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