Q&A on DOH Affordable Housing Development Scoring

This applies to rental and homeownership development for affordable housing units. This does not apply to CHDO operating, down payment assistance, or homeowner assistance programs.

Starting on December 2, 2024 and for affordable housing development rounds thereafter.

DOH wants to be transparent in how we are making decisions about our limited funding sources, and to be clear about the State’s priorities. These scoring criteria give us a tool to assess projects in a competitive application process. In developing these criteria, DOH looked at scoring criteria used by other funders, including CHFA, to build alignment between our processes.

DOH does not anticipate being able to fund all applicants in a round. Applications not selected for funding will not automatically roll over into future rounds, and should instead re-apply if funding is still needed.

• Yes, applicants can re-apply. Unless there are changes to the project features, scores aren’t likely to change cycle to cycle, but the mix of projects applying may positively or negatively impact their relative competitiveness.
• DOH encourages you to work with your development specialist if you plan to re-apply.

DOH will revisit the criteria annually to ensure they are providing value to our review process and are aligned with statewide priorities. However, we recognize that projects are developed over several years, and we are committed to
providing as much consistency as possible.

It doesn’t. CHFA will evaluate projects submitted to it for funding separately. However, DOH has taken CHFA’s QAP into account when developing our scoring criteria to provide as much consistency as possible.

DOH will continue to explore ways to improve alignment with CHFA. In the meantime, applicants should apply to DOH after award of tax credits, consistent with current practice.

This is part of a comprehensive review, that will also include review of application documents to determine if a project:

• Meets threshold requirements for the funding source, such as:
  • Project readiness
  • Funding availability & requirements of those funding sources
• Demonstrates financial feasibility
• Is aligned with State & DOH priorities

The scoring will inform our recommendation, along with other factors.

DOH recognizes that there are needs throughout the state and aims to support communities across Colorado. In reviewing our applications, we will ensure that we are meeting our statutory obligation to fund a minimum of $5M per year in rural projects, and may invest beyond this depending on the unique mix of applications received in a given year and their relative competitiveness.

The criteria will have different weights.

There will not be a minimum threshold score. All projects that have applied for a given round of funding will be scored and compared against one another, in addition to being evaluated on the merits of their other application materials, as
noted above.

• Yes, DOH will be using this scoring criteria for all housing development projects. All projects that have applied for a given round of funding will be scored and compared against one another.
• Applicants that apply in a funding round that has restrictions on its eligible project types (e.g. Proposition 123-funded homeownership funds) will only be compared against other eligible projects. However, projects that apply in a broader round would be compared against all projects that apply in that round.

Scoring will occur while the project is being underwritten.

Applicants can request their score from their housing development specialist to understand how to make their application more competitive.

Scores are one component of a comprehensive review of applications that determines our funding recommendations, and do not solely determine whether an applicant is funded. Therefore, DOH recommends that applicants who aren’t
recommended for funding work with their development specialist to determine how to strengthen their application if they choose to re-apply.

DOH will continue to make recommendations to the State Housing Board in a publicly available packet. These recommendations are based on scoring and other elements of comprehensive application review. As of now, we don’t
anticipate that applicant scores will be published.

• You are encouraged to work with your development specialist on all aspects of your project and application to receive technical assistance. However, working with a development specialist is never a guarantee of funding, as project awards
  will always depend on the number and competitiveness of projects submitted in a
  given round.
• In an effort to be fair and just to all applicants, DOH will not provide feedback
  after a complete application has been submitted, and before a funding decision
  has been made.

A full Neighborly Application and all attachments, as detailed in the Application Instructions and Due Diligence Checklists.

Scoring will happen concurrently with the underwriting process - no more than 45 days from when DOH receives a complete application.

• Generally speaking, DOH assesses for feasibility, readiness, management capacity, market demand, leverage and cost containment. Some of these assessments will be scored using the primary factors, and some of these will not be scored, but will be assessed for level of risk, consistent with current practices.
• DOH underwriting policies are outlined in the Application Instructions.