HomeMy WebLinkAboutMemo - Mail Packet - 09/16/2025 - Memorandum from Vanessa Fenley re Affordable Housing Funding Updates
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Memorandum
Date: September 11, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Jacob Castillo, Chief Sustainability Officer
From: Vanessa Fenley, Sr. Housing Manager, Social Sustainability Department,
vfenley@fcgov.com
Subject: Affordable Housing Funding Updates
This memo provides information on two recent developments in State and local affordable
housing funding programs: 1) Governor Polis has proposed to use Prop 123 funds to balance
the state budget; 2) City staff recently received a request from Volunteers of America for funding
from the CCIP Affordable Housing Capital Fund.
Prop 123 Updates
Background
When passed by state voters 2022, Prop 123 established the State Affordable Housing Fund.
The Fund allocates 40% of funding to the Department of Local Affairs (DOLA) and 60% of
funding to the Office of Economic Development and International Trade (OEDIT), who partners
with the Colorado Housing and Finance Authority (CHFA) to administer OEDIT funding.
Through Prop 123, OEDIT/CHFA funds land banking, equity investments, and concessionary
debt for affordable housing development. DOLA funds homeownership programs,
homelessness programs and projects, and local capacity planning efforts through Prop 123.
Prop 123 and State Budget Proposal
To address the state budget deficit, Governor Polis has proposed to activate Prop 123’s budget
balancing mechanism, which allows the legislature to reduce funding available to balance the
state budget. The proposal includes a one-time future reduction of $105 million in OEDIT’s Prop
123 funds available for award during FY26-27. Approximately $80 million would remain in
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OEDIT Prop 123 funding, according to estimates from the Colorado Housing and Finance
Authority. In addition, Prop 123 funding through DOLA would remain intact.
The proposal does not impact funding currently available for awards now through June 2026,
nor does it impact projects already awarded funding. It will be submitted to the General
Assembly for consideration with other proposed budget cuts.
Local Prop 123 Awards
The tables below include Prop 123 awards made to-date for local projects and programs.
Additional information on Prop 123 awards can be found at https://cdola.colorado.gov/prop123-
reports-and-performance-measures
OEDIT/CHFA Awards
Grantee Award Amount Source
302 Conifer $5,806,584 Equity Program
Housing Catalyst, Village on
Eastbrook $1,610,000 Land Banking Program
Habitat for Humanity $600,000 Land Banking Program
DOLA Awards
Grantee Award Amount Source
Nueva Vida Mobile Home
Park Infrastructure
Improvement, United
Neighbors (Vecinos Unidos)
$2,840,000 Affordable Housing Opportunity
(Homeownership) Program
Kechter Townhomes $2,700,000 Affordable Housing Opportunity
(Homeownership) Program
City of Fort Collins (for 90-
day development review
process work)
$200,000 Local Planning Capacity Program
Larimer Home Improvement
Program (multiple awards)
$155,397; $135,622;
and $116,869
Affordable Housing Opportunity
(Single Family Owner Occupied)
Program
Crossroads Safehouse
(multiple awards)
$180,000 and
$120,000
Persons Experiencing Homelessness
(Homelessness Resolution) Program
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Grantee Award Amount Source
Family Housing Network
(multiple awards)
$125,000 and
$105,000
Persons Experiencing Homelessness
(Homelessness Resolution) Program
Family Housing Network $47,500
Persons Experiencing Homelessness
(Next Step 2 Gen – Rapid Re-
housing) Program
Outreach Fort Collins $100,000 Persons Experiencing Homelessness
(Homelessness Resolution) Program
Neighbor to Neighbor $95,000 Persons Experiencing Homelessness
(Homelessness Resolution) Program
Homeward Alliance $90,000 Persons Experiencing Homelessness
(Tenancy Support Services) Program
Catholic Charities (Samaritan
House Fort Collins) $80,000 Persons Experiencing Homelessness
(Homelessness Resolution) Program
The Matthews House $47,500
Persons Experiencing Homelessness
(Youth Housing – Rapid Re-housing)
Program
Denver Rescue Mission (Fort
Collins Rescue Mission) $27,296 Persons Experiencing Homelessness
(Homelessness Resolution) Program
In addition, some statewide or countywide DOLA awards may benefit Fort Collins residents.
Prop 123 funding has also served local residents through the Colorado Emergency Rental
Assistance Program ($414,631 allocated to Larimer County residents).
CCIP Affordable Housing Capital Fund Updates
City staff recently received a request from VOA for $1.4 million funding from the CCIP
Affordable Housing Capital Fund to support their Switchgrass Crossing development. If
awarded, funding would act as last-in gap financing. VOA intends to close on financing in March
2026.
Project details:
Located at 3800 Mason Street
45 units (39 one-bedroom and 6 two-bedroom)
Age-restricted to 55+
Serving residents at 30 – 60% of Area Median Income
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Currently, the CCIP Affordable Housing Capital Fund has $1.6 million available to provide direct
subsidies into projects, with an additional $400,000 available to support fee credits for
affordable housing developments.
Next Steps
Staff will bring VOA’s request for CCIP Affordable Housing Capital Fund support to the Council
Finance Committee on October 2. This will provide an opportunity for additional information-
sharing and discussion.
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