Concessionary Debt


Concessionary Debt Program Status

This program is currently in development and subject to change. Full program guidelines will be posted upon program launch. Program highlights, as currently established, are included below. To view recordings of stakeholder engagement sessions to inform program design, click here. If you have questions, please contact CHFA Community Development at [email protected].

The Concessionary Debt program provides loan options to for-profit, nonprofit, and governmental entities to support affordable housing investment, including:

  1. Multifamily Finance: Debt financing for the development and preservation of low- and middle-income multifamily rental developments
  2. LIHTC Gap Finance: Gap financing in the form of subordinate debt for Low Income Housing Tax Credit projects
  3. LIHTC Predevelopment Finance: Gap financing in the form of predevelopment loans for LIHTC projects

Modular and Factory-build Manufacturers

The fourth option is debt financing for modular and factory-build housing manufacturers and is not subject to AMI or Proposition 123 Local Government Affordable Housing Commitment requirements. Proposition 123 Modular Finance program awardees for fiscal year 22-23 have been selected. Please visit the Innovative Housing Manufacturer Financing webpage to learn more.

Affordable Housing Commitment

To be eligible, affordable housing projects seeking support from the Affordable Housing Financing Fund must be located in a jurisdiction that has completed a Proposition 123 Local Government Affordable Housing Commitment with the Colorado Department of Local Affairs − Division of Housing. Click here to learn more on DOLA’s website. View jurisdictions that have filed 2023 Commitments.


How to Apply

Concessionary Debt Process and Timeline

The application window has closed for the Concessionary Debt Multifamily Finance, LIHTC Gap Finance, and LIHTC Predevelopment Finance programs established by Proposition 123. CHFA received 38 applications representing more than $113M in funding requests (PDF). Each application was evaluated against the criteria established in their respective program guidelines and from the directives in the Governor’s Executive Order from August 21, 2023. Priority criteria included the number of units (high density), environmental sustainability, geographic diversity, readiness to proceed, and economic diversity in the mix of unit income restrictions.

Based on these criteria and the limited amount of available funds, seven of the 38 applicants, representing $14.5M in funding requests, were selected to move forward (PDF) to full underwriting.

Funded projects will be announced in January 2024.

Application Timeline:

September 18, 2023CHFA will begin accepting applications.
October 9, 2023Application submission period will end at 11:59pm MT.
January 2024CHFA will announce projects selected to receive Concessionary Debt funds.

Contact

CHFA Community Development 

Terry Barnard 
Manager, Community Development Lending 
303-297-4866 

David Foust 
Commercial Loan Officer III  
303-297-4865  

[email protected]

If you have questions, contact CHFA Community Development at [email protected].

The wood frame structure of a multifamily building under construction.
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