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Affordable Housing Gap Financing

Photo of housing unitsThe purpose of the Affordable Housing Gap Financing Application is to simplify the process for developers or service providers that are interested in building or rehabilitating a structure used for housing as well as other capital needs. Projects that address housing needs from permanent supportive housing for homeless individuals to for-sale products will be considered. All applicants will be asked how their proposals help achieve goals and recommendations within the Housing Strategy, and this will be established as one of the evaluation criteria. This process will build upon an existing application process establishing new and efficient ways to evaluate developments, which will ensure an equitable and systematic process to select projects that will fit the city’s needs.

By streamlining applications, it will reduce the need for developers to produce duplicate information when utilizing multiple funding sources including the state and Colorado Housing and Finance Authority (CHFA). Creating one application form will also allow staff to operate with greater efficiency, decreasing the time needed for evaluation. In order to align with CHFA’s tax credit application process, the city’s application process will take place on a bi-annual basis in the winter and late spring ahead of CHFA’s application deadline. CHFA funding will not apply to all applicants but will allow for a review process for all types of application on a routine basis. This application establishes and better streamlined procedural steps for incentivizing affordable housing developments.

Housing Strategy Alignment: The Aurora Housing Strategy focuses on the most effective, efficient and outcome-proven methods to expand housing options in the city, with a focus on:

  • Increasing and leveraging existing financial resources to address housing needs citywide
  • Revising our Development Code to streamline the regulatory process to reduce the cost of housing development and to allow for a mixture of housing options
  • Conducting a land inventory to explore infill, redevelopment and land-banking opportunities
  • Identifying and supporting demonstration and pilot projects that offer innovative housing opportunities
  • Identifying and increasing renter to homeownership opportunities

Types of Projects Funded: New rental or for-sale affordable housing, rehabilitation of existing affordable housing, permanent supportive housing, homeless program providers with capital needs.

Funding Sources: Amounts will vary from year to year based on changing federal grant allocations, program income received, and funding needs for other programs. Sources will include some or all of the following: HOME (Home Investment Partnership Program) funds and CDBG (Community Development Block Grant) funds. The city currently holds approximately $2.5 million in HOME funds and $400,000 of CDBG funds for this winter round of financing.

Application Components/Evaluation Criteria: Alignment with Housing Strategy, meets an identified housing need in the community, demographics to be served by the project, average median income to be served by the project, cost effectiveness, leveraging of funding, review of sources and uses, funding sustainability, available city funding sources based on project type, developer or organization experience, surrounding compatible uses.

Proposed Review Committee: City staff including Community Development, Homelessness Program, Finance, Planning and Urban Renewal. Two Community Housing and Development (CHD) Committee members.

Timeline:

  • Request for applications released Monday, Feb. 1, 2021
  • Application due by Friday, Feb. 19, 2021
  • Review of applications, committee recommendations and presentations to City Policy Committees - March 2021
  • Announcement of GAP Financing Awards - Late March to Early April 2021
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