Montrose affordable housing project among six million state grants | Western Colorado

Governor Jared Polis, along with the Colorado Office of Economic Development and International Trade (OEDIT) and the Colorado Housing and Finance Authority (CHFA), announced Wednesday the preliminary selection of the first six recipients of new affordable housing.

A total of $39.39 million has been preliminarily approved for six recipients across the state. One of the recipients is the Black Canyon Flats project in Montrose, which will receive $8 million for 60 units for renters earning between 80-100% of the regional Area Median Income (AMI).

The voter-approved Proposition 123 Equity Program provides below-market equity investments to developers focused on building low- and moderate-income housing. The projects chosen as the first six recipients of Proposition 123 Equity dollars were chosen because they prioritized high-density, mixed-income, and environmental sustainability properties. Geographic diversity and readiness to move forward were also considered.

OEDIT, CHFA and a third-party manager will establish a Tenant Equity Vehicle (TEV), funded through Proposition 123 proceeds, to benefit the residents of these developments.

“We need more housing now, and the recipients announced today will help create 628 affordable homes so more Coloradans can live where they want to live — close to their jobs, schools and the places they love,” Polis said in a state news release.

Other projects in the state chosen as preliminary recipients include Woodbury Park Apartments in Craig ($2.77 million for 96 units), 1936 Grove Apartments in Denver ($3.69 million for 28 units), 302 Conifer in Fort Collins ($5.8 million for 76 units), Ballfield at Auraria on the campus of Metropolitan State University ($15 million for 340 units) and Tall Tales Ranch in Lone Tree ($4.11 million for 28 units).

These awards are part of the Affordable Housing Financing Fund, which was established by Proposition 123 to distribute 60 percent of program funding to support land banking, equity and concessionary debt for affordable housing. So far, about $97 million has been awarded through the fund, including the nearly $40 million announced Wednesday.

“When Coloradans have access to affordable, mixed-income housing near where they work, it’s good for our quality of life and our economy,” said Eve Lieberman, executive director of OEDIT. “By providing low-cost capital financing, these Proposition 123 funds will make a difference in communities from Lone Tree to Fort Collins and Craig to Montrose.”

Project proceeds in excess of the initial capital investment or the principal amount owed to the Equity Program Fund are below market rates and are adjusted for each recipient on a cash flow basis.

“Financing through the Equity Program supports quality affordable housing and additional opportunities for housing stability,” said CHFA Executive Director and CEO Cris White. “These investments will strengthen communities and provide residents the opportunity to directly benefit from the success of these developments through the Tenant Equity Vehicle.”