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. A Tenant Equity Vehicle (TEV), funded through Proposition 123 program earnings, will be established by OEDIT, CHFA, and a third-party administrator to benefit the residents of developments that receive Equity financing.

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. Learn more on DOLA’s website. View jurisdictions that have filed 2023 Commitments.

Program Details

Program Benefits• Flexible source of capital with below-market return expectations
• Structured with equity returns based on available cash flow
Eligible Borrowers• For-profits
• Nonprofits
• Governmental entities including housing authorities
• Tribal governments
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 Allocation40% to 70% of Affordable Housing Financing Fund (AHFF) allocation
Area Median Incomes (AMIs) ServedNot to exceed 90% average AMI for all restricted units
Maximum InvestmentThe 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
Investment ReturnsBelow-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.
Eligible UsesEligible project costs include acquisition, construction hard costs, professional fees, financing costs, soft costs, and reserves.
Fees• 1% investment placement fee
• Standard placement costs
CollateralThe Program Investment will be secured by the project assets.
Affordability RequirementsA Regulatory Agreement ensuring affordability for 30 years will be required, which must include a two-year notice to local government.
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 programs are subject to change.

How to Apply

The application window for the Equity program is currently closed. Applicants selected to receive funding will be announced in July 2024. 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 [email protected].

Application and Award Timeline:

March 18, 2024CHFA will begin accepting applications.
April 18, 2024Application submission period will end at 5:00pm MT.
July 2024CHFA will announce project sponsors selected to receive Equity funds.


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].

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