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The Housing Catalyst Fund

The La Plata Economic Development Alliance’s Housing Catalyst Fund is a public-private partnership providing seed funding for below-market housing development in La Plata County. This fund supports essential predevelopment costs like feasibility studies, environmental assessments, engineering, and legal fees, helping projects move forward. It was created as part of the Alliance’s Three-Year Housing Investment Strategy to utilize major funding opportunities like the American Rescue Plan Act (ARPA) and Proposition 123.

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Application Process

Round 4 is closed as of November 21st, 2024. Stay tuned for the next funding round of the Housing Catalyst Fund.

Round 4 Closed

Questions relating to the Catalyst Fund may be directed to Sarah Tober, Executive Director,  info@yeslpc.com

Recent News

Newsline: Stregthening Durango’s Economy

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Newsline: Third Round of Catalyst Fund Awarded

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Durango Local News Network on Catalyst Fund Round 2

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City’s Seed Investment Pays Off

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Newsline: Catalyst Fund Round 2

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Press Release: Catalyst Fund Round 2

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Selection process

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. Selected projects would also receive up to 10 hours of technical assistance from a regional housing consultant and guidance from local public agencies on land use and development requirements. 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. Evidence of readiness to proceed must be submitted with the application.

  • 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.

The Catalyst Fund Committee approves all funding guidelines, reviews applications to the fund, and approves funding allocations.

Eligibility & Selection Criteria for Funding

Eligible applicants include local non-profit organizations, corporations, private developers, and local public agencies. All recipients of the Catalyst 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.

“Below-market” is defined as housing that can be delivered to local community members at the following prices for local community members:

  • Rental housing that delivers new rental units that provide rents affordable to households earning less than 140% AMI
  • For-Sale housing that delivers affordable housing units available to households earning less than 160% AMI.

All affordability calculations will follow the HomesFund’s annual calculations for their loan fund and the current City’s Fair Share program. All rental affordability calculations will follow CHFA guidelines.

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.

If the applicant has no prior affordable housing development experience, the applicant must partner with an experienced co-developer or use a housing consultant with significant experience to meet the threshold for eligibility under the Catalyst Fund.

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Definitions And Eligible Uses

Predevelopment: Predevelopment funding programs offer financing to support various development expenses incurred while determining the feasibility of a particular project. Examples of predevelopment costs include preliminary financial applications, legal fees, architectural and engineering fees, environmental studies, market studies, and other third-party studies that help to determine feasibility. See “Eligible Uses” below for the complete list.

Eligible Uses: Catalyst Fund proceeds may be used for a variety of predevelopment costs, including but not limited to

  • Project feasibility studies
  • Environmental studies
  • Engineering, architectural
  • Market studies
  • Options
  • Legal fees
  • Soil studies
  • Site preparation
  • Appraisals
  • Surveys
  • Development consultants
  • Other items associated with determining project feasibility

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.

Required Application Materials & Examples:

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

  • Project Narrative
  • Predevelopment Costs, including Catalyst Fund Requests and Applicant Match.
  • Development Costs including acquisition, site improvements, construction costs, professional services, etc.
  • Infrastructure Site Plan, if applicable

Amounts and Terms

The Catalyst Fund awards will be in the form of a grant ranging from $25,000-$75,000. If awarded, grant agreements will require that applicants provide quarterly progress reports and report on the following:

  • Predevelopment activities completed
  • Results of feasibility studies
  • Changes on project concept
  • Updates to development timeline and approach
  • Final report on project feasibility and final unit count and anticipated costs of the project. If not feasible, lessons learned on factors limiting success of the actual development project for use by the Catalyst Fund Committee

This committee is comprised of the following individuals:

Kent Curtis, CEO, First Southwest Bank
Mark Garcia, Town Manager, Town of Ignacio

Chris Lopez, Community Relationship Manager, CHFA
Adam Rogers, Director of Finance, La Plata County
Steve Short, Board of Trustees Member, Fort Lewis College
Pat Vaughn, Commercial Real Estate Consultant, Stultus LLC