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Page 38 — Multifamily Properties Quarterly — August 2019 www.crej.com Affordable Housing R enting affordably in Colo- rado is a widespread chal- lenge. Half of all renters in the state are cost-burdened, paying more than 30% of their income toward housing costs, which is unsustainable for long- term economic health and growth. The median statewide rent is $1,359 and has increased, on aver- age, 29% over the last five years. Meanwhile, long waitlists are com- mon at existing affordable multi- family rental properties. Colorado Housing and Finance Authority is the allocating agency for the feder- al Low Income Housing Tax Credit and state Affordable Housing Tax Credit programs in Colorado, and with the demand so significant, the state AHTC program has been crucial in providing much-needed affordable rental housing to Colo- radans. On May 17, Gov. Jared Polis signed into law House Bill 19-1228, which increases the amount of state AHTC available for annual alloca- tion by CHFA from $5 million to $10 million for the five-year period from 2020 to 2024. The increase in state AHTC is estimated to support approximately 1,000 additional units of newly constructed or pre- served affordable rental housing each year. This will greatly impact CHFA’s ability to meet the demand for this resource, which always exceeds the amount available for allocation. As a result of HB19-1228, the impact that state AHTC can have on Colorado will only grow. Between 2015 and 2019, the state AHTC program has directly sup- ported the devel- opment of 6,140 affordable rental units and will generate $719 million in private- sector equity investment in Col- orado. Addition- ally, private activ- ity bonds, and the federal 4% LIHTC they enable, his- torically have been underuti- lized in Colorado due to a lack of gap financing resources needed to make projects using them financially feasible, but this is no longer the case due to the state AHTC program. CHFA leverages state AHTC with fed- eral 4% LIHTC and PAB, which has resulted in $50 million in federal 4% credits awarded to support the creation and/or preservation of affordable rental housing, which would otherwise not have been feasible. The increase in state AHTC also will increase the broader economic impact. When housing is built, con- struction and other jobs are cre- ated. The development of the 6,140 units supported with state AHTC since 2015 is estimated to gener- ate over $2.6 billion in economic impact in Colorado. Furthermore, people who are housed affordably have more money to spend on other essentials like food, health care and transportation. CHFA is pleased that the Colo- rado General Assembly not only passed HB19-1228, but also several other measures in the 2019 session to help address Colorado’s afford- able housing crisis. The collabora- tion, capacity building and biparti- sanship that we are experiencing is vital to addressing the complex challenges of providing and main- taining affordable housing and is an example of the process that must continue locally, regionally and nationally. Current efforts underway at the congressional level also are encouraging. The Affordable Hous- ing Credit Improvement Act of 2019 has been introduced and if enact- ed, would help hundreds of thou- sands of families access affordable rental housing throughout the nation. The bill would expand and improve the LIHTC program in several ways, with key provisions including a 50% increase in 9% fed- eral LIHTC resources, phased over five years, and an established mini- mum 4% credit rate for proper- ties financed with housing bonds. These changes would provide an estimated 450,000 affordable homes across the U.S. over the next decade. Housing-cost burden remains prevalent and wage growth con- tinues to be outmatched by rising rents in Colorado, putting housing stability at risk for many – which is why passage of the Affordable Housing Credit Improvement Act is among CHFA’s top priorities. CHFA appreciates Colorado State Rep. Joe Neguse for co-sponsoring the bill, and we hope more of Colorado’s congressional delegation follows suit to support affordable housing for low-income families, seniors and those experiencing homeless- ness throughout our state. ▲ Affordable Housing Tax Credit program gets boost T he state of Colorado’s record growth has led to short- ages of affordable housing options for its residents. New funding is needed to tackle the issue and to develop more affordable housing opportu- nities for them. Responding to that need, additional funding was made available by the General Assembly for the state’s Division of Housing. The 2019 legislative session saw the passage of two bills that create a permanent source of funding for affordable housing and direct these resources to be deployed by the DOH. The DOH now has an addi- tional $78 million to invest in the diverse housing needs of Colorado communities. The two bills passed are House Bills 19-1322 and 19-1245. Current DOH funding creates approximate- ly 3,200 units per year; the divi- sion’s new funding will enable the production of 3,500 to 6,500 addi- tional housing units per year. Both bills continue to fund DOH’s Hous- ing Development Grant program, which allows for acquisition, reha- bilitation and new construction through competitive grants. HDG funds improve, preserve or expand the supply of affordable housing and finance foreclosure prevention activities in Colorado. In order to accurately invest these new housing resources into communities, the DOH is orga- nizing stakeholder engagement statewide for input from rural and urban areas with varying house- hold incomes to determine how to best allocate the funds. These engagements include other parties such as Housing Colorado and the Colorado Housing and Finance Author- ity. Five state- wide outreach and engagement forums are sched- uled in Grand Junction, Pueblo, Durango, Engle- wood and Fort Collins. Through these facilitated discussions, par- ticipants will be able to provide perspectives, new ideas and direc- tion on how existing housing pro- grams are working, as well as how new funding can best be utilized for Colorado’s housing needs. Creative approaches to building new housing in rural Colorado is key because DOH cannot utilize a one-size-fits-all methodology. The need for diverse programs, including loans and grants for mul- tifamily rental properties serving families and seniors earning below 60% area median income, must be available from the new funding. Housing in rural Colorado is a pri- mary focus of the DOH and HB19- 1322 allows DOH to specifically address rural housing. DOH will look at efforts allowing for attain- able for-sale housing in our moun- tain communities as well as home rehabilitation to improve the older stock of homes on the eastern plains and south-central mountain communities. The development of for-sale homes in nonurban areas of the state will help Coloradans who are earning up to 120% annual median income and support down payment assistance for households earning up to 100% AMI. Our goal is to meet the statewide affordable housing needs that work for all communities, recognizing that stable housing is a primary social determinant of health out- comes and children’s school per- formance. Increasing and preserv- ing Colorado’s affordable housing inventory will contribute to making Colorado the most livable state in the U.S. Through creating a local collaborative approach to plan for and build new affordable housing in Colorado, the latest appropria- tion of $78 million in funding will begin to help bridge the funding gap statewide. Thus, Colorado can continue to provide accessible, affordable, safe and healthy homes for every Coloradan. ▲ The perspective from the state government Rick Garcia Executive director, Colorado Department of Local Affairs In order to accurately invest these new housing resources into communities, the DOH is organizing stakeholder engagement statewide for input from rural and urban areas with varying household incomes to determine how to best allocate the funds. Five statewide forums are scheduled in Grand Junction, Pueblo, Durango, Englewood and Fort Collins. Cris A. White Executive director and CEO, Colorado Housing and Finance Authority As a result of HB19-1228, the impact that state AHTC can have on Colorado will only grow. Between 2015 and 2019, the state AHTC program has directly supported the development of 6,140 affordable rental units and will generate $719 million in private- sector equity investment in Colorado.