Specialized Practice

Affordable Housing Sales

Rent-restricted (including LIHTC), subsidized Section 8, and GP interest transactions. Colorado and Wyoming, since 2016. Member of the Colliers national affordable housing practice.

Colorado's Affordable
Housing Specialists

CO Multifamily Advisors has served as listing broker in rent-restricted sales (including Section 42 LIHTC and deed-restricted properties), project-based Section 8 dispositions, and GP interest transfers across Colorado and Wyoming. Affordable housing sales require a broker who understands LURA restrictions, HAP contract transfer requirements, HUD loan assumption processes, and the specialized buyer pool that acquires regulated assets. We have executed these transactions across multiple credit cycles and property types, from workforce housing to senior LIHTC to Section 8 high-rises.

Our closed affordable transaction history includes the $81.85M Lake Creek Village sale in Edwards — the largest affordable housing sale in Colorado history. Total closed volume across all affordable transaction types exceeds $325M across 13 transactions. CO Multifamily Advisors is a member of the Colliers national affordable housing practice, providing access to a national buyer network of LIHTC developers, syndicators, nonprofits, and housing authorities.

Jump to Rent-Restricted Sales Subsidized / HAP GP vs Fee-Simple Sales Colorado Context Colliers Platform
Section 01

Rent-Restricted Sales

Rent-restricted properties carry covenants or regulatory agreements that cap rents for income-qualified residents, regardless of how the restriction was created. The two most common structures in Colorado are Section 42 LIHTC and deed-restricted properties operating without tax credits. Both require a buyer qualified to operate under the applicable restrictions and draw from a specialized buyer pool distinct from conventional apartment acquirers.

Section 42 LIHTC

Low-Income Housing Tax Credit properties are financed with federal tax credits allocated by CHFA in Colorado. Owners include individual investors, nonprofit developers, and institutional equity syndicators. The end of the Initial Compliance Period (Year 15) and the end of the Extended Use Period are the most common exit events, though mid-cycle transactions occur when partnership or investor objectives shift. Sales that occur before the end of the Initial Compliance Period are typically structured as GP interest transfers rather than fee-simple property sales; CO Multifamily Advisors facilitates those transactions as well. CO Multifamily Advisors has closed LIHTC transactions across Colorado and Wyoming, including multiple HUD loan assumption sales. Notable closings include Columbine Village (Arvada, 232 units, $44.75M, 2023) and View at North Peak (Northglenn, 288 units, $38.0M, 2020).

Process
LIHTC Disposition Steps
  • Confirm compliance period status, LURA terms, and any purchase rights
  • Obtain investor consent to proceed with marketing where required by the partnership agreement
  • Structure marketing to LIHTC-qualified buyers: tax credit developers, syndicators, nonprofits, and preservation buyers
  • Where HUD-insured financing is assumable, structure the offering around the assumption and coordinate HUD approval concurrent with the purchase contract
  • Execute sale subject to applicable regulatory approvals and investor consent
Key Considerations
What LIHTC Owners Should Know
  • LURA restrictions limit the buyer pool to parties who can maintain affordable rents for the remaining restriction period
  • Colorado legislation grants municipalities a right of first refusal on affordable housing sales; this must be accounted for in the marketing timeline and offer process
  • HUD loan assumptions add 60 to 180 days to the closing timeline but can enhance pricing by delivering below-market financing to the buyer
  • We have closed LIHTC sales structured with new debt and as HUD loan assumptions, and can advise on which structure best fits the asset and buyer pool

Deed Restricted

Deed-restricted properties carry affordability covenants recorded against the title, imposed by a housing authority, municipality, or public agency, without a Section 42 tax credit structure. Because there is no LP/GP partnership and no compliance period, the transactional mechanics are simpler, but covenant terms, restricted buyer pools, and applicable right-of-first-refusal requirements still demand specialized handling. Our largest closed transaction, Lake Creek Village (Edwards, 270 units, $81.85M, 2022), was a deed-restricted disposition by the Eagle County Housing Authority and remains the largest affordable housing sale in Colorado history.

Key Considerations
What Deed-Restricted Owners Should Know
  • Covenant terms vary — income limits, AMI percentages, unit minimums, and duration (term-limited vs. perpetual) must be confirmed and disclosed before marketing
  • Colorado's municipal right of first refusal on affordable housing sales applies to deed-restricted properties regardless of whether tax credits were involved and must be factored into the marketing timeline
  • Buyers must be qualified to maintain the covenant; municipalities and housing authorities frequently hold rights of first refusal or purchase options under Colorado law
  • Pricing reflects restricted income potential relative to market-rate rents; location and covenant terms are the primary value drivers
Section 02

Subsidized / HAP Sales

Project-based Housing Assistance Payments (HAP) contracts are long-term agreements with HUD under which the federal government subsidizes rents for income-qualified residents. The HAP contract is a significant asset: it provides stable, government-backed revenue that conventional market-rate properties cannot access. HAP contracts transfer to a qualified buyer as part of the property sale, subject to HUD and PBCA approval. CO Multifamily Advisors has closed four project-based Section 8 transactions in Colorado, including Columbine Towers (Denver, 170 units, $34M, 2024) and Windsor Court (Aurora, 143 units, $29.3M, 2022).

Process
HAP Disposition Steps
  • Confirm HAP contract terms: expiration date, current rent levels, renewal status, and any Mark-to-Market restructuring history
  • Market to buyers qualified to assume and operate Section 8 contracts, including mission-driven nonprofits, housing authorities, and experienced affordable operators
  • Submit HAP transfer application to HUD and PBCA concurrent with purchase contract execution
  • Coordinate closing with HAP transfer approval; HUD confirmation of new owner eligibility is required before closing
Key Considerations
What HAP Contract Owners Should Know
  • HAP transfer approval typically adds 30+ days to the closing timeline and requires the buyer to meet HUD's ownership and management qualifications
  • Expiring HAP contracts that require renewal negotiation may affect timing and buyer underwriting — we help owners understand how contract status affects pricing
  • Buyers who understand HAP contract management and HUD regulatory requirements are a specialized pool; we maintain direct relationships with active Section 8 acquirers in Colorado
Section 03

GP vs Fee-Simple Sales

Most LIHTC properties are owned through limited partnerships in which the general partner (GP) manages the asset and a limited partner (LP) — typically a tax credit syndicator or institutional equity investor — holds the tax credit equity. When the LP's tax credit benefits have been recognized, the LP may be willing to sell or transfer their interest, or the GP may wish to transfer their interest to a new operator or buyer. These transactions are structured as partnership interest transfers rather than fee-simple property sales, and pricing is typically determined through direct negotiation. In 2025, CO Multifamily Advisors executed a GP interest transfer at InnovAge Senior Housing (Thornton, 72 units).

Key Considerations
How GP Interest Sales Differ from Fee-Simple Sales
  • The buyer acquires the general partner's ownership interest in the partnership, not the underlying real property directly
  • LP consent is typically required; the LP's remaining interest and any outstanding obligations must be addressed as part of the transaction
  • Pricing is determined through direct negotiation between the GP and prospective buyer rather than open-market bidding
  • Sale price is frequently confidential, reflecting a negotiated partnership interest transfer rather than an arm's-length property disposition
  • Buyers in GP interest transactions are a specialized pool: LIHTC developers, housing authorities, and nonprofits with CHFA compliance capacity
  • We structure these engagements to surface qualified buyers efficiently while maintaining the confidentiality the transaction requires
Section 04

Colorado's Affordable Housing Landscape

Colorado's affordable housing market is shaped by federal programs, state financing infrastructure, and growing municipal investment. Understanding this landscape is essential to identifying the right buyer pool and timing a disposition effectively.

CHFA & State Programs
Colorado Housing and Finance Authority
  • CHFA is Colorado's allocating agency for federal LIHTC credits and administers the Qualified Allocation Plan (QAP), which governs compliance monitoring and credit distribution
  • CHFA also finances affordable developments through tax-exempt bonds and administers HUD-insured lending programs used across many Colorado LIHTC portfolios
  • CHFA compliance history is a key underwriting input for buyers acquiring regulated assets; we help owners document and present their compliance record as part of the marketing process
  • Colorado has a well-established CHFA pipeline of active affordable developers who are frequent buyers of existing regulated assets
Proposition 123 & Local Funds
New Preservation Capital in Colorado
  • Proposition 123, passed by Colorado voters in November 2022, dedicated approximately $300 million in state revenue to affordable housing, creating new preservation-focused buyers including municipalities, land banks, and housing authorities
  • More than 100 Colorado communities have adopted Proposition 123 fast-track review policies, and state equity and land banking programs are actively supporting affordable unit preservation across the state
  • Denver, Boulder, Fort Collins, Arvada, and other municipalities have created local affordable housing funds that participate in preservation acquisitions, expanding the buyer pool for well-located Colorado affordable assets
  • This public-sector buyer activity has increased competition for regulated assets and supported pricing in recent preservation transactions
Section 05

Colliers Affordable Housing Platform

CO Multifamily Advisors is a member of the Colliers national affordable housing practice, which provides access to a nationwide network of LIHTC developers, equity syndicators, housing authorities, mission-driven nonprofits, and preservation-focused institutional buyers. Affordable housing is a national market: the buyers most active in Colorado LIHTC acquisitions frequently operate across multiple states and require a broker with national outreach capacity alongside Colorado-specific expertise.

What the Platform Provides
National Reach for Colorado Assets
  • Access to Colliers' national database of active LIHTC acquirers, equity syndicators, and preservation-focused buyers across the country
  • Coordination with Colliers affordable housing specialists in other markets who maintain active relationships with buyers relevant to Colorado and Wyoming transactions
  • Shared transaction expertise on complex regulatory processes including HAP transfers, HUD loan assumptions, and LIHTC partnership restructuring

Closed Affordable Transactions

The following transactions represent CO Multifamily Advisors' completed affordable housing dispositions across rent-restricted, project-based Section 8, and GP interest sales in Colorado and Wyoming since 2016.

Property Location Type Units Closed Price
InnovAge Senior Housing Thornton, CO LIHTC / Senior 72 2025 Confidential
Columbine Towers Denver, CO HAP 170 2024 $34.0M
Pinewood Lodge Aurora, CO LIHTC / Senior 103 2024 $9.5M
Main Street Littleton, CO LIHTC 50 2024 $6.0M
Columbine Village Arvada, CO LIHTC 232 2023 $44.75M
Fox Meadows Fort Collins, CO LIHTC 138 2023 $36.8M
Windsor Court Aurora, CO HAP / LIHTC 143 2022 $29.3M
Lake Creek Village Edwards, CO Rent Restricted 270 2022 $81.85M
Trinidad Western Apartments Trinidad, CO HAP 60 2022 $4.2M
View at North Peak Northglenn, CO LIHTC 288 2020 $38.0M
Sheridan Square Sheridan, WY LIHTC 75 2019 $4.5M
AT Lewis Lofts & Rio Grande Denver, CO LIHTC 120 2018 $32.5M
City Park Plaza Apartments Denver, CO HAP 32 2016 $4.3M

Full transaction history available at comultifamily.com/track-record/.

Common Questions

Affordable Housing Sales, Frequently Asked Questions

What is a LIHTC property and when is the right time to sell?
LIHTC (Low-Income Housing Tax Credit) properties are apartment communities financed with federal tax credits allocated by state agencies like CHFA in Colorado. The right time to sell typically depends on the compliance period: after Year 15, investors may exercise purchase options or right-of-first-refusal rights; after Year 30, when the extended use period ends; or mid-cycle when partnership objectives or investor exit timelines shift. Each situation depends on the specific partnership agreement, LURA terms, and financing structure.
What is a HAP contract and does it transfer with a property sale?
A Housing Assistance Payments (HAP) contract is a long-term agreement with HUD under which the federal government subsidizes rents for income-qualified residents. The HAP contract is a significant asset: it provides stable, government-backed revenue unavailable to conventional properties. HAP contracts can transfer to a qualified buyer as part of a property sale, subject to HUD and PBCA approval, which typically adds 30 to 60 days to the closing timeline.
What is a Year 15 or Year 30 LIHTC exit?
LIHTC properties are subject to a 30-year Land Use Restriction Agreement (LURA). At Year 15, the initial compliance period ends and limited partner investors — typically tax credit syndicators — may have exit rights including a right-of-first-refusal or negotiated purchase option. At Year 30, the full LURA restriction lifts, allowing unrestricted sale or conversion to market-rate use. Many owners also sell mid-cycle when investor or partnership objectives change.
What buyers purchase affordable housing properties in Colorado?
Affordable housing buyers include LIHTC developers acquiring for resyndication, nonprofit housing organizations focused on preservation, housing authorities and public agencies (including Proposition 123-funded entities), mission-driven institutional investors, and private investors seeking stable regulated cash flows. This buyer pool differs materially from conventional apartment buyers and requires specialized outreach. As members of the Colliers national affordable housing practice, we maintain direct relationships with active buyers across all these categories.
What is a GP interest sale in an affordable housing context?
Most LIHTC properties are owned through limited partnerships. The general partner manages the asset; the limited partner holds the tax credit equity. When the LP's benefits have been recognized, the LP may be willing to sell their interest, or the GP may wish to transfer their GP interest to a new operator rather than sell the property outright. These transactions are structured as partnership interest transfers, priced through direct negotiation, and sale price is frequently not publicly disclosed.
How long does an affordable housing sale take compared to a conventional sale?
Affordable housing sales typically take longer due to regulatory approval requirements. HAP contract transfers generally add 30 to 60 days. HUD loan assumptions can add 60 to 90 days for HUD processing. LIHTC sales may also require investor consent before marketing can commence. In our experience, a well-prepared affordable housing disposition with all required approvals in process takes 120 to 180 days from contract execution to closing.

Affordable Housing
Disposition Consultations

If you own an affordable housing property in Colorado and are considering a sale, equity transfer, or preservation transaction, contact CO Multifamily Advisors for a confidential consultation. We work with individual owners, nonprofit operators, syndicators, and housing authorities across all affordable transaction types.