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| JULY 18, 2025
Prop 123 Coalition and Funders,
Happy summer, everyone! To most Coloradans, summertime is an opportunity for hiking, camping, sunshine, wildflowers, and baseball—but for us housing nerds, it's also a time to reflect on the end and beginning of state fiscal years and, in turn, Prop 123 funding rounds!
OEDIT and CHFA have put together an excellent funding plan for this year’s approximately $196 million in Affordable Housing Financing Fund dollars. I encourage you all to check it out for details on the planned distribution of funding and timelines for each program. The 2026 fiscal year will bring even more progress, including the official launch of the Tenant Equity Vehicle and the expansion of Rent Reporting to 20,000 CHFA financed units!
But before we jump too far down the line, I want to take a moment to reflect on the major news and awards from the last few months of the 2025 fiscal year. As someone who has never actually built a home myself, I continue to be inspired by all of the groups turning the promise of Prop 123 into real homes for Colorado families.
In partnership,
Zach Martinez Director, Policy & Advocacy Policy Counsel Gary Community Ventures |
| | RECENT DEVELOPMENTS Nuche Village, an affordable housing development in Granby partially funded by Prop 123, received the green light from the town’s Board of Trustees to begin construction in March. It is the first development in Colorado under the Middle-Income Housing Authority and requires applicants to work for a Grand County employer.
On April 22, the Berthoud Board of Trustees approved a housing diversity plan aimed at increasing the stock of affordable and attainable housing before the end of 2026 in order to qualify for Prop 123 funding. Berthoud needs 39 affordable homes to meet the eligibility criteria.
The latest round of Prop 123 Land Banking awards was announced by Governor Polis, CHFA, and OEDIT on May 7. Nearly $48 million of program funds will be awarded across 21 applicants, creating an estimated 1,892 affordable rental and homeownership units statewide.
On June 5, Governor Polis, CHFA, and OEDIT announced preliminary selections for the Prop 123 Equity Program. A total of $67.5 million has been approved for 11 projects, which will create 1,017 affordable rental units for low- and middle-income families. Residents of these developments will also benefit from the innovative Tenant Equity Vehicle, which shares Prop 123 program earnings with tenants, offering a new opportunity for wealth building that can be used for down payment assistance and other important needs.
On June 10, the Mesa County Board of Commissioners unanimously approved a new Prop 123 resolution to expedite affordable housing reviews. As part of a state pilot program, the county is also testing the use of AI to streamline application processing.
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| | | | AT THE CAPITOL
In our last newsletter, we highlighted four housing bills supported this past session by Gary Advocacy, the policy arm of Gary Community Ventures. They include: HB1169, SB2, SB6, and SB167 – all of which complemented Prop 123 in addressing the remaining and persistent challenge in the housing landscape. Now that the 2025 Colorado legislative session has come to a close, we’re sharing updates below on wins and lessons learned. Check out our 2025 Legislative Recap if you’re interested in learning more about our team’s work this year. HB1169 | YIGBY+Ed – Despite broad support, YIGBY, which aimed to unlock land owned by religious organizations and school districts for residential development, stalled in end-of-session negotiations and never reached a final Senate vote. While we’re disappointed, the YIGBY coalition remains strong, with efforts already underway in Lakewood.
SB2 | Creating Regional Codes for Modular Development – This bill, focused on streamlining the modular manufacturing process, successfully passed both chambers and was signed into law by Governor Polis on May 8.
SB6 | Investment Authority of the Treasurer for Affordable Housing – This bill, which creates a $50 million pilot to support low-cost construction loans for affordable homeownership, also successfully passed and was signed into law shortly after SB2 on May 15.
SB167 | Investing State Dollars to Benefit Communities – Signed in June, this bill unlocks $340 million for community investment, with a focus on housing for teachers—the largest state investment in educator housing in Colorado’s history. Of that total, $150 million will go toward down payment shared appreciation to help public school employees purchase a home, and $50 million will support programs designed to increase the supply of affordable ownership units in rural and other underserved communities.
Alongside the housing legislation that Gary Advocacy supported, Prop 123 was back in the spotlight with SB313 – Proposition 123 Revenue Uses, which was introduced late in session to clarify that Prop 123 funds are intended to supplement, not replace, existing housing funding. It also requires the state to maintain funding for housing programs at or above current-year levels. The bill passed both chambers and was signed on May 30. |
| | LEARN MORE
Prop 123 Fiscal Year 2026 Funding Plan | READ HERE CHFA and OEDIT released the first annual Prop 123 Funding Plan, which includes estimated funding allocations for Prop 123 Land Banking, Concessionary Debt, and Equity programs; anticipated timing of competitive application rounds; and strategic priorities that will guide funding decisions. CHFA and OEDIT will host a webinar to discuss the Plan - keep an eye out for details.
The Buildout, a CHFA podcast | LISTEN HERE All eight episodes of CHFA’s The Buildout podcast are available now, featuring the stories of people and organizations tackling some of the state’s toughest housing challenges. |
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