Proposition 123 Implementation

Share on Facebook Share on Twitter Share on Linkedin Email this link

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.

  • Rural Resort Petition Process:

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    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

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    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

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    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

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    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

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    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.

  • Commitment Filings Live and More Helpful Resources

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    The entire team at the State of Colorado would like to thank our stakeholders for your vital feedback on the implementation of Proposition 123 over the past several months. We have integrated what we have learned and developed so far into a series of new processes and resources below:

    • Municipalities, counties, and tribes may submit a commitment to annual increases in affordable housing at this link using our online form.
    • The Baseline Assistance Tool can be used by any interested stakeholder to develop a baseline amount of affordable housing, so that it can be incorporated into a commitment to annual increases in affordable housing at this link.
    • Several answers to frequently asked questions have been added, find these on the right side of the page under the heading "FAQs".

    This update is the first of many as the State and our partners continue to create and improve processes surrounding the programs and commitments created by Proposition 123. Come back to this site and subscribe to our newsletter to stay involved and up to date on this rapidly evolving project.

  • New Content on Proposition 123 Concepts

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    We are excited to announce that articles detailing Proposition 123 implementation concepts are being run on the main website of the Department of Local Affairs.

    These articles are categorized into series, with the first series covering definitions of important terms in the proposition. Check out Defined: Local Government Affordable Housing Commitment and Defined: Local Government Affordable Housing Baseline to read the first articles in this series.

    A separate series is being published about resources that local governments and other stakeholders can use to assist in their own research and development work surrounding Proposition 123, with the first article titled Resources: Affordable Housing Baseline Estimate References discussing the methods that the Division of Housing used to calculate non-binding reference data that can be used in affordable housing commitment drafting.

  • Defined: Local Government Affordable Housing Commitment

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    Local Government Affordable Housing Commitments must be filed with the Division of Housing to receive funding made available by Proposition 123. Municipalities make commitments on behalf the entirety of their jurisdiction, while counties are responsible only for unincorporated areas. Entities will be ineligible for Proposition 123 funding if their project is located in, or program operates within, a municipality or unincorporated area of a county that has not filed, or is out of compliance with, their commitment -- even if the entity is otherwise eligible.

    Drafting a commitment

    Once an interested local government has determined its baseline amount of affordable housing units, it can then plan its commitment to increase that number by 3% each year for a 3-year period ending on December 31, 2026. Ultimately, DOH and its partners will be working with any interested local government to submit its commitment no later than the deadline established in Proposition 123, which is November 1, 2023. Funding programs may be available sooner than the November 1st deadline, so DOH encourages local governments to commit as soon as possible. The dissemination of baseline data for a local government’s consideration is the first step toward achieving this important goal; additional information on the process through which commitments may be filed will be made available in the next several weeks.

    Compliance

    It is important to note that Proposition 123 requires a local government to file a commitment specifying how it will increase a combination of its newly constructed affordable housing units and its existing units converted to affordable housing over its determined baseline number of affordable housing units by 3% each year. The Division of Housing interprets this to mean that ultimately a demonstration of a 9% increase over the baseline at the end of the 3-year commitment period ending on December 31, 2026, satisfies this requirement even if a 3% increase may not be accounted for in a particular year during that time frame.

    If a commitment is not filed by November 1, 2023, then a local government and any development project in its jurisdiction are ineligible to receive any funding established by Proposition 123 during the 2024 calendar year. If this is to occur, a local government may file a commitment by November 1, 2024, for a 2-year commitment to increase its affordable housing stock by a total of 6% by December 31, 2026.

    If a local government is unable to meet its 9% total commitment by December 31, 2026, then it and any development project in its jurisdiction are ineligible to receive any funding established by Proposition 123 for calendar year 2027. The good news is it may file a new commitment by November 1, 2027, for a 2-year commitment to increase its affordable housing stock by a total of 6% by December 31, 2029.

    As an interested local government works to package its commitment and file it with DOH by November 1, 2023, it does not have to include verification of a “fast-track approval process” in this initial commitment. This will be a requirement in future commitments starting with the one due by November 1, 2026. However, Proposition 123 does provide that for this first commitment and future ones, “local governments should prioritize high-density housing, mixed-income housing, and projects consistent with the goal of environmental sustainability, when appropriate, and should prioritize affordable housing in communities in which low concentrations of affordable housing exist.”

  • Resources: Affordable Housing Baseline Estimate References

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    Introduction

    Reference data is available within this table (External Link) to assist local governments in understanding how an affordable housing baseline and annual goal can differ based on the income limit used to calculate that baseline. This data is not the local government affordable housing baselines of localities — these will be developed by local governments, not the State — but are rather to assist in the development of baselines and to inform the design of other resources.

    Data sources

    The data used to create the baseline references are sourced from the U.S. Census Bureau American Community Survey, and the U.S. Department of Housing and Urban Development Comprehensive Housing Affordability Strategy. These sources are used to determine the estimated number of rental units at given gross rent range¹, ownership units at given value ranges², in addition to the portion of rental or ownership stock³ that may be available as suggested by recent movers over the past four years.

    Statistical calculations

    Estimates for municipalities are provided by the Census Bureau without the need for further analysis, municipalities are already included in Census Bureau datasets that contain places (though these do include Census Designated Places that are unincorporated). Conversely, we calculate estimates for unincorporated areas of counties by subtracting the estimates of municipalities from the county or counties that they lie within.

    Data from the American Community Survey was collected from the period of 2017 to 2021 and may be considered as roughly from 2019 while data from the Comprehensive Housing Affordability Strategy⁴ was collected from 2015 through 2019 and may be considered as roughly from 2017. Income limits are provided by the U.S. Department of Housing and Urban Development in the form of Area Median Incomes for Federal Fiscal Year 2022⁵, and from the American Community Survey 2021 for the state median household income⁶.

    The proposition allows for baselines to be calculated using the income limit of an adjacent jurisdiction. Adjacency is determined based on a county adjacency file from the National Bureau of Economic Research⁷. For these references, income limits are displayed for counties that may nor necessarily border municipalities yet do border the county or counties that the municipality lies within. This is done to provide more options for municipalities compared to determining adjacency based on coterminous borders which would be more restrictive.

    Analysis and results

    The home value, gross rent, and recent mover estimate data provided by HUD and the ACS is joined with income limit data to determine the portion of units that are affordable within each range for homes (for example, from $400,000 to $499,999) and rental units (for example, from $1,000 to $1,249) based on each income limit (for example, the area median income of the jurisdiction’s own county). The resulting dataset illustrates how the amount of housing that is considered as affordable within a jurisdiction differs based on the income limit that drives the affordability calculation.

    Rental units are affordable if the gross rent of the unit is affordable at 60% of the selected income limit, while home ownership units are affordable if the value of the home is equal to or less than the income limit multiplied by 3.5 (to calculate the home value to income ratio). The home value to income ratio was derived from mortgages originated for home purchase in Colorado in 2019, made available through the Home Mortgage Disclosure Act Dataset published by the Consumer Finance Protection Bureau⁸.

    The estimated baseline amount is further adjusted to consider the amount of housing that is not just affordable, but also available, by prorating the estimated amount of affordable housing by the portion of recent movers within that type of stock (owned or rented) for each jurisdiction. The end result of these aggregations gives localities a potential baseline and annual commitment estimates outlined by Proposition 123.

    References

    Note: Links to U.S. Census Bureau data are directed to a server that contains individual files for American Community Survey tables for the entire United States, these files are very large and require technical skill to analyze. To view this data more intuitively, we recommend visiting data.census.gov and searching for the relevant table (for example, Table B25063 regarding Gross Rents).

    ¹ U.S. Census Bureau (2022). Table B25063: Gross Rent, 2017-2021 American Community Survey 5-year estimates.(External link)(External link)

    ² U.S. Census Bureau (2022). Table B25075: Value, 2017-2021 American Community Survey 5-year estimates.(External link)(External link)

    ³ U.S. Census Bureau (2022). Table B25038: Tenure By Year Householder Moved Into Unit, 2017-2021 American Community Survey 5-year estimates.(External link)(External link)

    ⁴ U.S. Department of Housing and Urban Development (2022). Comprehensive Housing Affordability Strategy, 2015-2019.(External link)(External link)

    ⁵ U.S. Census Bureau (2022). Table B19013: Median Household Income, 2021 American Community Survey 1-year estimates.(External link)(External link)

    ⁶ U.S. Department of Housing and Urban Development (2022). Data for Section 8 Income Limits in MS EXCEL.(External link)(External link)

    ⁷ National Bureau of Economic Research (2017). County adjacency.(External link)(External link)

    ⁸ Home Mortgage Disclosure Act (2019). Loan Application Register.(External link)


  • Defined: Local Government Affordable Housing Baseline

    Share on Facebook Share on Twitter Share on Linkedin Email this link

    The baseline number of affordable housing units within municipalities and counties is a major component of local government affordable housing commitments. These commitments must be filed for affordable housing projects and programs to receive funding made available through Proposition 123.

    Proposition 123 requires the governing body of a local government (municipality or county) to first determine its own baseline number of affordable housing units by referencing one of the following:

    • The 2017-2021 American Community Survey (ACS) published by the U.S. Census Bureau.
    • The current version of the Comprehensive Housing Affordability Strategies (CHAS) estimates published by the U.S. Department of Housing and Urban Development.

    Scope of housing units included in baselines

    Housing units are considered as affordable if:

    • Rental units:
      • Costs less than 30% of the monthly income for a household at or below 60% of the median income.
    • For-sale units:
      • The mortgage payment costs less than 30% of the monthly income for a household at or below 100% of the median income.
      • The unit could be purchased by a household at or below 100% of the median income.

    Income limits applied in baselines

    The following types of income limits may be used to determine if a housing unit is affordable for the purposes of a baseline calculation:

    • The Area Median Income of the county that jurisdiction is within.
    • The Area Median Income of a county adjacent to the jurisdiction.
    • The state median household income.

    Flexibilities allowed in baseline development

    Proposition 123 is unspecific about how some of these requirements are and applied by local governments. We are currently aware of the following implied flexibilities in baseline calculation at:

    • Area Median Income Limits may be selected from past years. For example, income limits from Federal Fiscal Year 2021 may be selected instead of the most recently available limits from Federal Fiscal Year 2022.
    • For municipalities that choose an income limit of an adjacent jurisdiction, they could choose an income limit for a county that the municipality is not directly adjacent to, but is adjacent to a county that their municipality resides within. The boundaries of municipalities are not necessarily coterminous with the boundaries of one or more counties; so this interpretation affords both municipalities and counties similar levels of flexibility in selecting income limits.
    • Area Median Income Limits can be selected based on various household sizes. Household size is calculated by counting the number of people in a housing unit. Income limits are available for household sizes ranging from one to eight persons. The Median Family Income across households of all sizes may also be used as an alternative.
    • The median household income for Colorado could be selected instead of an Area Median Income. This may be especially applicable for municipalities and counties where median family income and median household income differ, for example in areas with large portions of college students that have low to no earnings, resulting in a median household income that is much lower than a median family income.
    • All affordable for-sale units do not have to be included in the baseline amount of affordable for-sale units. This amount can be prorated to only the units that are available.
    • The amount of housing units at each rent or value level can be adjusted to bring the data closer in line with current housing market conditions. For example, a home price to income ratio can be chosen based on current market conditions instead of those in 2019.


Page last updated: 10 Apr 2024, 11:07 AM