Colorado Housing and Finance Authority Checks In

Fort Collins, CO, April 4, 2006 – Funding Partners, a non-profit Community Development Financial Institution (CDFI), is proud to announce its partnership with the Colorado Housing & Finance Authority (CHFA) in financing the creation and preservation of workforce housing throughout the state.

CHFA has extended a credit facility in the amount of $500,000 in support of Funding Partners’ Mammel Affordable Housing Loan Fund (MAHLF).  The fund represents a significant source of capital for making loans to both non-profit, for-profit and public agencies that seek to acquire, develop, rehabilitate or otherwise preserve rental and ownership housing units reserved for households earning approximately $17 per hour, per working adult.  The credit facility terms allow Funding Partners to offer below-market loan terms to its borrowers in order to hold down the cost of financing qualified projects across the state.

“CHFA is very excited about its new financing partnership with Funding Partners,“ said Milroy Alexander, CHFA’s Executive Director, “We greatly appreciate being a member of Funding Partners financial resource collaborative.  We also look forward to supporting the innovative programs and progressive staff of Funding Partners, as they continue to serve affordable housing needs throughout the State of Colorado .”

 At all levels of government, direct financial support for housing programs is rapidly declining, creating a vacuum not easily filled by the private sector.  However, innovative and opportunistic partnerships have seized upon this trend to reinvigorate community and economic development initiatives.  Indeed, the decline of entitlement funding should be viewed as an opportunity that creates greater accountability and efficiency within the affordable housing system.

 According to Joe Rowan, Executive Director for Funding Partners, “Rather than bemoaning the loss of public subsidy, organizations like CHFA recognize this situation for what it truly is – an unprecedented opportunity to fill the void in a changing system.  Through strategic partnerships, each component of the housing continuum is focused upon its core competencies and all parties are compelled to sharpen their game.  Poor management and defective decision-making processes are no longer tolerated within this new competitive environment.”

 Under its community mission to attract and consolidate resources for creation and preservation of safe, adequate housing that remains affordable to low and moderate-income households, Funding Partners has developed a reputation for expanding access to capital to demographic markets and geographic regions underserved by traditional financial institutions.  Since the inception of its loan programs in 1997, FP has accumulated over $8.5 million in loan fund capital and manages an additional $2.4 million on behalf of other organizations dedicated to serving similar markets. 

 Through 2005, FP has originated 920 loans with volume in excess of $16 million through its loan funds, representing 2,549 housing units.  Total costs of all housing projects exceed $253 million for a leverage rate of 15.8 to 1.   Contrary to common perception, loans made directly to low and moderate households through the House to Home Ownership (H2O) Down Payment Assistance Program® and organizations that serve that population through the MAHLF program consistently perform much better than traditional loan products.  Cumulative losses since inception equal $179,833, or 0.85% of the combined loan portfolio.  For more information, visit www.fundingpartners.org.

 CHFA was created in 1973 by the Colorado Legislature to address the shortage of affordable housing in the state. Since that time, CHFA has established itself as one of the leaders in the affordable housing industry by financing single family mortgages for qualifying homebuyers and supporting developments of multi-family rental housing for low and moderate income residents. In 1982, in response to Colorado ’s difficult economic times, CHFA enabling legislation was changed to allow it to make loans to small and medium sized businesses. CHFA is a responsible advocate of affordable housing and small business issues for the Colorado community. 
 
Since inception, CHFA programs have served every county in Colorado by financing more than 57,000 mortgages to homebuyers; helping sustain and support more than 27,000 jobs; financing more than 52,000 residential rental units; and, allocating tax credits for 30,000 residential rental units.   For more information, visit www.colohfa.org.