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 2007, more than 138,000 Coloradans were severly rent burdened and paid more than 50% of their income for rent. Almost half (47%) of all renters in Colorado paid more than 30% of their income for housing [2007 American Community Survey]. Rent burdened families are often forced to do without health care, car insurance, nutritious food and other family essentials.

• From 2000 to 2006, home prices increased 66% [Colorado Association of Realtors, "Historical Housing Statistics], while wages only increased 18% [Colorado Department of Labor and Employment, Occupational Employment Statistics, 2007] creating a wid purchase affordability gap. The median home price in most Colorado communities remains beyond the reach of crucial members of our workforce -- teachers, nurses, and firefighters.

• Poverty and the lack of affordable housing are the most common causes of family homelessness. One third of Colorado's over 15,000 homeless are children and teens. [Colorado Statewide Homeless Count, 2007]

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: Julie Pecaut at 303-919-7511 or julie@pecaut.us