Multifamily Finance

The Concessionary Debt Multifamily Finance program 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 (see chart below or guidelines for more details).

Please note: Shovel-ready projects that result in the construction of new units will be prioritized during the first year of program funding.

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.

Program Details


Program Benefits • Below-market interest rates
• Flexible repayment terms
• Senior debt or subordinate financing available   
Eligible Borrowers • For-profits  
• Nonprofits  
• Governmental entities, including housing authorities 
• Tribal governments 
Eligible Projects • Low- and middle-income multifamily affordable rental developments 
• Preservation of existing developments at risk of losing affordability 
Program Allocation 15% to 35% of Affordable Housing Financing Fund (AHFF) allocation 
Area Median Incomes (AMIs) Served • 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
• Rural resort communities may petition the Colorado Division of Housing to use more flexible income requirements.
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 ProceedsEligible project costs include acquisition, construction hard costs, professional fees, financing costs, soft costs, and reserves.
Interest Rates and Fees • 2.5% fixed rate   
• 1% origination fee 
• Standard loan closing costs 
Loan Repayment   Amortizing and non-amortizing loan structures available based on underwriting  
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 20 years will be required.   
Priorities • High-density housing 
• Mixed-income housing 
• Environmental sustainability 
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.

How to Apply

Concessionary Debt Process and Timeline

Starting September 18th, applications will be accepted 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.


CHFA Community Development 

Terry Barnard 
Manager, Community Development Lending 

David Foust 
Commercial Loan Officer III  

[email protected]

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

The wood framing of a multifamily building under construction.
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