The Creation of Proposition 123
Due to the enactment of Proposition 123 by Colorado’s voters in 2022, approximately $300 million in affordable housing funding is now available. The Department of Local Affairs (DOLA) and the Governor's Office of Economic Development and International Trade (OEDIT) oversee this funding, which is provided through grants and loans to nonprofit agencies, community land trusts, nonprofit and for-profit developers, and local governments. Funds are split 60/40 between DOLA (40%) and OEDIT (60%), respectively.
Proposition 123 Statute
Who is Eligible
Nonprofit agencies, community land trusts, for profit and nonprofit developers, and local governments can apply for funding.
To be eligible, affordable housing projects seeking support from the State Affordable Housing Fund must be located in a jurisdiction that has completed a Proposition 123 Local Government Affordable Housing Commitment with the Colorado Department of Local Affairs.
DOLA’s Affordable Housing Support Fund
40%
Forty percent of Proposition 123 funds are allocated to the Affordable Housing Support Fund, managed by the Department of Local Affairs through its Division of Housing and Division of Local Government.
The Support Fund includes three program areas: Affordable Homeownership, Serving Persons Experiencing Homelessness, and Local Planning Capacity Grant Program. Local and tribal governments must complete a Proposition 123 Local Government Affordable Housing Commitment for projects within their jurisdiction to be eligible for funding for the Affordable Homeownership and Local Planning Capacity Grant programs.
OEDIT's Affordable Housing Financing Fund
60%
Sixty percent of Proposition 123 funds are allocated to the Affordable Housing Finance Fund, which is managed by the Office of Economic Development and International Trade (OEDIT) and administered by the Colorado Housing and Finance Authority (CHFA).
This fund includes three program areas: Land Banking, Equity, and Concessionary Debt (including modular manufacturer financing). Unless otherwise noted, local and tribal governments must complete a Proposition 123 Local Government Affordable Housing Commitment for projects within their jurisdiction to be eligible for funding.
Timeline
November 2022
Colorado voters passed Proposition 123
December 2022
December 27: Governor Jared Polis issued proclamation formally recognizing voters’ approval of Prop 123
June 2023
June 5: HB 23-1304 signed into law, amending previous statute
July 2023
Proposition 123 funds transferred to Executive Branch Administrators
November 2023
Deadline November 1: First Cycle Local Government Affordable Housing Commitment Filings for 9% increase over 3 years
November 2024
Deadline November 1: First Cycle Local Government Affordable Housing Commitment Filings for 6% increase over 2 years
November 2025
Deadline November 1: First Cycle Local Government Affordable Housing Commitment Filings for 3% increase over 1 year
November 2026
Deadline November 1: Second Cycle Local Government Affordable Housing Commitment Filings for 9% increase over 3 years
Report on Local Government Compliance for unit count and Fast Track policy implementation
December 2026
Deadline December 31: Local Government required compliance for unit count and Fast Track policy implementation
