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 predominate use is affordable housing.

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

Guidelines 09-18-2023

Program Benefits 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.
Eligible Recipients• Local and tribal governments
• Nonprofits
Eligible Projects• 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
Program Allocation15% 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 FinancingLesser of $5 million or appraised value
Interest Rates
and Fees
• 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.
Grant ConditionsIf specified milestones are not achieved by 5 and 10 years, the grant must be repaid within 6 months
Priorities• 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, 2023CHFA begins accepting LOIs.
August 21, 2023LOI submission closes at 11:59pm MT.
September 11, 2023Based on demand, LOI respondents are notified of competitive or rolling application process and application next steps.
November 1, 2023The application submission closes at 11:59pm MT.
December/JanuaryAwards announced, pending volume received

Please Note

Completion of the Proposition 123 Local Government Affordable Housing Commitment is not required for LOI submission. Proof of Commitment submission will be required at time of application, with acceptance by DOH required to be deemed an eligible applicant.


CHFA Community Development
Steve Boice
Manager of Business Finance

Peter Martinez
Commercial Loan Officer II

[email protected]

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

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