The Colorado Department of Local Affairs (DOLA), with funding from HB22-1304 and in partnership with the Colorado Energy Office (CEO) and Colorado Department of Transportation (CDOT), has established a new grant program for municipalities and counties.
The Strong Communities Planning Grant Program is intended to support local governments in planning for sustainable growth and development patterns and affordable housing into the future. This program provides planning grants to help communities align policies and regulations to locate affordable housing in infill locations near jobs, transit, and everyday services; ensure new neighborhoods have housing of all types, sizes, and price points; and direct housing to areas with access to multimodal transportation options.
The Community Development Office (CDO) within DOLA’s Division of Local Government will manage the Strong Communities Grant Program.
Funding
- Available funding: Approximately $4 million in funding is available for planning grant awards.
- Funding source: Funding for Strong Communities is appropriated from the Affordable Housing and Home Ownership Cash Fund which originated from the Federal Coronavirus State Fiscal Recovery Fund (also referred to as State and Local Fiscal Recovery Funds, or SLFRF). See more information about managing this federal stimulus grant on the Strong Communities web page.
- Grant maximum: Suggested maximum grant award amount for individual jurisdiction planning grants is $200,000, but larger grant requests to adopt more land use strategies, take a multi-jurisdictional approach, or cover staffing needs may be considered.
- Expiration of funds: All grant awards will be made before September 2024. To meet program close out deadlines, all grant and matching funds must be spent by October 31, 2026. No extensions can be granted.
- First funding round: Applications will open August 1 and are due October 1, 2023.
- Second funding round: More information about a second round of planning grants may be made available in early 2024, depending on available funding.
- Local match: A minimum of 10% local cash match of the total project cost is required. An applicant experiencing extreme financial hardship may request a reduced level of matching funds from DOLA staff before submitting their application. Local cash match does not include other grant funds.
Eligibility
Applicants
Eligible entities include municipalities, counties, and city/counties. Awards cannot be made directly to housing authorities or regional governments, but partnerships are encouraged where appropriate.
Planning Initiatives
- The intent of the program is to fund municipal or county planning work that supports adoption of one or more qualifying strategies from the land use best practices list or other innovative and impactful strategies that align with the goals of the program.
- Housing needs assessments or similar studies are encouraged where needed as an initial step to inform a qualifying planning project, but applications for the Planning Grant Program must also include plans to adopt a qualified implementation strategy (i.e., any resulting grant agreement will require adoption of at least one qualifying strategy).
- “Affordable housing” for this program is defined in statute as up to 140% AMI for ownership in most areas and up to 160% AMI for homeownership in rural resort communities. The AMI for rental properties is 140%. Local government definitions of affordable housing may differ from this standard but should align (the local definition shouldn’t exceed these maximums).
Expenses
Awards may be used to cover administrative expenses, including staffing. Staffing funds may be used for grant administration (generally up to 20% of the total award), as well as for community engagement and championing this project (generally up to 30% of the total award). The overall amount that can be spent for staff capacity cannot exceed 50% of the total award. See the FAQ document for more details on what this program can fund and the rules around spending and documentation for grant management.
Scoring Criteria
- Readiness & Capacity: The applicant clearly shows they are ready to begin work and has a reasonable timeline for completion to meet the October 31, 2026 deadline. The applicant and its partners have the organizational experience with and capacity to manage grants and to manage the overall project. The applicant can demonstrate long-term capacity and has considered, or through this process will consider, utilization and enforcement of new or updated planning tools and regulations as part of their strategy evaluation.
- Impact on Housing and Development Patterns: The project will include developing and adopting one or more strategies from the list of land use best practices. The applicant will be scored on the general estimated impact the strategy(ies) will have to improve sustainable development patterns and meet the documented affordable housing need in that community. 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.
- Broad, Sustained 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. Applicants will be assessed on the extent and efficacy of their community and stakeholder engagement plan.
- Equity, Diversity, and Inclusion: Inclusive community and stakeholder 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. 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 the long-term impacts of the policy(ies) on marginalized and vulnerable populations throughout the process and impacts of the strategies on these populations. Competitive applicants will engage a wide array of stakeholders in designing housing solutions.
- The most competitive applications will be to adopt policies that:
- address community benefits such as early childhood education centers, broadband capacity, public health outcomes, economic diversification, transit oriented development, etc.;
- improve accessibility, such as age-friendly planning or ADA accessibility guidelines;
- include long-term impacts such as the reduction of greenhouse gas emissions, support for renewable energy and water conservation, green building guidelines, etc.; or
- reduce vehicle miles traveled, such as providing standards for transit-oriented development or prioritizing integrated multimodal transportation.
- DOLA may 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 an application.
- 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 on funding opportunities.
- Round 1 applications will be accepted August 1 – October 1. Applications will be reviewed and awarded by January 2024. Staff will then work to finalize grant agreements within two months.
- The DOLA Executive Director will make final award decisions.
- No work may begin on the project until the grantee receives a signed grant agreement from DOLA.
- Any contracts that local governments enter into in support of the program must include a competitive bidding process, as well as their own procurement rules.
Note: If the grantee does not complete a good-faith effort to adopt planning strategy(ies), DOLA may request the awarded funds be returned to DOLA.
Program Contacts
Lisa Loranger
Program Manager
303-565-6200
lisa.loranger@state.co.us
Moira Blake
Program Assistant
720-417-5696
moira.blake@state.co.us