Scattered-Site Homeownership Grant Program

The Colorado Department of Local Affairs, through its Division of Housing and Office of Housing Finance and Sustainability, administers a statewide initiative designed to expand homeownership opportunities through the Scattered-Site Homeownership Program. This funding opportunity is supported by Proposition 123 and reflects the State of Colorado’s broader commitment to increasing access to affordable homeownership across diverse communities. The program is structured to provide financial support to qualified entities operating across multiple jurisdictions, with an emphasis on flexible, scalable housing development models that can address localized housing needs. The primary purpose of this program is to fund the acquisition, construction, and rehabilitation of homeownership units distributed across various sites rather than concentrated developments. Eligible uses of funds include new construction, acquisition and rehabilitation of homes, and acquisition of mobile home communities. Administrative costs are permitted but capped per unit, and funds are typically distributed on a reimbursement basis unless prior approval for advances is granted. Notably, repayment of bridge loans is explicitly excluded as an eligible use. Additional incentives may be available for projects incorporating modular construction or enhanced energy efficiency, subject to documentation requirements. Eligible applicants include nonprofit organizations, local governments, housing authorities, and other public entities such as school districts and special districts. Applicants must demonstrate capacity, financial feasibility, and a clear need for the proposed housing activities. Projects must serve households earning at or below 120 percent of the Area Median Income and comply with per-unit subsidy limits established under Proposition 123. Long-term affordability is enforced through a required 30-year use covenant recorded against the property. The application process requires both a Letter of Intent and a full application submission through the designated portal by specified deadlines. Applicants must prepare a detailed project narrative addressing evaluation criteria such as organizational capacity, program design, financial feasibility, long-term affordability, and responsiveness to market conditions. Required attachments include financial statements, organizational documentation, development team information, and various legal and compliance documents. The process emphasizes comprehensive planning and documentation to ensure readiness and accountability. Applications are reviewed by Division of Housing staff using a structured scoring system that evaluates multiple dimensions of project quality and feasibility. Criteria include management capacity, program design, financial viability, affordability strategies, and market responsiveness. Additional evaluation criteria apply for proposals involving mobile home park acquisition funds, including resident engagement and fund administration experience. Awards are contingent upon successful review and subsequent negotiation of funding agreements. Key dates for this funding opportunity include a public comment period, informational session, Letter of Intent deadline, and final application deadline. The program anticipates a two-year performance period for awarded projects, during which unit production and funding utilization milestones must be met. Successful applicants will be notified following the review process, and all inquiries must be directed to the designated program contact via email. This funding opportunity may be periodically updated, and applicants are encouraged to ensure they are using the most current version of program materials prior to submission.

Focus on demonstrating organizational capacity financial feasibility and strong market alignment; ensure detailed project narrative aligns with scoring criteria including affordability and responsiveness to market conditions; provide clear documentation for all required attachments