A new housing housing program will spend $40 million on constructing affordable homes throughout the state – focused on innovative housing structures, such as modular and 3D printed homes.

The Colorado’s new Innovative Housing Incentive Program, announced by Gov. Jared Polis on Friday, is expected to help create up to 5,000 high-quality, low-cost housing units in the state over the next approximately five years, he said. 

“Transformative programs like this ensure there is housing for every budget in our communities, which is increasingly important as our state grows,” Polis said. “This will support our teachers, health care providers, and other critical industry workers to access housing near where they work, helping ease workforce shortages. I look forward to exciting housing projects and the progress that will come from this exciting innovation.”

Homelessness has spiraled out of control in Colorado in the last several years. Today, almost 7,000 people are homeless in metro Denver alone, and the debate over what caused that explosion and how to address it rages on. 

The new program will offer grants, loans and per-unit incentives to Colorado-based, innovative housing manufacturers with 500 employees or less. 

This includes providing reimbursements of up to $450,000 for operating expenses, $50,000 bonus awards for producing affordable housing, up to $6,000 per built unit cash incentives and factory development loans. 

Modular, manufactured and kit housing can be produced more efficiently and at a lower cost than traditional housing, lowering costs for homebuyers and for local governments and organizations looking to provide rentals for low- and middle-income households, state officials said. The program is meant to provide short-term support to innovative housing manufacturers to respond to supply chain constraints and narrowing margins. 

The program was created by the state legislature’s passage of House Bill 22-1282 in May. 

“This innovative program creates new manufacturing jobs while at the same time increasing our supply of housing, helping to solve one of the greatest challenges we face here in Colorado,” said Sen. Jeff Bridges, D-Greenwood Village, who co-sponsored the bill. “Every Coloradan should be able to live where they work. Expanding the availability of this kind of housing will help improve our economy while keeping Colorado affordable.” 

Applications for the program’s grants and per-unit incentives are currently being accepted on a rolling basis. Applications for loans will open early this year. 

More information about the Innovative Housing Incentive Program is available online at oedit.colorado.gov/innovative-housing-incentive-program.