The Colorado Housing and Finance Authority (CHFA) has unveiled a new statewide housing fund to support the development and preservation of affordable and rental housing across Colorado.
Funding for the new Capital Magnet Fund comes from a $7.1 million grant recently awarded to CHFA by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund. CHFA will use the proceeds to provide low-interest, flexible financing for developers building or preserving affordable rental housing. CHFA estimates the fund will help provide housing for about 723 Colorado households in both rural and urban communities.
“CHFA’s Capital Magnet Fund is an imperative resource to Colorado as our growing population, combined with escalating development and construction costs, continue to intensify an already challenging housing market,” CHFA Executive Director and CEO Chris White said.
The Capital Magnet Fund is designed to encourage affordable rental housing development and preservation that supports Colorado’s most vulnerable populations and communities. It will provide subordinate financing — up to $750,000 per eligible project — at a 3 percent fixed interest rate to developments that have been awarded federal housing credits.