State to offer incentives to speed development reviews

DENVER —  Up to $2 million has been set aside by the Colorado Department of Local Affairs’ Division of Local Government for an incentive program to encourage local governments to approve early adoption of fast-track policies for development review.

According to a news release issued Tuesday by DOLA, “communities that implement fast-track policies reduce housing costs and boost supply by eliminating delays that drive up project expenses.” It said local governments that adopt a Proposition 123-compliant expedited review process by Dec.  31, a year ahead of the new state law’s December 2026 deadline, will receive up to $50,000 in grant funding, with no local match required.

Approved by Colorado voters in 2022, Proposition 123 dedicated a portion of state income tax revenue to a state-funded affordable housing fund that provides resources for various initiatives aimed at increasing the supply and affordability of housing in the state, including land banking, equity investments, concessionary debt financing, and assistance for homeowners and those experiencing homelessness. To remain eligible for the State Affordable Housing Fund, the proposition states, local governments must demonstrate they have implemented an expedited review process by the end of 2026 for housing projects where at least half of the units are affordable.

The law recognized that revising local regulatory processes takes time, so some incentives will also be available for local governments that adopt a compliant expedited development review process by June 30, 2026.

“The quicker that applications get processed for housing, the better, and this incentive helps local governments turn around applications even faster,” Gov. Jared Polis said in a prepared statement.

Added Maria De Cambra, DOLA’s executive director, “We know that time is money in the housing space, and Coloradans want to see more housing that people can afford as soon as possible. While this work is challenging, speeding up review processes will have a transformative impact on housing supply and affordability across our state.”

Communities that achieve early adoption of the fast-track procedures will be rewarded with incentive funds that could be used for personnel, software, consultants, professional development or any other planning-related expenses that support advancing housing affordability goals, and are eligible under the Local Planning Capacity grant program. Local governments would receive a notice of award once DOLA has verified eligibility.

The next funding cycle for Local Planning Capacity grants will open May 1 and close at noon May 30. These funds are only available to those local and tribal governments that have filed a Proposition 123 commitment and are eligible for Proposition 123 funds. This grant program supports local government implementation of Proposition 123 requirements including fast-track and other planning efforts that advance affordable housing goals or strategies.

Those with questions can contact Planning Capacity Manager Robyn DiFalco at robyn.difalco@state.co.us or 720-682-5202.

on Facebook on LinkedIn