As your trusted partner, CHFA is improving the way we do business and getting your project moving forward faster. With recent improvements to make our loan closing process more streamlined, together, we can build stronger communities by providing safe, secure, and affordable homes for our fellow Coloradans.
Find the Right Program
Recent Improvements Helping Our Customers
1. Effective immediately, single closing for non-risk share construction to permanent loans
- A CHFA construction loan will convert to a permanent loan without a second closing once the post-construction completion requirements set forth in the Loan Commitment are met.
- The promissory note is drafted to include both the construction loan terms and the permanent loan terms so that no later amendment to the promissory note is necessary.
- The deed of trust has an initial maturity date and a permanent loan maturity date so that no later amendment to the deed of trust is necessary.
- The start of the permanent loan period is the first day of the second full month following receipt of all post construction completion due diligence requirements, such as the Appraisal and ALTA As-Built Survey.
- Certain previously required due diligence documentation is eliminated.
- Organizational Documents: New resolution authorizing the conversion not required.
- Entity Lien Searches: Updated searches not required at conversion.
- Title: A new title policy or endorsements to an existing policy are not required at conversion.
- Phase I ESA: Updated/new Phase I not required at conversion. Borrower certifies in a Post-Construction Completion Certification as to certain environmental related facts regarding the Project.
- Zoning: New zoning verification letter not required at conversion. Instead, CHFA will rely on the zoning verification letter obtained at initial closing, review of certificates of occupancy provided at the time of post construction completion review, and an architect certificate of substantial completion indicating that the Project has been completed in accordance with the final plans and specs. Additionally, Borrower certifies in a Post-Construction Completion Certification that the Project has been built in compliance with applicable zoning, planning and land use laws and regulations.
- Cost Certification: Cost certification (audited or otherwise) not required.
- LIHTC 50% Test: Not required unless the Project was financed with 4 percent housing tax credits or low income housing tax credits.
- Execution of Documents: Execution of new documents is limited. New set of permanent loan documents and/or amendments/modifications to existing loan docs not required at conversion.
2. Effective immediately, for CHFA Housing Opportunity Fund (CHFA HOF), Capital Magnet Fund (CMF), and Middle-income Access Program (MIAP) Subordinate loans CHFA will rely on the senior lender’s closing requirements for select items during closing.
- Lien Searches: Accept searches performed by senior lender if they meet CHFA requirements and are dated no more than 90 days from the date of closing.
- Title Requirements: Rely on senior lender requirements regarding most estoppels. Limited title endorsements required on subordinate CHFA loans when CHFA is also making the senior loan.
- Survey Requirements: Follow senior lender survey requirements, so long as the title company on the transaction will still provide CHFA a title policy that includes deletion of standard title exceptions and the ALTA 25 Same as Survey endorsement.
- Zoning Requirements: May rely on outdated zoning letter without requirement to get new updated zoning letter if certain conditions are met. Separate zoning letter addressed to CHFA not required.
- Insurance Requirements: May rely on senior lender requirements as long as CHFA is included as an additional insured/loss payee/mortgagee on the Certificates of Insurance.
- Ground Lease Requirements: Standard CHFA ground lease provisions required; but may agree to allow substantive deviation from standard required provisions in certain circumstances.
- Tax Exemption: Rely on attorney opinion provided to senior lender regardless of date of opinion. No separate opinion to CHFA required.
- Lien Searches: Accept searches performed by senior lender if they meet CHFA requirements and are dated no more than 90 days from the date of closing.
- Title Requirements: In certain circumstances, the ALTA 32/33 title endorsement may be waived if it is not required by senior lender. CHFA will rely on senior lender requirements regarding most estoppels.
- Survey Requirements: Follow senior lender survey requirements, so long as the title company on the transaction will still provide CHFA a title policy that includes deletion of standard title exceptions and the ALTA 25 Same as Survey endorsement.
- Zoning Requirements: May rely on outdated zoning letter without requirement to get new updated zoning letter if senior lender or borrower has zoning letter showing proper zoning that is dated within 1 year from the date of CHFA proposed closing. Separate zoning letter addressed to CHFA not required.
- Insurance Requirements: May rely on senior lender requirements as long as CHFA is included as an additional insured/loss payee/mortgagee on the Certificates of Insurance.
- Payment and Performance Bond: If senior lender requires a Payment and Performance Bond, execution of CHFA’s Dual Obligee Rider is required. If senior lender does not require a Payment and Performance Bond, then acceptable alternatives will be discussed.
- Loan Documentation: If CHFA is subordinate lender, the following construction-related documents may be combined into one: Collateral Assignment of Contract Rights, Assignment of Contracts, Collateral Assignment of Construction Contract and Consent of General Contractor, Collateral Assignment of Architect’s Agreement and Consent of Architect.
Benefits of Using CHFA’s Financing
Trusted partner
With more than 50 years of financing affordable housing, CHFA Multifamily Lending is an industry leader. Our rates and costs are competitive, terms are favorable, and our expertise and technical knowledge helps ensure an efficient underwriting process and flexible resolution to potential pitfalls.
And our partnership extends far beyond the closing table. CHFA monitors the compliance requirements of all properties that we finance, helping to ensure you have the expertise and technical knowledge you need throughout the life of the loan. We’re invested in the long-term success of affordable housing in Colorado.
Community-focused
CHFA Multifamily Lending understands the importance of community—be it your project, the town/city in which it is located, or the larger Colorado affordable housing industry.
That's why we offer efficient process times from application to commitment. If you are awarded state or federal Housing Credits, CHFA can streamline your underwriting experience by sharing information between our tax credit team and loan staff.
We offer gap financing programs to help with ever-growing project costs, including programs to help improve tenant experience. We also can use HOF to leverage more loan proceeds or reduce financing costs to the project.
Mission-driven
As the state housing and finance agency, CHFA uses our flexible financing sources to help you get your deal done.
And, because affordable housing is CHFA's mission, we reinvest income from loan repayments back into the affordable housing community through new loans and the creation of additional programs.
