Catalyst Revolving Loan Fund

The Regional Housing Alliance of La Plata County (RHA) received nearly $1M from the Durango Industrial Development Foundation (DIDF) that will be used to create a low-interest housing catalyst revolving loan fund to support local workforce housing initiatives. 

The design of this low-interest revolving loan fund program was created to stimulate workforce housing projects already permitted and in the construction financing stage of a project. The early-stage costs to development including infrastructure and short-term construction financing are critical to the beginning phases of development but are often underfunded or funded at a high interest rate, creating a roadblock that prevents projects from getting underway or for the housing to be sold at below market rates. 

The Housing Catalyst Revolving Loan Fund initiative was developed by the La Plata Economic Development Alliance (Alliance) which will also administer the fund on behalf of the RHA. The Alliance will leverage the existing Catalyst Grant Fund structure and framework that has a committee of community housing and finance leaders to evaluate applications based on a rubric and make recommendations for funding.

Learn More

Eligible applicants include local non-profit organizations, corporations, private developers, and local public agencies. All recipients of the Catalyst Revolving Loan Fund must show evidence that their proposed project will commit at least 25% of the units to below market/affordable housing if pursuing state funding and/or intends to preserve existing below-market housing. If providing units through other resources or programs, the applicant will tell the fund what % it can commit to.

In addition, eligible applicants, their partners, and/or development team members must have experience with affordable/below-market housing and be able to demonstrate that the applicant has well-functioning and acceptable financial management systems and experience in managing real estate development.

Rubric Variables: The following variables will be used when scoring applications:

• Preference for Catalyst Fund participation
• Have received another incentive housing grant besides Catalyst
• Support from Local Government
• Regional Bank Loan in place or personal guarantee
• All equity must be injected into the project prior to the use of Catalyst Funds. (Minimum equity >=25% of total project)
• Project is in construction phase with local government planning
• Timeline for certificate of occupancy (Readiness)
• AMI of 140% for at least 50% of project
• For Sale products have Deed Restriction plan
• High level Performa is provided

View 2024 Area Median Income (AMI) Charts

Glossary of Terms

Before starting your application, please make sure you have the following information available:

• Project Narrative
• Predevelopment Costs, including Catalyst Fund Requests and Applicant Match.
  • View the Predevelopment Pro Forma Template Example for more detailed information.
• Development Costs including acquisition, site improvements, construction costs, professional services, etc.
  • View the Development Pro Forma Template Example for more detailed information.
• Infrastructure Site Plan, if applicable

This program intends to support local efforts to build or preserve below-market housing, leverage predevelopment funds with state and/or federal funding, and create projects with at least 25% below-market units. As such, this application has threshold requirements listed below:

• Do you have site control (i.e., a real estate contract, a lease option, or ownership)?
  • Must be able to provide proof of site control.
• Do you anticipate applying for state or federal housing funds as part of your financial model?
• Will 25% or more of the total proposed housing units be below market rate (defined as 160% AMI or less)?

If you answer “no” to any of the above questions, your project is not currently eligible for funding.

Interested eligible applicants will submit an application with a proposed project and if selected, would receive an award letter, based on their proposed project size, to support project development. Applications will be reviewed and ranked using Readiness to Proceed as a primary factor which is a best practice in the housing field and a transparent way to select projects that may receive significant public investment.

When reviewing Readiness to Proceed, the following criteria will be used: 

• Development is zoned for proposed development type, or a re-zone is feasible within 12 months.
• Development site has infrastructure, water and sewer. (If the project does not have infrastructure, the application must include a cost estimate, timeline to obtain infrastructure, and strategy for public funding.
• Proposed project owner is willing to partner and enter into a formal agreement to provide below-market lots, units or both.
• Total costs for a home through this proposed project will result in below-market unit prices. This should be verified through the local HomesFund’s annual affordability analysis.
• Development team has experience in development directly or through a consulting team and is in good standing with local governments and state funding agencies.
• Proposed Project’s location is within a reasonable distance to services/amenities, based on proposed population to be served and anticipated future funding source requirements.
• Proposed Project has local government support.
• Evidence of readiness to proceed must be submitted with the application.

Apply Here

The Regional Housing Alliance is now accepting applications for their Catalyst Revolving Loan Fund.

The application has 11 sections, including 5 sections requiring you to upload documents. You do not need a Gmail account to complete the application and documents will be accepted in both Microsoft and Google platforms.The application does not need to be completed in one session and can be saved, and returned to before submission.

Application Example

Please contact RHA staff at RHA@yeslpc.com for more information or questions.

• Current fund balance is $925,000
• Loan funds only used for hard costs related to development
• Loan funds may be used for infrastructure expenses so long as the funds are paid off by the senior lender once that facility is closed
• Catalyst loan will balloon 12-months after origination
• Funding may be renewed at maturity.
• Interest rate of 1.75%

The Catalyst Loan Fund Committee approves all funding guidelines, reviews applications to the fund, and approves funding allocations and is comprised of the following individuals:

Jason Portz, Market President, Bank of Colorado

Jameson Bobbin, Market President, Central Bank

Pat Vaughn, Commercial Real Estate Consultant, Stultus LLC

Sarah Tober, Executive Director, La Plata Economic Development Alliance

Brian Rose, Deputy Director, Region 9 Economic Development District of Southwest Colorado