chfa awarded capital magnet funds to support affordable housing

(DENVER) – The U.S. Department of the Treasury awarded Colorado Housing and Finance Authority (CHFA) a $4.5 million Capital Magnet Fund (CMF) grant to support the preservation and construction of affordable multifamily rental housing in Colorado. CMF grants are competitively awarded to qualified nonprofit housing organizations and Community Development Finance Institutions (CDFIs) throughout the U.S. CHFA was one of 48 organizations to receive an award during the latest round, and this is the sixth time that CHFA has been awarded a CMF grant since 2017.

To date, CHFA has deployed $38.1 million in prior Capital Magnet Fund awards to 46 developments throughout Colorado, supporting more than 3,000 affordable apartments. Approximately 60 percent of those units support households with incomes at or below 50 percent of the Area Median Income (AMI). For reference, in Denver County, 50 percent AMI for a two-person household is $52,200 per year, and in Otero County, is $37,700. According to the latest available data from the National Low Income Housing Coalition, there are an estimated 44 affordable homes available for every 100 Colorado renters with incomes at or below 50 percent AMI.

“CHFA is proud to be among the selected recipients in the latest round of Capital Magnet Fund awards,” said Steve Johnson, CHFA chief operating officer. “This funding will allow for continued investment in more affordable housing throughout the state. CMF plays an important role in supporting developments that offer much-needed deeply affordable housing to Coloradans.”

In addition to prioritizing developments with households with lower incomes, preference is given to housing located in rural areas and/or areas of economic distress as defined by the U.S. Department of the Treasury CDFI Fund. Additional information about the CHFA CMF program is available at chfainfo.com/cmf.

The CMF was established by Congress in 2008 through the Housing and Economic Recovery Act. The program offers competitively awarded grants to finance affordable housing solutions and community revitalization efforts. According to the CDFI Fund, CMF has supported the development of more than 63,000 affordable homes nationwide since its inception, generating approximately $20 of additional investment for every $1 of award funding. For more information about the CMF, visit cdfifund.gov/cmf.

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