Innovative Housing Incentive Program

Innovative Housing Incentive Program Grant

Funds innovative housing manufacturers with operational support and growth incentives.

Eligibility · United States · US-CO

The Innovative Housing Incentive Program (IHIP) is a rolling grant program administered by the Colorado Office of Economic Development and International Trade (OEDIT) through its Business Funding and Incentives division, designed to grow Colorado's innovative housing manufacturing sector and address the state's housing shortage. The program opened for grant applications in December 2022 and continues to accept applications on a rolling basis. By mid-2026, IHIP grants had directly incentivized over 1,000 new factory-produced housing units across Colorado, and factories financed through the related loan track are projected to produce over 3,000 units per year once fully operational. The total program pool is $40 million. Eligible businesses are for-profit innovative housing manufacturers — companies that build factory-produced, modular, or other innovative housing units.

The grant program includes three sub-mechanisms submitted through a single application. First, an operating expense reimbursement of up to 20% of eligible monthly operating expenses, capped at $350,000 for standard locations and $450,000 for businesses located in Tier 1 Just Transition Communities — Morgan County, Pueblo County, Montrose County West End, and the Yampa Valley (Moffat, Rio Blanco, and Routt counties). Second, a per-unit incentive ranging from $1,500 to $6,000 for every unit manufactured and installed in Colorado, with higher amounts for affordable and energy-efficient units. Third, an affordable housing bonus of $50,000 for businesses that commit at least 10% of their production to deed-restricted affordable housing. A separate factory development loan program administered by the Colorado Housing and Finance Authority is not currently accepting applications.

Applications are submitted through the OEDIT online portal beginning with a precertification application. The program is administered by Hilary Cooper, Director of Innovative Funding for Housing Programs, at hilary.cooper@state.co.us. Program guidelines were last updated January 2, 2026. Funded recipients to date include 18 Colorado manufacturers across 11 counties, including Fading West, Azure Printed Homes, StructureBOT, and Phoenix Haus, demonstrating the program's broad geographic and business-model reach.