- June 24, 2022
chfa awarded $9 million in capital magnet funds to support affordable housing(DENVER) – Colorado Housing and Finance Authority (CHFA) has been awarded a $9 million Capital Magnet Fund (CMF) grant to support the development and preservation of affordable rental housing across Colorado. CHFA was selected to receive an award among 59 total recipients nationwide. This is the largest and fifth consecutive CMF award that CHFA has received, bringing the total award amount to more than $33.6 million, receiving $5.5 million in 2021, $6 million in 2020, $6 million in 2019, and $7.1 million in 2018.
“The Capital Magnet Fund is important for affordable housing development nationwide and here in Colorado where demand for affordable units far outpaces supply,” said Jaime Gomez, deputy executive director and COO of CHFA. “Along with growing housing demand are increasing costs to construct and preserve affordable rental housing. Because of these challenges, the CMF has been a sought-after resource in our state and has supported developments that would otherwise not have been financially feasible to come to fruition. CHFA is grateful to continue offering the CMF to achieve our mission and support Coloradans.”
CHFA will use the award to fill gaps in funding needed to construct or preserve affordable rental housing. CHFA anticipates that a minimum of 60% will be invested in areas of economic distress and 20% in rural areas. CHFA also plans for at least 64% of all affordable rental housing units supported with the funds to serve households earning at or below 50% of the Area Median Income (AMI). For example, in Denver County, 50% AMI for a two-person household is $46,900 and in Montezuma County, is $32,900.
According to the National Low Income Housing Coalition, Colorado ranks eighth in the nation’s highest percentage of cost-burdened renters who pay more than 30% of their income on housing costs. In addition, there are only 29 available affordable homes for every 100 renter households with extremely low income.
The CMF is administered by the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund). The CMF was established by Congress in 2008 and offers competitively awarded grants to finance affordable housing solutions and community revitalization efforts. For more information about the CMF, visit cdfifund.gov.