Colorado Springs, Pueblo opts in for Prop 123 affordable housing funds, Monument undecided

COLORADO SPRINGS, Colo. (KRDO) -- Local governments throughout Colorado are considering opting in to Proposition 123.

Colorado voters passed the ballot measure in November 2022, which dedicates a portion of tax revenue to affordable housing. However, cities have to make a three-year commitment to create more affordable housing options before developers can access the funding.

"It's a brand new source of money that is going to be available to help encourage and finance additional affordable housing," said Steve Posey, Chief Housing Officer for the City of Colorado Springs.

Poses said the city chose to opt in to Proposition 123 because they believe the city is facing a large problem with affordable housing. He said opting in is simply carrying out what the voters asked for when this ballot measure passed in November.

Proposition 123 allocates up to 0.1 percent of Colorado's income tax to affordable housing.

If cities agree to a three-year commitment to increasing the amount of affordable housing by 3% each year, the cities will receive three years of funding toward housing projects.

Posey said it's an easy choice for Colorado Springs.

"We actually have been successful developing over a thousand new units of affordable housing year over year since 2019," said Posey.

At the end of Colorado Springs' three-year commitment, the city needs to have developed about 2,500 units total to hold up its end of the deal — something the city is already doing.

Posey said though the city needed to make this commitment, the money won't go toward his department or the city at all. Instead, the funding will go directly to the individual developers working on affordable housing projects.

Posey said he hopes this will create more opportunity for young adults and new people to move to the city.

"We want those folks to be able to put down roots here," said Posey. "Being able to buy a house is something that we really want to make sure that they can do."

KRDO reached out to the City of Pueblo and the Town of Monument to see if they plan on opting in for Proposition 123. Pueblo officials said they plan to join. The Town of Monument has yet to respond.