Colorado’s Drive It Home financing kicks off with affordable condos

A small condominium project in Denver’s West Colfax neighborhood may be the best evidence yet that Colorado’s housing reforms are producing real results.

The Colorado Housing and Finance Authority this month closed a $5.7 million low-interest construction loan for Wolff Street Flats, a 23-unit affordable for-sale development by Osina Development and Modus Real Estate. It is the first project to close under CHFA’s Drive It Home Construction Loan program, which draws from a $50 million bond investment authorized by bipartisan legislation enacted last year.

Scott Speil, principal of Osina, told HousingWire TBD that construction will begin next week. Completion is scheduled for August 2027.

Homes at Wolff Street Flats will sell to households earning 80% of Area Median Income or less — roughly $89,000 annually for a two-person household — at an estimated average price of $285,000.

Since 2024, Colorado Gov. Jared Polis has signed laws requiring greater density near transit corridors, removing parking minimums for some multifamily housing and limiting condo construction liability. In March, he signed the HOME Act, letting schools, transit agencies and nonprofits build housing on their land regardless of local zoning.

Denver upzoned long before state action

Denver rewrote its zoning code in 2010, allowing more diverse housing types in residential neighborhoods.

“They did well with the rezoning,” Speil said. “That really stimulated quite a bit of development and growth.”

Speil founded his company in 2016 to develop condos and townhomes on urban infill lots. His projects average 10 to 12 units each, selling for $550,000 to $750,000.

Denver home prices skyrocketed during the pandemic as residents fled high-cost states such as California. The market is now cooling, with the median home price around $600,000 after years of rapid gains. For-sale inventory has climbed to roughly six months of supply, and mortgage rates above 6% have slowed demand.

“There isn’t a shortage of housing but still a shortage of affordable housing,” Speil said.

Wolff Street Flats is Osina’s first affordable project, one Speil said would not have been feasible without state and city financing. The construction loan carries a 3.5% interest rate, well below the going rate. Osina also received a state grant and a City of Denver performance loan.

“It’s very expensive to build anything right now because of interest rates and construction costs,” Speil said.

Expanding affordability

City officials are pushing to expand affordability further. Roughly 40% of Denver’s land remains zoned exclusively for single-family homes. Denver’s Unlocking Housing Choices initiative proposes to legalize duplexes, triplexes and small apartment buildings in those neighborhoods.

A spring 2026 public engagement process drew 843 survey responses. Many residents said financing barriers and market forces remain stubborn obstacles even where zoning allows more density.

Lawmakers who backed the state financing program say projects like Wolff Street Flats prove the approach is working and a model for the state.

“Projects like Wolff Street Flats show how this policy translates into real homes in our communities,” said Rep. Manny Rutinel, a co-sponsor of last year’s legislation. “It’s a practical step toward making homeownership more accessible across Colorado.”

CHFA spokesman Matt Lynn told HousingWire TBD that the $50 million bond investment generated strong demand and is now fully committed. It will produce an estimated 182 affordable for-sale units statewide. The agency will report regularly to the Colorado General Assembly on the program’s results as lawmakers weigh further steps to address the state’s housing shortage.

“CHFA is considering ways the Drive it Home program may be expanded by seeking additional investment in the future from mission-driven funders, so that more units may result from the program,” Lynn said.