Equity

The Equity program provides below-market-rate equity investments to eligible for-profit and nonprofit entities for the construction or preservation of low- and middle-income multifamily rental developments.

Program Detail	Description
Eligible Projects	• Low-income multifamily affordable rental developments • Middle-income multifamily affordable rental developments • Preservation of existing developments at risk of losing affordability • This equity cannot be paired with federal or state Housing Tax Credit equity
Program Benefits	• Flexible source of capital with below-market return expectations • Structured with equity returns based on available cash flow • Full equity principal repayment deferred until future capital event or project sale
Program Allocation	40% to 70% of Affordable Housing Financing Fund (AHFF) allocation
Eligible Project Sponsors	For-profits, nonprofits, and governmental entities including housing authorities, and tribal governments
Maximum Investment	The maximum Program Investment amount is $15,000,000. Investment size will be based on a comprehensive evaluation of the project’s financials, supporting documentation, and available program funding.
Minimum Investment	$1,500,000
Eligible Uses	Eligible project costs include acquisition, construction hard costs, professional fees, financing costs, soft costs, and reserves. Projects using modular construction with an advance factory deposit requirement may be able to use Equity funds for this purpose.
Investment Returns	Below-market returns based on available annual cash flow, with any remaining capital paid in full or in part at a capital event. The Program Investment term is up to 30 years.
Area Median Incomes (AMIs) Served	Not to exceed 90% average AMI for all restricted units
Fees	• Investment servicing fee of 1% of available annual cashflow • Standard third-party closing costs, such as title, survey, and recording costs
Affordability Requirements	A Regulatory Agreement ensuring affordability for 30 years will be required. The agreement will designate the property as a “qualified property” according to C.R.S. 29-4-1202 and establish a right of first refusal with the local government prior to the expiration of the agreement.
Priorities	Statutory Priorities • High-density housing • Mixed-income housing • Environmental sustainability Strategic Policy Priorities • Shovel-ready projects that result in new units • Use of Colorado manufactured modular/offsite building technology produced in Colorado • Inclusion of home-based child care or commercial child care facilities • Geographic diversity

This is intended only to highlight certain program requirements. Loans are subject to other requirements, including the CHFA Credit Policy and applicable operating and replacement reserve requirements. Please note that programs are subject to change.

Equity Process and Timeline

From January 30, 2026, through Thursday, February 26, at 5:00pm MT, applications were accepted for the Proposition 123 Equity program. This was the second of two application rounds held in Fiscal Year 2026. During this round, a total of 26 applications were received representing more than $205 million in funding requests, and the average funding request was $7.9 million. Applications were carefully evaluated by CHFA and OEDIT against priorities established by the statute and additional strategic policy priorities outlined in the Affordable Housing Financing Fund Fiscal Year 2026 Funding Plan. A total of four projects representing $28.4 million in funding requests were selected for underwriting and approval of Equity funds.

Please sign up for the Proposition 123 Affordable Housing Financing Fund eNews for future updates on the Equity program. Questions about the Equity program may be submitted to equity@chfainfo.com.