HOME Investment Partnerships

HOME dollars provide competitive funding to local government, non-profits and private developers.

There are four basic program types:

  • Homebuyer assistance.
  • Rehabilitation for owner-occupants.
  • Rental housing acquisition, rehabilitation and construction.
  • Tenant-based rental assistance.

HOME Community Housing Development Organization (CHDO): The CHDO designation was created to carry out the overall goals of the HOME program. A CHDO is a private, non-profit, community-based service organization whose primary purpose is to provide and develop affordable housing for the community it serves. Certified CHDOs receive certification from a Participating Jurisdiction (PJ) indicating that they meet certain HOME Program requirements and therefore are eligible for HOME funding.

  • If an organization becomes a certified CHDO, it is eligible to take advantage of the HOME funds set aside just for CHDOs, as well as additional special technical assistance from HUD.
  • CHDO set-aside funds provide equity for community-based organizations to undertake projects, build their capacity to serve a broad range of affordable housing needs, and provide guaranteed resources for affordable housing development.

CHDOs may:

  • Serve as owners, developers, and sponsors of projects undertaken with funds from a PJ’s required 15 percent set-aside for CHDOs.
  • Receive special assistance — such as predevelopment loans, technical assistance, or operating funds — that is not available to other types of organizations.
  • Perform certain services as contractors to PJs.
  • Contract with PJs in the same ways as other non-profit subrecipients to do acquisition and/or rehabilitation of rental property; new construction of rental housing; acquisition and/or rehabilitation of homebuyer property; new construction of homebuyer property; direct financial assistance to purchasers of HOME-assisted housing sponsored or developed by a CHDO with HOME funds.

Community Development Block Grant (CDBG)

CDBG Entitlement Communities receive direct funding. Non-metropolitan, non-entitlement areas apply to the state for use of funds on a project-by-project basis. State programs can only fund “non-entitlement” communities.

Principle eligible activities:

  • Affordable housing.
  • Neighborhood revitalization.
  • Economic development.
  • Improved community facilities.
  • Infrastructure improvements.

Community Development Block Grant - Disaster Recovery (CDBG-DR)

DOH works with local communities to ensure that citizens who have been displaced from their homes can access resources that help them rebuild, relocate, and find permanent housing. The CDBG-DR housing programs are administered through partnerships with local governments, housing authorities, communities, and volunteer-driven non-profit organizations, and are for use by those recovering from specific Presidentially declared natural disasters.

Neighborhood Stabilization Program (NSP)

DOH administers federal NSP dollars to offset the negative impact of foreclosures on neighborhoods. Funds are directed to areas of greatest need to help stabilize property values and revitalize communities.

Private Activity Bonds (PAB)

The PAB program funds privately developed projects. The bonds are tax-exempt and the amount of the bonds issued are limited by the IRS based on population. Underwriters use investor money from the sale of the bonds called “bond proceeds,” to make a loan to a project. The project then pays back the loan and the investors are repaid, plus interest.

Fifty percent of the state PAB cap is allocated directly to state authorities, and fifty percent is allocated to local governments whose populations warrant allocations of one million dollars or more. These allocations are available to qualifying local governments from January 1 to September 15 of each year and may be used for the following:

  • Multi-family housing projects.
  • Single-family mortgage revenue bonds.
  • Qualified residential rental projects.
  • Qualified redevelopment projects.
  • Manufacturing.
  • Water, sewer and solid waste disposal.
  • Hazardous waste facilities.

Any portion of a direct allocation not used by a state agency or local government to issue bonds for a carry-forward purpose or for a mortgage credit certificate election by September 15 reverts to the Statewide Balance for allocation by the end of the year.

Revolving Loan Funds

DOH provides grant funds to regional housing organizations to provide Single Family Owner-Occupied repair loans (SFOO) and Down Payment Assistance loans (DPA) to low- and moderate-income families. These loans are set at a low interest rate and can be amortized or deferred depending upon the need of the family. When loan repayment is received, the housing agency places the payment into a revolving loan fund. These funds are then recycled back into the community to provide additional housing rehabilitation and down payment assistance.

Single Family Owner Occupied (SFOO) Rehabilitation

The primary goals of the SFOO Rehabilitation program are to:

  • Preserve, enhance, and maintain affordable housing stock through repair and renovation within the community.
  • Protect the health and safety of the occupants through the correction of housing hazards.
  • Assist homeowners in improving the condition of their homes.
  • Allow homeowners to stay in their homes.
  • Create and maintain a regional revolving loan fund to assist with future housing rehabilitation projects.
  • Develop and sustain a network of local contractors to complete housing repairs and renovations.

Down Payment Assistance

The primary goals of the down payment assistance program are to:

  • Provide opportunities for low- and moderate-income Coloradans to purchase their own homes.
  • Increase the number of homeowners in the regional housing organization’s service area.
  • Create and maintain a regional revolving loan fund to assist future families with down payment assistance.
  • Enhance neighborhoods and communities.
  • Provide stability for families and achieve lower foreclosure rates by requiring pre-homeownership counseling.

Annual follow-up with families is highly recommended, as well as the provision of foreclosure counseling, if needed.

Housing Development Grant Funds (HDG)

The HDG program is a competitive grant that provides funds for acquisition, rehabilitation and new construction. The fund was created by the Colorado State Treasury and consists of monies allocated to the Colorado Affordable Housing Construction Grants Fund by the General Assembly. HDG funds improve, preserve, or expand the supply of affordable housing; finance foreclosure prevention activities in Colorado and acquisition of housing and economic data necessary to advise the State Housing Board on local housing conditions.

Housing Development Loan Funds (HDLF)

The HDLF program was originally created to meet federal matching funds requirements and now includes funds for development, redevelopment, or rehabilitation of low- or moderate-income housing. Loans provided through HDLF require collateral.

Colorado Housing Investment Funds (CHIF)

The CHIF program was seeded with $36 million of custodial funds through the Colorado Attorney General’s office with 2012 Mortgage Servicing Settlement funds. The CHIF funds can be used two ways:

  1. Short-term, low-interest loans to bridge the long-term permanent financing sources (a portion of loan may remain in the project as permanent debt).
  2. Short-term loan guarantees for new construction and rehabilitation. Eligible borrowers include non-profit, for-profit, and Housing Authority developers.

results matching ""

    No results matching ""