STATEWIDE ~ The Colorado Department of Local Affairs' (DOLA) Division of Local Government (DLG) has recently announced the recipients of the latest round of Proposition 123 Local Planning Capacity Grants. A total of $1.7 million has been awarded to all 11 project requests, with the aim of reducing housing costs for Coloradans.

Governor Polis expressed his support for these grants, stating that they are an important step towards providing affordable housing options for residents. By empowering local governments and helping them streamline permitting processes, more new homes can be brought to the state at a reasonable price.

The initiative behind these grants is to provide versatile housing solutions for eligible uses and assist local governments in offering more affordable housing options. The grants also support local governments in meeting the two key requirements of Proposition 123: fast track requirements and unit count commitments.

All 11 initiatives were funded out of the $2.2 million available this cycle, and another grant round will be held in May to distribute the remaining funds. DOLA Executive Director Maria De Cambra stated that these grants align with the state's priorities of building more affordable housing and achieving climate goals through transit-oriented communities.

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The Proposition 123 Local Planning Capacity (LPC) grants are specifically designed to expand local government planning capacity by streamlining processes, adding affordable housing incentives to local codes, utilizing technology enhancements for permit review, and hiring staff and consultants to support affordable housing development.

Awards were given to 11 projects representing 17 jurisdictions across Colorado, including four urban, eight rural, and five rural resort jurisdictions. Since its implementation in 2023, a total of 64 projects have been awarded through the LPC grant, totaling $8,725,179 and supporting 100 local governments.

Some notable projects include Clear Creek County's plan to establish a regional housing authority and create a strategic plan for expanding capacity. The City of Victor will use their grant funds to hire personnel and a consultant to redevelop blighted housing and seek funding. Ouray County will hire an Affordable Housing Services Administrator to oversee countywide operations, while the Town of Center will use their grant to hire consultants for project management, master planning, and implementing an ADU program.

Several projects also focus on updating land use and development codes. The Town of Berthoud will use their grant to implement strategies from their Housing Diversity Plan, amend the Land Development Code, and plan for a land and water banking program. The City of Brighton will hire consultants to make code changes related to ADU impact fees and GIS mapping of affordable housing. The City of Louisville plans to update their development code, expedite review processes, and make changes to impact fees and inclusionary housing.

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Other projects aim to improve permitting processes. The City of Lakewood will use their grant funds to improve permit review processes, technology, inter-agency collaboration, and strategies for preserving existing affordable housing. The Town of Eagle plans to implement new software to automate land use file management and streamline the review process.

In addition to the upcoming application cycle in May 2025, DLG has set aside $2 million of this funding as incentives for early adoption of Proposition 123 fast-track requirements. Local governments that adopt a compliant expedited review process by December 31, 2025 (one year ahead of the December 2026 deadline) will receive up to $50,000 in grant funding with no local match required.

All LPC funds are only available to local and tribal governments that have filed a Proposition 123 commitment and are eligible for Proposition 123 funds. Interested applicants must schedule a pre-application meeting with LPC Program Staff in order to access the online application form.

Overall, these grants aim to support local governments in their efforts towards providing more affordable housing options for Coloradans while also meeting the requirements set by Proposition 123. With continued efforts and funding, it is hoped that these initiatives will have a positive impact on housing development across the state.

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