ALAMOSA — This week, Community Resources and Housing Development Corporation (CRHDC) announced that the Tierra Azul housing development has been awarded Low-Income Housing Tax Credits (LIHTC) by the Colorado Housing and Finance Authority (CHFA).  

First implemented in Colorado in 2014, LIHTC is a federal incentive that encourages private investment in the development of affordable rental housing. Due to the lucrative tax benefits it offers and the significant need for investment in affordable house, application to the program is a highly competitive process where tax credits are only awarded to projects that meet a certain standard.  

The process of being able to offer tax credits is relatively straightforward.  

The Internal Revenue Service allocates LIHTCs to each state, based upon population. Developers submit proposals.  Each state’s Housing and Finance Authority selects housing projects based on its Quality Allocation Plan. Developers then receive authority to grant tax credits for projects. “Syndicators”, chosen by developers, sell the tax credits to investors. With the equity gained from selling the tax credits, developers build affordable housing. People renting from LIHTC properties can also receive subsidies to further reduce housing costs. As a result of this process, the property will stay affordable for at least 15 years. 

With that said, it’s clear why the allocation of tax credits is a critical step forward in the creation of new, high-quality, affordable homes for families in the San Luis Valley. 

The Tierra Azul subdivision, which is under construction following a March 2025 groundbreaking—will bring over 400 much-needed homes to the area. This tax credit award will support the first phase of rental homes, providing affordable and attainable homes for residents. 

“We are beyond excited to hear the news that CHFA has approved tax credits for the Tierra Azul housing development,” said Heather Sanchez, Alamosa City Manager. “The housing crisis is overwhelming and knowing that this project is moving forward is a great relief for the city council and staff. We have so many families and residents either paying more than they should for housing or struggling to find affordable housing, which creates stress for them and our community. I am grateful that CRHDC and CHFA are investing in Alamosa and our residents.” 

“The Tierra Azul development is a testament to the power of community and collaborative spirit” said Arturo Alvarado, CRHDC Executive Director.  “The LIHTC award represents a vital public-private investment in Alamosa and is a critical endorsement of our collective efforts.  We are incredibly proud to be a key partner in bringing high-quality, affordable homes to the San Luis Valley that supports families, strengthens neighborhoods, and contributes to the long-term vitality of the region.” 

The Tierra Azul project is the result of years of collaboration between CRHDC, the City of Alamosa, and multiple community partners. With the LIHTC award in place, CRHDC will move into the development of affordable rental homes, designed to meet local housing demand. Future phases of Tierra Azul will include townhomes and homes for first-time buyers, creating a full spectrum of housing options. 

This success would not be possible without the support of CHFA, the Alamosa City Council, and the many organizations and individuals who share a vision for a more affordable, equitable future in the San Luis Valley. 

For more information about Tierra Azul or CRHDC’s affordable housing programs, visit www.crhdc.org.