Wellington renews Proposition 123 pledge after winning housing grant

The Wellington Board of Trustees has renewed the town’s commitment to Colorado’s Proposition 123 affordable housing program for the 2027-2029 funding cycle, weeks after the town received a $2.88 million grant to support local housing work.

At its July 28 regular meeting, Planning Director Cody Bird told trustees the town had met its obligations for the 2024-2026 cycle, even though Wellington entered the program in the third year of that commitment. He recommended that the town opt in again for the next three-year cycle, and trustees voted unanimously to do so.

Proposition 123, approved by Colorado voters in 2022, directs 0.1% of state income tax revenue each year to affordable housing efforts. Local governments must opt in for a three-year funding cycle and agree to benchmarks that include increasing affordable housing stock by an average of 3% annually and using an expedited review process for affordable housing developments.

The town’s recent grant came from the Colorado Energy Office through the Local IMPACT Accelerator Grant program. According to the town, the money will be used to review and update land development policies, support accessory dwelling units and create a rebate program to lower development fees for qualifying projects.

Mayor Rebekka Dailey said in a statement that access to affordable housing is “one of the vital functions of local government.” Bird said the grant would help the town build on its existing work and make it easier to provide more housing options. The town also said the grant and Proposition 123 commitment will help address gaps identified in a 2025 housing needs assessment.