DOH is launching a new initiative to provide financial support to developers applying for the Colorado Housing and Finance Authority's (CHFA) 2025 Round Two Federal and State Housing Tax Credits.
Overview
DOH is piloting integrating approximately $20 million in Loan or Grant Assistance through DOLA’s Office of Housing Finance and Sustainability (OHFS), specifically for developments seeking to apply to Colorado Housing and Finance Authority (CHFA) for available Federal 4% and State Housing Tax Credits awarded in 2025 Round Two.
Process and Key Dates
Each pre-application will be reviewed by OHFS, and if selected, will receive a conditional commitment letter for a specific grant or loan amount to be submitted along with other application materials to CHFA in its LIHTC round. Submissions will be scored on factors such as prior performance, cost-effectiveness, leveraged funds, and management capacity to ensure alignment with best practices and long-term success. Detailed criteria can be found in the DOH Housing Development Scoring Criteria.
For the purposes of the capital pilot, submissions received are considered to be a pre-application. If a project is successful in obtaining tax credits from CHFA, the borrower/grantee would formally apply through a regular competitive cycle when they are ready to close on construction financing in order to initiate the DOH contracting process. However, the project is pre-approved for the conditional funding request so long as key aspects of the project have not substantially changed since the pre-application and funding is still available. Should a project request more than their conditional award, additional funding is not guaranteed and is subject to a competitive award.
There is a two-step submission process:
- May 15, 2025 – Letters of Intent (LOIs) due
- June 2, 2025 – Full pre-applications due to DOH
Full pre-applications must include:
- A completed Neighborly application (sections A-H),
- A completed DOH or CHFA budget spreadsheet,
- LOIs or term sheets supporting all permanent sources, and
- Project team company bios.
Pre-applications for the capital pilot will receive a conditional determination of Loan or Grant Assistance from OHFS, with final funding awards contingent on a full application to DOH per House Bill 24-1308 requirements.
DOH will hold a webinar for this funding opportunity on May 7, 2025 at 11:00 a.m. MST.
Please contact your Housing Development Specialist if you are interested in this funding opportunity.