Colorado Housing Investment Fund Basics

Increased public investment in affordable housing would provide a critical economic stimulus while helping to create housing opportunities for Colorado’s families and communities. The Colorado Housing Investment Fund (CHIF) will be a permanent state revenue source dedicated to the creation and preservation of high quality, affordably priced rental and homeownership opportunities.

Colorado's Housing Needs

• The lack of quality affordable housing is a statewide concern. Providing safe, decent, affordable housing is fundamental to the well-being of individuals, families and communities.

• In 2005, the number of rent-burdened Colorado households, among those earning less than $33,294, was over 177,000 households. Many of these people are Colorado’s service and retail workers.

• Meanwhile, teachers, police officers and other professionals struggle to afford a starter home in most communities. There are over 20,000 Colorado households earning between $35,000 and $50,000 that would like to become homeowners. In order to afford the median home price of $227,071 a household needs an annual salary of over $55,000.

• One in 5 homeowners and 2 in 5 renters in Colorado are paying more than 30% of their income towards monthly housing costs. These families are often forced to do without health care, car insurance, nutritious food and other family essentials.

• According to the 2007 point-in-time survey, unemployment and inability to pay housing costs were the leading causes of homelessness in the Denver metro area; 60% are persons in families.

Why the Colorado Housing Investment Fund?

• The private market alone cannot solve Colorado’s affordable housing crisis, and existing sources of equity are being fully utilized.

• A housing investment fund will allow local communities to determine their priorities and more effectively plan for the housing needs of their residents.

• Housing investment funds are proven tools. Across the nation, 38 states have created housing investment funds that successfully provide grants and loans to support affordable housing development.

• A housing investment fund will be a flexible source of funding. The CHIF will support a variety of activities including new construction, preservation, land acquisition, down payment assistance and helping to offset infrastructure costs through both loans and grants.

Economic Benefits

• According to the Colorado Housing Trust Fund Impacts Report, a $26.5 million investment fund will produce 3,400 affordable housing opportunities, create 3,200 jobs, generate $334 million in economic activity and realize $26 million in tax revenue annually, with $13 million to local governments.

• The construction and real estate industries alone would experience direct, indirect and induced economic impacts of $290 million and the creation of 2,804 jobs annually.

• Each dollar of equity investment in a trust fund would leverage an additional ten dollars of public and private investment in affordable housing.

• Formerly rent-burdened households will have average annual savings of approximately $2,400 per household. This will help low-income families become more self-sufficient.

• Colorado ’s economic development efforts will receive a needed boost by supplying affordable housing near employment centers, enhancing our competitive positioning for future business.

Help Make it Happen!

For More information contact: Heather Fortna at 720-255-9838 or heather@colohousingfund.org.