Department of Local Affairs Announces New Incentive to Fast-Track More Housing Coloradans Can Afford

STATEWIDE - The Colorado Department of Local Affairs (DOLA) announced new available incentive funding for local governments implementing an expedited review process (Fast Track) for more housing Coloradans can afford six months ahead of the statutory deadline.

Local governments must meet the December 31, 2026 deadline to remain eligible for Proposition 123 funding in 2027. The early adoption incentive of up to $45,000 per local government requires no local match and serves as a catalyst for communities to implement Fast Track early, which has the benefit of reducing costs and increasing predictability for affordable housing developments. A similar 2025 incentive funding initiative was an overwhelming success, motivating 92 communities to act a full year ahead of the statutory deadline.

"Communities across the state are stepping up to help create more housing that Coloradans can afford and some are even doing it ahead of schedule. We want to help support those communities who are moving faster to break down barriers to housing that Coloradans can afford and continue our work to support more housing for every budget," said Governor Jared Polis.

"We are seeing incredible momentum as communities of every size work to make the review process for housing that's affordable easier and faster," said Maria De Cambra, DOLA Executive Director. "By streamlining processes and eliminating administrative delays, communities can build homes for Coloradans more efficiently. DOLA will continue to support local government partners in our shared goal for more housing now."

LPC Grant Funding to Support Local Communities

In addition to the Fast Track incentive, the spring funding cycle for the Local Planning Capacity (LPC) Grant Program is now open through February 26, 2026. This cycle offers the final opportunity for local governments to secure funding to support Fast Track implementation before the December 31, 2026, deadline.

The program is currently supporting 119 local governments which is 55% of all eligible jurisdictions. This funding is also one of the most transformative wins for rural areas that often have limited capacity to provide the administration needed to be successful in the housing space. These funds allow rural jurisdictions to hire consultants or dedicated planners so they can successfully implement fast-track and secure funding through Prop 123 programs to meet their housing goals. In addition to Fast Track implementation, the LPC program supports local and tribal governments' capacity to address housing challenges, implement housing programs/projects, and streamline the development review and permitting process.

Resources and Technical Assistance

DOLA's Fast Track Website has guidance and resources, including a regularly updated list of all jurisdictions with verified fast track policies accompanied by links to policy documents and examples from peer communities.

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