Colorado Proposition 123 (STATUTORY) (2022)

Shall there be a change to the Colorado Revised Statutes concerning statewide funding for additional affordable housing, and, in connection therewith, dedicating state revenues collected from an existing tax of one-tenth of one percent on federal taxable income of every individual, estate, trust, and corporation, as defined in law, for affordable housing and exempting the dedicated revenues from the constitutional limitation on state fiscal year spending; allocating 60% of the dedicated revenues to affordable housing financing programs that will reduce rents, purchase land for affordable housing development, and build assets for renters; allocating 40% of the dedicated revenues to programs that support affordable home ownership, serve persons experiencing homelessness, and support local planning capacity; requiring local governments that seek additional affordable housing funding to expedite development approvals for affordable housing projects and commit to increasing the number of affordable housing units by 3% annually; and specifying that the dedicated revenues shall not supplant existing appropriations for affordable housing programs?

YES / FOR. Housing costs in Colorado and the Front Range have continued to get more unaffordable nearly every year over the past decade, with very little assistance from the state. Prop 123 would provide a good start on affordable housing funding. We should absolutely pass the measure and continue to find ways to do more. I believe that Colorado’s unaffordability is a serious risk to our economy and way of life.

There are a few caveats however:

1. Funding will exist if we have a budget surplus, which is not guaranteed. In the case that we do not have a budget surplus, it appears that the state legislature would need to take action to prevent cuts from other parts of the budget.
2. The funding itself will be for “housing programs administered by the state Office of Economic Development and International Trade (OEDIT) and the Colorado Department of Local Affairs (DOLA).” This means that we still rely on local governments to use the money effectively. Many of these local governments, including Boulder, highly restrict what housing can be built, and often have local policies that drastically raise the cost of housing or reduce the amount of total housing that can be built. Prop 123 will increase some incentives to change those policies, but local governments are still a huge barrier to housing affordability. Currently the state has no mechanism to force changes in local policy.

Here is a useful table from the Colorado Blue Book outlining how these funds will be used. Please vote Yes to support Prop 123.

Additional Reporting, Commentary, and Sources

Colorado Proposition 123, Dedicate State Income Tax Revenue to Fund Housing Projects Initiative (2022) – Ballotpedia

Colorado Blue Book – Proposition 123 – State of Colorado

Coloradans will vote on whether to increase affordable housing funding this fall. The initiative is ‘urgently needed,’ but its odds are hard to predict – CPR News

State budget writers fear consequences of Colorado voters approving affordable housing ballot measure – Colorado Sun

Editorial: Affordable housing solution must begin somewhere, ‘yes’ on Prop 123 – Daily Camera