Aurora delegation town hall on state housing efforts

1. DOLA’S DIVISION OF HOUSING
February, 17, 2023

2. DOLA’S Division of Housing
Created in statute in 1970, the Division
of Housing (DOH) within the Department
of Local Affairs (DOLA) partners with
local communities to create housing
opportunities for Coloradans who face
the greatest challenges to accessing
affordable, safe, and secure homes.
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3. DOLA’s Division of Housing
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Working with the State Housing Board, DOH supports projects
ranging from homelessness prevention to homeownership.
Our work includes:
● Increasing and preserving Colorado’s inventory of affordable housing
● Managing rental assistance vouchers
● Creating and supporting collaborative approaches to end homelessness
● Regulating Mobile Home Parks, & the construction & installation of
factory-built structures
● Creating accessibility through review/approval of home modifications
● Emergency Recovery from natural disasters and the COVID-19
pandemic.

4. Division of Housing’s Impact in Colorado
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DOH assists developers, housing authorities, non-profit agencies,
and local governments in creating affordable housing through
gap funding for acquisition, rehabilitation and new construction.
These grants and loans are competitive and funding is based on
timing, availability and department priorities.

5. Division of Housing’s Impact in Colorado
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DOH awards generally make up roughly 10% of the total capital
stack of affordable housing development projects. This means
that every $1 of state and federal funds awarded by DOH is
leveraged by about $10 in other funds.
During SFY22, DOH capitalized on a 500% increase in funding
through historic investments at the state and federal levels to
award nearly $245M to help local communities create over
12,600 new affordable housing units.

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Prop 123 - Affordable Housing Support Fund
With the passing Proposition 123, DOH receives 40% of funds on July 1, 2023. The portion transferred to
Affordable Housing Support Fund for DOH is estimated to be:
● $58 million from 2022-23 budget year (transferred July 1, 2023)
● $116 million from 2023-24 budget year (transferred July 1, 2024)
DOH will utilize funds for:
● Homeownership; Homelessness; Local planning capacity thru Division of Local Government (DLG);
and Local Government Affordable Housing 3-yr Commitment baseline assessment and ongoing
process.

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Local Government Commitments
Deadlines for municipalities and counties for unincorporated:
● Initially by November 1, 2023
● Subsequent 3-year cycles also by November 1st
Required to first develop a baseline of affordable housing:
● The American Community Survey (ACS)
● Comprehensive Housing Affordability Strategy (CHAS) - HUD retabulations of ACS
● DOH method - if the two above will not work

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Local Government Commitments
Petition:
● Different jurisdiction Area Median Income (AMI)
● Neighboring county’s AMI
● State AMI
Objective:
● Increase baseline # of affordable housing by 3% each year
○ New construction or converted from unaffordable
○ Must increase by at least 9% by December 31, 2026

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Local Government Commitments
Next Steps:
● February 21st - 123 framework and baseline data sent
● March - stakeholder engagement workshops
● May 1st - start commitment window
● July 1st - funding is available
Objective:
● Increase baseline # of affordable housing by 3% each year
○ New construction or converted from unaffordable
○ Must increase by at least 9% by December 31, 2026

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Emergency Rental Assistance Program (ERAP)
DOH received $451 in federal dollars:
● Direct results of the COVID-19 pandemic
○ Over 90% spent
● November 2022 - stopped taking applications
○ Expect to exhaust all funds in the next quarter of 2023
Statistics:
● Over 40,000 households served
● $351 million in direct rental assistance
Current legislation: SB23-124 - $8 million to continue

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Thank You!