Note From the Division Director
To our partners,
August has been one for the books, and the Division of Housing has many exciting updates to share, starting with the announcement of our coordinated work on tax credit funding. The announcement included below details an exciting new coordinated funding pilot starting in 2027 that proposes to align state gap financing with competitive Housing Tax Credit applications. This initiative is a major step toward streamlining affordable housing development by allowing you to request multiple funding sources through a single, coordinated process.
To further simplify how you move projects forward, we have also launched a new centralized housing funding directory. This resource brings all relevant state and federal programs administered by DOLA into one location, making it easier than ever to identify and access the opportunities your community needs.
We’re also celebrating a major milestone with the approval of 2,000 homes around the state in communities that are fully compliant with Proposition 123. The achievement, bolstered by the recent efforts of the City of Durango, represents a significant step in the state's ongoing commitment to building more housing Coloradans can afford on an accelerated timeline. You can read more about that in this recent press release.
Finally, you may already have seen recent news coverage, but I am thrilled to share that we have officially launched a partnership with Sable Altura Fire Rescue to house a new firefighting substation at our Sage Ridge Supportive Residential Community campus. This will not only significantly improve emergency response times for the region but will also serve as an incredible vocational hub. Later this year, residents will have the opportunity to participate in on-site training for basic EMS and fire services.
Thank you for your continued dedication to creating housing solutions for all Coloradans. We are looking forward to a productive September!
Best,
Tyler Jaeckel
Director, Division of Housing
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Dear Partners,
We have very exciting news to share and it could be a significant step forward in how Colorado finances affordable housing.
After many months of discussion and collaboration, the Department of Local Affairs (DOLA), the Colorado Housing and Finance Authority (CHFA), and the Office of Economic Development and International Trade (OEDIT) are proposing a coordinated funding pilot beginning in 2027. For the first time, eligible state gap financing could be considered alongside competitive Housing Tax Credit applications.
Under the approach outlined in the second draft of the 2027–2028 Qualified Allocation Plan (QAP), applicants could request eligible DOLA gap funding or OEDIT’s Proposition 123 Concessionary Debt as part of their Housing Tax Credit application, beginning with 2027 Round One.
Why does this matter? Today, affordable housing developers often must pursue multiple funding sources through separate processes and timelines, creating uncertainty and slowing projects down. We heard your feedback, and this proposed approach is designed to:
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Provide greater funding certainty
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Simplify and better coordinate applications
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Help affordable housing developments move more efficiently from award to construction
By better aligning these resources, we believe Colorado could support more Housing Tax Credit awards and create up to 300 additional affordable homes each year. That is a meaningful impact for communities and families across our state.
CHFA shared additional information about the proposed framework in the latest draft of the 2027–2028 QAP.
This proposal represents the kind of collaboration and problem-solving we need to deliver more housing that Coloradans can afford. We are excited about its potential and we look forward to working with you to make it successful.
Sincerely,
Maria De Cambra
Executive Director
Colorado Department of Local Affairs
 Proposition 123 Updates:
Units: What Jurisdictions Need to Submit
No matter the type of project, there are two general types of documents or information required when submitting units to DOH:
- The “Trigger” Date: Documentation showing when the unit counts — specifically, the eligible event that triggered the creation, conversion, or preservation of the affordable unit (i.e. building permit)
- Unit Affordability Information: Documentation showing the unit serves a household at or below the Proposition 123 AMI limits or the rent/sale price is affordable at those same limits
We’re here to help!
Public Comment Period Open for Rural Resort Income Limit Petition
The Town of Avon has submitted a petition to the Division of Housing to increase area median income (AMI) limits to 140% AMI for homeownership and 100% AMI for rental for the Equity, Concessionary Debt, and Land Banking programs. If approved, the petition will remain in effect for the current Proposition 123 commitment cycle, which ends on December 31, 2026. These programs are administered by the Colorado Housing and Finance Authority and overseen by the Governor’s Office of Economic Development and International Trade. Though DOH is not responsible for these programs, it is charged by statute (C.R.S. 29-32-105.5 (2)) to review these petitions.
Public comments will be accepted for 30 days, starting on August 12, 2026 and ending on September 11, 2026.
DOH CDBG Abatement and Demolition: Public Comment Period Now Open
The Division of Housing’s Office of Housing Finance and Sustainability (OHFS) is preparing a Notice of Funds Available (NOFA) for Community Development Block Grant (CDBG). OHFS is seeking feedback from the public on the proposed program for abatement and demolition of residential structures to remove slum and blight.
The Division of Housing has opened a 30-day public comment period, which opened on Monday, August 24, 2026 and runs through Thursday, September 24, 2026. Comments may be submitted via the online form.
A public hearing will be held on Wednesday, September 2, 2026, from 10:00 AM – 11:00 AM (MST). This hearing will take place at 1525 Sherman St, Blue Spruce Conference Room 1005, Denver, CO 80203, with virtual attendance available via Google Meet at meet.google.com/weg-jbrf-dzk.
For more information on this draft NOFA and the Public Hearing hearing, see the Notice of Public Hearing and Comment Period Colorado Department of Local Affairs, Division of Housing – Community Development Block Grant Abatement and Demolition Program Draft Notice of Funding Availability.
The deadline for addressing 2026 direct allocations of Private Activity Bonds (PABs) is Tuesday, September 15, 2026. This often requires the involvement of the City Council or County Commission to meet, discuss, and approve, so the planning should be well underway.
There are four options available for 2026 PAB direct allocations:
- Issue
- Carryforward
- Relinquish to the Statewide Balance (No action to relinquish is needed if this is the choice.)
- Assign the cap to a qualified issuer for a project you want to support; other local governments, housing authorities, and the Colorado Housing and Finance Authority (CHFA) all qualify. If you assign PABs to another issuer, the recipient must either issue or carry forward the PABs by 09/15/2025; otherwise, the PABs will be relinquished to the Statewide Balance. Please allocate enough time for this step.
For more detailed information:
PAB Use & Carryforward Options
PAB Carryforward Docs
You may also consult the Colorado Division of Housing’s PAB website at: https://doh.colorado.gov/private-activity-bonds.
Please send any communications to dola_pab@state.co.us
Upcoming Trainings:
Hammering Out the Deal: Salida, CO
Wed, Sept 2 – Thurs, Sept 3 • 8 AM-4:30 PM
Hammering Out the Deal is a two-day workshop designed for affordable housing professionals who want to expand their knowledge of affordable housing finance through case studies and spreadsheet manipulation. This class looks at the complex relationship between project costs, financing, and operations, and introduces affordable housing finance topics, such as Private Activity Bonds and Low Income Housing Tax Credits. Each day we'll create spreadsheets based on successful projects developed across the state.
Register
 Featured Social Media
- DOLA is partnering with Sable Altura Fire Rescue to house a firefighting substation at the Sage Ridge Supportive Residential Community Campus, which will also serve as an educational hub providing on-site vocational training.
- We’ve made it easier for local governments, nonprofits, and housing developers to find funding opportunities to move projects forward! DOH’s new funding directory brings all relevant state and federal funding programs administered by DOLA together in one centralized location.
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