In February 2012, the state of Colorado together with 48 other states reached a settlement with the five largest mortgage servicing companies. Through this settlement, Attorney General John Suthers announced over $50 million, all custodial funds through the Attorney General’s office, would be used for homeowner relief, foreclosure prevention and affordable housing. The Colorado Housing Investment Fund (CHIF) was created from the Attorney General’s custodial funds with $13.2 million to address Colorado’s need for affordable rental housing.
To kick off the new CHIF fund, a Special Request for Applications was announced in August 2012 with a deadline for applications November 1st. The Division of Housing (DOH) received applications for nearly $17 million of the newly funded CHIF fund. Applications were reviewed through March 2013 for the soundness of each project’s financial plan and the need of the proposed projects.
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) and 2) short term loan guarantees for new construction and rehabilitation. The CHIF funds will revolve back into the CHIF fund allowing DOH to make more loans, as the short term loans are repaid or loan guarantees are released. Please see the attached term sheets for criteria guiding funding decisions: 1) LOAN POOL, or 2) LOAN GUARANTY.
At this time, applications are accepted only with a Special Request for Applications.
Eligible Activities (see term sheets – Activities restricted by funding mechanism):