The LPC grant program fall funding cycle runs from Friday, August 22 to Monday, September 22, 2025. Updated grant guidelines can now support additional project types including comprehensive plans and land use code updates, as well as preliminary planning and analysis work needed to develop affordable housing. The intent of the program is to increase the capacity of local governments to address affordable housing, especially by expediting development review, permitting, and zoning of affordable housing.
DOLA also offers a new incentive for early adoption of fast track providing up to $50,000 in grant funding with no local match to local governments that adopt a Proposition 123-compliant expedited development review process by December 31, 2025. Jurisdictions that adopt between January 1 - June 30, 2026, will also be eligible for incentive awards, though awards will be less than $50,000. This funding can be used for any eligible planning activities.
Additionally, DOLA is funding a cohort of local governments interested in piloting AI to streamline the development review process. Learn more about all of these opportunities below and on our website!
LPC Grant Funding Cycle
The current funding cycle runs from Friday, August 22 until Monday, September 22, with applications due at noon. Interested applicants must also schedule a pre-application meeting with LPC Program staff 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 intent of the LPC program is to increase the capacity of local governments to advance affordable housing goals, especially to streamline the development review process. LPC can fund projects that are broad in scope, as long as:
- a) your jurisdiction is currently working on fast track or has already adopted/implemented fast track (or implemented a system to expedite the development review process for affordable housing projects, which meets the requirements of CRS § 29-32-105(2) et seq) and
- b) your proposed project would help your jurisdiction advance affordable housing goals (directly or indirectly) in order to achieve your Prop 123 commitment target.
Projects are generally eligible/allowable if they are:
- a) focused on land use planning or community development activities; and
- b) will lead to new affordable housing (either preservation or new development; or
- c) add capacity to a local or tribal government’s planning efforts to achieve Proposition 123 goals (fast track or unit counts).
All application materials are posted on the LPC grant program website.
Updated Program Guidelines: Responding to Community Needs
Through our ongoing conversations with communities across Colorado, we've learned about critical gaps in funding availability that were preventing local governments from advancing their affordable housing goals. Communities consistently shared valuable feedback about the resources they needed to move promising housing concepts forward. In response to what we heard, we are excited to announce that DOLA has published new Program Guidelines for the Prop 123 Local Planning Capacity (LPC) grant program with expanded eligible uses that better serve community needs.
Primary Changes
- Preliminary planning and analysis costs are now eligible uses of LPC funds, as long as the proposed project meets the parameters outlined in Appendix C of the program guidelines. Generally, LPC funds can support early planning efforts such as feasibility studies, market studies, land surveying, preliminary site planning, master plans, infrastructure planning, and more. By funding these crucial early-stage activities, we can help communities transform housing concepts into viable, fundable projects that will ultimately contribute to meeting local Proposition 123 commitments.
- Comprehensive land use code updates, or comprehensive plan updates are now considered eligible projects, but will require a 50% match.
These enhancements reflect months of dedicated outreach and collaboration with communities across the state. We are confident that these additions will significantly strengthen communities' ability to advance meaningful affordable housing projects from concept to reality.
Early Adoption of Fast Track = $50,000 incentive
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 also 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.
Piloting AI to Streamline Permitting or Plan Review
Is your community development team interested in piloting AI software to streamline the development review process? DOLA is welcoming additional communities to join this pilot project and will provide grant funds to support local governments’ software costs. DOLA is specifically looking for communities whose development review process is typically longer than 90 days.
Interested participants should contact Robyn DiFalco for more information.
Learn more
Please visit the LPC webpage to learn more and find helpful resources including a recording and slides from our recent LPC informational webinar.