This article is part of the 2025 Mid-Year Housing Industry Update. Click here to read the full newsletter.
As part of Colorado's broader efforts to close the middle-income housing gap, Fulcrum Communities, a Colorado nonprofit, launched a pilot project using an innovative financing model to deliver workforce housing more quickly and efficiently. Ballard Spahr represented Fulcrum in structuring and closing the transaction.
With the state's new Middle-Income Housing Authority (MIHA) still in its early stages, Fulcrum partnered with the Colorado Housing and Finance Authority (CHFA) to issue 501(c)(3) tax-exempt bonds. The proceeds financed the acquisition of a three-bedroom townhouse in Parker, Colorado, which will be leased to middle-income tenants earning between 80% and 120% of AMI.
By acquiring turnkey properties instead of building new units, Fulcrum's model provides a faster path to occupancy—bypassing delays and risks associated with construction or major rehabilitation. With Colorado declaring that there is an acute shortage of affordable middle-income housing, CHFA, which approved the financing, recognized Fulcrum Communities' potential and capacity to lessen the state's burden in providing such affordable middle-income housing. The bond documents developed in this transaction were designed with scalability in mind, enabling Fulcrum to pursue similar acquisitions across Colorado.
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