Larimer County to Streamline Affordable Housing Approvals to Unlock State Grant Funding
Larimer County will establish a 90-day expedited review process for affordable housing projects to meet state requirements under Proposition 123, a move that could unlock $50,000 in additional grant funding for county planning projects while helping address the region's growing housing shortage.
County planning staff presented the proposal to commissioners during an October 20 work session, explaining that completing the expedited process by December 31, 2025, positions Larimer County to receive funding through the state's Local Planning Capacity Grant Program, administered by the Colorado Department of Local Affairs.
The expedited review timeline applies separately to site plan reviews and building permit reviews for qualifying affordable housing projects, with each process limited to 90 days. Extensions are available only with written consent from both the county and the applicant.
"The 90 days is the complete process," said Matt Lafferty, principal planner with Larimer County Community Development. "If the applicant has it in their hand, then the clock continues to turn."
County Committed to 9% Increase Over Three Years
Larimer County formally opted into Proposition 123 on September 26, 2023, filing a three-year commitment to increase affordable housing units by 9% by December 31, 2026. The county established a baseline of 1,256 affordable housing units, requiring the creation of 113 additional units over the commitment period to meet state requirements.
Proposition 123, approved by Colorado voters in November 2022, dedicates revenues to the State Affordable Housing Fund and requires participating jurisdictions to increase their affordable housing stock by 3% annually for three years. Under Colorado law, affordable rental housing must be available to households earning at or below 60% of Area Median Income, while affordable for-sale housing targets households at or below 100% of AMI. Housing costs cannot exceed 30% of household income under these standards.
The county faces a substantial housing gap. Larimer County's 2024 Housing Needs Assessment identifies the need for approximately 7,200 additional affordable units by 2030. Current production rates, including Proposition 123 commitments, aim for roughly 400 units annually through 2026, but annual need is estimated at 700 to 800 units, creating a projected deficit of 3,500 to 4,000 affordable units by 2025.
As of 2024, Larimer County's median household income was approximately $90,000, with a median single-family home price near $585,000 and median two-bedroom apartment rent around $1,800 monthly, according to county budget documents. Both home prices and rents increased 35% to 40% between 2019 and 2024, while incomes rose only 15% to 18%.
Process Optional for Developers, Includes Denial Authority
The expedited review process is optional for developers. Projects with complex conditions or extended timelines can opt out and follow standard county review procedures.
Commissioner Jody Shadduck-McNally questioned whether the county maintains authority to deny projects that fail to meet county requirements during the expedited timeline.
Rebecca Everett, Community Development Director, confirmed the county retains full denial authority. "There's not a requirement to approve the projects," Everett said. "If we have an applicant that's non-responsive or a project that is just very complex and needs more time, we would be working with the applicant and that option would exist to deny a project if it just does not fit with the county's requirements."
The structured process includes set timeframes for county review and mandatory turnaround deadlines for applicant resubmittals. The county could require applicants to sign agreements committing to those timeframes upfront, with triggers or consequences if either party fails to meet deadlines.
Lafferty emphasized the expedited process applies only to administrative approvals like site plan reviews and building permits. Subdivisions, special reviews and rezoning applications, which require more extensive evaluation, remain subject to standard timelines.
Grant Funds to Support Planning Capacity
The $50,000 Local Planning Capacity Grant supports jurisdictions implementing or planning systems to expedite affordable housing development review processes. Eligible uses include process redesign, land use code reform, staff training, technology upgrades and project management for cross-departmental housing improvements.
Fort Collins recently received a $200,000 Local Planning Capacity Grant to fund process improvements for affordable housing approvals. More than 50 Colorado jurisdictions have received such grants since the program began, with awards ranging from $25,000 to $200,000 depending on jurisdiction size.
Commissioner John Kefalas questioned how the county ensures accountability during the expedited timeline. "That doesn't sound very expedited to me," Kefalas said after calculating that 90 days for site plan review plus 90 days for building permits totals 180 days.
Lafferty explained the county's current processes can take six months to a year and a half depending on application complexity. "This will force us into doing this in a 90-day timeframe and that includes all parties," Lafferty said. "It's not a start-stop process like a lot of our stuff is."
Deadline Critical for Continued State Funding
Jurisdictions must establish expedited review processes by December 31, 2026, to remain eligible for Proposition 123 funding. Counties failing to implement fast-track processes by that deadline become ineligible for state affordable housing funding indefinitely until they achieve compliance.
Counties that fail to achieve the required 9% affordable housing increase over three years become ineligible for Proposition 123 funding for the first year of the next three-year cycle, though no clawback of previously received funds occurs.
Everett said staff plans to present a full overview of the expedited process at an upcoming Monday work session before bringing a formal resolution to commissioners for approval. Commissioner Susan Stevens was absent from the October 20 meeting, and commissioners indicated they want to ensure all board members understand the proposal before voting.
"Why don't we take a look at our upcoming Monday work session agendas and plan to come with a full presentation on what's proposed," Everett said.
The county must adopt both a resolution establishing the expedited process and corresponding land use code amendments by year-end to meet state deadlines and secure the additional grant funding.