Innovative Housing Incentive Program

Innovative Housing Incentive Program grant

The following grant reimbursement programs can be used together and have a single application process.

1. Operating expense reimbursement: Grants for selected businesses that will reimburse up to 20% of eligible operating expenses on a monthly basis. Awarded businesses will receive up to $350,000 in operating expense reimbursement. Businesses in Tier 1 Just Transition Communities will be eligible for up to $450,000. Tier 1 Just Transition Communities include: Morgan County, Pueblo County, Montrose County (West End), and the Yampa Valley (Moffat, Rio Blanco, and Routt counties).
2. Per-unit incentive: Innovative 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 an additional $50,000 affordable housing bonus. 

To apply for the operating expense reimbursement and per-unit incentive grants, 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. The competitive application process for the factory loans is combined with the Proposition 123 Factory Loan Program. The selection process includes, but is not limited to the following; 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 is not currently accepting applications. We anticipate reopening this revolving loan program in the next few years as loans from previous rounds are repaid.

More information at the CHFA’s factory loan financing webpage.

Colorado manufacturers

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

Program Objectives: Innovative construction technology, including modular, panelized and 3D printing can serve as an efficient and affordable housing solution. OEDIT launched the IHIP program with one-time funding to help build and grow a sustainable housing manufacturing industry in order to increase the the housing supply and promote economic development across the state. The factory loans are intended to revolve to create a long term impact. Leveraging one-time dollars for ongoing transformational, scalable change, IHIP will:

1. Grow Small Businesses & Create Jobs: The Innovative Housing Incentive Program helps support and grow small businesses using innovative building technology to increase the supply of quality built and affordable housing for communities across Colorado. These businesses 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 per-unit incentive program rewards businesses who increase the supply of housing units that meet the incentive tiers as well as factories that commit to producing a percentage of affordable units.
3. Establish Colorado as a Leading Hub for Innovative Building Technology: IHIP’s grants and loans have attracted new housing manufacturers using a variety of existing or new building technologies created to increase production efficiencies, reduce waste, lower costs and reduce the time it takes to deliver more housing units. Colorado has the demand and innovative building technology will increase supply.
4. Provide Disaster Resilience: Natural disasters like floods and wildfire are impacting Colorado residents at an increasing rate and several IHIP awardees are preparing to be part of the solution when new units are needed quickly following a disaster.