So, you’re looking into Colorado’s Proposition 123 and what the Affordable Housing Support Fund (AHSF) is all about. As with anything that has to do with income tax from Coloradans, there’s a lot to sift through. EVstudio is here to help.
The AHFS is one of two funds that will receive a portion of Proposition 123’s approximately $300 million in funding, which is .1% of the state’s existing taxable income. Of that approximate $300 million, 60% goes to the Affordable Housing Finance Fund (AHFF), owned by Colorado’s Office of Economic Development and International Trade (OEDIT), but managed by Colorado Housing Finance Authority (CHFA).
We’re going to break down the components of the AHSF, and how it relates to both private developers and non-profit organizations.
Affordable Homeownership Program (AHP)
The AHP accounts for a full 50% of AHSF funding with approximately $60 million a year. Administered by DOH, 50% of AHP funds will go towards facilitating homeownership. This program is focused on nonprofit organizations as the recipients of funding, and is meant to go towards downpayment assistance programs. Households participating in these programs can earn 120% Average Median Income (AMI) or below, with priority given to first-generation homebuyers to help re-write stories of families without generational wealth to pass along. These programs can be administered by DOH or a sub-contractor.
Housing grants for nonprofits and Community Land Trusts (CLTs) are also part of this program. These grants and (circumstantially forgivable) loans promote affordable homeownership for community members earning at or below 100% AMI. Local and tribal governments in Colorado are eligible, as well as Community Development Financial Institutions (CDFIs).
Direct community services
Denver ranked in the top ten of cities in the U.S. for the recorded size of our city’s population of unhoused people in 2022. That is a sobering fact. Thousands of our neighbors going without shelter is a problem that can be solved in many ways. While providing affordable housing is a big one, this 45% portion of AHSF funding, or about $5.4 million annually, goes to direct services for tenants and unhoused people across the state, and is geared towards nonprofits for receiving this funding.
Local Planning Capacity Development Program (LPCDP)
Accounting for just 5%, or about $600,000 a year, of the total AHSF funding, the LPCDP provides grants to local governments to support their urban planning for accommodating these affordable housing developments. Administered through the DLG, you can’t already be an Innovative Housing Planning Grant / Innovative Housing (IHOP/IHOI) grant recipient to receive LPCDP funding for your municipality.
What does this mean for my project?
If you’re looking for more information on Proposition 123, check out our main article on it here: What Proposition 123 Means for Affordable Housing
Our Municipal Studio, EVolution Design Studio, and Multi-Family Studio here at EVstudio are constantly immersed in the worlds of affordable housing and navigating budgets where the funds are administered by grants. Through all we’ve learned by constantly pursuing the EVolution of the newest ideas, technologies, and opportunities, any of our Studios would love to make your vision a reality. Let us know how we can help.