To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Tara Vargish, PE, Director, Development Services
Brad Boland, AICP, Long Range Project Manager, Development Services
Title
Resolution Authorizing the Town Manager to File an Affordable Housing Commitment with the Colorado Department of Local Affairs Pursuant to Proposition 123 and State Law and Acknowledging the Town’s Commitment to a Regional Partnership with Douglas County Jurisdictions to Meet Affordable Housing Goals
Body
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Executive Summary
Colorado voters approved Proposition 123 in November 2022. The ballot measure authorized the state to retain money from existing state tax revenues to support affordable housing investment. It is estimated that funding from Proposition 123 will create 170,000 houses and rental units over two decades throughout the state. The initiative directs 0.1% of Colorado’s income tax revenue to fund affordable housing programs that include helping essential workers, such as teachers and nurses, buy homes, while financially supporting local governments to increase affordable housing stock by 3% each year for a total of 9% over the next 3 years.
In order to access Proposition 123 funds, local governments must file a commitment to the Department of Local Affairs that they will increase their affordable housing stock by 3% each year for a total of 9% over the next 3 years. Failure to meet this goal would make a local government ineligible for funding in the year 2027. Collaboration between local jurisdictions is allowed and the Town has historically collaborated with Douglas County jurisdictions in regards to affordable housing through the Douglas County Housing Partnership.
Town staff is seeking Town Council’s approval to file a commitment to the Department of Local Affairs to increase the affordable housing by a total of 9% (277 units) over the next 3 years and to acknowledge the Town’s commitment to a regional partnership with Douglas County jurisdictions, through Douglas County Housing Partnership, to meet this commitment.
Budget Impact
There is no financial impact to the Town as committing to participate in Prop 123 allows for DCHP to apply for Prop 123 funds.
Staff Recommendation
Staff recommends partnering with the DCHP and member jurisdictions to allow access to this first round of Prop 123 funding. This funding will support the Town’s and the DCHP’s efforts to provide affordable housing opportunities to our community and within the county. If the Town utilized Prop 123 funding and was unable to achieve the full 9% increase in affordable units by December 2026, this would only result in the Town being ineligible for future funding in 2027. In addition, Prop 123 does not require any changes to or supersede any local zoning regulations or development process in any way.
Staff recommends approval of this resolution to allow the Town Manager to file an affordable housing commitment with the Colorado Department of Local Affairs pursuant to Proposition 123 and State law and acknowledging the Town’s commitment to a regional partnership with Douglas County jurisdictions to meet affordable housing goals.
Proposed Motion
Option 1: Approval
“I move to approve the Resolution, as introduced by title.”
Option 2: Approval with Conditions
“I move to approve this resolution as introduced by title with the following conditions:” (list conditions)
Option 3: Continue item to next hearing (need more information to make decision)
“I move to continue this item to the Town meeting on [date certain], 2023, at 6 pm.”
Attachments
Attachment A: Resolution
Attachment B: Letter from DCHP