Colorado Division of Housing Resources

The Division of Housing Office of Housing Finance & Sustainability oversees a number of Grant & Loan Programs to increase the availability of safe, affordable housing in Colorado. These grant and loan programs are competitive and funding is based on timing, availability and department priorities.

Your Housing Development Specialist is the best point of contact and can guide you through the planning and application process, including those listed below.

HOME Investment Partnerships

HOME dollars provide competitive funding to local government, non-profits and private developers. HOME Entitlement Communities receive direct HOME funding from HUD. Non-entitlement areas or projects that need additional HOME funds apply to the State Division of Housing for use of funds on a project-by-project basis. There are four basic eligible program or project types:

  • Homebuyer assistance.

  • Rehabilitation for owner-occupants.

  • Rental housing acquisition, rehabilitation and construction.

  • Tenant-based rental assistance.

Community Development Block Grant (CDBG)

CDBG Entitlement Communities receive direct CDBG funding from HUD. Non-metropolitan, non-entitlement areas apply to the State Division of Housing for use of funds on a project-by-project basis. State programs can only fund “non- entitlement” communities.

Principle eligible activities:

  • Affordable housing.

  • Neighborhood revitalization.

  • Economic development.

  • Improved community facilities.

  • Infrastructure improvements.

Community Development Block Grant - Disaster Recovery (CDBG-DR)

DOH works with local communities to ensure that citizens who have been displaced from their homes due to disaster can access resources that help them rebuild, relocate, and find permanent housing. The CDBG-DR housing programs are administered through partnerships with local governments, housing authorities, communities, and volunteer-driven non-profit organizations, and are for use by those recovering from specific Presidentially declared natural disasters.

Local Revolving Loan Funds

DOH provides grant funds to regional housing organizations to provide Single Family Owner-Occupied repair loans (SFOO) and Down Payment Assistance loans (DPA) to low- and moderate-income families. These loans are set at a low interest rate and can be amortized or deferred depending upon the need of the family. When loan repayment is received, the housing agency places the payment into a revolving loan fund. These funds are then recycled back into the community to provide additional housing rehabilitation and down payment assistance.

Single Family Owner Occupied (SFOO) Rehabilitation

The primary goals of the SFOO Rehabilitation program are to: Preserve, enhance, and maintain afford- able housing stock through repair and renovation within the community.

  • Protect the health and safety of the occupants through the correction of housing hazards.

  • Assist homeowners in improving the condition of their homes.

  • Allow homeowners to stay in their homes.

  • Create and maintain a regional revolving loan fund to assist with future housing rehabilitation projects.

  • Develop and sustain a network of local contractors to complete housing repairs and renovations

Down Payment Assistance

The primary goals of the down payment assistance program are to:

  • Provide opportunities for low- and moderate-income Coloradans to purchase their own homes.

  • Increase the number of homeowners in the regional housing organization’s service area.

  • Create and maintain a regional revolving loan fund to assist future families with down payment assistance.

  • Enhance neighborhoods and communities.

  • Provide stability for families and achieve lower foreclosure rates by requiring pre-homeownership counseling.

Annual follow-up with families is highly recommended, as well as the provision of foreclosure counseling, if needed.

Housing Development Grant Funds (HDG)

The HDG program is a competitive grant that provides funds for acquisition, rehabilitation and new construction. The fund was created by the Colorado State Treasury and consists of monies allocated to the Colorado Affordable Housing Construction Grants Fund by the General Assembly. HDG funds improve, preserve, or expand the supply of affordable housing.

The Colorado Department of Housing has created the Transformational Grant Program which includes two new programs to increase affordable housing stock and opportunities across the state. The two programs are called the Transformational Affordable Housing, Homeownership, and Workforce Housing Grant and the Transformational Homelessness Response Grant.

The Colorado Department of Local Affairs is implementing three new programs introduced by HB1271 that provide assistance to local governments for innovation within affordable housing strategies. The three programs are the Planning Grant program, the Incentives Grant Program, and the Affordable Housing Guided Toolkit and Local Officials Guide Program.

Housing Development Loan Funds (HDLF)

The HDLF program provides loans for the development or rehabilitation of housing for low- to moderate-income families. Money repaid on loans goes back into the HDLF program to be used on a future project.

Private Activity Bonds

The Private Activity Bond (PAB) program funds privately developed projects. The bonds are tax-exempt and the amount of the bonds issued are limited by the IRS. Underwriters use investor money called “bond proceeds,” to make a loan to a project. The project then pays back the loan and the investors are repaid, plus interest. Municipalities or housing authorities issue the bonds, but have no obligation to repay the investors. DOH allocates PABs to state and local authorities. A portion of PABs are reserved by DOLA for future allocation, called the Statewide Balance.


Other materials:

Colorado Housing Investment Funds (CHIF)

The CHIF program was seeded with $36 million of custodial funds through the Colorado Attorney General’s office with 2012 Mortgage Servicing Settlement funds. The CHIF funds can be used two ways:

  1. Short-term, low-interest loans to bridge the long-term permanent financing sources (a portion of loan may remain in the project as permanent debt).

  2. Short-term loan guarantees for new construction and rehabilitation. Eligible borrowers include non-profit, for-profit, and Housing Authority developers.

DOH allocates CHIF funds through their monthly grant and loan process.

Section 811 Project Rental Assistance Program

DOH receives funding from HUD through the Section 811 Supportive Housing for Persons with Disabilities Project Rental Assistance (PRA) Program. This program assists extremely low-income people with significant and long-term disabilities to live independently in the community by providing affordable housing linked with voluntary services and supports. PRA funds provide project-based rental assistance; it is not a financing source for housing construction or acquisition/rehabilitation.

DOH has a funding opportunity open for Permanent Supportive Housing or Supportive Housing programs in Colorado. Applicants should respond to this RFA for any Supportive Housing project in the State of Colorado that intends to apply to DOH, Denver Housing Authority (DHA) and/or the City and County of Denver’s Department of Housing Stability (HOST), for any of the following:

Back to top