Housing Attainability

Factory Built Housing

Colorado remains on the cutting edge of housing innovation, specifically modular or off-site housing. From 2021 through 2024, Colorado has increased in-state modular production by 687%, and the modular market share in the state has tripled from all housing built.

In 2024, only 43% of our modular components were imported from out of state factories, cutting Colorado’s reliance on out of state factories in half. This also results in savings from reduced shipping costs and a reduction in carbon output. 

Funding Efficiencies

The Department of Local Affairs (DOLA) has gotten more strategic and transparent in the way it funds affordable housing developments. The Division of Housing (DOH) within DOLA now has a quarterly application process with published funding amounts available for homeownership and rental projects, along with specific sources of funding. With the new application timing, DOH published clear scoring criteria to aid applicants in preparing competitive applications based on a transparent set of priorities. DOLA first scored December 2024 applications to capture initial feedback/observations on new scoring criteria. The new scoring criteria creates a clear framework for reviewing projects. The scoring criteria has increased the quality of applications, indicating that applicants prioritized the submission of complete applications. Additionally, scoring criteria resulted in recommendations across a diversity of project types, urban/rural developments, and applicants. 

Responses to Homelessness

DOLA’s Division of Housing seeks to prevent or end individuals’ homelessness as efficiently and effectively as possible. This is done by funding programs that will fundamentally shift the landscape of homelessness within the project’s community, region, and the State by transforming systems, programs, and outcomes while being responsive to the one-time nature of the funding provided. In 2024, this grant program continued to make a difference. Here are a couple of examples: 

• The Salvation Army, El Paso County: “One of our notable success stories featured a two-parent family with three teenagers and a newborn. They arrived at the Family Hope Center (FHC) in July. With the support of our Case Management team, they successfully transitioned to stable housing, departing the program in August. The parents secured and maintained stable employment, and through careful financial planning, they ensured their ability to sustain housing independently.”
• Housing Connector: “We housed someone who had been homeless for 8 years. These funds allowed us to find the unit, activate a new community partner in CCH, and open the doors on reduced screening criteria to make the pathway for this person to get housed. It was a special day, and one that our team will remember for a long time.”

2024 saw a lot of momentum in the legislature regarding the intersection of affordable housing, land-use planning, and transportation: 

• A package of six bills representing the Governor’s vision for increasing housing affordability while improving transportation convenience, decreasing congestion and supporting the State’s climate goals, as well as conservation of agricultural, recreation, and biodiversity through land-use policy reform passed the legislature. Several other associated bills were also passed:
  • “Prohibit Residential Occupancy Limits” (HB24-1007), which prohibits residential occupancy limits based on familial relationship
  • “Minimum Parking Requirements” (HB24-1304), in which subject jurisdictions within applicable transit areas must not enact or enforce local laws requiring minimum vehicle parking spaces for multifamily residential, adaptive reuse for residential, or adaptive reuse for mixed use that includes at least 50% of use for residential
  • “Accessory Dwelling Units” (HB24-1152), which allows accessory dwelling units in subject jurisdictions
  • “Housing in Transit-Oriented Communities” (HB24-1313), which concerns measures to increase the affordability of housing in transit-oriented communities
  • “Sustainable Affordable Housing Assistance” (SB24-174), which requires the development of reasonable methodologies for housing needs assessments and guidance for local governments  
• The Department of Local Affairs (DOLA) Division of Housing (DOH) continued to make progress toward implementation of Prop 123, including expedited review guidance that was published to help local governments expedite affordable housing projects and remain eligible for Prop 123 funds. 
  • In 2023, 202 local and Tribal governments filed commitments to increase affordable housing by 3% annually over the next three years. These jurisdictions represent 89% of the statewide population, with an estimated 22,855 new affordable housing units committed.
  • So far, 76 local governments have either adopted or are currently working to adopt and implement new policies and procedures that streamline the development review process for affordable housing projects.  
  • Approximately $32M have been awarded for homeownership opportunities, $28.8M in Homelessness Initiatives, and $4.4M through the Division of Local Government for the Local Planning Capacity Grant Program.  
  • Second year commitment filings were due to the DOH on November 1, 2024. A total of 8 jurisdictions out of the 336 jurisdictions eligible to apply successfully filed a commitment to increase their affordable housing by 3% each year over the next two years. That leaves 126 jurisdictions across the State remaining eligible for filing.
• The Office of Economic Development and International Trade (OEDIT) manages 60% of the State Affordable Housing Fund created by Proposition 123. OEDIT, along in partnership with the Colorado Housing Finance Authority (CHFA) built three new programs and 4 subprograms in order to implement the first year of Prop 123 funding. OEDIT coordinates closely with DOLA on Prop 123 Implementation.
  • OEDIT/CHFA’s three funding programs are land banking grants and forgivable loans to support local governments, Tribes, and nonprofits to secure land for affordable housing, concessionary (low cost) debt to support low and middle income rental housing, and equity to provide below market investments for low and middle income rental housing. 
  • In 2024, OEDIT combined $18M from the Prop 123 debt program with $20M from OEDIT Innovative Housing Incentive Program to award $38M in low cost loans to modular and innovative off site housing manufacturers to increase the supply of affordable, energy efficient units and jobs across Colorado
  • Prop 123 also includes a Tenant Equity Vehicle funded by the returns above principal to the state from the debt and equity programs which will support the tenants of the Equity projects with monthly and long term savings. 
  • In 2024, OEDIT/CHFA selected 35 affordable housing projects to proceed with underwriting for $97M in funding. 
  • The awards will support 2,730 units plus 4,755 units annually expected to be produced by the off-site housing factories once they are at full production. 
  • OEDIT, DOLA, and Colorado’s Energy Office collaborated to create a new environmental sustainability prioritization for Prop 123 housing funding to move the new affordable units towards all electric, energy and water efficient developments that will reduce costs for residents. Eventually these standards will be applied across all of OEDIT and DOLA’s housing funding programs. 
• “Effective Implementation of Affordable Housing Programs (HB24-1308), passed in 2024 regarding effective implementation of affordable housing programs. The DOH has updated its application, handoff, and contracting processes in compliance with the requirements of the law. These new requirements will be applied to its funding application round that closed on October 1, 2024, and in turn all subsequent funding rounds related to the work of its Office of Housing Finance and Sustainability (affordable housing acquisition, development, and rehabilitation).
• “Insurance Commissioner Study Insurance Market” (HB24-1108), passed with the purpose to study the homeowners associations (HOA), hotel, and lodging facilities property market. In addition to analyzing market conditions, this study will also recommend potential measures to assist in long-term sustainability and availability in this market. 

• The State Housing Board at the conclusion of its rulemaking hearing on October 8, 2024, adopted the International Code Council’s 2021 International Energy Conservation Code (IECC) along with the Electric Ready and Solar Ready model codes adopted by Colorado’s Energy Code Board. These codes will be applied to the construction of factory-built structures statewide and go into effect on January 1, 2025, as required by House Bill 22-1362.

• Additional progress was made due to DOH’s vision to advance a broad continuum of solutions that combines affordable housing with accessible services so no one languishes in homelessness. This includes preventing evictions and homelessness where possible.
  • Through Homelessness Prevention grants, which are managed by the Homelessness Resolution Team (formerly the Emergency Solutions Grants or ESG) performance period from April 1, 2023 to March 31, 2024, recipients served included 1,604 individuals and 932 households, utilizing a total of $1,069,176 in homelessness prevention dollars that are a combination of federal and state funds.
  • Through Eviction Prevention grants, which are managed by the Emergency Rental Assistance team within the Office of Housing Recovery, grantees have assisted approximately 48,000 households since the start of the program in March 2021 - approximately 44,000 through Emergency Rental Assistance (ERA) rounds 1 and 2, and approximately 4,000 through the Temporary Rental Assistance Grant Program (TRAG). The total amount of funds utilized for rental assistance programs in SFY24 are as follows: 
    • Federal Funding through HR 133 (ERA1) - $255,084,086
    • Federal Funding through HR 1319 (ERA2) - $233,287,477
    • State funding through HB23-1001 (TRAG) - ran from 2/15/24-06/30/24 with $30M in rental assistance and housing stability services provided to approximately 4000 households. 
  • Progress was also made on implementation of the Fair Access to Insurance Requirements (FAIR) Plan, which will establish an unincorporated public entity to provide property insurance coverage where coverage is unavailable. In 2024, an Executive Director was hired, a Plan of Operations approved, and initial producer trainings were completed.