Local Planning Capacity Grant Program
The intent of the program is to increase the capacity of local government planning departments to address affordable housing, especially by expediting development review, permitting, and zoning of affordable housing. The top priority for funding award decisions is to support local governments’ efforts to implement the new fast track requirements in Proposition 123 but grant funds can also support increasing planning department capacity to advance local affordable housing goals, implement strategies to increase the number of affordable units built, and to achieve Prop 123 commitments.
Application Process
- The next funding cycle opens August 22, 2025, and applications are due September 22, 2025 by 12 p.m.
- Interested applicants are encouraged to attend an informational webinar on Thursday, August 14, 2025 from 11:00 am - 12:30 pm.
- Interested applicants must also schedule a pre-application meeting with the LPC Program Manager in order to access the grant application form online. The purpose of this meeting is to get feedback on the proposed project and technical assistance before submitting an application.
- The Notice of Funding Availability (NOFA) and the online application form will be published in the DLG Grants Portal on the opening date of each application cycle.
- Applications will be open for approximately one month, and award decisions will be announced approximately one month after the application deadline.
- The spring 2026 funding cycle will happen in February 2026 with specific dates to be announced.
What You Need to Know
- Top priorities for funding award decisions are:
- to support adoption/implementation of expedited review of affordable housing; and
- to support local and tribal governments’ capacity to address affordable housing goals, implement strategies to increase the number of affordable units built, and other strategic planning efforts to achieve Proposition 123 local government commitments.
- Award amounts: The suggested maximum award amount is $250,000. Larger grant requests may be considered, particularly for multi-jurisdictional projects.
- Local match: A 20% local match is required, except for comprehensive plan and land use code updates, which require a 50% match. The local match cannot be covered by other DOLA grant funds. Applicants that can demonstrate financial hardship may request a reduced match waiver before submitting their application.
Who Should Apply
- Eligible entities include municipalities, counties, and tribal governments whose Prop 123 baseline and commitment have been accepted by DOLA.
- Collaborative, multijurisdictional or regional projects are allowed, with one entity acting as the lead fiscal agent for the application and project implementation.
New Incentive for Early Adoption of Fast Track
DOLA has announced an incentive program to reward early adoption of fast track, setting aside $2 million of funding.
- Local governments that adopt a Proposition 123-compliant expedited development review process by December 31, 2025 will receive up to $50,000 in grant funding, with no local match required. Local Planning Capacity Grant funds will be awarded and must be spent on eligible planning activities.
- Jurisdictions that adopt between January 1 - June 30, 2026, will be eligible for incentive awards, though awards will be less than $50,000.
- For more information, view the Press Release, or review the fact sheet for more details on this incentive opportunity.
Proposition 123 states that, in order to remain eligible for Proposition 123 funds in the next three-year cycle (2027 to 2029), local governments must demonstrate they have implemented an expedited review process for housing projects where at least half of the units are affordable. The Local Planning Capacity Grant Program provides funding to support local governments with implementation of this requirement.
While the law states that expedited review must take place within 90 calendar days of a complete application submission, there are many additional details to consider. In order to help local governments navigate the expedited review (fast-track) requirements of Proposition 123, the Department of Local Affairs (DOLA) has published guidelines. DOLA’s guidance does not prescribe an approach but instead provides a list of strategies and approaches. Each community will need to determine which strategies are most effective for their local processes.
Learn More About the Expedited Review Requirements in Proposition 123
- Approximately $6 million is available annually from July 1 – June 30.
- In fiscal year 2025 – 2026, the total available to be awarded as grants is $6.2 million.
- Application cycles are scheduled twice annually in fall and spring, typically in September and February.
- Interested applicants are encouraged to register for the LPC Grant Program Informational Webinar on Thursday, August 14 at 11:00 a.m.
- LPC Program Guidelines (Version 3, dated July 29, 2025)
- LPC Grant Application Template of Questions (Version 5, updated April 22, 2025 - Word Download)
- LPC Grant Application Form View (version 5, updated April 22, 2025)
- LPC Grant Budget Worksheet (Version 3, updated July 24, 2024 - Excel Download)
- Proposition 123 Fast Track Guidance webpage
- Proposition 123 General Main webpage
Current grantees working on project implementation will find quarterly and monthly reporting forms, recordings of New Grantee Orientation meetings, and more on the Resources for LPC Grantees page.
Contact Information
Initial Interest
For direct inquiries regarding initial program interest, contact your Regional Manager.
Program Contact
Robyn DiFalco, LPC Grant Program Manager
robyn.difalco@state.co.us or 720-682-5202
Jessica Rupe, LPC Grant Program Assistant
jessica.rupe@state.co.us, 720-557-4902
Schedule a meeting with the Program Manager to discuss a potential Local Planning Capacity proposal.