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 Execution of an Intergovernmental Agreement by and Among the Town of Castle Rock, Douglas County Housing Partnership, Douglas County, City of Castle Pines, City of Lone Tree, and Town of Parker Regarding Joint Management of Proposition 123 Funding and Credits
Body
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Executive Summary
On September 5, 2023, Town Council approved a resolution to participate in Proposition (Prop) 123 funding. Colorado voters approved Prop 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 affordable houses and rental units over two decades throughout the state. The initiative directs 0.1 percent 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 participate in Prop 123 funding, local governments had to 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, which allows local jurisdictions to pool together the number of newly created affordable housing units. The Town has historically collaborated with Douglas County jurisdictions in regards to affordable housing through the Douglas County Housing Partnership (DCHP). As part of the resolution approving participation in Prop 123, Town Council acknowledged the Town’s commitment to a regional partnership with Douglas County jurisdictions to meet the affordable housing goals. All member jurisdictions of DCHP filled a commitment to participate in Prop 123.
Town staff is seeking Town Council’s approval to enter into an Intergovernmental Agreement (IGA) between the Town, Douglas County Housing partnership (DCHP), Douglas County, City of Castle Pines, City of Lone Tree, and the Town of Parker to establish a joint management process to allocate any new affordable housing units created that are in excess of a local jurisdiction’s required commitment to other local jurisdictions within the County. The IGA would also assign the responsibility of tracking and reporting the newly created affordable housing units within each DCHP member jurisdiction.
Budget Impact
There is no financial impact to the Town, the commitment to participate in Prop 123 allows for DCHP and third parties working within Douglas County to apply for Prop 123 funds.
Staff Recommendation
Staff recommends approval of this resolution.
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], 2024, at 6 pm.”
Attachments
Attachment A: Resolution