The Department of Local Affairs Awards More Than $19M In Final Round of the Affordable Housing Development Incentives Grant Program

Media Contact: Chynna Cowart 
chynna.cowart@state.co.us | 303-656-7464

The Division of Local Government (DLG), a division within the Department of Local Affairs (DOLA), recently granted more than $19M across multiple Colorado communities. With the help of these 16 Incentives Grant Program (IHOI) awards, 970 more affordable housing units will be made available to Coloradans.

“We are taking action to provide more housing now, and this exciting grant is part of our ongoing work to create housing for every Colorado budget. Congratulations to the communities whose innovative projects will make 970 more affordable housing units available in Colorado,” said Gov. Polis.

HB21-1271 established three programs, including the Incentives Grant Program (IHOI), to encourage and expedite local work on the construction of affordable housing throughout the state. In addition to funding affordable housing projects and programs that exemplify best practices in housing and land use, particularly those that incorporate State priorities like renewable energy and childcare, the IHOI program incentivizes municipalities and counties to remove regulatory and procedural barriers to land use.

“The Innovative Affordable Housing Strategies Program has demonstrated not only the significant demand for programs like this, but also the great interest and skill local governments have in making changes to promote affordable housing. The recently-awarded communities show a strong commitment to promoting affordable housing development through approaches like streamlining their development review processes, creating a housing authority, developing inclusionary zoning policies, or a combination of many other innovative strategies. Program staff applauds these communities and every community working towards their affordable housing goals,” said Mitch Hendrick, Program Manager at the Colorado Department of Local Affairs.

IHOI Awardees

Boulder County, Breckenridge, Buena Vista, Craig, Durango, Eagle, Glenwood Springs, Grand Junction, Ignacio, Kit Carson, La Plata County, Lake County, Longmont, Ouray, Salida, and South Fork are among the communities receiving funding in this second and final round.

This second and final round of IHOI funding, totaling $19,852,053, actively supports projects or programs wherein local governments modified local land use laws and procedures to promote the future development of affordable housing.

Examples of Projects in Development

1. Buena Vista’s Carbonate Street Phase 1 Project

Carbonate Street Phase 1 will create 60 deed restricted affordable units plus 4,000 square feet of onsite childcare space. The Town will use awarded funds to pay for modular housing manufacturing costs associated with a portion of housing units in the development. The housing units will be studio, 1-bedroom and 2-bedroom units serving households earning between 60 and 120% of the area median income (AMI). The Town is contributing land at no cost to this development and has led a robust community and stakeholder engagement campaign. The project is expected to be completed in 2024.

2. Boulder County’s Eagle Place Acquisition Project

Boulder County, in partnership with the Boulder County Housing Authority (BCHA) will use grant funds to support the acquisition of Eagle Place, an existing 9% Low-Income Housing Tax Credit (LIHTC) rental property located in Lafayette. Constructed in 2006-2007, Eagle Place includes 60 two-and three-bedroom townhouse apartments. The units range from 40%-60% AMI. BCHA intends to acquire Eagle Place before the end of 2023 and own and operate the property into the future. BCHA intends to rehabilitate the property to improve unit, building, and overall site amenities for residents, with a focus on energy efficiency. 

3. Breckenridge’s Stables Village Carbon Neutral and Net Zero Project

The Town of Breckenridge will use grant funds to cover a portion of the costs associated with building an innovative, for sale workforce housing development consisting of approximately 61 units in a variety of unit types including single-family homes, duplexes, and townhomes. This project aims to be the first carbon-neutral and net zero affordable housing project in Colorado. The project is expected to be completed by early 2025.

4. Durango’s Residences at Durango Motel Conversion Project

The City of Durango will use grant funds to cover renovation and construction costs associated with the conversion of the former Best Western Inn and Suites on US Highway 160 in west Durango. Once complete, the development will be home to 120 units of affordable housing, 72 of which will be renovated motel rooms and 48 will be new construction units. The units are targeted at residents who earn between 30-60% of area median income.  The project is scheduled to begin this summer and be completed in 2024.

Investment in Affordable Housing in Partnership with Local Governments

Local governments have received funding through the Affordable Housing Development Incentives Grant Program to assist in creating livable, energetic, and community-focused affordable housing. These funds are used to pay tap fees, infrastructure, modular unit acquisitions, utility extensions, childcare spaces, unit construction, and other amenities for the specific affordable housing project.

This program had two funding rounds: the first round (awards were sent out on April 28, 2022) and second and final round with awards being sent out on March 13th, 2023.

Learn More About IHOI