CHFA Awarded $6 Million in Capital Magnet Funds to Support Affordable Housing
(DENVER) – Colorado Housing and Finance Authority (CHFA) has been awarded a $6 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 38 total recipients nationwide. This is the third CMF award that CHFA has received, bringing the total award amount to more than $19 million, receiving $7.1 million in 2018, and $6 million in 2019.
“To receive a CMF grant for the third year in a row is a testament to the need for affordable rental housing in Colorado. The state’s population continues to grow at about twice the national rate and wages are not keeping up with the cost of housing. A person earning minimum wage would have to work 91 hours a week to afford an average market rate two-bedroom apartment in Colorado,” said Cris White, executive director and CEO of CHFA. “CHFA has seen a demand for CMF resources, with prior years’ funding fully committed in a brief timespan. CHFA appreciates the opportunity to support housing stability for more Coloradans with the CMF.”
CHFA will use the award to fill gaps in funding needed to construct or preserve affordable rental housing. A minimum of 65 percent will be invested in areas of economic distress and at least 60 percent of all affordable rental housing units supported with the funds will serve households earning at or below 50 percent of the Area Median Income (AMI). For example, in Denver County, 50 percent AMI for a two-person household is $37,150 and in Montezuma County, is $27,250.
According to the National Low Income Housing Coalition, Colorado ranks fifth in the nation for the lowest amount of affordable, available rental housing units and ties for fourth in the highest percentage of severely cost-burdened renters who pay more than 50 percent of their income on housing costs. In addition, there are only 28 available affordable homes for every 100 extremely low-income renter household.
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 www.cdfifund.gov.