DENVER - On October 1, 2024, Gov. Jared Polis, the Colorado Office of Economic Development and International Trade (OEDIT), and Colorado Housing and Finance Authority (CHFA) announced the preliminary selection of three recipients of Proposition 123 Equity program funding. These funds will provide investment capital for low- and middle-income multifamily affordable rental housing projects, supporting the creation of an estimated 292 affordable housing units. Each of these projects is also a key component to regional economic development plans poised to bring new revenue into Colorado, create jobs and revitalize communities.

“Creating more housing that Coloradans can afford, where they want to live, is critical to lowering the cost of living. These new units will create new opportunities for hard-working Coloradans and families to live in our thriving communities,” said Governor Polis.

The voter-approved Proposition 123 Equity program offers below-market-rate equity investments for developers focused on building low- and/or middle-income housing. The projects announced today were selected as part of a special Strategic Investment Round, introduced to respond to a demand for funding that exceeded available funds during the first application cycle.  

OEDIT and CHFA recognized an opportunity to fund time-sensitive projects that will create much-needed affordable housing units while also supporting regional economic development plans. The Strategic Investment Round was established to support projects that must close prior to December 31, 2024; demonstrate a unique and extraordinary state and/or regional economic benefit; and will leverage other statewide investment.

“Through the Proposition 123 Equity program, we have the opportunity to support projects that will create much-needed affordable housing units and support wider economic development plans. That’s a win-win for Colorado workers and their families as well as the communities benefiting from innovative, intentional planning,” said OEDIT’s Executive Director, Eve Lieberman.

A total of $21 million has been preliminarily approved for three recipients. Final award details will be determined during the underwriting process for each project.

Fall River Village

The Estes Park Housing Authority plans to purchase and convert short-term lodging units at the existing Fall River Village Resort into 66 long-term affordable housing rental units serving households earning 60-80% of the Area Median Income (AMI). The project is part of a broader economic development initiative to support the sale of the Stanley Hotel, establish the Stanley Film Center as an international attraction and create cost-effective workforce community housing walkable from downtown Estes Park.

The Vista at Greyhound Park

Proposed by DelWest Development Corp., The Vista at Greyhound Park will provide 120 townhomes to families in Commerce City with incomes 30-90% of AMI. This rental development is part of the Mile High Greyhound Park Urban Renewal Plan, a 65-acre, mixed-use, mixed-income community which, at full build-out, will include over 900 multifamily units, single-family homes, duplexes, and townhomes as well as commercial and community commercial and park space. The redevelopment is transforming the former Mile High Greyhound Park racetrack into a vibrant, inclusive community.

The Terminal

A partnership of the City of Grand Junction, their Downtown Development Authority and Headwaters Housing Partners, The Terminal in Grand Junction will provide 106 rental units for individuals and families earning between 70-100% of AMI. The Terminal will replace a former Greyhound bus station in the center of downtown Grand Junction and include ground-level commercial spaces, artist studios and exhibition spaces for local artists. The Terminal was selected as a Colorado Creative Industry Space to Create Project and received a Community Revitalization Grant in 2023.

“Developments supported by the Proposition 123 Equity program Strategic Investment Round demonstrated a timely need, as well as a benefit to their local economies. Each will provide more Coloradans with the opportunity for housing stability and economic prosperity,” said Cris White, Executive Director and Chief Executive Officer of CHFA.

Returns above the initial capital investment (or principal amount) owed to the equity program fund will be below market rate and customized for each recipient based on cash flow. In addition, 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 investments.

This opportunity is part of the Affordable Housing Financing Fund established by Proposition 123, which is managed by OEDIT and administered by CHFA to distribute 60% of Proposition 123 funding in support of land banking, equity investments and concessionary debt for affordable housing. With the projects announced today, approximately $117 million has been awarded to date through the Affordable Housing Financing Fund.

Ongoing updates on funding are available at coloradoaffordablehousingfinancingfund.com and by signing up to receive newsletter updates.

About the Colorado Affordable Housing Financing Fund

Passed by voters in November 2022, Proposition 123 established the State Affordable Housing Fund to advance the development and preservation of affordable housing in Colorado. The measure directs 40% of those funds to the Colorado Affordable Housing Support Fund administered by the state Department of Local Affairs (DOLA) and 60% of funds to the Colorado Affordable Housing Financing Fund managed by OEDIT. OEDIT selected Colorado Housing and Finance Authority (CHFA) to serve as the Affordable Housing Financing Fund third-party administrator. The Affordable Housing Financing Fund consists of three programs: Land Banking, Equity and Concessionary Debt.

About the Colorado Office of Economic Development and International Trade (OEDIT)

The Colorado Office of Economic Development and International Trade (OEDIT) works to empower all to thrive in Colorado’s economy. Under the leadership of the Governor and in collaboration with economic development partners across the state, we foster a thriving business environment through funding and financial programs, training, consulting and informational resources across industries and regions. We promote economic growth and long-term job creation by recruiting, retaining, and expanding Colorado businesses and providing programs that support entrepreneurs and businesses of all sizes at every stage of growth. Our goal is to protect what makes our state a great place to live, work, start a business, raise a family, visit and retire—and make it accessible to everyone. Learn more about OEDIT.

About Colorado Housing and Finance Authority (CHFA)

For 50 years, CHFA has strengthened Colorado by investing in affordable housing and community development. CHFA invests in affordable homeownership, the development and preservation of affordable rental housing, helps small- and medium-sized businesses access capital, offers technical assistance and financial support to strengthen local communities, and supports mission-aligned nonprofits through philanthropic investment. CHFA is not a state agency. CHFA is a self-sustaining public enterprise. For more information about CHFA, please visit chfainfo.com or call 1.800.877.chfa (2432).