The Colorado Department of Local Affairs (DOLA), with funding from HB21-1271, offers state assistance to local governments to promote the development of innovative affordable housing strategies in a manner that is compatible with best local land use practices. HB21-1271 creates three new programs:
- Affordable Housing Development Incentives Grant Program (“Incentives Grant Program”)
- Local Government Planning Grant Program (“Planning Grant Program”)
Affordable Housing Guided Toolkit and Local Officials Guide Program (“Toolkit Program”)
The Community Development Office (CDO) within DOLA’s Division of Local Government will manage the Incentives Grant Program and the Planning Grant Program. This document covers program guidelines for the Planning Grant Program.
Planning Grant Program
The Planning Grant Program provides grants to local governments (municipalities, counties, city/counties) to help them better understand their housing needs and adopt policy and regulatory strategies in order to promote the development of affordable housing and qualify for the Incentives Grant Program. Communities not intending to apply to the Incentives Grant Program may still apply to the Planning Grant Program.
Funding
- Approximately $6,816,000 in funding is available for awards.
- Individual Planning Grant Program awards are expected to be approximately $50,000-$200,000.
- A minimum of 25% local match of the total project cost is required. An applicant experiencing financial hardship may request a reduced level of matching funds and must consult with their DOLA Regional Manager before submitting their application about a reduced match.
- Awards cannot be used to cover administrative expenses (e.g., existing staff, operating costs).
- All funds must be spent before June 30, 2024.
Eligibility
- Eligible entities include municipalities, counties, and city/counties. Awards cannot be made directly to housing authorities (but municipalities or counties can partner with housing authorities).
- The intent of the program is to fund municipal or county planning work that supports a qualifying strategy listed in the menu of strategies or an innovative option not currently on the list.
- Housing needs assessments or similar studies are encouraged where needed as an initial step to complete a qualifying planning project and may be bundled into the Planning Grant Program application.
- Applicants may request funding for more than one planning project as needed to adopt the qualifying number of strategies to compete for the Incentives Grant Program (i.e., multiple code updates may be bundled in the same application).
- “Affordable housing” is defined in the statute as up to 80% AMI for rental housing and up to 140% AMI for affordable homeownership.
Scoring Criteria
- Readiness: The applicant clearly shows they are ready to begin work and has a reasonable timeline for completion. The applicant has indicated if they plan to apply for the Incentives Grant Program (though this is not required).
- Capacity: The applicant has organizational experience with and capacity to manage grants and to manage the overall project. The applicant has considered utilization and enforcement of new or updated planning tools and regulations as part of their strategy evaluation.
- Impact on Housing: The project will include developing and adopting a strategy for the applicant to qualify for the Incentives Grant Program, per the menu of strategies. The applicant will be scored on the general estimated impact the tool(s) will have toward meeting the documented affordable housing need in that community, with consideration of long term affordability.
- Political Support: The applicant must show broad political and stakeholder support, via adopted plans, policies, and/or letters of support, to adopt the proposed strategy(ies) to support the development of affordable housing. If building support is part of the project, the applicant must demonstrate there is a thoughtful plan in place to build stakeholder support through an inclusive and equitable process. Inclusive community engagement is a critical component of every planning effort; applications will be evaluated on the extent and efficacy of their community and stakeholder engagement plan. The most competitive applicants will demonstrate how this project is part of a larger strategy to promote the development of affordable housing in the community.
- Equity, Diversity, and Inclusion: The applicant must show they have developed an inclusive stakeholder engagement strategy. Any process to conduct a housing needs assessment or adopt a new strategy should ensure the project will promote equity in affordable housing. Applicants should assess impacts of the work on marginalized and vulnerable populations throughout the process and on an ongoing basis. Competitive applicants will engage a wide array of stakeholders in actual design of housing solutions.
- Local Match: A minimum 25% local match of the total project cost is required. An applicant experiencing financial hardship may request a reduced level of matching funds and must consult with their DOLA Regional Manager before submitting their application.
- Extra Points: Extra points may be earned if an applicant can show the planning project:
- considers community benefits such as early childhood education centers, age-friendly planning, energy efficiency, broadband capacity, public health outcomes, economic diversification, transit oriented development, etc.
- develops a creative or innovative approach to promoting the development of affordable housing.
DOLA will also consider geographic diversity, and to a lesser degree, financial need in making final award determinations.
Application and Award Process Timeline
- Applicants are strongly encouraged to consult with their DOLA Regional Manager and to get input from CDO staff before submitting.
- Submit applications through the Division of Local Government Online Grants Portal per the Notice of Funding Available (NOFA). Visit the CDO website for more information.
- The DOLA Executive Director will make final award decisions.
- Applications will be reviewed and awarded within 2 months. Staff will work to finalize grant agreements or contracts within 2 months.
- No work may begin on the project until the grantee receives a signed contract. Local governments must follow their own procurement rules.
- Grantees are encouraged to complete their qualifying planning work as quickly as possible so they may compete for the Incentives Grant Program.
- Note: If the grantee does not complete a good-faith effort to adopt the planning strategy(ies) outlined in the application, DOLA may request the awarded funds be returned to DOLA.
Any questions or concerns may be directed to Mitch Hendrick or Nicola Donovan.