new accelerated state affordable housing tax credits authorized in hb24-1434

Dear Tax Credit Partner:

The new accelerated state Affordable Housing Tax Credits authorized in HB24-1434 provide Colorado’s affordable housing community with necessary and critical resources available for deployment in 2024. To best meet the challenges of the current environment, pending the Governor’s signature of HB24-1434, CHFA will introduce a new approach to its allocation of Affordable Housing Tax Credits to support all Housing Tax Credit applications in 2024 as follows:

Round One 2024 Awardees

Following the announcement of Round One awards, CHFA will begin work with awardees to implement both the federal 9% Housing Tax Credit Award combined with an award of CHFA’s standard state AHTC. The opportunity for a standard state AHTC award will be intentionally structured to continue feasibility without DOH gap funding.

Round Two 2024 Applicants

On August 1, 2024, CHFA will accept applications for federal 4% credit paired with the new accelerated state AHTC authorized in HB24-1434. CHFA will publish a draft of the amended 2023-2024 Qualified Allocation Plan (QAP) that includes an increase to the maximum AHTC amount available per application to support utilization of AHTC to address the decrease in DOH gap funding.

2024 4% Noncompetitive Applicants

State Housing Tax Credit applications may be accepted, pending tax credit resource availability, to support federal 4% noncompetitive credit applications to address gap funding decrease and financial feasibility in accordance with closing requirements and timelines. As per current practice, noncompetitive applications will be required to demonstrate provision of adequate PAB volume cap as per the 2023-2024 QAP.

QAP Public Hearing – May 22, 2024

For more information about these important changes and implementation next steps, we invite you to join us for a virtual Public Hearing at 10:00am on Wednesday, May 22, 2024 for public input to CHFA’s proposed amended 2023-2024 QAP to support implementation of standard and accelerated state Affordable Housing Tax Credits.

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Please click here to register to attend the QAP Public Hearing.