Proposition 123 Implementation

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Several hundred million dollars for affordable housing will become available in the second half of 2023 due to the enactment of Proposition 123 by Colorado’s voters in 2022. This funding will be overseen by the Department of Local Affairs and the Governor's Office of Economic Development and International Trade, and may be granted or loaned to the following types of organizations:

  • Non-profits
  • Community land trusts
  • Private entities
  • Local governments

Organizations are only eligible for this funding if their project or program take place in municipalities, counties, or tribes that have committed to increasing their affordable housing stock above a baseline amount; jurisdictions that have accepted commitment filings can be found at this link . Stakeholders should regularly visit this site to find explanatory articles and resources, and to offer feedback that shapes future materials, policies, and procedures relating to affordable housing commitments, and funding programs overseen by the Department of Local Affairs.

Several hundred million dollars for affordable housing will become available in the second half of 2023 due to the enactment of Proposition 123 by Colorado’s voters in 2022. This funding will be overseen by the Department of Local Affairs and the Governor's Office of Economic Development and International Trade, and may be granted or loaned to the following types of organizations:

  • Non-profits
  • Community land trusts
  • Private entities
  • Local governments

Organizations are only eligible for this funding if their project or program take place in municipalities, counties, or tribes that have committed to increasing their affordable housing stock above a baseline amount; jurisdictions that have accepted commitment filings can be found at this link . Stakeholders should regularly visit this site to find explanatory articles and resources, and to offer feedback that shapes future materials, policies, and procedures relating to affordable housing commitments, and funding programs overseen by the Department of Local Affairs.

  • Proposition 123 Homelessness Funding Forum Recap: Insights, Feedback, and Next Steps

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    The Division of Housing was grateful to have over 100 community partners register to attend our Proposition 123 Homelessness Funding Proposal Feedback Forum held on January 24th.


    Throughout the Forum, stakeholders provided thoughtful questions and insights about Division of Housing’s Strategy & Funding Approach for Proposition 123’s Program Serving Persons Experiencing Homelessness.

    The Division encourages stakeholders to review slides from the session and the recording.


    Feedback

    Any additional feedback or ideas about the proposed approach to homelessness funding through Proposition 123, can be submitted through the feedback survey, which will stay open through January 26th.

    The Division will share notes on what was learned from the Forum and the survey when available.

  • Petition by the Town of Frisco to Increase Income Limits for AHFF Programs

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    Introduction

    The Town of Frisco has submitted a petition to the Division of Housing within the Department of Local Affairs to use different percentages of median income than those percentages specified in statute for the following programs: the Land Banking Program (C.R.S. 29-32-105.5 (3)(a)) and the Concessionary Debt Program (C.R.S. 29-32-105.5 (3)(c)). These programs are administered by the Colorado Housing and Finance Authority and overseen by the Governor’s Office of Economic Development and International Trade. Though the Division is not responsible for these programs, it is charged by statute (C.R.S. 29-32-105.5 (2)) to review petitions by localities that eligible projects within them be subjected to different income limits from those explicated in statute.

    Scope of Petition

    The increase of income limits for projects sited in the Town of Frisco receiving funds through the Land Banking Program and applicable activities within the Concessionary Debt Program* to 80% of Area Median Income (AMI), either on a per-unit basis or on average for all units in a project as allowable by statute. This does not include the Affordable Housing Equity Program. If approved, the petition will remain in effect from its approval date through December 31, 2026.

    Current Area Median Income limits for these programs are as follows:

    • Land Banking Program - 60% max AMI for Rental, 100% max AMI for Homeownership
    • Affordable Housing Equity Program - 90% average AMI or below
    • Concessionary Debt Programs - 60% average AMI or below

    *In cases where debt financing is provided to low and middle-income multi-family housing rental developments, existing affordable housing projects, or preserving existing affordable multi-family rental units.

    Process

    The Division of Housing must follow the following process required by statute (C.R.S. 29-32-105.5 (5)):

    The Division may approve the petition to use different percentages of area median income, but only if:

    • The submitted housing needs assessment:
      • Is published by the state or is a local housing needs assessment that utilizes data from the state demographer or other publicly accessible sources, which in either case may be supported by other relevant and verifiable community data;
      • Has been completed within the past three years of the petition date; and
      • Is accompanied by a narrative description of why other funding sources cannot be utilized, are not sufficient, or are not accessible to meet the housing needs described within the petition; and
    • The Division determines that the current eligibility standards would cause implementation of this article in a manner inconsistent with demonstrated housing and workforce needs within the jurisdiction, taking into consideration regional workforce commuting trends.

    In the event that the petition is approved, the new income limits will be based on the average needs identified in the housing needs assessment (C.R.S. 29-32-105.5 (6)), and public comments will be considered in the review of the petition (C.R.S. 29-32-105.5 (4)). No recommendation will be made on approval or denial of the petition until the public comment period is complete and the comments are considered in the recommendation. If Division of Housing staff recommend the denial of the petition, then the petitioner may appeal the staff recommendation to the Division Director of the Division of Housing.

    Implications

    If the petition is approved then eligible affordable housing projects can make units available to households with higher incomes than would otherwise be possible.

    If the petition is denied, then affordable housing projects currently under consideration may become financially infeasible in the event that they require higher revenues generated by higher income households. If demand for affordable housing is still present at lower income levels, they may be unable to afford the higher rents of these higher income units, potentially making less affordable housing units available for lower income households than would otherwise be required.

    Basis of Petition

    A housing needs assessment of Summit County, produced in 2023, that utilizes data from the state demographer, other publicly accessible sources, and is supported by other relevant and verifiable community data. In describing why other funding sources cannot be utilized, are not sufficient, or are not accessible to meet the housing needs described within the petition, the petitioner wrote: “[a]ll available funding sources accessible to the project, which meet individual DOLA/CHFA program guidelines are being requested. Due to the project's economic proforma, to meet the community's AMI need a higher AMI exception is requested.”

    Public Comments

    Public comments will be accepted at this link for 30 days, starting on the date that the Division of Housing posts notice that a petition has been filed on its website. The petition and relevant attachments will be included in the notice, and available at this link.

  • Share your thoughts on the Division of Housing's approach to addressing homelessness through Proposition 123.

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    The Division of Housing’s Office of Homeless Initiatives has prepared a new document detailing the proposed allocation and distribution of Proposition 123 funding to address homelessness.

    The document draws from Proposition 123, stakeholder input, Governor Polis’ priority, and Colorado’s Making Homelessness History Playbook. It aims to adhere to Affordable Housing Support Fund guidelines, focusing on Coloradans facing homelessness.

    It covers the strategy, application methods, funding allocations for the present year, and plans for the second year.

    Provide Feedback

    Feedback Survey

    Stakeholders are encouraged to share input and feedback on the proposed plan through this survey by January 12, 2024.

    Feedback Forum

    This meeting will provide an opportunity for participants to preview the Colorado Department of Local Affairs, Division of Housing (DOLA/DOH) strategy for the utilization of Proposition 123 resources for persons experiencing homelessness. Community partners and stakeholders are encouraged to attend and share their feedback on the proposal.

    Register to participate in our upcoming meeting on January 24, 2024, at 3:00 p.m.

    Questions

    If you have any questions please let us know.

  • Proposition 123: What does filing a commitment mean?

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    As part of Proposition 123, local and tribal governments must first file a commitment to the Department of Local Affairs to increase their affordable housing by 3% per year over three years, for a total of 9%.

    Filing a commitment makes a local government or tribe, along with entities operating within their jurisdiction, eligible to apply for funding through the programs implemented by the Colorado Department of Local Affairs (DOLA), the Office of Economic Development & International Trade (OEDIT), and/or the Colorado Housing and Finance Authority (CHFA). Organizations and developers are only eligible for this funding if their project or program takes place in a municipality, county, or tribe that has successfully filed a commitment to increasing their affordable housing stock above a baseline amount.

    Filing a commitment does not immediately designate funding to a local government or tribe. Once a jurisdiction becomes eligible for funding through the filing of a commitment, they must submit an application for the respective program to OEDIT/CHFA and/or DOLA.

    The commitment filing period for 2023 expired on November 1, 2023. New commitments will be accepted in summer 2024.

  • Proposition 123 Commitment Updates

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    The Division of Housing (DOH) saw a tremendous response from local governments and received Prop 123 commitments from more than 202 of the 336 jurisdictions throughout Colorado. These jurisdictions account for 87.7% of the state’s population. A list of jurisdictions that have made this commitment can be found here. For a project to be eligible for Proposition 123 funding, the county, municipality or tribal government was required to file a commitment by November 1, 2023, to increase affordable housing within each jurisdiction by 3% per year, for three years, for a total of a 9% increase.

    Passed by Colorado voters in 2022, Proposition 123 created the State Affordable Housing Fund, dedicating 40% of funds to the Affordable Housing Support Fund administered by the Department of Local Affairs (DOLA) and 60% to the Affordable Housing Financing Fund overseen by the Office of Economic Development & International Trade (OEDIT) to fund housing programs.

    The three Affordable Housing Support administered by the Department of Local Affairs (DOLA) are:

    • Affordable Home Ownership - up to 50% of the Support Fund and administered by DOH
      • $32 million in Year 1 and estimated to be $63.6 million in Year 2
    • Program Servicing Persons Experiencing Homelessness - up to 45% of the Support Fund and administered by DOH
      • $28.8 million in Year 1 and estimated to be $57.24 in Year 2
    • Local Planning Capacity Development Program - up to 5% of the Support Fund and administered by the Division of Local Government (DLG)
      • $3.2 million in Year 1 and estimated to be $6.36 million in Year 2


  • Rural Resort Petition Process:

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    Organizations applying for funding through the Proposition 123 - Affordable Housing Financing Funding, administered by the Colorado Housing and Finance Authority (CHFA), may be eligible for policy flexibilities if their project is located in a county or municipality that is classified as a Rural Resort Community.

    By filing a petition, these projects may serve households with higher incomes than would otherwise be allowable -- assuming the petition is approved by the Division of Housing within the Department of Local Affairs.

    Only petitions submitted by a local government will be accepted, other interested entities such as developers or non-profits must have a local government submit a petition on their behalf.

    This petition can only increase income limits for projects that are awarded funding through the Land Banking Program, Equity Program, and Concessionary Debt programs administered by CHFA. Projects that have not been awarded funding from these programs cannot benefit from this petition.

    A petition submitted by a local government and accepted by DOH is considered valid for the entire jurisdiction for the duration of the current 3-year funding cycle.

    An informational handout on the petition process is available here.

    Access the online Rural Resort Petition Form through your AccessGov.com account.

  • Local Planning Capacity Grant Program Launch

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    DOLA is pleased to announce the Local Planning Capacity (LPC) grant program, made possible by Proposition 123 with funding from the Statewide Affordable Housing Support Fund. This grant program will be managed by the Community Development Office (CDO) within DOLA’s Division of Local Government (DLG).

    October 19th Informational Webinar for Local Government Input:

    Local government representatives are invited to participate in an informational webinar outlining the requirements and allowable activities under the Local Planning Capacity Grant Program. This interactive session will give local governments an opportunity to ask questions and give input on the final program guidelines. Comments may also be submitted via phone or email.

    Estimated Program Timeline for Year 1 (2023-2024):

    • Thursday, October 19 – Informational Webinar
    • Monday, October 23 – deadline to submit stakeholder input on grant program guidelines through 5pm.
    • November 1 – Letter of Interest (LOI) opens; accepted through December 4
    • Mid-December – Notification of invitations to apply
    • January 3 - February 15, 2024 – Full Application is open, through the DLG Online Grants Portal per the Notice of Funding Availability (NOFA).
    • March 2024 – Estimated Grant Award notification.


    More information about this grant program is available on the Program website.

    The intent of the program is to increase the capacity of local government planning departments responsible for processing land use, permitting, and zoning applications for housing projects. The program supports local governments’ capacity to address affordable housing, especially by expediting review, permitting, zoning, and development for which 50% or more of the residential units constitute affordable housing. Grant funds could support new staff wages, hiring consultants, implementing new systems and technologies, revising land use development codes, regional collaborations, developing future commitments, or other efforts that achieve fast track goals by 2026, as required by Proposition 123.

  • Rural Resort Community Petition Process Launched

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    Organizations applying for funding from the Affordable Housing Financing Funding, administered by the Colorado Housing and Finance Authority (CHFA) and overseen by the Governor's Office of Economic Development and International Trade, may be eligible for policy flexibilities if their project is located in a county or municipality that is classified as a Rural Resort Community.


    By filing a petition, these projects may serve households with higher incomes than would otherwise be allowable -- assuming the petition is approved by the Division of Housing within the Department of Local Affairs.


    Staff of local governments may submit a Petition to Increase Income Limits in Rural Resort Communities at this link.


    Only petitions submitted by a local government will be accepted, other interested entities such as developers or non-profits must have a local government submit a petition on their behalf.


    This petition can only increase income limits for projects that are awarded funding through the Land Banking Program, Equity Program, and Concessionary Debt programs administered by CHFA. Projects that have not been awarded funding from these programs cannot benefit from this petition.


    Instructions on how to complete the petition, as well as other context and restrictions, are available at the link above.

  • Free Technical Assistance | Proposition 123 Information Webinar Series

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    The Department of Local Affairs (DOLA) is providing free technical assistance to help local governments understand Prop 123, establish their baselines and file their commitments, in order to opt in to Prop 123. DOLA held a series of webinars through August 2023. Each of these webinars was tailored for the following types of communities: large municipalities, smaller municipalities, rural, rural resort, and unincorporated counties.

    Recordings and slides of recent webinars

    These interactive webinars featured example communities for a demo of the baseline tool and explored how adjusting the data impacts the growth calculations.

    From September through October 2023, the next phase is to provide technical assistance to local governments through small work group sessions in regional groupings. These work sessions are tailored to address all questions for each participating jurisdiction. Additional support may be available, depending on the need.

    These downloadable fliers serve as a quick-reference handout to share with colleagues or elected officials:

    To request a technical assistance session, please contact:

    Andy Hill, Director

    Community Development Office

    Division of Local Government

    andy.hill@state.co.us

    303-864-7725

    Robyn DiFalco, Program Manager

    Local Planning Capacity Grant Program (Prop 123)

    Community Development Office

    robyn.difalco@state.co.us

    720-682-5202

  • Commitment Filings for 2023

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    Commitment filings to increase affordable housing have been accepted for the following municipalities, counties, and tribes:

    Jurisdiction


    Date of Acceptance


    Baseline of Affordable Housing Units


    Adams, County of
    10/9/2023
    5567
    Akron, Town of
    10/13/2023
    270
    Alamosa, City of
    9/8/2023
    1765
    Arapahoe, County of
    10/3/2023
    1565
    Archuleta, County of
    10/17/2023
    179
    Arvada, City of
    7/14/2023
    4629
    Aspen, City of
    10/31/2023
    304
    Aurora, City of
    8/1/2023
    18332
    Avon, Town of 11/1/2023 373
    Basalt, Town of 9/29/2023 59
    Bayfield, Town of 8/7/2023 157
    Bennett, Town of 8/30/2023 181
    Bent, County of 8/30/2023 145
    Berthoud, Town of 10/12/2023 422
    Boulder, City of 10/12/2023 7275
    Boulder, County of 6/27/2023 1387
    Breckenridge, Town of 6/15/2023 202
    Brighton, City of 9/25/2023 1492
    Broomfield, City and County of 8/18/2023 1845
    Brush, City of 8/15/2023 708
    Buena Vista, Town of 8/25/2023 288
    Canon City, City of 9/1/2023 2251
    Carbondale, Town of 10/22/2023 190
    Castle Pines, City of 10/23/2023 211
    Castle Rock, Town of 10/25/2023 3067
    Cedaredge, Town of 9/22/2023 384
    Centennial, City of 9/27/2023 1199
    Center, Town of 10/18/2023 353
    Central, City of 10/25/2023 142
    Chaffee, County of 7/18/2023 401
    Cheraw, Town of 9/17/2023 34
    Clear Creek, County of 10/18/2023 210
    Colorado Springs, City of 6/26/2023 25265
    Commerce City, City of 10/4/2023 2150
    Cortez, City of 10/16/2023 986
    Costilla, County of 10/17/2023 179
    Craig, City of 7/20/2023 1285
    Creede, City of 10/27/2023 59
    Crested Butte, Town of 10/31/2023 50
    Crestone, Town of 9/21/2023 6
    Cripple Creek, City of 8/28/2023 156
    Crowley, County of 10/12/2023 78
    Delta, City of 9/19/2023 1273
    Delta, County of 10/30/2023 474
    Denver, City and County of 6/30/2023 51453
    Dolores, County of 10/26/2023 13
    Dolores, Town of 11/13/2023 297
    Douglas, County of 10/17/2023 4820
    Dove Creek, Town of 10/24/2023 47
    Durango, City of 7/3/2023 2041
    Eads, Town of 10/25/2023 109
    Eagle, County of 9/21/2023 611
    Eagle, Town of 9/13/2023 355
    Eaton, Town of 10/27/2023 268
    Edgewater, City of 9/13/2023 223
    Empire, Town of 9/27/2023 48
    Englewood, City of 8/16/2023 1888
    Erie, Town of 6/27/2023 167
    Estes Park, Town of 8/17/2023 514
    Fairplay, Town of 10/25/2023 88
    Firestone, City of 10/26/2023 223
    Flagler, Town of 7/6/2023 113
    Florence, City of 9/6/2023 620
    Fort Collins, City of 6/12/2023 6170
    Fort Lupton, City of 10/3/2023 858
    Fort Morgan, City of 10/27/2023 1152
    Fraser, Town of 10/31/2023 84
    Frisco, Town of 7/20/2023 177
    Fruita, City of 7/18/2023 1204
    Garden City, Town of 9/12/2023 42
    Georgetown, Town of 9/19/2023 158
    Gilpin, County of 8/8/2023 205
    Glenwood Springs, City of 7/14/2023 715
    Golden, City of 7/26/2023 865
    Granada, Town of 10/12/2023 74
    Granby, Town of 10/24/2023 246
    Grand Junction, City of 8/4/2023 4159
    Grand Lake, Town of 10/26/2023 76
    Grand, County of 11/1/2023 382
    Greeley, City of 10/19/2023 6993
    Gunnison, City of 10/5/2023 746
    Gunnison, County of 6/30/2023 454
    Gypsum, Town of 9/25/2023 167
    Haswell, Town of 10/31/2023 9
    Hayden, Town of 6/15/2023 14
    Hinsdale, County of 11/1/2023 24
    Holly, Town of 10/19/2023 66
    Holyoke, Town of 10/31/2023 192
    Hotchkiss, Town of 10/13/2023 143
    Huerfano, County of 10/17/2023 176
    Hugo, Town of 10/13/2023 143
    Idaho Springs, City of 10/30/2023 248
    Ignacio, City of 9/28/2023 146
    Jefferson, County of 10/29/2023 5579
    Julesburg, Town of 10/19/2023 237
    Kiowa, County of 10/23/2023 61
    Kit Carson, Town of 10/6/2023 34
    Kremmling, Town of 10/6/2023 89
    La Jara, Town of 10/24/2023 88
    La Junta, City of 9/8/2023 1081
    La Plata, County of 10/18/2023 1205
    La Veta, Town of 10/30/2023 80
    Lafayette, City of 7/27/2023 1278
    Lake City, Town of 9/28/2023 82
    Lake, County of 8/11/2023 258
    Lakewood, City of 9/13/2023 5275
    Lamar, City of 10/25/2023 966
    Larimer, County of 9/26/2023 1255
    Leadville, City of 8/11/2023 258
    Littleton, City of 9/1/2023 1768
    Log Lane Village, Town of 10/20/2023 123
    Lone Tree, City of 8/16/2023 728
    Longmont, City of 7/24/2023 3382
    Louisville, Town of 10/24/2023 853
    Loveland, City of 10/24/2023 2736
    Lyons, Town of 10/25/2023 107
    Mancos, Town of 10/12/2023 158
    Manitou Springs, City of 10/31/2023 515
    Manzanola, Town of 10/12/2023 62
    Meeker, Town of 10/4/2023 169
    Mesa, County of 8/31/2023 2808
    Mineral, County of 9/12/2023 1
    Minturn, Town of 10/27/2023 1
    Monte Vista, City of 8/8/2023 535
    Montezuma, County of 10/10/2023 319
    Montrose, City of 8/17/2023 1799
    Montrose, County of 10/9/2023 791
    Mount Crested Butte, Town of 10/27/2023 88
    Mountain Village, Town of 10/27/2023 313
    Naturita, Town of 8/25/2023 63
    Nederland, Town of 9/21/2023 138
    New Castle, Town of 10/13/2023 200
    Nucla, Town of 10/18/2023 100
    Oak Creek, Town of 9/28/2023 136
    Olathe, Town of 11/1/2023 167
    Ordway, Town of 9/7/2023 169
    Otero, County of 10/3/2023 433
    Ouray, City of 10/11/2023 98
    Ouray, County of 9/13/2023 66
    Ovid, Town of 10/19/2023 18
    Pagosa Springs, Town of 10/11/2023 215
    Paonia, Town of 7/27/2023 281
    Parachute, Town of 7/20/2023 302
    Parker, Town of 10/25/2023 2481
    Phillips, County of 10/31/2023 60
    Pitkin, County of 9/28/2023 144
    Platteville, Town of 10/25/2023 297
    Poncha Springs, Town of 10/30/2023 114
    Pritchett, Town of 6/30/2023 9
    Prowers, County of 11/1/2023 193
    Pueblo, City of 8/25/2023 13403
    Pueblo, County of 10/6/2023 2111
    Rangely, Town of 6/7/2023 258
    Red Cliff, Town of 10/30/2023 6
    Rico, Town of 10/23/2023 6
    Ridgway, Town of 7/26/2023 109
    Rifle, City of 9/12/2023 721
    Rio Grande, County of 8/17/2023 33
    Rocky Ford, City of 7/28/2023 365
    Saguache, Town of 9/11/2023 7
    Saguache, County of 7/27/2023 17
    Salida, City of 5/11/2023 358
    San Luis, Town of 10/30/2023 64
    San Miguel, County of 10/27/2023 122
    Sedgwick, City of 10/19/2023 10
    Sedgwick, County of 10/19/2023 9
    Sheridan, City of 6/13/2023 728
    Sheridan Lake, Town of 10/30/2023 7
    Silt, Town of 7/11/2023 288
    Silver Cliff, Town of 9/13/2023 78
    Silver Plume, Town of 9/18/2023 24
    Silverthorne, Town of 7/30/2023 175
    Silverton, Town of 10/5/2023 107
    Snowmass Village, Town of 8/23/2023 311
    South Fork, Town of 10/27/2023 28
    Southern Ute, Tribe of 10/31/2023 697
    Springfield, Town of 10/17/2023 234
    Steamboat Springs, City of 7/20/2023 471
    Sterling, City of 10/31/2023 1384
    Sugar City, Town of 10/23/2023 33
    Summit, County of 8/7/2023 658
    Superior, Town of 10/25/2023 246
    Telluride, Town of 7/10/2023 136
    Thornton, City of 10/17/2023 2974
    Trinidad, City of 9/20/2023 1181
    Ute Mountain Ute, Tribe of 9/12/2023 60
    Vail, Town of 9/25/2023 284
    Victor, City of 11/1/2023 49
    Walsenburg, City of 11/1/2023 378
    Walsh, Town of 10/17/2023 65
    Washington, County of 10/31/2023 144
    Westcliffe, Town of 10/10/2023 66
    Westminster, City of 7/13/2023 3016
    Wheat Ridge, City of 10/2/2023 2420
    Wiggins, Town of 11/1/2023 108
    Wiley, Town of 10/12/2023 35
    Windsor, Town of 10/18/2023 494
    Winter Park, Town of 10/31/2023 44
    Wray, City of 10/31/2023 302
    Yampa, Town of 10/19/2023 49
    Yuma, City of 10/25/2023 399
    Yuma, County of 10/27/2023 410


    Revisit this page regularly for updates on accepted commitments.

Page last updated: 26 Jan 2024, 09:19 AM