DENVER – Today, Gov. Jared Polis, the Colorado Office of Economic Development and International Trade (OEDIT), and the Colorado Housing and Finance Authority (CHFA) announced the preliminary selection of the first six recipients of the voter-approved Proposition 123 Equity program. These funds will provide investment capital for low- and middle-income multifamily affordable rental housing projects, supporting the creation of an estimated 628 affordable housing units.
“We need more housing now, and the recipients announced today will help create 628 affordable housing units so more Coloradans can live where they want to live — close to their jobs, schools, and the places they love,” said Gov. Jared Polis.
The Proposition 123 Equity program offers below-market-rate equity investments for developers focused on building low- and/or middle-income housing. The projects announced today prioritized high-density, mixed-income properties and environmental sustainability, including walkability to public transportation or community centers, electrification, and water-wise landscaping. Geographic diversity and readiness to proceed were also considered. In addition, a Tenant Equity Vehicle (TEV), funded through Proposition 123 program earnings, will be established by OEDIT, CHFA, and a third-party administrator to benefit the residents of developments that receive Equity investments.
This opportunity is part of the Affordable Housing Financing Fund established by Proposition 123, which is managed by OEDIT and administered by CHFA to distribute 60% of Proposition 123 funding in support of land banking, equity and concessionary debt for affordable housing. With the projects announced today, approximately $97 million has been awarded through the Affordable Housing Financing Fund.
“When Coloradans have access to mixed-income, affordable housing close to where they work, it is good for our quality of life and our economy. By providing low-cost capital funding, these Proposition 123 funds will make a difference in communities from Lone Tree to Fort Collins and Craig to Montrose,” said OEDIT’s Executive Director, Eve Lieberman.
A total of $39,390,879 has been preliminarily approved for six recipients. Final award details will be determined during the underwriting process for each project:
1936 Grove Apartments - $3,699,545 - Denver
28 units for tenants earning 80-90% of the Area Median Income (AMI)
302 Conifer - $5,806,584 - Fort Collins
76 units for tenants earning 70-100% of AMI
Ballfield at Auraria - $15,000,000 - Auraria, Denver
340 units for tenants earning 60-120% of AMI
Black Canyon Flats - $8,000,000 - Montrose
60 units for tenants earning 80-100% of AMI
Tall Tales Ranch - $4,112,818 - Lone Tree
28 units for tenants earning 30-100% of AMI
Woodbury Park Apartments - $2,771,932 - Craig
96 units for tenants earning 70-120% of AMI
To support the development of affordable housing, returns above the initial capital investment (or principal amount) owed to the equity program fund will be below market rate and customized for each recipient based on cash flow.
Demand for Proposition 123 programming continues to be high. CHFA received 36 applications requesting more than $313 million from the Equity program.
“Funding provided through the Equity program supports quality affordable housing and additional opportunities for housing stability,” said Cris White, Executive Director and Chief Executive Officer of CHFA. “These investments will strengthen communities while providing residents the opportunity to benefit directly from the success of these developments through the Tenant Equity Vehicle.”
Ongoing updates on funding are available at coloradoaffordablehousingfinancingfund.com and by signing up to receive newsletter updates.
About the Colorado Affordable Housing Financing Fund
Passed by voters in November 2022, Proposition 123 established the State Affordable Housing Fund to advance the development and preservation of affordable housing in Colorado. The measure directs 40% of those funds to the Colorado Affordable Housing Support Fund administered by the state Department of Local Affairs (DOLA) and 60% of funds to the Colorado Affordable Housing Financing Fund managed by OEDIT. OEDIT selected Colorado Housing and Finance Authority (CHFA) to serve as the Affordable Housing Financing Fund third-party administrator. The Affordable Housing Financing Fund consists of three programs: Land Banking, Equity and Concessionary Debt. About Colorado Office of Economic Development and International Trade (OEDIT) The Colorado Office of Economic Development and International Trade (OEDIT) works to empower all to thrive in Colorado’s economy. Under the leadership of the Governor and in collaboration with economic development partners across the state, we foster a thriving business environment through funding and financial programs, training, consulting and informational resources across industries and regions. We promote economic growth and long-term job creation by recruiting, retaining, and expanding Colorado businesses and providing programs that support entrepreneurs and businesses of all sizes at every stage of growth. Our goal is to protect what makes our state a great place to live, work, start a business, raise a family, visit and retire—and make it accessible to everyone. Learn more about OEDIT.
About Colorado Housing and Finance Authority (CHFA)
For 50 years, CHFA has strengthened Colorado by investing in affordable housing and community development. CHFA invests in affordable homeownership, the development and preservation of affordable rental housing, helps small- and medium-sized businesses access capital, offers technical assistance and financial support to strengthen local communities, and supports mission-aligned nonprofits through philanthropic investment. CHFA is not a state agency. CHFA is a self-sustaining public enterprise. For more information about CHFA, please visit chfainfo.com or call 1.800.877.chfa (2432).
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