To: Board of County Commissioners
Through: Katherine Smith, Director, Community Resources
Prepared By:
prepared
Lizze Loomis, Division Manager, Community Development and Housing Stability Services
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presenter
Presenter: Lizze Loomis, Division Manager, Community Development and Housing Stability Services
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Subject:
title
1:30 PM *Proposition 123 Affordable Housing Commitment 2027-2029 Cycle
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Purpose and Request:
recommended action
County staff requests Board approval to authorize the submission of Arapahoe County’s 2027-2029 Proposition 123 Affordable Housing Commitment to the Colorado Department of Local Affairs in accordance with applicable State requirements.
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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 opportunities.
Colorado Revised Statutes § 29-32-105, as amended by House Bill 26-1313, establishes the requirements for local government participation in the program. For the three-year commitment cycle beginning January 1, 2027, participating local governments must submit an affordable housing commitment to the Colorado Division of Housing no later than November 1, 2026. Arapahoe County previously submitted a Proposition 123 commitment of 141 affordable housing units in October 2023 for the prior commitment cycle. The County fulfilled that commitment by summer 2026, ahead of the conclusion of the applicable commitment period.
For the 2027-2029 commitment cycle, the State revised the methodology used to establish local affordable housing targets. The previous requirement to increase affordable housing units by three percent annually has been replaced with a methodology based on recent residential permitting activity and county-level job growth.
Under the revised methodology, the County’s target is calculated using the average annual number of permits issued for new housing units, or functional equivalents of permits, during the preceding three years, multiplied by the three-year commitment period and the applicable job-growth factor established by the Colorado Division of Housing.
For Arapahoe County, the applicable job-growth factor is 15 percent, based on the County’s average annual job growth relative to the statewide median. Based on an average of 513 qualifying residential permits annually, Arapahoe County’s 2027-2029 Proposition 123 commitment is calculated as follows:
• 513.33 average annual permits × 15% × 3 years = 231 affordable housing units
Accordingly, County staff proposes a 2027-2029 commitment of approximately 231affordable housing units, subject to final confirmation of the State’s required rounding and submission methodology. For counties, the Proposition 123 commitment generally applies to the unincorporated area of the county, subject to applicable State provisions related to regional collaboration and qualifying affordable housing production. Participating jurisdictions must also comply with applicable expedited development review requirements for qualifying affordable housing developments pursuant to C.R.S. § 29-32-105.
Alternatives: The Board of County Commissioners may choose not to authorize submission of Arapahoe County’s 2027-2029 Proposition 123 Affordable Housing Commitment. If the County does not submit a qualifying commitment by the State-established deadline, the County and certain qualifying affordable housing projects within its jurisdiction may become ineligible for Proposition 123 funding opportunities during the applicable commitment period.
Fiscal Impact: Approval and submission of Arapahoe County’s 2027-2029 Proposition 123 Affordable Housing Commitment does not require an immediate appropriation of County funds or create a direct fiscal obligation.
Alignment with Strategic Implementation Strategies: N/A
Staff Recommendation: County staff recommends that the Board approve and authorize the submission of Arapahoe County’s 2027-2029 Proposition 123 Affordable Housing Commitment to the Colorado Department of Local Affairs.
Concurrence: N/A