Division of Housing Application and Contract Project

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Flow chart that shows the following steps of the project: Application, SHB Approval, Handoff to cotracting, Contract Drafting and Negotiation, Execution of changes

The Division of Housing (DOH) is actively working to align with Governor Polis' Strategic Growth Executive Order by reducing contracting time to 90 days or less. This project page offers transparency and engagement opportunities in our Contracting and Process Improvement Phase.

Our Two-Pronged Approach

The Division has devised a comprehensive two-pronged strategy to achieve the Executive Order's goal:

  • Streamlining and Strengthening Application Processes: Our efforts focus on simplifying and reinforcing application processes to eliminate delays and bottlenecks, ensuring a smoother experience for all stakeholders.
  • Clarifying and Setting Contract Loan Templates: We recognize the importance of clear contract loan templates in expediting processes and maintaining consistency. Enhancing this aspect will facilitate more efficient decision-making.

These two targeted areas have been identified as the primary contributors to extended timelines and variability in grant and loan processes. Our commitment to addressing these challenges underscores our dedication to serving the community effectively and efficiently.

Building Upon a Strong Foundation

Our current efforts build upon the foundation laid during the 2022 Rapid Improvement Event, where we focused on internal processes and needs. This event provided the necessary momentum to propel DOH toward fulfilling the directives outlined in Governor Polis' Executive Order.

Transparency and Engagement

As we continue on this path of progress, we invite you to stay engaged with this project site for regular updates, milestones, and opportunities for active participation. Your involvement is crucial as we work together to enhance transparency and better serve our community.

Flow chart that shows the following steps of the project: Application, SHB Approval, Handoff to cotracting, Contract Drafting and Negotiation, Execution of changes

The Division of Housing (DOH) is actively working to align with Governor Polis' Strategic Growth Executive Order by reducing contracting time to 90 days or less. This project page offers transparency and engagement opportunities in our Contracting and Process Improvement Phase.

Our Two-Pronged Approach

The Division has devised a comprehensive two-pronged strategy to achieve the Executive Order's goal:

  • Streamlining and Strengthening Application Processes: Our efforts focus on simplifying and reinforcing application processes to eliminate delays and bottlenecks, ensuring a smoother experience for all stakeholders.
  • Clarifying and Setting Contract Loan Templates: We recognize the importance of clear contract loan templates in expediting processes and maintaining consistency. Enhancing this aspect will facilitate more efficient decision-making.

These two targeted areas have been identified as the primary contributors to extended timelines and variability in grant and loan processes. Our commitment to addressing these challenges underscores our dedication to serving the community effectively and efficiently.

Building Upon a Strong Foundation

Our current efforts build upon the foundation laid during the 2022 Rapid Improvement Event, where we focused on internal processes and needs. This event provided the necessary momentum to propel DOH toward fulfilling the directives outlined in Governor Polis' Executive Order.

Transparency and Engagement

As we continue on this path of progress, we invite you to stay engaged with this project site for regular updates, milestones, and opportunities for active participation. Your involvement is crucial as we work together to enhance transparency and better serve our community.

  • Division of Housing Amends Award Letters

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    As the Division of Housing (DOH) works toward the directives in Governor Polis’ executive order, DOH is amending its award letters to clearly state the timelines necessary for DOH and its grantees and borrowers to meet in order to successfully close deals within 90 days.

    The new award letter format will include a shorter award letter expiration aimed at meeting the 90-day directive. DOH award letters will now expire 105 days from issuance. This timeframe includes 15 days for projects to be handed off to DOH’s contracting team.

    Have a question? Ask us.




  • New Application Instructions, Processes, and Guidelines Effective April 1

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    The Division of Housing (DOH) recently published updated development application instructions that will take effect for applications submitted on or after April 1, 2024. The application instructions, along with all of the other resources you need to apply, are available on the Office of Housing Finance & Sustainability funding application page.

    These updated policies and procedures resulted from the fall 2023 contracting and process improvement period.

    The improvements include:

    • Updated subsidy per unit and cost assessment ranges
    • Guidance on recommendations of grants versus loans
    • Application due diligence requirements
    • Pre-application compliance requirements

    Updated Subsidy and Cost Assessment Ranges

    The following have been updated in the application instructions.

    Maximum Subsidy Per Unit

    DOH Subsidy Per Unit Previous Updated
    Urban $40,000 $50,000
    Rural $50,000 $55,000
    PSH $50,000 $60,000


    Cost Assessment Ranges


    Previous - Non-PSH (1,000 Sq. Ft.) Updated - Non-PSH (1,000 Sq. Ft.) Previous - PSH (750 Sq. Ft.) Updated - PSH (750 Sq. Ft.)
    Total Development Cost Per Unit $470,000 $505,000 $540,000 $540,000
    Total Development Cost Per Sq. Ft. $470 $505 $540 $720
    Hard Cost Per Unit $320,000 $330,000 $350,000 $322,500
    Hard Cost Per Sq. Ft. $320 $330 $350 $430
    Soft Cost Per Unit $110,000 $130,000 $150,000 $150,000
    Soft Cost Per Sq. Ft. $110 $130 $150 $200
    Land Cost Per Unit $40,000 $45,000 $40,000 $67,500
    Land Cost Per Sq. Ft. $40 $45 $40 $90
    Annual Operating Expenses Per Unit (PUPA) $7,000 $7,000 $8,000 $9,000


    Guidance on Grants versus Loans

    Staff have clarified the criteria for determining if an award will be in the form of a grant or loan. This guidance is contained in the updated application instructions.

    Pre-application Letter of Intent, Meeting, and Compliance

    Applicants will be required to:

    • Submit a pre-application letter of intent at least 15 days prior to the application submission
    • Set a meeting with your housing development specialist between letter of intent and application submission
    • Work with compliance staff to remedy any compliance issues on other projects

    Application Due Diligence Documentation Requirements

    The new, streamlined requirements include a checklist of due diligence items and supplemental CDBG checklist (for projects applying for CDBG) that must be completed at the time of application.

    Contact your housing development specialist with any questions.

  • Meet the Division of Housing Resource Advisory Group

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    The Division of Housing has launched a new group of housing stakeholders from around the state to provide expert advice.

    The new nine-member Resource Advisory Group includes representatives from a variety of affordable housing providers and industry experts from all around the state.

    The group held its first meeting on March 4 and kicked off by diving into the overall structure of DOH’s Office of Housing Finance and Sustainability (OHFS), a gap funding budget update and a report out on the results of DOH’s recent Contract and Process Improvement Project (CPIP). To learn about the meeting discussion, view the slide deck.

    This group will meet regularly to advise on DOH’s implementation of new programs, policies and processes for gap funding.

    The group of housing experts and advisors includes:

    • Dayna Ashley-Oehm - The Housing Authority of the City of Aurora, Housing Development Director - Metro Housing Authority
    • Laura Brudzynski - Archway Communities, COO - Non Profit Developer
    • Amy Case - Foothills Regional Housing, Chief Real Estate Development Officer - Metro Housing Authority
    • Hilary Cooper - Office of Economic Development & International Trade, Director of Innovative Housing - Standing Member
    • Alex Gano - Bryan Cave Leighton Paisner LLP, Associate with BCLP - Front Range
    • Kathryn Grosscup - Colorado Housing and Finance Authority, Manager Housing Tax Credit - Standing Member
    • Robin Hickey - Elevation Community Land Trust, CFO - ECLT - Homeownership
    • Karen Kallenberg - Habitat for Humanity of Colorado, Executive Director - Habitat - Homeownership
    • Jennifer Kermode - The Kermode Outcome (TKO), Consultant - Rural Resort
    • Max Lubarsky - Colorado Coalition for the Homeless, Director of Housing Development - Homelessness
    • Bob Munroe - RMM Advisors, Consultant - For Profit Developer Consultant

    The division is looking forward to working with this group.

  • Gap funding programs: public comment and feedback requested.

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    CLOSED: This discussion has concluded.

    The Division of Housing has posted the following draft updates and changes to its Gap Funding program policies, guidelines, and processes for public comment and feedback. Updates include new per-unit funding guidelines, updated development cost ranges, Grant vs. Loan policy, and updates to the DOH gap funding application process and requirements.

    Please review the proposed updates and provide feedback on the ones you wish to.

  • Division of Housing Gap Resource Advisory Group

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    CLOSED: This discussion has concluded.

    Starting in 2024, DOH is forming a stakeholder group that will meet quarterly to advise DOH as it rolls out new programs, processes and policies pertaining to its gap funding resources or as it reviews and considers changes to existing gap funding programs, processes and policies. The Resource Advisory Group will consist of nine stakeholders aimed at diverse representation (homelessness, homeownership, rental, modular, rural, urban, etc.) from around the state. Additional information as well as details on how interested stakeholders may apply, can be found on this website

    Apply to be part of the Resource Advisory Group.

  • Stakeholder Feedback Survey - Evaluate and Streamline Payment Processing

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    CLOSED: This discussion has concluded.

    We are soliciting stakeholder feedback regarding their experience in the pay request and reimbursement process as a part of the response to the recent Executive Order (V.)(D.), which directs DOH to make all reasonable efforts to streamline this process. We appreciate and value your candid feedback.

    Take the survey on evaluating and streamlining payment processing.

  • Update: New Loan Agreement Templates

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    This update will cover process and document template changes, their reasons, unchanged aspects, and a contract template review. Your continued involvement is invaluable.

    New Loan Agreement Templates

    These are for reference only; the final form of any loan agreement will vary based on the details of a project and its underwriting.

    Please note that the Office of the State Controller must approve, review, and periodically update these and all other State Contracting templates. The most up-to-date version of the State Grant Agreement template is on the Office of the State Controller Contract and Grant Templates website.

    Loan Agreement Updates: Process, Template Changes, and Unchanged Elements Review

    Process and Template Revisions: What's New

    • The standard Loan Agreement and Statement of Work Templates have been updated to include clarifications and exceptions to insurance provisions to better align with the single-asset entity nature of many borrowers, less restrictive bid bond requirements, and additional notice opportunities for tax credit investors.
    • The transfer sections in the Use Covenant and Deed of Trust documents have been updated to establish exceptions to transfer consent requirements more clearly and broadly. This will reduce administrative timelines during the life of the loans and allow for a wider variety of transfers pursuant to security interests.
    • Notice and cure provisions throughout the documents have been updated and added, which will help borrowers and third-party stakeholders to remain apprised of the status of projects supported by the State and increase opportunities to solve possible future issues.
    • The Subordination Agreement template has been updated to include provisions frequently requested by senior lenders, such as updated definitions and bankruptcy, notice and condemnation, and casualty provisions, which will increase confidence for senior lenders in the security of their loans.
    • Drafter’s Notes have been added throughout the template documents to clarify language that cannot be modified, including explanations regarding where to find alternative language that meets the need or State law or policy that prohibits modifications.

    Unchanged Elements: What Remains Consistent

    • Requests to accommodate particular lender-level or grantee-level revisions that more than one lender or borrower does not generally request were not included in the interest of maintaining more widely applicable templates.
    • Requests that are prohibited under State law or policy, such as adding more affirmative third-party beneficiary rights, were not included.
    • Requests oriented toward overall process or application improvement, such as providing more information during the application phase, more consistently reserving inapplicable provisions, or providing template documents as a resource, will be considered and implemented as part of separate process improvement initiatives.

    Moving Forward

    Our priorities going forward include continuing to implement loan agreement template updates, starting to execute OIT solutions, and performing information collecting and developing responses to the executive order.

  • Executive Order Update and Surveys

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    The Division of Housing (DOH) is actively working to align with Governor Polis' Strategic Growth Executive Order by reducing contracting time to 90 days or less.


    Application Update

    During our Contract and Process Improvement Phase, DOH staff are working on 20 application policy and process improvement initiatives both large and small. These initiatives range in size and scope from software optimization to an analysis and recommendation of DOH’s per unit and per project subsidy funding caps. Staff will begin to roll out draft recommendations to the public for feedback in October through this site.

    • “Handing Off” between when an application has been awarded funds and when it is ready for contracting has been identified as a pain point for both applicants and DOH staff. Of the 55 awards that were handed off prior to July 1st, 10 have been executed, 6 are with the borrowers for signature, 30 are in process and 9 have been paused for delays due to things ranging from insufficient documentation to waiting for entitlement processes. DOH will undergo a Process Improvement Event on October 17th and 18th to help identify common themes, scenarios or roadblocks that lead to delays in the contracting process and how to identify these early on in the process in order to set appropriate timelines and expectations. Help us to streamline the hand-off by taking this survey. DOH will also be conducting a facilitated workshop with stakeholders of projects that are paused for delays. Reports from this workshop will be included on this site.
    • Housing Development Pre-Agreement costs will now be allowable (state funds only and subject to underwriting and SHB approval) effective with award letter dates on or after October 10, 2023 for costs incurred on or after the date of the award letter. Upon complete execution of a grant or loan agreement documents, Grantees and Borrowers will be eligible for reimbursement of pre-approved eligible costs listed in their award letter. Any costs for which reimbursement is requested must be documented pursuant to or otherwise in compliance with the invoicing and pay request process requirements to be set forth in the contract documents. In the event that a state funded grant or loan agreement is not executed, the State will not make any reimbursement for costs incurred. There is no commitment by the State to reimburse eligible costs unless a grant or loan agreement is executed. An awardee may not rely on the award letter for reimbursement in the absence of a fully executed agreement.

    Contracting Update

    Stakeholders from the State of Colorado and the affordable housing industry gathered on Wednesday, September 20th, to discuss implementing updated language in the Division of Housing development loan agreements. This meeting supports the Division’s work to meet the Governor’s EO on affordable housing, focusing on reducing project processing time.

    Throughout October, DOH and the Office of the State Controller (OSC) are reviewing stakeholder input and DOH is drafting an updated contract loan template for more efficient processing giving Coloradans faster access to affordable housing solutions. DOH will pilot the new Loan Template in November. The goal is to limit or eliminate excessive negotiations in order to make the 90 day directive.

    A huge thank you to the organizations that joined us in this critical conversation:

    • State Controller’s Office
    • Volunteers of America
    • Enterprise Communities Partners
    • BlueLine Development
    • Bryan Cave Leighton Paisner
    • Lewis Roca Rothgerber Christie
    • State Housing Board

    Division of Housing Gap Resource Advisory Group

    Starting in 2024, DOH is forming a stakeholder group that will meet quarterly to advise DOH as it rolls out new programs, processes and policies pertaining to its gap funding resources or as it reviews and considers changes to existing gap funding programs, processes and policies. The Resource Advisory Group will consist of nine stakeholders aimed at diverse representation (homelessness, homeownership, rental, modular, rural, urban, etc.) from around the state. Additional information as well as details on how interested stakeholders may apply can be found on this website.

  • Division of Housing Handoff Process Survey

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    The Division of Housing (DOH) has seen many applications, awards, and contracts over the past 24 months. This dramatic increase in volume has put a strain on DOH's internal contracting process and systems. DOH continues to look at all aspects of the Application to Executed Contract life cycle to reduce the contracting-specific turnaround time to 90 days by June 30, 2024, as outlined is Governor Polis’ Executive Order D 2023 014:

    This survey is focused on the time between the State Housing Board, the award letter, and when development is ready to start the contracting process.

    Take the Survey

  • Executive Order D 2023 014

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    Colorado's housing supply has not kept pace with population growth. The state has current unmet housing needs of tens of thousands of units and will continue to grow — it is estimated the state will add 1.72 million people by 2050. Nearly one-third of Colorado households spend more than 30% of their income on housing and people are forced to live further away from where they work, leading to increased traffic and decreased access to job opportunities. In order to help address this ongoing challenge, Colorado Governor Jared Polis took action signing a new executive order (EO) on August 21.

    The Division of Housing (DOH), as the housing agency within the executive branch Department of Local Affairs, was specifically detailed in the EO. DOH is embracing this challenge. As we are working on continuous improvement, DOH has many plans for streamlining both our application and contracting processes. We will continue to assess what pivots we need to expedite our progress.

    Together with the Governor’s Office and our stakeholders, we aim to develop more housing faster. The EO elevates the work we are collectively trying to achieve. DOH is developing our stakeholder engagement plan as we plan out our immediate actions to meet the directives in the EO.

    Immediate Actions

    Looking back and the path forward: To measure our work and progress, DOH will measure contracts prior to July 1, 2023 separately from applications approved after July 1. This will allow DOH to report on our progress and measure the advancements we make as we implement changes.

    Application Holiday - September and October: DOH will not be accepting new housing development gap funding applications through our standard monthly application process in September or October. During this time, DOH’s Office of Housing Finance and Sustainability will be assessing:

    • Per Unit Subsidy Cap
    • Per Project Subsidy Cap
    • Application Cycles
    • Existing Rolling Monthly, or
    • Periodic (quarterly, semi-annual, etc) - competitive
    • Application Completeness/Readiness Thresholds
    • Required items for initial application
    • Required items for State Housing Board Approval
    • Handoff process and required items
    • Revised or Specialized Underwriting Models
    • Rental, Homeownership, Shelter, etc.
    • Supplemental funding request policy
    • Grant vs. Loan determination policy

    Loan Contract Template Initiative: Introducing the Loan Contract Template Project! Calling all stakeholders who have actively participated in the DOH Loan Contract Process! We are thrilled to unveil an initiative dedicated to revolutionizing the landscape of DOH Loan Contract Templates. If you are enthusiastic about molding the future of DOH Loan Contracts, we extend an invitation to join us and contribute your invaluable insights.

    • This endeavor specifically targets loans, and not grants, through our Office of Housing Finance and Sustainability. The result of this effort will impact streamlining across DOH offices and programs.
    • Feedback sessions with stakeholders will be scheduled within the next 60 days and will be followed by the pilot phase of these templates, which is slated for launch this upcoming fall.
    • While participation does not guarantee selection in the formal feedback sessions and project meetings, we enthusiastically encourage all interested parties to engage.
    • Your proficiency and input will shape the trajectory of contracts for years to come.
    • To express your interest in providing feedback, please fill out this Stakeholder Feedback form by September 6.

    Together, let's pave the path towards a contract ecosystem that is both more efficient and effective!

Page last updated: 30 Jun 2024, 04:10 AM