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 predominate use is affordable housing.
|• Grants to eligible local and tribal governments, including public housing authorities
• Forgivable loans to eligible nonprofits
• Good faith efforts may be used for consideration of extensions.
|• Local and tribal governments
|• Acquisition and preservation of land for the development of affordable for-sale housing homeownership, and mixed use if the predominate use is affordable housing.
• 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.
• New money transactions will be prioritized over a refinance or addressing financing gaps on existing projects
|15% to 25% of Affordable Housing Financing Fund (AHFF) allocation
|Area Median Incomes (AMIs) Served
|• Rental: Households earning 60% AMI and below
• Homeownership: Households earning 100% AMI and below
• Rural resort communities may petition the Colorado Division of Housing to use more flexible income requirements.
|Maximum Grant or Loan Financing
|Lesser of $5 million or appraised value
|• Forgivable loans bear a deferred interest rate of 2.0%; no interest due if milestones are achieved
• Standard loan and grant closing costs apply.
• Environmental Report required for transactions over $750,000
|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.
|If specified milestones are not achieved by 5 and 10 years, the grant must be repaid within 6 months
|• High-density housing
• Mixed-income housing
• Environmental sustainability – Updated sustainability standards; please see guidelines for details (PDF)
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. More details can be found in the Land Banking Program Guidelines (PDF).
How to Apply
CHFA and OEDIT accepted Letters of Intent (LOIs) for the fiscal year 22-23 Land Banking program funds from July 18th to August 21st. CHFA received 113 LOIs representing more than $255.8M in funding requests (PDF). Given the significant demand, CHFA and OEDIT determined that a competitive application process for the fiscal year 2022-2023 funding round would be required. Twenty-six LOI submissions representing $46.9M were invited to apply; 21 applications for $38.8M were received (PDF).
After careful review, CHFA and OEDIT have awarded 16 applicants land banking grants and/or loans totaling $25.34 million (PDF).
Updates regarding the next Land Banking funding round will be announced soon. Those not awarded funds at this time will have the opportunity to re-apply.
Application and Award Timeline
|July 18, 2023
|CHFA begins accepting LOIs.
|August 21, 2023
|LOI submission closes at 11:59pm MT.
|September 11, 2023
|Based on demand, LOI respondents are notified of competitive or rolling application process and application next steps.
|November 1, 2023
|The application submission closes at 11:59pm MT.
|Awards announced, pending volume received
- Land Banking Awards (PDF)
- Land Banking Application Invitees (PDF)
- Land Banking LOI Submission List (PDF)
- Land Banking program flyer (PDF)
- Land Banking program guidelines (PDF)
- Training and resources
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CHFA Community Development
Manager of Business Finance
Commercial Loan Officer II