The creation of capital tools and policy reforms are needed to preserve Colorado's affordable rental housing. This fact sheet looks at the three financing phases for preservation projects—acquisition, bridge financing, and permanent financing—and explains how current programs are designed more for new construction creating barriers to preservation. Recommendations include streamlining underwriting processes, creating preservation-specific funding criteria, establishing predevelopment grants and credit lines, capitalizing community development financial institutions, and developing flexible debt and equity products with higher loan-to-value ratios to help developers compete with market-rate investors and prevent the loss of affordable homes across Colorado.
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