Current Funding Opportunity
Spring 2023 LOI Round
The first round of the Catalyst Fund is now open.
This application round will prioritize projects that
are most ready to pursue time-limited state funding
opportunities which can be found here at the
Division of Housing website.
Details on how to apply, eligibility criteria, amount,
and terms, are available below.
The first round of funding applications closed on April 7, 2023.
What is the Catalyst Fund and what does it do?
The La Plata Economic Development Alliance (Alliance) Housing Catalyst Fund (Catalyst Fund) is a public
private partnership to create seed funding to support below market housing development in La Plata
County. The Catalyst Fund was initially funded by donations and grants, and administered by a group of
community leaders and housing experts.
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 and other items
associated with determining project feasibility.
One of the primary recommendations from the Economic Alliance Three-Year Housing Investment
Strategy was the creation of a local predevelopment initiative to help housing projects move forward
and take advantage of the signicant funding opportunities under the American Rescue Plan Act (ARPA)
and also to prepare for funding from Proposition 123 which is anticipated to be available in late summer of 2023. Predevelopment funding is the first funding for any project, and is also the riskiest funding for an investor.
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 denied 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, then 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.
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.
This committee is comprised of the
following individuals:
Kent Curtis, CEO, First Southwest Bank
Eva Henson, Housing Innovation Program Manager, City of Durango
Mark Garcia, Town Manager, Town of Ignacio
Nicol Killian, Community Development Director, Town of Bayfield
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
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
How to Apply
Follow the link below to submit an application for a
Catalyst Fund grant.
Questions relating to the Catalyst Fund may be direct-
ed to Sarah Tober, Housing Strategy Manager, at
sarah@yeslpc.com or (970-259-1700)
