Multifamily Finance

Concessionary Debt Multifamily Finance provides debt financing to eligible for-profit and nonprofit entities, local governments including housing authorities, and tribal governments for the creation of affordable housing. The program requires that the housing supported serves an average of 60% Area Median Income (AMI) or below unless the debt is subordinate, or the project is located in a designated Rural Resort Community that has successfully petitioned for allowance of higher AMIs.

Program Detail	Description
Eligible Projects	• Low- and middle-income multifamily affordable rental developments • Preservation of existing developments at risk of losing affordability
Program Benefits	• Below market interest rates • Flexible repayment terms • Senior debt or subordinate financing available
Program Allocation	Program funding is 15% to 35% of total Affordable Housing Financing Fund annual allocation
Eligible Borrowers	For-profit, nonprofit, governmental entities including housing authorities, and tribal governments
Program Limits	Maximum loan size limited to the lesser of 90% of value or cost when considering all must-pay debt, debt service coverage ratio of 1.15 as a senior loan and 1.05 as a subordinate loan when combined with the senior debt, or $6,000,000, whichever is less.  The maximum loan limit may be reduced based on funding availability
Minimum Debt Financing	$400,000
Use of Proceeds	Eligible project costs include acquisition, construction hard costs, professional fees, financing costs, soft costs, and reserves.
Loan Repayment	Amortizing and non-amortizing loan structures available based on underwriting
Area Median Incomes (AMIs) Served	• Not to exceed 60% average AMI for all restricted units comprising the project • If debt is subordinate, the senior debt AMI requirements may be operative instead, provided those requirements demonstrate alignment to the debt program’s intent to support low- and middle-income multifamily rental housing. • Up to 25% of the development’s units may be unrestricted but would be excluded from eligible project financing
Interest Rates and Fees	• 2.5% fixed rate    • Standard loan closing costs
Collateral	All loans will be collateralized by the project assets
Affordability Restrictions	A Regulatory Agreement requiring affordability for the greater of the loan term or 30 years will be required
Priorities	Statutory Priorities • High-density housing • Mixed-income housing • Environmental sustainability   Strategic Policy Priorities • Shovel-ready projects that result in new units • Use of modular/off-site building technology produced in Colorado • Inclusion of home-based or commercial childcare 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 the programs are subject to change. Please see the Concessionary Debt Multifamily Finance Program Guidelines for more information.

Concessionary Debt Process and Timeline

Starting Thursday, November 20, 2025, applications and supporting materials will be accepted for the Proposition 123 Concessionary Debt Multifamily Finance, LIHTC Gap Finance, and LIHTC Predevelopment Finance loan options. The application period will close on Thursday, December 18, 2025, at 5:00pm MT. Please download and complete the application linked below and submit it to [email protected].

• Proposition 123 Concessionary Debt Multifamily Finance Application (XLSX)

Date	Description
November 20, 2025	CHFA will begin accepting applications.
December 18, 2025	Application submission period will end at 5:00pm MT.
January 2026	CHFA will announce projects selected to receive Consessionary Debt funds.