FAQs

The state has developed the Baseline Assistance Tool as an option for localities to develop a baseline that is complies with statutorily required definitions and data sources so that they do not have to find, process, and analyze data on their own.

Before the Baseline Assistance Tool was developed, the State released its Local Government Affordable Housing Baseline Reference Data Table with its own tabulations of the potential baselines of local governments and tribes.

Both of these resources are optional. Local governments and tribes may determine their baseline independently if they use the definitions and data sources required by statute.

Yes, baselines must consider both subsidized and unsubsidized housing stock. For this purpose, housing is defined as affordable based on the households it is affordable to. Whether a unit receives, or has received, subsidy from a funder such as the U.S. Department of Housing and Urban Development has no impact on whether it is included in a baseline.

No, all commitments to increase affordable housing and the baseline amount of affordable housing must be determined by referencing:

1. American Community Survey 5-Year Estimates for 2017-2021 

2. Comprehensive Housing Affordability Strategy Estimates for 2015-2019

These are the only data sources that a baseline can reference for commitments filed in 2023, though successor surveys with updated data can be used in future years.

Commitment filings containing a baseline that references a data source other than the two above will not be accepted.

The baselines developed by localities should illustrate the amount of rental and for-sale housing that could be rented or bought by households at their selected income limits. In selecting an income limit, local governments may want to select a limit that most appropriately reflects their economic condition and housing needs.

In determining whether currently available should be adjusted, or complemented by or replaced with local data. Localities should consider the extent to which the already available data can be adjusted to account for changes such as inflation or mortgage rates, along with whether the cost of collecting and analyzing their own data is practicable and fits within the statutory requirements.

No, for the purpose of the baseline, units must be included if they meet the following conditions:

• Rental units with a contract rent (excluding utilities and other costs) that is equal to 30% of the household income for a household at 60% of an area median income or state household median income.
• For-sale housing that could be purchased with a mortgage payment that is equal to 30% of the household income for a household at 100% of an area median income or the state median household income.

All rental units must be included so long as they meet the pricing requirement. Rental units cannot be excluded solely because they are not listed for rent.

For-sale housing units that meet the pricing requirement can be excluded from a baseline if they can be reasonably expected to not change ownership. The statute is not specific about the time period over which for-sale housing unit purchases should be considered.

The State suggests that localities consider how many for-sale housing units could be sold over the commitment period of three years.

Baselines that only consider the for-sale units that can be purchased at a point in time are likely too narrow. Commitment filings with such a narrow baseline may not accepted due to non-compliance.

Baselines may be calculated with three types of income limits, the Area Median Income of a city or county’s own county, the Area Median Income of an adjacent county, or the state median household income. The chosen income limit determines whether rental or ownership units are affordable at a given rent or value level. The higher a selected income limit is, the more housing will be considered as affordable within a jurisdiction.

It is most important that a baseline be compliant with the statutorily required definitions and data sources. A baseline should also be reasonably illustrative of the housing market of a jurisdiction, but does not have to be perfectly accurate due to the historic nature of the source data.

In determining a baseline, localities should consider not just whether the baseline is precisely accurate, but if it complies with statute, can be achieved, and what can be done to make it achieveable.

Yes, the state provided resources such as the Baseline Assistance Tool and Local Government Affordable Housing Baseline Reference Data Table are optional.

Local governments and tribes may determine a baseline using their own methods, so long as the data sources used in those methods comes from:

1.  American Community Survey 5-Year Estimates for 2017-2021 

2. Comprehensive Housing Affordability Strategy Estimates for 2015-2019

The data points from that source must meet the following definitions:

1. Affordable rental units: Rental units with a contract rent (excluding utilities and other costs) that is equal to 30% of the household income for a household at 60% of an area median income or state household median income.
2. Affordable for-sale housing: For-sale units that could be purchased with a mortgage payment that is equal to 30% of the household income for a household at 100% of an area median income or the state median household income.

Localities that choose to determine a baseline amount of affordable housing that is as recent as possible should estimate the increases in home prices and rental rates since 2019, which is roughly when the underlying American Community Survey data was collected. The State suggests the use of a precise indicator that tracks the prices of homes over time such as the FHFA House Price Index or the NAR Median Home List Price, or the price of rents over time such as the Zillow Observed Rent Index.

Local governments and tribes that do not accomplish their goal to increase affordable housing become ineligible for funding originating from the State Affordable Housing fund for one year.

For example, a municipality files a commitment to increase its affordable housing stock by 100 units and submits this commitment on June 10, 2023. From the date that the commitment is filed through December 31, 2026, a total of 75 units are newly constructed or converted to affordable housing within the locality -- leaving a balance of 25 units short of the goal.

The municipality, and entities operating within it, become ineligible for funding originating from the State Affordable Housing Fund for 2027. However, the entities can once again become eligible in 2028 and 2029 if a compliant commitment is submitted by November 1, 2027.

No, a grant or loan does will not have to be repaid by a grantee or borrower for the sole reason that a local government or tribe has not achieved its goal to increase affordable housing.

No, the one year prohibition on funding eligibility applies only to programs that receive funding from the State Affordable Housing Fund.

Even if a local government or tribe, or entities operating within them, are ineligible for this funding; they may still be eligible for funding from other sources such as state Housing Development Grant or federal Housing Trust Fund grants and loans.

Newly constructed housing units are counted at the time that they are permitted.

Existing housing units are counted at the time that they are permitted and fully funded.

Counties, municipalities, and tribes do not need to wait until construction is completed to count an affordable housing unit.

Yes, a commitment can use data from the Local Government Affordable Housing Baseline Reference Data Table at this link, or the Baseline Assistance Tool at this link.

Commitments can also use data from their own tabulations that reference the American Community Survey 5-Year Estimates for 2017-2021 or the Comprehensive Housing Affordability Strategy Estimates for 2015-2019 and the definitions of affordable housing at C.R.S. 29-32-101 (2).

Potentially, credit can only be taken for housing that is affordable and newly constructed, preserved, or acquired. This means that many homeless assistance and prevention activities such as rental assistance, street outreach, or shelter construction cannot be counted for increases in affordable housing units because they do not affect the affordable housing stock.

However, new construction of a supportive housing development could be counted towards increases in affordable housing, because it involves the construction of affordable housing units.

Localities and tribes can take credit for affordable housing units that meet the following conditions:

• Are funded by the Affordable Housing Equity Program, or
• Are funded by the Concessionary Debt Program, or
• Can be rented with a rental payment that is 30%, or less, of the monthly household income at 60% of the income limit that a locality or tribe selected in its commitment filing (for example 60% of the Area Median Income of their own county, 60% of the Area Median Income of an adjacent jurisdiction, or 60% of the State Household Median Income), or
• Could be purchased with a mortgage payment that is 30%, or less, of the monthly household income at 100% of the income limit that a locality or tribe selected in its commitment filing (for example 100% of the Area Median Income of their own county, 100% of the Area Median Income of an adjacent jurisdiction, or 100% of the State Household Median Income)

Units that are newly constructed are counted at the time that construction is permitted, and existing housing can be counted when the development is permitted and fully funded. 

Jurisdictions can start taking credit for increases in affordable housing once their commitment to annual increases has been filed with and accepted by the Division of Housing.

None, filing a commitment or opting-in will not immediately make funding available to a local government or tribe. However, filing a commitment will make a local government or tribe, along with entities operating within their jurisdiction, eligible for funding originating from the State Affordable Housing Fund. Once these entities become eligible through the filing of a compliant commitment, they must submit an application to the State of Colorado Department of Local Affairs or the Colorado Housing and Finance Authority for that funding.

The Program Serving Persons Experiencing Homelessness is the only program that can award funding to jurisdictions, or entities operating within them, that do not have a compliant commitment on file.

No, the income limits established for participants in the programs were explicitly written in Proposition 123 and are now codified in state statute. These income limits can only be changed through an amendment by the Colorado General Assembly or by another proposition.

Entities that want to apply for funding from the Statewide Affordable Housing Fund can find funding applications at the following locations

Rental programs can be found at this link, this page is maintained by the Governor's Office of Economic Development and International Trade, along with the Colorado Housing and Finance Authority.

Homeownership programs at this link, this page is maintained by the Office of Housing Finance and Sustainability within the Division of Housing of the Department of Local Affairs.

Homelessness programs at this link, this page is maintained by the Office of Homeless Initiatives within the Division of Housing of the Department of Local Affairs.

Funding for all programs may not be available at this time, and will depend upon program procedures and funding availability. Check the links above for updates on funding availability.

No, persons that file a commitment to increase affordable housing self-certify that they have the authority to do so on behalf of their jurisdiction.

Municipal, county, or tribal officials may submit a commitment filing by completing the form at this link.

No, municipalities, counties, and tribes that file a commitment to increase affordable housing must use the same income limit for the purposes of baseline determination and compliance. Jurisdictions that use the Statewide Household Median Income or the Area Median Income of an adjacent jurisdiction in their commitment cannot use the Area Median Income of their own jurisdiction when calculating which affordable housing units are counted for compliance on or before December 31, 2026.

No, each municipality, county, and tribe must determine its own baseline amount of affordable housing and file its own commitment to annual increases in affordable housing.

Counties cannot make a filing for municipalities within their jurisdiction. But, counties, municipalities, and tribes can enter into written agreements to take partial credit for increases in affordable housing if the sum of the total units credit to the local governments and tribal governments does not exceed the total number of units produced through the collaboration.

Submit a petition to have the State of Colorado consider the reclassification of your county to rural resort, or any other designation, at this link.

The current list of county classifications is located on page 29 of the Colorado Strategic Housing Working Group Final Report, dated July 6, 2021.