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Find similar grantsInnovative Housing Incentive Program is sponsored by Colorado Office of Economic Development and International Trade (OEDIT). The Innovative Housing Incentive Program (IHIP) addresses Colorado's housing shortage by supporting the development and expansion of innovative housing manufacturing businesses.
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4. Innovative Housing Incentive Program The Innovative Housing Incentive Program (IHIP) helps address Colorado’s housing shortage by supporting the development and expansion of the state’s innovative housing manufacturing businesses. The program includes two funding mechanisms: 1) grants for working capital expenses and per unit incentives and 2) factory loans to support new or expanding factories in Colorado.
The grant program opened for applications in December 2022 and remains open for applications on a rolling basis. IHIP Program Guidelines: Last Updated 01/02/26, (Google Doc) The application for the factory loan program is combined with Proposition 123 Concessionary Debt Factory Loan program and administered by Colorado Housing and Finance Authority (CHFA). The first round opened for applications in fall 2023.
Awardees were announced in February 2024. The second round of the IHIP/Prop 123 factory loan program, opened for applications in June 2025. Awardees were announced in January 2026.
For more information, visit CHFA’s factory loan webpage. * Innovative Housing Incentive Program grants have directly incentivized over 1,000 new factory produced housing units across Colorado. * New factories financed through Innovative Housing Incentive Program factory loans expect to produce over 3,000 housing units per year once operating.
* Grants and loans have supported businesses spanning 11 Colorado counties. * 2023 OEDIT Annual Report on page 45 (PDF) * 2024 OEDIT Annual Report on page 48 (PDF) * 2025 OEDIT Annual Report on page 109 (PDF) **Image description:** Business testimonial highlighting that the Innovative Housing Incentive Program supported the business Phoenix Haus.
Quote from Phoenix Haus Founder and Chief Executive Officer, Bill McDonald, “We're so very grateful to have been selected for the IHIP program. As a younger company in the off-site building space - it can be difficult at times to invest into our growth - the reimbursable expenses helps us to invest into our future - whether that's continuous improvement, or adding to our Colorado-based team.
We love seeing off-site homebuilding valued in our great State of Colorado - and we feel supported and valued in that pursuit. Thank you OEDIT team for your continued support!. ” The following grant reimbursement programs can be used together and have a single application process.
1. **Operating expense reimbursement:** Grants for selected businesses that will reimburse up to 20% of eligible operating expenses on a monthly basis. Awarded businesses will receive up to $350,000 in operating expense reimbursement.
Businesses in Tier 1 Just Transition Communities will be eligible for up to $450,000. Tier 1 Just Transition Communities include: Morgan County, Pueblo County, Montrose County (West End), and the Yampa Valley (Moffat, Rio Blanco, and Routt counties). 2.
**Per-unit incentive:** Innovative housing manufacturers can receive between $1,500 and $6,000 for every unit manufactured and installed in Colorado. Units that are affordable and energy efficient will receive a higher dollar amount per unit. 3.
**Affordable housing bonus:** Businesses that commit at least 10% of their housing production to deed-restricted affordable housing may be eligible for an additional $50,000 affordable housing bonus. IHIP Program Guidelines: Last Updated 01/02/26, (Google Doc) ## **Factory development loan** Businesses may apply for a concessionary loan to support the development of a new factory or the expansion of an existing factory.
The competitive application process for the factory loans is combined with the Proposition 123 Factory Loan Program. The selection process includes, but is not limited to the following; the percentage of affordable housing units to be produced, the energy efficiency of units to be produced, the number and quality of jobs created, the proposed terms of the loan, and the financial health and qualifications of the applicant.
The Colorado Housing Finance Authority (CHFA) is administering the factory loan program in partnership with OEDIT. The factory loan program is not currently accepting applications. We anticipate reopening this revolving loan program in the next few years as loans from previous rounds are repaid.
More information at the CHFA’s factory loan financing webpage. ### Colorado manufacturers The following manufacturers have received funding through the Innovative Housing Incentive Program or Proposition 123 and are currently operating in Colorado. **Program Objectives:** Innovative construction technology, including modular, panelized and 3D printing can serve as an efficient and affordable housing solution.
OEDIT launched the IHIP program with one-time funding to help build and grow a sustainable housing manufacturing industry in order to increase the the housing supply and promote economic development across the state. The factory loans are intended to revolve to create a long term impact. Leveraging one-time dollars for ongoing transformational, scalable change, IHIP will: 1.
**Grow Small Businesses & Create Jobs:**The Innovative Housing Incentive Program helps support and grow small businesses using innovative building technology to increase the supply of quality built and affordable housing for communities across Colorado. These businesses will also create good paying year-round jobs and grow the construction talent pipeline for the longer-term. 2.
**Increase the Supply of Affordable Housing Units:**The per-unit incentive program rewards businesses who increase the supply of housing units that meet the incentive tiers as well as factories that commit to producing a percentage of affordable units. 3.
**Establish Colorado as a Leading Hub for Innovative Building Technology:**IHIP’s grants and loans have attracted new housing manufacturers using a variety of existing or new building technologies created to increase production efficiencies, reduce waste, lower costs and reduce the time it takes to deliver more housing units. Colorado has the demand and innovative building technology will increase supply. 4.
**Provide Disaster Resilience:** Natural disasters like floods and wildfire are impacting Colorado residents at an increasing rate and several IHIP awardees are preparing to be part of the solution when new units are needed quickly following a disaster. ## Program Manager and Connect Further
According to the current listing, eligibility includes: For-profit or nonprofit organizations that are existing or new modular or factory-built housing manufacturers in Colorado. Out-of-state applicants are eligible if the facility is located within Colorado. Confirm the full requirements in the official notice before applying.
The current listing shows up to $350,000 for operating expenses; $1,500 - $6,000 per unit incentive; additional $50,000 for affordable housing bonus. Verify award ceilings, matching requirements, and allowable costs in the official notice.
Innovative Housing Incentive Program is funded by Colorado Office of Economic Development and International Trade (OEDIT). Verify program details on the funder's official page before applying.
This opportunity targets applicants in Colorado. If your organization operates elsewhere, check the official notice for location requirements.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
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