Rural Resort Income Limit Petition Process

Proposition 123 states that “Coloradans should be able to live where they work and not have to spend more than 30% of their income on housing costs, especially in rural and rural resort communities where housing needs are unique.” The petition process helps to ensure that eligible rural resort communities are able to receive funding for affordable housing projects that meet the demonstrated needs of their communities.

What it means to be classified as a Rural Resort community

A "rural resort" community refers to counties designated by the Division of Housing under C.R.S. 29-4-1107 (1)(d), along with municipalities and housing authorities within these counties. A classification of a Rural Resort community makes a difference in four laws.

Counties or municipalities currently classified as Rural Resort 

• Archuleta County
• Chaffee County
• Eagle County
• Town of Estes Park - previously classified as Urban with Larimer County
• Grand County
• Gunnison County
• La Plata County
• Lake County - previously classified as Rural
• Ouray County
• Pitkin County
• Routt County
• San Juan County
• San Miguel County
• Summit County

Updated October 18, 2024

Complete List of Classifications for Urban, Rural, and Rural Resort Communities in Colorado

What is a Rural Resort Income Limit Petition

Rural Resort communities (counties, municipalities, or housing authorities) may submit a petition to the Division of Housing (DOH) for approval to apply different percentages of area median income (AMI) than the percentages specified for certain Proposition 123 programs, based upon the demonstrated average needs within the community identified in a Housing Needs Assessment (HNA). A petition submitted by a local government and accepted by DOH is considered valid for all projects within the jurisdiction for the duration of the current 3-year funding cycle.

A Rural Resort Income Limit petition applies to the following Proposition 123 funded programs administered by the Office of Economic Development and International Trade (OEDIT) in partnership with the Colorado Housing and Finance Authority (CHFA):

• Land Banking: 60% AMI for rental; 100% for for-sale
• Equity: 90% AMI (per-project average)
• Concessionary Debt: 60% AMI (per-project average, unless debt is subordinate)

Individual units within these developments may exceed the income limits above, if the income of all units within the development averages at or below the income limit.

Who does a Rural Resort Income Limit Petition pertain to

The Rural Resort Income Limit petition pertains to counties, municipalities, and local housing authorities classified as Rural Resort who have filed a Proposition 123 commitment. Similar to commitment filings, a county’s petition will only cover the unincorporated county, not the municipalities within it. 

Only authorized officials of county, municipal governments, and tribes, or officially designated persons acting on their behalf, may submit a petition.

Why submit a petition

Rural Resort communities who want to serve higher average incomes may gain more flexibility by filing this petition. A petition submitted by a local government and accepted by DOH is valid for all projects within the jurisdiction for the current 3-year funding cycle.

What will the petition need to demonstrate

The petition will need to demonstrate that the current income limits of one or more eligible OEDIT Affordable Housing Financing Fund programs (Land Banking, Equity, and Concessionary Debt) are inconsistent with the demonstrated average housing and workforce needs within the petitioning jurisdiction, taking into consideration regional workforce commuting trends.

The petition must be accompanied by a compliant Housing Needs Assessment (HNA) and a narrative description of why other funding sources cannot be utilized, are not sufficient, or are not accessible to meet the housing needs described within the petition and demonstrated in the HNA.

Statute requires DOH to establish the percentages of AMI based on the demonstrated average needs identified in an HNA. DOH does this by calculating the weighted average AMI of demonstrated housing need.

How to file

Use the direct link: Petition to Waive Income Limits in Rural Resort Communities

Alternatively,

1. Log in to your Colorado AccessGov account.
2. Go to Directory.
3. Open the Petition to Waive Income Limits in Rural Resort Communities.
4. Follow the guidelines on the introductory page.

Documents and Details to Gather Before Filing The Income Limit Petition

• Housing Needs Assessment (HNA):
  • Must have been completed within the last three years.
  • Must be based upon state demographer data or other reliable and verifiable data sources.
  • Must include an assessment of the demonstrated housing needs within the community by AMI bracket AND the overall average housing need AMI.
  • View the Proposition 123 Specific Housing Needs Assessment Checklist for guidance.
• Justification: a written description of why alternative funding sources are not being used or are insufficient to meet the housing needs outlined in the petition.
• Project information: project name, address, municipality or county, requested financing amount, preferred financing structure, funding program name, developers and stakeholders involved, target Community Area Median Income (AMI), housing type, tenure (rent or ownership), and total housing units.
  • For clarity, this project is intended to be a real example of planned potential affordable housing within your jurisdiction, however, an income limit change petition that is accepted and approved by DOH is considered valid for all projects within the jurisdiction for the duration of the current 3-year funding cycle, not just this example project.
• Impact details: consider how the project would meet OEDIT/CHFA’s obligations, including:
  • Meeting the demonstrated housing needs of the community.
  • Prioritizing high-density, mixed-income, environmentally sustainable projects.
• Calculations and data sources must be provided to assess relevance and verify results.

Review Process and Estimated Timeline

The estimated amount of time to receive an initial determination is two (2) months from the date of submission. Holidays may affect this timeframe.

Process Steps:

• Jurisdiction contacts DOH to express interest in Income Limit Petition
• Jurisdiction submits petition (Day 1)
• Petition is reviewed for compliance with statute (Day 2-7)
• A compliant petition goes to the 30-Day Public Comment Period (Day 8)
• 30-Day Public Comment Period Ends (Day 9-38)
• Committee Reviews, taking into consideration any public comments (Day 39-58)
• Determination sent to jurisdiction (or more information requested) (Day 59-60)
• Appeal process (if applicable)
  • DOH staff are committed to facilitating a dialogue and assisting in the resubmission process. The petitioner may appeal the determination by writing to the DOH Division Director.