(The Center Square) - Colorado Governor Jared Polis, the Colorado Office of Economic Development and International Trade, and the Colorado Housing and Finance Authority announced three preliminary selections for "strategic" Proposition 123 Equity program funding this week.

The funding will offer investment capital to create about 292 affordable housing units, according to the governor's office.

“Creating more housing that Coloradans can afford, where they want to live, is critical to lowering the cost of living," Governor Polis said in a statement. "These new units will create new opportunities for hard-working Coloradans and families to live in our thriving communities."

The Proposition 123 Equity program offers below-market-rate equity investments for developers who want to build low- and middle-income housing.

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The recently announced funding came as part of a Strategic Investment Round introduced in response to demand that exceeded what was available during the first application cycle.

OEDIT and CHFA saw it as an opportunity to pay for time-sensitive projects aligned with regional economic development plans, the release said.

For this round of funding, recipients had to show they would "demonstrate a unique and extraordinary state, and/or regional economic benefit; and will leverage other statewide investment," the release said.

“Through the Proposition 123 Equity program, we have the opportunity to support projects that will create much-needed affordable housing units and support wider economic development plans," OEDIT’s Executive Director, Eve Lieberman, said in the release. "That’s a win-win for Colorado workers and their families as well as the communities benefiting from innovative, intentional planning."

The three recipients will receive about $21 million combined.

One recipient is the Fall River Village project, managed by the Estes Park Housing Authority. The community plans to convert short-term lodging units at the Fall River Village Resort into 66 long-term affordable housing rental units as part of a greater economic development initiative.

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Similarly, The Vista at Greyhound Park, proposed by DelWest Development Corp., would provide 120 townhomes in Commerce City to families earning between 30 percent to 90 percent of the area's median income level.

The proposal is part of the Greyhound Park Urban Renewal Plan, which would use 65 acres to build over 900 new housing units, plus commercial and community park space.

Plus, the City of Grand Junction, their Downtown Development Authority, and Headwaters Housing Partners teamed up to propose The Terminal in Grand Junction. The plan would offer 106 rental units to families making between 70 percent to 100 percent of the area's median income.

It would replace the former Greyhound bus station and include commercial spaces, artist studios, and exhibition spaces for artists.

“Developments supported by the Proposition 123 Equity program Strategic Investment Round demonstrated a timely need, as well as a benefit to their local economies," Cris White, Executive Director and Chief Executive Officer of CHFA. "Each will provide more Coloradans with the opportunity for housing stability and economic prosperity."

These opportunities arose due to the Affordable Housing Financing Fund established by Proposition 123. OEDIT manages the program, and CHFA administers it. It distributes 60 percent of Proposition 123 funding to support "land banking, equity investments, and concessionary debt for affordable housing," the release said.

So far, the Affordable Housing Financing Fund has awarded roughly $117 million.