Land Banking

The Land Banking program provides grants to eligible local or tribal governments and forgivable loans to eligible nonprofits with a demonstrated history of providing affordable housing. These funds must be used to acquire and preserve land for affordable for-sale housing or affordable rental housing. Mixed use may be allowed so long as the predominant use is affordable housing.

Program Detail	Description
Eligible Projects	Acquisition of land for the development of affordable rental and for-sale housing. Mixed use is allowed if the predominant use is affordable housing  New money transactions will be prioritized over a refinance or addressing financing gaps on existing projects
Program Benefits	Grants to eligible local and tribal governments Forgivable loans to eligible nonprofits Good faith efforts may be used for consideration of extensions
Program Allocation	HB26-1360 waived the Affordable Housing Financing Fund (AHFF) program funding ranges for Fiscal Year 2027 (FY27). The FY27 total Land Banking allocation will be approximately $31 million.
Maximum Grant or Loan Amount	Lesser of $5 million or CHFA’s concluded appraised value
Forgivable Loan Terms	Proper zoning and development plan within 5 years Permitted and funded within 10 years
Forgivable Loan Conditions	If specified milestones are not achieved by 5 and 10 years, the forgivable loan plus interest must be repaid within 6 months unless the land is conveyed to a state agency or other entity for the development of affordable housing with the approval of CHFA  Non-performance could impact future awards Upon repayment of the loan plus deferred interest, the property may be developed for any purpose
Grant Conditions	If specified milestones are not achieved by 5 and 10 years, the grant must be repaid within six months
Interest Rates and Fees	Forgivable loans bear a deferred interest rate of 2%. No interest is due if milestones are achieved. Standard third-party closing costs apply Environmental Transaction Screen required for transactions under $750,000; Phase I required for transactions $750,000 or greater
Area Median Incomes (AMIs) Served	Rental: households with an annual income at or below 60% AMI Homeownership: households with an annual income at or below 120% AMIRural Resort communities may petition the Colorado Division of Housing to use more flexible income requirements Commercial or mixed-use development, including non-restricted housing, is eligible provided that the predominant use (70%) is affordable. Projects proposing between 51% and 69% of the project to be utilized as affordable may apply with justification.
Geographic Distribution	Applications will be reviewed to ensure equitable distribution of funds statewide to both rural and metro areas
Reporting	Loan and grant recipients will annually report on development progress.
Funding Process and Distribution	Based on anticipated demand, applications may be reviewed through a competitive funding round
Affordability Covenants	All projects must have a Regulatory Agreement at the time of program funding which will cover the milestone period Final development must include a covenant maintaining affordability of rental housing units for at least 30 years after the final improvements are developed Homeownership developments shall remain affordable for at least 30 years through a ground lease or similar structure  Projects may request a waiver to 20 years with a market analysis
Priorities	High-density housing Mixed-income housing Environmental sustainability Shovel-ready projects that result in new units Use of modular/offsite construction if cost competitive Inclusion of home-based child care units or commercial child care facilities
Commitments	Commitments will be valid for 60 days

This chart is intended only to highlight certain program requirements. Loans and grants are subject to other requirements, including the CHFA Credit Policy and applicable operating and replacement reserve requirements. Please note that the programs are subject to change. More details can be found in the Land Banking Program Guidelines (PDF).

As stated in the Fiscal Year 2027 Funding Plan (PDF), CHFA will accept applications for the Proposition 123 Land Banking program for projects located in Rural and Rural Resort communities* beginning September 15, 2026, and continuing through December 31, 2026, or until funds are exhausted. Beginning January 2027, applications will be accepted for all projects, including those not located in Rural or Rural Resort communities.

To request an application, please email landbanking@chfainfo.com with the subject line: Application Request.

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*Rural counties defined by OEDIT include: Alamosa, Baca, Bent, Cheyenne, Clear Creek, Conejos, Costilla, Crowley, Custer, Delta, Dolores, Elbert, Fremont, Garfield, Gilpin, Huerfano, Jackson, Kiowa, Kit Carson, Lake, Las Animas, Lincoln, Logan, Mesa, Mineral, Moffat, Montezuma, Montrose, Morgan, Otero, Park, Phillips, Prowers, Pueblo, Rio Blanco, Rio Grande, Saguache, Sedgwick, Teller, Washington, and Yuma.

Rural Resort counties defined by DOLA include: Archuleta, Chaffee, Eagle, Grand, Gunnison, Hinsdale, La Plata, Lake, Ouray, Pitkin, Routt, San Juan, San Miguel, and Summit. The Town of Estes Park is designated as a Rural Resort Municipality.