Scattered-Site Homeownership Grant Program

The Colorado Department of Local Affairs through its Division of Housing and specifically the Office of Housing Finance and Sustainability administers the Scattered Site Homeownership Program as part of the state’s broader housing strategy under Proposition 123. This funding opportunity is designed to expand access to homeownership across Colorado by supporting flexible, multi site development models rather than single large scale developments. The program reflects the state’s policy commitment to increasing affordable homeownership opportunities and addressing housing supply constraints in diverse communities. The purpose of this funding opportunity is to provide grant funding to eligible entities to acquire, develop, and rehabilitate homeownership units across multiple jurisdictions. The program supports new construction, acquisition and rehabilitation of existing units, and the acquisition of mobile home communities under specific conditions. While construction related soft costs such as permits and fees are eligible, land acquisition and infrastructure costs are explicitly excluded. Administrative costs are limited to a fixed per unit cap, and funds are generally distributed on a reimbursement basis unless advance approval is granted. The program also establishes subsidy limits per unit, with opportunities for additional incentives tied to modular construction and energy efficiency outcomes. Eligible applicants include nonprofit organizations and a wide range of public entities such as counties, municipalities, tribal governments, housing authorities, school districts, and special districts. Projects must meet several threshold requirements including demonstrating organizational capacity, financial feasibility, and a clear need for the proposed housing. Additionally, all assisted households must fall within income limits at or below one hundred twenty percent of area median income. Awarded projects must adhere to long term affordability requirements through recorded use covenants lasting thirty years and must be completed within a two year agreement period. The application process requires submission of both a letter of intent and a full application through the designated portal by their respective deadlines. The letter of intent must outline anticipated unit production, funding request amounts, service areas, and potential development pipeline projects. The full application must include a detailed narrative addressing evaluation criteria, as well as extensive supporting documentation such as financial statements, organizational documentation, development team information, and legal or property related documents where applicable. Failure to submit both required components by the stated deadlines will result in disqualification from review. Applications are evaluated by Department of Housing staff based on a structured scoring system that emphasizes management capacity, program design quality, financial feasibility, long term affordability, and responsiveness to market conditions. Additional criteria apply for mobile home community acquisition programs, focusing on fund administration experience and resident engagement strategies. Applicants must demonstrate not only technical capability but also strategic alignment with market needs, partnerships, and the ability to deliver projects efficiently and sustainably. The timeline for this funding opportunity includes a final release in early June, followed by an informational session, a mid June deadline for letters of intent, and a late July deadline for full applications. Questions regarding the program must be submitted in writing to the designated program contact. Awards are contingent upon successful application review and negotiation of a funding agreement, and recipients must meet all program requirements throughout the project lifecycle.

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