To: Board of County Commissioners
Through: Katherine Smith, Acting Director, Public Works & Development
Prepared By:
prepared
Jason Reynolds, Planning Division Manager, Public Works & Development
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presenter
Presenter: Jason Reynolds, Planning Division Manager, Public Works & Development
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Subject:
title
11:00 AM *Proposition 123 - Expedited Review Policies for Affordable Housing Projects
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Purpose and Request:
recommended action
As part of maintaining eligibility for funding under the Colorado voter-approved Proposition 123, jurisdictions must adopt an expedited or fast-track review process for eligible affordable housing projects. The implementation must be effective by January 1, 2027. County staff requests Board approval to schedule a resolution adopting an expedited review process for eligible affordable housing projects.
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Alignment with Strategic Plan: Economic Resilience and Stability - Maintain and improve affordable housing initiatives, including housing preservation and homeownership support.
Background and Discussion: Colorado voters approved Proposition 123 in 2022, establishing the State Affordable Housing Fund and creating requirements for local governments seeking continued access to Proposition 123 funding. One element of maintaining that funding is establishing a fast-track review process for eligible affordable housing projects. Per Colorado Revised Statute § 29-32-105(2), a local government must establish processes to enable it to provide a final decision on eligible affordable housing projects within 90 days of a complete application. The statute specifies eligible project/process types: special permit (use by special review), variance, and “other development permits, excluding subdivisions.” In Arapahoe County, those projects/processes include administrative site plans, administrative amendments to existing plans, use by special review, engineering/civil construction plans/permits, building permits, Board of Adjustment variances, and special exception use for ranch hand, agricultural worker housing.
Arapahoe County’s current review processes do not define or specify a 90-day review and decision period for qualifying affordable housing projects. The attached Fast Track Review Process is designed to meet state requirements and incorporates feedback from Colorado’s Division of Local Affairs. Key elements include:
Eligible Projects: Per statute, eligible projects must have at least 50% of units meeting the definition of affordable housing in C.R.S. § 29-32-101. Under the state definition, a project is “affordable housing” if units are for residents earning 60% or less of Area Median Income (AMI) and costing less than 30% of monthly income (for rentals) or 120% or less of AMI and costing less than 30% of monthly income (for sale units). Eligible projects may include for rent, for sale, or a combination of for rent and for sale housing units.
90-Day Decision Requirement: The process includes a start date: when staff finds that an individual application is complete, meaning that the application includes all required documents per the applicable application checklist and completion of presubmittal meeting. The process ends with a final decision of approval, approval with conditions, or denial on an individual application/permit.
The process is opt-in; developers with eligible projects are not obligated to follow the Fast Track Review Process and if they have opted in, they may opt out of the Fast Track Review Process at any time by notifying Arapahoe County in writing.
Extensions: The proposed Fast Track Review Process allows for extensions to the 90-day timeframe. Although optional, DOLA recommended the inclusion of extensions; a complex project may require additional review time or a project may need time to coordinate with an outside agency such as a water/sewer provider or fire district. The proposed Fast Track Review Process allows the following extensions: one 90-day extension at the request of the applicant, extensions required to comply with a state law or court order, extensions to address outside agency comments, and extensions to allow submission of additional information or revisions.
Alternatives: The Board of County Commissioners may choose not to adopt a Fast Track Review Process for eligible affordable housing projects. If Arapahoe County does not adopt a Fast Track Review Process for eligible projects by the end of 2026, the County and certain qualifying affordable housing projects within its jurisdiction would be ineligible for Proposition 123 funding opportunities during the applicable commitment period of 2027-2029.
Fiscal Impact: Adoption of a Fast Track Review Process does not create a direct fiscal obligation.
Alignment with Strategic Implementation Strategies: N/A
Staff Recommendation: County staff asks, if the Board finds the policy presented to be acceptable, that the matter be placed on the next available Board meeting agenda for the adoption of a resolution enacting the Fast Track Review Process.
Concurrence: Colorado Division of Local Affairs staff performed a courtesy review of the draft fast track process and recommended minor modifications to achieve full compliance. Those recommendations are included in the attached draft process.