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Innovative Housing Incentive Program

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 working capital and per-unit incentive grant and a factory loan. These mechanisms are described in greater detail below. 

Program status: 
After a public comment period and consultation with other state agencies, OEDIT has put in place program guidelines that will take effect for the program launch. The guidelines may continue to evolve as the program develops, and additional details on the loan portion of the program will be added to the guidelines in early 2023. 

Program Guidelines, (Doc)

Applications for the working capital grant and per-unit incentive are now open. See below for more information. The factory loan program opened for applications in September and close on November 3, 2023.

Working capital grant and per-unit incentive

These two mechanisms are to be used in conjunction with one another.

  1. Working capital grant: 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, with an additional $50,000 bonus award for producing affordable housing. 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. 

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, (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 IHIP loan opened for applications on Tuesday, September 5, 2023 and close on Friday, November 3, 2023. For more information, please visit CHFA's Innovative Housing Manufacturer Financing webpage.

Overview

Type: Program

For: Businesses

Amount: $40 million available

OEDIT division: Business Funding and Incentives

Program Objectives

Program Objectives: Modular and manufactured construction can serve as a faster and more affordable housing solution, but the industry needs support from the State in order to be viable, sustainable, and increase the housing supply in both the short and long term for communities across the state. Leveraging one-time dollars for transformational, scalable change, the program will: 

  1. Grow Small Businesses & Create Jobs in the Industry: The Innovative Housing Incentive Program helps grow small businesses that are operating in this industry and are at various stages in their lifecycle to ensure they can serve more Colorado communities with affordable housing. This will also create good paying year-round jobs and grow the construction talent pipeline for the longer-term.
  2. Increase the Supply of Affordable Housing Units: The program ties its portfolio of financial support options to the increase of affordable housing supply through per-unit incentives and the development of a housing factory required to produce a percentage of affordable housing units.
  3. Lower the Cost of Affordable Housing for Local Governments & Organizations: In addition to providing attainable homeownership opportunities, modular homes can be purchased and subsequently rented to lower- and middle-income households. This program aims to increase access to more affordable housing options to housing entities across the state. 
     

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