Colorado Housing and Finance Authority’s Board of Directors has approved the 2017 QAP and the document now awaits gubernatorial approval. Approved changes to the document include:

  • No disaster recovery state credits for 2017
  • State credits are now eligible for both acquisition/rehab as well as new construction
  • Demonstrated track record of submitting complete, timely applications and timely responses to CHFA requests will favorably impact an applicant’s 9% and State Credit applications
  • Zoning: While zoning is not a threshold requirement, 9% and state credit applicants will be at a competitive disadvantage if zoning is not in place at time of application.
  • Acquisition/Rehab Third Party Appraisal: Language will be added to the Document Check-List emphasizing the requirement that a third-party appraiser must calculate the value of the property in “as is” condition based on the assumption is it operated at market rents. Land value contribution must be reported separately.
  • Max State Credit Award: No more than $1M in annual state credits will apply per project or developer.

Fee Increases:

  • 9% Application Fee Increase: Fee will increase from $5,000 to $10,000 for all 9% preliminary applications.
  • 4% Credit Fee Increases: Requests of additional 4% Federal Credits requiring a new Initial Determination Letter will come with a $3,000 fee (formerly $1,500). The application fee for 4% credits has also changed – rather than the greater of 1% of the credit amount or $5,000, the new fee is now a flat fee of $10,000.

Timelines:

Round One State Credit with 4% Federal Credit
LOI: January 3, 2017
Application Deadline: February 1, 2017

Round Two 9% Federal Credit
LOI: May 1, 2017
Application Deadline: June 1, 2017