Equity

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.

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 Benefits	• Flexible source of capital with below-market return expectations • Structured with equity returns based on available cash flow
Program Allocation	40% to 70% of Affordable Housing Financing Fund (AHFF) allocation
Eligible Project Sponsors	For-profits, nonprofits, governmental entities including housing authorities, and tribal governments
Maximum Investment	The 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
Eligible Uses	Eligible project costs include acquisition, construction hard costs, professional fees, financing costs, soft costs, and reserves. Projects using modular construction with an advance factory deposit requirement may be able to use Equity funds for this purpose.
Investment Returns	Below-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.
Area Median Incomes (AMIs) Served	Not to exceed 90% average AMI for all restricted units
Fees	• 1% investment placement fee • Construction monitoring and compliance fees • Standard closing costs
Affordability Requirements	A Regulatory Agreement ensuring affordability for 30 years will be required, which must include a two-year notice to local government.
Priorities	Statutory Priorities • High-density housing • Mixed-income housing • Environmental sustainability Strategic Policy Priorities • Shovel-ready projects that result in new units • Use of Colorado manufactured modular/offsite building technology, if reasonably cost-competitive with traditional construction methods • Inclusion of home-based child care or commercial child 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 programs are subject to change.

Equity Process and Timeline

The application period for the Equity program is currently closed.

From February 24, 2025, through 5:00pm MT on March 18, 2025, applications and supporting materials were accepted for the Equity program. A total of 42 applications were received representing $355.7 million in funding requests, and the average funding request was $8.4 million. CHFA anticipates that project sponsors selected to move to underwriting and approval of Equity funds will be announced in May 2025.

February 24, 2025	CHFA began accepting applications.
March 18, 2025	Application submission period closed at 5:00pm MT.
May 2025	CHFA will announce project sponsors selected to move to underwriting and approval of Equity funds.

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].