The city of Durango successfully achieved Proposition 123 compliance and will continue to be eligible for affordable housing funds for the next three years.
Proposition 123 was approved by voters in 2022 and created the State Affordable Housing Fund. Forty percent of the money is allocated to the Colorado Department of Local Affairs. Nonprofits, community land trusts, for-profit and nonprofit developers, and local governments can all apply for funding.
To be eligible for funding, however, projects must be located in a jurisdiction that has completed a Proposition 123 Local Government Affordable Housing Commitment. Durango is one of those jurisdictions, and it has now met the requirements to continue its eligibility.
“It allows us to maintain eligibility to crucial housing funds over the next three years,” said Cody Minnich, Housing Program and Operations administrator. “It’s not just the city and our projects, but also our partners like HomesFund and Housing Solutions also get to maintain those funds, and any developer who wants to access Prop. 123 funds within city limits requires us to meet those goals.”
Durango met its affordable housing commitments for the 2024-26 commitment cycle with 184 affordable housing units. Those units had to be affordable to households earning 100% of the area median income for homeownership, or households earning 60% of the area median income for rental units. Durango saw 3% growth annually, Minnich said, or a 9% increase in affordable housing over three years.
The area median income in La Plata County this for a one-person household this year is $80,300, according to the La Plata County Regional Housing Authority. The area median income for a two-person household is $91,800.
HomesFund, a local nonprofit helping support affordable homeownership, received Proposition 123 funds and will continue to for the next three years because Durango met its requirements. HomesFund helps with down payments for first-time homeowners.
“It was really important that the city committed to meet these requirements because it’s helping other entities that are working on affordable housing have access to funding,” said Pam Moore, HomesFund executive director.
At first, there was confusion about whether HomesFund’s work would count toward Proposition 123, she said. She had to lobby hard for Proposition 123 to count the money HomesFund provides for down payments as a unit.
“Recognizing that the lack of down payment funds is a primary barrier for first-time homebuyers – it counts toward these requirements that communities are supposed to opt into,” Moore said.
La Plata County, Bayfield and Ignacio also opted into Proposition 123 and affordable housing funding, and have met their requirements as well. La Plata County supplied 113 units, Bayfield supplied 14 and Ignacio supplied 20.
To further meet requirements, Durango also had to adopt a fast-track review policy that accelerates the review and approval of affordable housing projects to 90 days. The policy was adopted in May and went into effect June 30.
Durango also helped Colorado reach a milestone in affordable housing, tipping the scales over 2,000 units.
“Colorado is leading the way in building more housing Coloradans can afford, in the communities we love,” Gov. Jared Polis said in a news release. “Prop. 123 is a partnership between the State and local communities that builds more housing and expands options across Colorado. Investing in housing people can afford helps more Coloradans put down roots in the places we love and call home.”
The 2027-29 commitment cycle will look a little different for Durango, and Minnich is still figuring out what shape it will take, he said. According to the Housing Affordability Initiatives page on Engage Durango, Durango’s next commitment will be significantly smaller and fewer projects will count toward Proposition 123. Moore is positive Durango will be able to meet requirements, though.
“The city will have no trouble meeting those guidelines,’ she said. ”I think the city’s just doing an amazing job of getting affordable housing projects in the pipeline.“
The requirement changes won’t affect HomesFund’s work, Moore said, because HomesFund can receive Proposition 123 funds for the next three years because of the city’s work from 2024-2026.