Program Summary

The Innovative Housing Incentive Program helps address Colorado’s housing shortage by supporting the development and expansion of the state’s innovative housing manufacturing businesses.

The program includes two funding mechanisms: a grant and a factory loan. These mechanisms are described in greater detail below.

Program status: 
OEDIT published program guidelines in November 2022 after a public comment period and consultation with other state agencies.

Program Guidelines, (Google Doc)

The grant program opened for applications in December 2022 and remains open for applications on a rolling basis.

The factory loan program opened for applications in fall 2023 and awardees were announced in February 2024. The factory loan program is a revolving loan program, and we expect to open applications in the next few years as loans are repaid.

Program impact:

• Innovative Housing Incentive Program grant has directly incentivized over 700 new modular and panelized housing units across Colorado
• New factories financed through Innovative Housing Incentive Program factory loans expect to produce over 2,000 housing units per year once operating
• Grants and loans have supported businesses spanning 11 Colorado counties

Reporting:

• 2023 OEDIT Annual Report on page 45 (PDF)
• 2024 OEDIT Annual Report on page 48 (PDF)

Innovative Housing Incentive Program grant

The following two mechanisms are used in conjunction with one another and are part of the same grant application process.

1. Operating expense reimbursement: Businesses are eligible for a grant that will reimburse up to 20% of operating expenses on a monthly basis. Businesses will be eligible for up to $350,000 in grant funding. Businesses in Tier 1 Just Transition Communities will be eligible for up to $450,000, plus the $50,000 bonus.
2. Per-unit incentive: Housing manufacturers can receive between $1,500 and $6,000 for every unit manufactured and installed in Colorado. Units that are affordable and energy efficient will receive a higher dollar amount per unit. 
3. Affordable housing bonus: Businesses that commit at least 10% of their housing production to deed-restricted affordable housing may be eligible for a $50,000 affordable housing bonus. 

To apply for the working capital grant and per-unit incentive, log into the OEDIT application portal and begin a precertification application. For more information on the grant application process, please read the application guide below.

Grant Application Guide, (Google Doc)

Factory development loan

Businesses may apply for a concessionary loan to support the development of a new factory or the expansion of an existing factory. There will be a competitive application process for the factory loan. Some of the factors the state will consider are: the percentage of affordable housing units to be produced, the energy efficiency of units to be produced, the number and quality of jobs created, the proposed terms of the loan, and the financial health and qualifications of the applicant. The Colorado Housing Finance Authority (CHFA) is administering the factory loan program in partnership with OEDIT.

The factory loan program closed for applications in November 2023, and awardees were announced in February 2024. We anticipate reopening this revolving loan program in the next few years as loans are repaid. 

More information about factory loans through the Innovative Housing Incentive Program and Proposition 123 can be found at the Colorado Housing Finance Authority’s factory loan landing page.

Colorado manufacturers

The following manufacturers have received funding through the Innovative Housing Incentive Program or Proposition 123 and are currently operating in Colorado.

Type: Program

For: Businesses

Amount: $40 million available

OEDIT division: Business Funding and Incentives