Colorado awards $52M for affordable housing projects

DENVER (AP) — Gov. Jared Polis and state housing officials on Wednesday announced five new recipients of voter-approved Proposition 123 Equity funds aimed at expanding affordable rental housing for low- and middle-income Coloradans in communities across the state.

The awards, announced by Polis, the Colorado Office of Economic Development and International Trade and the Colorado Housing and Finance Authority, will provide investment capital for multifamily rental developments in areas including Denver, Colorado Springs, Grand Junction, Longmont and Pueblo.

“We are building more housing Coloradans can afford so you can live where you choose, close to jobs, schools, in the communities we love,” Polis said in a statement. “These funds are an important step in building more homes across the state and saving Coloradans money.”

The Proposition 123 Equity program offers below-market-rate equity investments to developers focused on building low- and middle-income rental housing. State officials said the selected projects are expected to be ready to close by March 2026, with construction beginning soon after.

Projects were chosen in part for meeting the state’s strategic land use goals, including proximity to transit or job centers, water and energy efficiency and all-electric design.

“This Proposition 123 funding is supporting much-needed new housing in communities across the state, from Colorado Springs to Grand Junction,” said Eve Lieberman, executive director of OEDIT. “These investments will strengthen communities and our economy. When Coloradans have access to quality housing, employers can fill jobs.”

Thomas Bryan, executive director and chief executive officer of CHFA, said the program provides an important financing tool for affordable housing development across Colorado.

“These investments help ensure that more Coloradans have the opportunity for housing stability in communities across the state,” Bryan said.

A total of $52,052,141 has been preliminarily approved for the five projects, though final award amounts will be determined during underwriting. The developments are expected to serve households earning between 30 percent and 120 percent of area median income.

The selected projects include:

• 121 Main Street in Longmont, a $15 million investment for a 198-unit mixed-use rental development in downtown Longmont. The project will offer one- and two-bedroom units for households earning up to 50 percent, 70 percent and 80 percent of area median income. The all-electric development is expected to achieve National Green Building Standard Silver certification.
• 1600 Pearl Street in Denver, a $6.2 million investment supporting a 158-unit rental development in the North Capitol Hill neighborhood. The project will provide studio through three-bedroom units for households earning 30 percent to 120 percent of area median income. Plans include all-electric construction, pursuit of a National Green Building Standard certification and community resources such as early childhood care and tutoring programs.
• Bristow House in Colorado Springs, a $12.8 million investment for a 185-unit rental development offering studio, one- and two-bedroom units for households earning 70 percent to 100 percent of area median income. The all-electric project is expected to achieve National Green Building Standard Silver certification and incorporates intergenerational housing design concepts guided by the Quad Innovation Partnership.
• Ingraham Wright in Pueblo, a $10 million investment for a proposed 41-unit modular rental development in the Belmont neighborhood. The project will serve households earning 80 percent to 100 percent of area median income and will preserve a historic church designed by architect Elizabeth Wright Ingraham and her husband Gordon Ingraham. The church will serve as a community center and the modular units will be manufactured by Colorado-based Vederra.
• Liberty Apartments in Grand Junction, a nearly $8 million investment supporting the first phase of a 192-unit net-zero residential development. The initial 72 units will serve households earning 60 percent to 100 percent of area median income. The modular buildings will feature rooftop solar panels designed to offset year-round energy use and are expected to achieve Zero Energy Ready Homes certification, preventing up to 240 tons of carbon dioxide emissions annually.

Residents of the developments will also be eligible to benefit from the Tenant Equity Vehicle, a program launching in January 2026 that will share Proposition 123 program earnings with tenants to help build savings for down payment assistance or other needs.

The Equity program is funded through the Affordable Housing Financing Fund created by Proposition 123. The fund is managed by OEDIT and administered by CHFA to distribute 60 percent of Proposition 123 revenue for land banking, equity investments and concessionary debt for affordable housing.

With the latest awards, the state has approved about $340 million through the Affordable Housing Financing Fund, officials said.