innovative housing and modular manufacturer financing

Letters of Intent Accepted June 1-30, 2025

CHFA will accept Letters of Intent from June 1-30, 2025. Basic key data provided via the LOI template and a brief project narrative will be required for the Letter of Intent. Please see the program guidelines (PDF) for complete details.

Background

Proposition 123 Modular Finance (Prop 123)

The Proposition 123 Concessionary Debt program provides debt financing for modular and factory-built housing manufacturers. This program will be coordinated with OEDIT’s Innovative Housing Incentive Program (IHIP) administered by CHFA to strategically invest in Colorado’s offsite housing manufacturing industry. Additional details regarding the Proposition 123 Affordable Housing Financing Fund are available at coloradoaffordablehousingfinancingfund.com.

Innovative Housing Incentive Program (IHIP)

As part of HB22-1282, OEDIT created a loan program to finance the development of new innovative housing manufacturing facilities and expansions of existing facilities, provided that the borrowers commit to producing a certain percentage of their units as affordable housing. These loans will have below-market-rate interest rates and are intended to revolve. OEDIT has contracted with CHFA as a loan administrator. Considerations for the competitive loan review for both programs include the gross number of affordable housing units to be produced, percentage of margin above cost to the end user (affordable housing developer), economic impact of the factory, number of jobs to be created, energy efficiency of units produced, and the operator’s level of financial viability.

Eligible Borrowers

Applicants may be for-profit or nonprofit organizations that are existing or new modular or factory-built housing manufacturers in the state of Colorado. Out-of-state applicants are eligible to apply as long as the facility being funded is located within Colorado. Previous program awardees in good standing are eligible to apply.

All Colorado modular factories must be in compliance with state modular regulations and in the process of registering with the state as a modular manufacturer.

Eligible Projects and Uses

Applicants may request funds for a new or existing modular manufacturing facility located in Colorado. The end unit that is produced must be capable of being attached to a permanent foundation and utilities. Eligible product types include modular, panelized, tiny homes, kit homes, ADUs, and 3D-printed homes.

Funds may be used to finance traditional loan structures, lines of credit (Prop 123 only), or serve as cash collateral support for a third-party loan (Prop 123 only). Use of funds can include, but are not necessarily limited to, construction, working capital (Prop 123 only), equipment, inventory, raw materials, factory production deposits, leased-facility deposits, and other uses approved by CHFA and OEDIT.

Please see the program guidelines (PDF) for complete details.