Land Banking

The Land Banking program provides grants to eligible local or tribal governments and forgivable loans to eligible nonprofits with a demonstrated history of providing affordable housing. These funds must be used to acquire and preserve land for affordable for-sale housing or affordable rental housing. Mixed use may be allowed so long as the predominant use is affordable housing.

Program Detail	Description
Eligible Projects	Acquisition of land for the development of affordable rental and for-sale housing. Mixed use is allowed if the predominant use is affordable housing  New money transactions will be prioritized over a refinance or addressing financing gaps on existing projects
Program Benefits	Grants to eligible local and tribal governments Forgivable loans to eligible nonprofits Good faith efforts may be used for consideration of extensions
Program Allocation	Program funding is 15%-25% of total Financing Fund allocation
Maximum Amount	Lesser of $5 million or CHFA’s concluded appraised value
Forgivable Loan Terms	Proper zoning and development plan within 5 years Permitted and funded within 10 years
Forgivable Loan Conditions	If specified milestones are not achieved by 5 and 10 years, the forgivable loan plus interest must be repaid within 6 months unless the land is conveyed to a state agency or other entity for the development of affordable housing with the approval of CHFA  Non-performance could impact future awards Upon repayment of the loan plus deferred interest, the property may be developed for any purpose
Grant Conditions	If specified milestones are not achieved by 5 and 10 years, the grant must be repaid within 6 months
Interest Rates and Fees	Forgivable loans bear a deferred interest rate of 2%. No interest is due if milestones are achieved Standard loan and grant closing costs apply Environmental Report required for transactions over $750,000
Area Median Incomes (AMIs) Served	Rental: households with an annual income at or below 60% AMI Homeownership: households with an annual income at or below 100% AMI Rural Resort communities may petition the Colorado Division of Housing to use more flexible income requirements Commercial or mixed-use development, including non-restricted housing, is eligible provided that the predominant use (70%) is affordable. Projects proposing between 51% and 69% of the project to be utilized as affordable may apply with justification
Geographic Distribution	Letters of Intent and/or applications will be reviewed to ensure equitable distribution of funds statewide to both rural and metro areas
Reporting	Loan and grant recipients will annually report on development progress.
Funding Process and Distribution	Letters of Intent will be required prior to submission of an application Based on anticipated demand, applications may be reviewed through a competitive funding round
Affordability Covenants	All projects must have a Regulatory Agreement at the time of program funding which will cover the milestone period Final development must include a covenant maintaining affordability of rental housing units for at least 30 years after the final improvements are developed Homeownership developments shall remain affordable for at least 30 years through a ground lease or similar structure  Projects may request a waiver to 20 years with a market analysis
Priorities	High-density housing Mixed-income housing Environmental sustainability Shovel-ready projects that result in new units Use of modular/off-site construction if cost competitive Inclusion of home-based child care units or commercial child care facilities
Commitments	Commitments will be valid for 60 days

This chart is intended only to highlight certain program requirements. Loans and grants 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. More details can be found in the Land Banking Program Guidelines (PDF).

From July 1, 2025 through December 31, 2025, CHFA accepted Letters of Intent (LOIs) for Rural and Rural Resort projects only.* From Monday, January 5th, through Friday, February 6th, at 5:00pm MT, LOIs were accepted for all eligible projects, located in either Urban, Rural, or Rural Resort counties. Sponsors who submitted LOIs will be contacted regarding next steps, and full applications will be accepted beginning March 2026.

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*Rural counties defined by OEDIT include: Alamosa, Baca, Bent, Cheyenne, Clear Creek, Conejos, Costilla, Crowley, Custer, Delta, Dolores, Elbert, Fremont, Garfield, Gilpin, Hinsdale, Huerfano, Jackson, Kiowa, Kit Carson, Lake, Las Animas, Lincoln, Logan, Mesa, Mineral, Moffat, Montezuma, Montrose, Morgan, Otero, Park, Phillips, Prowers, Pueblo, Rio Blanco, Rio Grande, Saguache, Sedgwick, Teller, Washington, and Yuma.

Rural Resort counties defined by DOLA include: Archuleta, Chaffee, Eagle, Grand, Gunnison, La Plata, Lake, Ouray, Pitkin, Routt, San Juan, San Miguel, and Summit. The Town of Estes Park is designated as a Rural Resort Municipality.

Date	Description
July 1, 2025	Rolling LOIs and applications accepted until December 31, 2025, or until funds are exhausted for Rural and Rural Resort projects only.
January 5, 2026	LOIs accepted for all projects, including those not located in Rural and Rural Resort counties.
February 6, 2026	LOI acceptance period will conclude at 5:00pm MT.
March 2026	Applications will be accepted for all projects, including those not located in Rural and Resort counties.