In a city where starter homes can feel like urban myths, a new West Colfax project is trying to make ownership a little more real. CHFA has closed a $5.7 million construction loan to finance Wolff Street Flats, a 23-unit affordable for-sale condominium development planned for Denver’s West Colfax neighborhood. The homes are slated for households earning at or below 80 percent of Area Median Income, with an estimated average sales price near $285,000. Developers plan to list homes in July 2026, break ground in June 2026, and wrap construction around August 2027. Wolff Street Flats is also the first project to close under CHFA’s new Drive It Home construction-loan program.
According to CHFA, the loan was made through its Drive It Home Construction Loan program, which is designed to provide below-market financing for for-sale housing and help turn lower developer costs into lower purchase prices for buyers. The Wolff Street project also received financing from the Colorado Department of Local Affairs and Denver’s Office of Housing Stability. CHFA Executive Director Thomas Bryan called the closing an “exciting milestone.” The agency estimates Drive It Home funds could support roughly 182 affordable for-sale homes across Colorado.
The program is backed by a 2025 law that authorizes the state treasurer to invest up to $50 million in CHFA bonds to buy down construction and mortgage costs for for-sale housing, per the Colorado General Assembly. The statute directs those invested funds toward income-restricted for-sale homes and requires reporting on how the proceeds are used. Sponsors and supporters said the mechanism is intended to make certain low- and moderate-income developments financially feasible for builders who otherwise would not pursue for-sale projects at those price points.
How the Drive It Home loan works
CHFA’s program couples construction financing with mortgage products for eventual buyers. It includes a construction loan interest rate of 3.5 percent, a per-unit cap that CHFA lists at $285,000, and loan-to-cost financing up to 90 percent, all intended to shave carrying costs during development. The program guidelines also require long-term affordability restrictions on the units for a minimum of 20 years and CHFA oversight to confirm income qualification and ongoing compliance, per CHFA.
Developers, pricing and who may qualify
Wolff Street Flats is being developed by Denver firms Osina Development and Modus Real Estate. Developers say the project targets a gap between rental costs and attainable ownership for modest-income households. As reported by Mile High CRE, Osina principal Scott Speil described the project as serving an “underserved niche” in the Villa Park/West Colfax area, while Modus realtor Garrett Beserra said the program can make homeownership comparable to or even less expensive than renting. Prospective buyers may sign up for an interest list through the developer’s site…