Proposition 123 Fast Track Review Guidance

1. Introduction

This guidance is provided by the Department of Local Affairs (DOLA) to help Colorado cities, towns, and counties navigate the expedited review requirements of Proposition 123 (Fast Track Review Process). Establishing and implementing a compliant expedited review process is required by January 1, 2027 for all jurisdictions who wish to maintain eligibility for all future Proposition 123 funding and commitment cycles, beginning in calendar year 2027.

This guidance addresses the legal requirements for the design of a Fast Track Review Process and the administration of that system to comply with Proposition 123 (C.R.S. 29-32-105(2) et seq.).
This guidance is intended to allow Colorado local governments flexibility to become and remain eligible for Proposition 123 funding while continuing to implement their current development review systems.
This guidance should not be considered legal advice. Jurisdictions are encouraged to consult with their own legal counsel.
A downloadable version of the Fast Track guidance is available.
Over time, as communities implement their expedited review process, DOLA may add to these guidelines to address new questions that arise and to highlight new examples of innovative and effective adoption of expedited review processes.
This information pertains specifically to the expedited review requirements of Prop. 123 (C.R.S. 29-32-105(2) et seq.). For other Prop. 123 requirements, please visit the DOLA Proposition 123 compliance website.

1.1 Key Terms

A. Affordable Housing

Generally means a residence where the housing costs do not exceed 30% of a household's gross monthly income. In the context of the Fast Track requirements of Proposition 123, this means: A housing development project in which 50% or more of the dwelling units are either rental housing at or below 60% AMI, or are for-sale housing at or below 100% AMI, and that cost the household less than 30% of its monthly income. This definition is applicable when the proposed housing includes an affordability mechanism such as a deed restriction, not necessarily to market-rate housing units that happen to be affordable but do not require income-verification for tenants or buyers.

B. Area Median Income (AMI)

AMI is the midpoint income for a specific geographic area, used to determine eligibility for affordable housing programs. AMI varies by County and is dependent on household size. HUD develops income limits for each area, with results published annually. These AMI tables are expressed as percentages of AMI (e.g., 30% for Extremely Low Income, 100% for Median Income, etc.).

For HUD's latest AMI income limits, visit:

1.2 Resources

DOLA staff are available to provide a wide assortment of implementation support and technical assistance including courtesy reviews of draft policies, downloadable resources, webinars, and more. A full list can be found on DOLA's Fast Track Support & Technical Assistance webpage.

Local governments who are eligible for Proposition 123 may seek funding from the Local Planning Capacity grant program to support local policy adoption and implementation efforts.

Efforts to develop these guidelines began in November 2023 and extended into April 2024. Outreach efforts included the following:

16 partner agencies were invited to participate.
3 targeted stakeholder meetings were held, composed of:
- Over 65 planners from every region of the state.
- Over 30 developers and builder groups with affordable housing expertise, including housing authorities.
1 state-wide survey distributed by DOLA, partner agencies, and stakeholders.
2 educational webinars presenting the final guidelines.

During initial listening sessions with partner agencies and stakeholders, it became apparent that there are misunderstandings surrounding the language of Proposition 123 expedited review requirements. This process also uncovered insights into the barriers and opportunities within local government processes, potential avenues to explore for expediting review processes, and feedback on what information would be most helpful to include in these guidelines.

The process also involved reviewing nationwide studies, reports, and best practices from nonprofits, development professionals, other states and municipalities, including communities within Colorado, and drawing from recommendations and lessons learned.

Statutory language for the Proposition 123 Fast Track Process can be found in Colorado Revised Statute, Title 29, Article 32: Statewide Affordable Housing Fund under the following sections:

C.R.S. 29-32-101(2):

"Affordable housing" means rental housing affordable to a household with an annual income of at or below sixty percent of the area median income, and that costs the household less than thirty percent of its monthly income. "Affordable housing" also means for-sale housing that could be purchased by a household with an annual income of at or below one hundred percent of the area median income, for which the mortgage payment costs the household less-than thirty percent OR LESS of its monthly income.

C.R.S. 29-32-105(2):

(a) In order to receive financial assistance under this article, or for affordable housing projects within a tribal government, municipality, a city and county, or the unincorporated area of a county to be eligible for funding, the tribal government or local government, other than a local affordable housing authority, must establish processes to enable it to provide a final decision on any application for a special permit, variance, or other development permit, excluding subdivisions, of a development project for which fifty percent or more of the residential units in the development constitute affordable housing not more than ninety calendar days after submission of a complete application, referred to herein as a "fast-track approval process."

(b) A local government's or tribal government’s fast-track approval process may include an option to extend the review period for an additional ninety days at the request of a developer, for compliance with state law or court order, or for a review period required by another local government, tribal government, or agency, within the local government or tribal government or outside, for any component of the application requiring that government's or agency's approval.

(c) A local government's or tribal government’s fast-track approval process may include extensions to allow for the submission of additional information or revisions to an application in response to requests from the local government or tribal government. Such extensions shall not exceed the amount of time from the request to the submission of the applicant's response plus thirty days. Applicants shall provide such additional information or responses promptly and shall, whenever practicable, provide a response within five business days.

(d) Nothing in this subsection (2) shall be interpreted as requiring an affordable housing developer to utilize a fast-track approval process.