STATEWIDE - The Colorado Department of Local Affairs’ (DOLA) Division of Local Government (DLG) has awarded $1.7 million to all 11 project requests in the latest round of Proposition 123 Local Planning Capacity Grants. 

“These grants are an important step towards reducing housing costs for Coloradans. By empowering local governments and helping them streamline permitting processes, we can bring more new homes to Coloradans at an affordable price,” said Governor Polis. 

This initiative provides housing solutions that are versatile for eligible uses, and will help local governments provide more housing options that people can afford. 

These grants support local governments in their efforts to gain compliance with 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 the Department will hold another grant round in May of this year to disperse the remaining funds. 

"In alignment with the state’s priorities of building more housing people can afford and achieving our climate goals by deploying more transit-oriented communities, these new grants will help local government partners streamline processes, update land use codes, and utilize technology enhancements. We are excited to see the positive impact on housing development across the state," said DOLA Executive Director Maria De Cambra. 

The Proposition 123 Local Planning Capacity (LPC) grants are designed to expand local government planning capacity to streamline and add affordable housing incentives to local codes and processes, utilize technology enhancements to support streamlined permit review, and hire staff and consultants to support affordable housing development. 

Awards Summary 

The 11 awarded projects representing 17 jurisdictions, include four urban, eight rural, and five rural resort jurisdictions across the state. Since its implementation in 2023, the LPC grant has awarded a total of 64 projects in the amount of $8,725,179, supporting 100 local governments (or 48% of all of the Prop 123-eligible jurisdictions). 

Building Capacity & Planning 

• Clear Creek County ($96,000): Establishing a regional housing authority, creating a strategic plan, and expanding capacity.
• City of Victor ($159,680): Hiring personnel and a consultant to build capacity, inventory properties, seek funding, and redevelop blighted housing.
• Ouray County ($192,000): Hiring an Affordable Housing Services Administrator for countywide operations.
• Town of Center ($159,600): Hiring consultants for project management, master planning, IT upgrades, site inventory, ADU program implementation, and seeking funding.
• City of Durango ($183,400): Hiring personnel to streamline development review and consultants for incentives, engagement, and funding for city-owned land. 

Updating Land Use & Development Codes: 

• Town of Berthoud ($41,600): Hiring consultants to implement Housing Diversity Plan strategies, amend the Land Development Code, and plan for a land and water banking program.
• City of Brighton ($38,520): Hiring consultants for code changes related to ADU impact fees and GIS mapping of affordable housing.
• City of Louisville ($196,000): Hiring consultants for development code updates, expedited review strategies, and updates to impact fees and inclusionary housing.
• City of Rifle ($200,000): Hiring a consultant for Land Use & Development Code updates, alignment with the Comprehensive Plan, and community outreach. 

Improving Permitting & Processes: 

• City of Lakewood ($256,357): Hiring personnel to improve permit review processes, technology, inter-agency collaboration, and strategies for preserving existing affordable housing.
• Town of Eagle ($212,000): Implementing new software to automate land use file management and streamline the review process. 

In addition to the upcoming application cycle of the LPC Grant (scheduled to open May 1-30, 2025), DLG has set aside $2 million of this funding to incentivize early adoption of Proposition 123 fast-track requirements. Local governments that adopt a Proposition 123-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. Incentives will also be available for local governments that adopt a compliant expedited development review process by June 30, 2026. 

All LPC funds are only available to those local and tribal governments who 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 to gain access to the online application form.