DENVER — Colorado's voter-approved affordable housing fund passed a milestone this month, and the deadline for cities and counties that want to keep tapping it is now less than three months away.
The Colorado Department of Local Affairs said Oct. 12 that it has approved Denver's 3,405 affordable housing units, pushing the statewide total of submitted approved units under Proposition 123 to 11,249 across 41 local jurisdictions.
To stay eligible for Proposition 123 money in the 2027–2029 cycle, local governments must meet their affordable housing goal, or get an approved good-faith-effort waiver, and have an effective fast-track review policy in place by Dec. 31, 2026. DOLA's deadline to file a new commitment for the next three-year cycle is Nov. 1.
What Prop 123 is
Colorado voters approved Proposition 123 in November 2022. It sets aside existing state income tax revenue equal to one-tenth of 1% of federal taxable income for affordable housing, which was estimated at about $300 million in its first year.
The money is split between two state agencies. The Office of Economic Development and International Trade runs programs that include the Proposition 123 Equity Program, and DOLA runs programs that include support for local governments.
Cities and counties don't have to take part. Those that want their jurisdiction to be eligible for funding file a commitment with DOLA to grow their affordable housing. The target is a 3% annual increase over each community's baseline during a three-year cycle. Filing makes the local government, and nonprofits, land trusts, housing authorities and developers working there, eligible to apply.
The numbers
Denver's approval was the biggest piece of the latest update. DOLA called Denver the largest city in the state to reach full compliance.
Other totals named in the release:
Jurisdiction | Approved affordable units |
|---|---|
Denver | 3,405 |
Lakewood | 523 |
Longmont | 339 |
Pueblo | 279 |
Statewide (41 jurisdictions) | 11,249 |
DOLA also pointed to a regional partnership in Clear Creek and Gilpin counties. Seven local governments, led by Idaho Springs, are sharing credit for units under a joint strategy: Idaho Springs, Central City, Empire, Georgetown, Silver Plume and unincorporated Clear Creek and Gilpin counties.
The partnership's core project is Fieldhouse Apartments in Idaho Springs, funded through the Prop 123 Equity Program. It has:
- 120 apartments: 41 studios, 43 one-bedrooms, 32 two-bedrooms and four four-bedrooms
- At least 30 years of affordability at or below 70%, 90% and 100% of area median income
- More than $1 million in water, sewer and road work on Miner Street
- A 0.56-acre public park and up to 12,000 square feet of commercial space
The fast-track rule
The fast-track requirement is the part most likely to change how builders work with local governments.
Under state law, a fast-track process means a local government must make a final decision on a complete application within 90 calendar days. It applies to housing developments where at least half of the units are affordable, not to every project. Policies must be in effect by Jan. 1, 2027.
DOLA doesn't require a single approach. Its guidance lists strategies, and each community picks what fits its own review process. The department checks submitted policies against state law and offers courtesy reviews of draft language before adoption. Communities that adopted a compliant policy by June 30, 2026, could qualify for up to $45,000 in grant money.
Denver adopted its own fast-track review process earlier this year. Mayor Mike Johnston said "Denverites can't afford to wait for more affordable housing" and credited the process with clearing bureaucratic hurdles.
What they said
DOLA Executive Director Maria De Cambra said the milestones show that Proposition 123 "is delivering real, transformative results across Colorado."
Idaho Springs Mayor Chuck Harmon described a small community where "the mindset of neighbor helping neighbor is ever present."
Why it matters for builders
Analysis: For developers and contractors working on affordable or mixed-income housing in Colorado, the fast-track rule could make approval timelines more predictable starting in 2027, at least in jurisdictions that stay in the program. A 90-day decision deadline on qualifying projects means less carrying cost and fewer surprises between submittal and permit.
The flip side is that communities that miss their goals, or don't adopt a fast-track policy, risk losing access to the fund for the next cycle. That could mean fewer funded affordable projects in those towns.
Watch for DOLA's list of fully compliant jurisdictions after Dec. 31 and for the new commitments filed by Nov. 1. Together they'll show where Prop 123 money, and the projects it pays for, is likely to land through 2029.