Federal and National Resources
HUD Programs
Block Grant Programs Allocated by DOH and Participating Jurisdictions
- Home Investment Partnership Program (HOME)
- Community Development Block Grant (CDBG)
- Emergency Solutions Grant Program (ESG)
- Indian Housing Block Grant (IHBG) - for federally recognized Indian tribes and tribally designated housing entities
- Indian Community Development Block Grant (ICDBG) - for Indian tribes, bands, groups, or nations, including Alaska Indians, Aleut, and Eskimos with established relationships with the federal government.
- Native American Housing Assistance and Self Determination Act (NAHASDA)
For non-entitlement communities, DOH reviews applications for HOME and CDBG on a rolling basis. Contact your Housing Development Specialist.
Programs Administered Directly by HUD
- Section 202 Affordable Housing for the Elderly
- Section 811 Supportive Housing for Persons with Disabilities
National Housing Trust Fund
The National Housing Trust Fund is a national housing resource targeted to help build, preserve, rehabilitate, and operate housing affordable to people with the lowest incomes. The Colorado Division of Housing received $3 million from the National Housing Trust Fund (HTF) administered by the U.S. Department of Housing and Urban Development. The first priority for Colorado's HTF program is community-based housing that provides links to supportive services for people with disabilities or special needs. The second priority is developments that create units at 30% AMI rents that would not be feasible without HTF funding. Colorado Division of Housing (DOH) allocates this resource in Colorado and reviews applications on a rolling basis through their Grants and Loans program process.
Low Income Housing Tax Credits
The Low-Income Housing Tax Credit (LIHTC) subsidizes the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants. Tax Credits are allocated in the state of Colorado by the Colorado Housing Finance Authority
CHFA allocates these housing tax credits and administers the program in accordance with its Qualified Allocation Plan (QAP).
Resources on LITHC:
- What is LIHTC and how does it work? (Brookings)
- Low-Income Housing Tax Credit (LIHTC) Overview (Novogradac)
- About Housing Tax Credits (CHFA)
Colorado Housing Tax Credit
Colorado’s state credit is modeled after the federal Housing Tax Credit program. Colorado’s program was originally established in 2001 and later renewed in 2014, 2016, and 2018. In 2019, the program was expanded, authorizing CHFA to allocate $10 million in state credit annually in 2020–2024. CHFA is the allocating agency for the state Affordable Housing Tax Credit (state AHTC) program in Colorado.
USDA Rural Development
USDA offers a number of programs that provide development financing for rural areas including:
- Section 533 Housing Preservation Grants (homeownership & rental)
- Section 515 Rural Rental Housing Loans (rental)
- Section 538 Guarantee Program (rental)
- Section 514/516 (farmworker housing)
- Section 502 Housing Direct Loans (homeownership)
- Section 502/523
- Mutual Self-Help Technical Assistance Housing Program (homeownership)
- Section 502 Guaranteed Loan Program (homeownership)
- Section 504 Home Repair Grant/Loan Program (homeownership)
Capital Magnet Funds
The Capital Magnet Fund is administered by the Treasury Department’s Community Development Financial Institutions (CDFI) Fund and provides grants to CDFIs and qualified nonprofit housing organizations through a competition. The funds can be used to finance affordable housing activities, as well as related economic development activities and community service facilities. In Colorado, CHFA allocates Capital Magnet Funds to projects financed through the LIHTC program. Enterprise Community Partners, Impact Development Fund and other CDFIs use CMF funds to reduce the interest rates and terms on loans provided through their CDFIs.
Historic Rehabilitation Tax Credit/Preservation Tax Credit
In July 2015, the state of Colorado offered a new tax credit for the rehabilitation of qualified historic buildings. This credit expands and improves upon the original Federal rehabilitation tax credit, and together can provide 20 – 35% credit for rehabilitation of historic properties.
Contact History Colorado’s Office of Archaeology and Historic Preservation (OAHP) to access this program.
Preservation Tax Credits (History Colorado)
New Markets Tax Credits
The NMTC Program is a program of the Department of Treasury’s Community Development Financial Institution (CDFI) fund. It attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs). The credit totals 39% of the original investment amount and is claimed over a period of seven years. In order to secure NMTC equity, a local government or developer should contact a CDE with a NMTC allocation.
Resources:
- New Markets Tax Credit Program (CDFI)
- Participant Motivations in an NMTC transaction (Novogradac)
Federal Home Loan Bank
Grant funding available for affordable housing development and rehabilitation performed by Public Housing Authorities, Housing Developers, City & State Government Agencies, Local Community Agencies, Nonprofit Organizations, For-Profit Organizations, Habitat for Humanity, Self-Help Programs and CHDOs.
Homeownership Set-Aside Program
The Homeownership Set-aside Program (HSP) provides down payment, closing cost and repair assistance to first-time homebuyers earning at or below 80% of the Area Median Income (AMI) for households purchasing or constructing homes in Colorado, Kansas, Nebraska and Oklahoma. The HSP is provided to households as a forgivable grant with a five-year retention period.