Project 10: Regional Clarity on Prop 123
What Is The Goal Of This Project?
Support regional clarity on components of Proposition 123, including the 90 Day Fast Track Approval Process and the required 3% affordable housing baseline
Note: No commitment has been made through this project by any local governments regarding whether or not to opt-in to Prop 123.
What Is Proposition 123?
Colorado Proposition 123, the Dedicate State Income Tax Revenue to Fund Housing Projects Initiative, was on the ballot in Colorado as an initiated state statute on November 8, 2022. The measure was approved.
Prop #123 requires participating local governments to create a 90 Day Fast-Track Approval Process focused on reducing the elongated, costly housing approval process timelines that are plaguing Colorado local governments.
The 90 Day Fast Track Approval Process, a requirement of local government participants, is an evidence-based mechanism to reduce the overall cost of affordable housing production that if embraced by local governments, has the potential to deliver affordable housing units to market in a far more efficient manner.
To qualify for Prop #123, local governments must establish processes to enable it to provide a final decision on any application for a special permit, variance, or other development permit, excluding subdivisions, of a development project for which fifty percent or more of the residential units in the project constitute affordable housing not more than 90 days after submission of a complete application.
Note: This information is attributed to the Common Sense Institute’s 2022 Colorado State Ballot Proposition #123: ‘Dedicated State Income Tax Revenue for Affordable Housing (Sep 14, 2022) | Learn more by clicking the button below, then click Policy Impact > CO Prop 123
How Did This Project Come About?
In 2022, local government and housing authority staff leadership from across the region came together to identify opportunities for a strengthened regional approach to improving access and availability of attainable housing.
Once Proposition 123 passed in November, they prioritized gaining clarity regarding the components of Prop 123 as their initial area of focus. This was chosen as the initial area of focus largely due to the lack of clarity felt regarding what implementation of Prop 123 would need to look like.
Specifically, they identified the opportunity to focus on:
- Supporting regional clarity on its components including the 90 Day Fast Track Approval Process and the required 3% affordable housing baseline
- Determining if it is feasible for cities and counties to opt in and accomplish the goal of increasing the stock of affordable/attainable housing
- Creating a flow of information back to the state agencies about what is working and what challenges exist
Supporting elected officials in their respective municipalities to have the information necessary to determine if they would opt in or out by this fall
Who is Involved in This Project?
This is the first project underway for the Regional Housing Roundtable. To learn more about this group click the link below:
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For more information about this effort, the Regional Housing Roundtable, or RMP’s overall goal around access and availability of attainable housing, contact Matt Horn.