To: Board of County Commissioners
Through: Katherine Smith, Director, Community Resources; Bryan Weimer, Director, Public Works & Development
Prepared By:
prepared
Elizzebeth Loomis, Division Manager, Community Resources, Community Development, Housing and Homeless Services; Jason Reynolds, Planning Division Manager, Public Works & Development
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presenter
Presenter:
Elizzebeth Loomis, Division Manager, Community Resources, Community Development, Housing and Homeless Services; Jason Reynolds, Planning Division Manager, Public Works & Development
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Subject:
title
1:00 PM *Grant Opportunity: State of Colorado- Department of Local Affairs: Housing Planning Grant; Local Planning Capacity Grant Program and Incentives for Early Adoption of Fast Track
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Purpose and Request:
recommended action
The purpose of this request is for the Board of County Commissioners (BOCC) to consider approving the electronic submission of grant applications to the State of Colorado, Department of Local Affairs (DOLA), for the following funding opportunities: the Housing Planning Grant Program (SB24-174) to develop a Local Housing Action Plan and assess housing needs within Arapahoe County, and the Local Planning Capacity Grant Program (SB24-1313) to strengthen local planning department capacity and improve land use, permitting, and zoning processes that support affordable housing development. We will also be notifying the Board of the Proposition 123 Incentive Grant to pursue early adoption incentives for streamlining land use code updates and implementing affordable housing initiatives.
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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: The Department of Public Works & Development and Department of Community Resources would like to submit grant applications to the State of Colorado Department of Local Affairs for the following funding opportunities: the Housing Planning Grant Program (SB24-174) to develop a Local Housing Action Plan and assess housing needs within Arapahoe County, and the Local Planning Capacity Grant Program (SB24-1313) to strengthen local planning department capacity and improve land use, permitting, and zoning processes that support affordable housing development. We will also be receiving the Proposition 123 Incentive for Early Adoption of Fast Track Grant to pursue early adoption incentives for streamlining land use code updates and implementing affordable housing initiatives.
Housing Planning Grant Program
The Housing Planning Grant Program, established under Senate Bill 24-174 (C.R.S. §§ 24-32-3701 through 3711), is designed to assist local governments and regional entities across Colorado in assessing and planning for housing needs. Funding through this program supports the development or revision of a Housing Needs Assessment (HNA), a Local Housing Action Plan (LHAP), and select comprehensive plan elements such as a Water Supply Element or a Strategic Growth Element. Community Resources staff propose utilizing this grant opportunity to complete a Local Housing Action Plan in compliance with the requirements of SB24-174. A 25% local match is required, and staff recommend using funds from the Dominium Tax Deferral in the amount of $62,500, which represents the required match for a total grant request of $250,000. In 2018, the Board of County Commissioners (BOCC) approved a property tax exemption for Dominium Developers in support of a Low-Income Housing Tax Credit (LIHTC) senior housing project located in the City of Centennial, which established the Dominium Tax Deferral fund now proposed for use as the local match. The deadline to apply for this grant is December 3, 2025 at 5 p.m.
Local Planning Capacity Grant Program
Public Works and Development is requesting $200,000 in funding through the Local Planning Capacity Grant Program, with a committed 50% local cash match ($100,000 local contribution); this grant program is designed to enhance the capacity of local government planning departments and streamline the review and approval of affordable housing projects. The program also requires a 50% match for comprehensive planning or comprehensive land development code updates, so our application will be seeking assistance with transit-oriented communities implementation, which is more focused than comprehensive updates and thus a 50% local match. The requested funds will be used to hire a consultant to support Arapahoe County’s planning efforts to meet our housing opportunity goal. These efforts will include data analysis, alternatives testing, development review process improvements for transit centers, and transit-specific code updates. Public Works and Development aims to reduce delays in project review for transit areas, improve predictability for developers, meet our housing opportunity goal, and ultimately increase the supply of affordable housing for Arapahoe County residents. The required 50% in the amount of $100,000 local match (worse case) could possibly be provided in a variety of ways including the following in priority order: 1) reserve a portion of the above revenue that will be realized through the 2025 Q4 Budget Supplemental Process, 2) absorb through potential 2026 Vacancy Savings (anticipated but unknown at this point), or 3) obtain through another portion of the 2026 budget, which would mean reducing funding in other priorities. Option 1 would be least impactful to Department services. This investment will not only support immediate planning needs, but also establishes long-term process improvements in transit areas that strengthen the County’s ability to manage growth and advance housing equity. The deadline to apply for this grant is Thursday, February 16, 2026 at 12 p.m., and the funding for the local match will not be required until we enter into professional service agreements with consultants.
Incentives for Early Adoption of Fast Track
Public Works and Development requests funding through the Incentives for Early Adoption of Fast Track program, which provides up to $50,000 with no local match required for jurisdictions adopting a Fast Track policy by December 31, 2025. The County may have met this requirement by updating the land use code and implementing targeted affordable housing incentives and will consult with DOLA on our eligibility. If Arapahoe County is eligible, this funding will support the County’s proactive efforts to accelerate affordable housing development, demonstrating a strategic commitment to addressing the ongoing affordable housing strategic goal.
Alternatives: The Board of County Commissioners may recommend alternatives to any of the recommendations listed above.
Fiscal Impact: If approved as presented, the fiscal impact to Arapahoe County will consist of staff time to prepare and submit the grant/ incentive applications, staff time to work directly with consultants, and match funding from Dominium Tax Deferral in the amount of $62,500 with the potential to receive $500,000 in grant funds if the application is successful.
As noted above, if approved for the full amount, the Local Planning Capacity Grant would require a $100,000 local match if it is determined that it is entirely amount is used for comprehensive planning or comprehensive land development code updates. PWD recommends using 2025 revenue above PWD budget for the local match and will identify such during 2025 Q4 Budget Supplemental process. Local match percentages can vary based on task being invoiced. If awarded the Grant, a detailed scope of work will be developed for a consultant and the IGA with DOLA and that will define local match amount by task.
Alignment with Strategic Implementation Strategies: N/A
Staff Recommendation: Staff recommends moving forward with the grant applications as presented.
Concurrence: N/A