Affordable Housing Transformational Task Force

The Colorado has a once-in-a-generation opportunity to transform its affordable housing system and make sure it works for Coloradans in every corner of the state. The $400 million in unallocated funding from the “American Rescue Plan Act of 2021” (ARPA) offers us a chance to make one-time transformational investments that improve access to affordable housing across the state for those experiencing homelessness and for our essential workers with low to middle incomes.

In order to face these challenges, the Governor and General Assembly formed the Affordable Housing Transformational Task Force and Subpanel to develop recommendations in 2021. Comprised of legislators, executive branch representatives, and diverse affordable housing practitioners and experts, the Task Force and Subpanel undertook a deliberative, iterative, and transparent process. Ultimately, the Task Force came to a near-unanimous consensus on all funding recommendations and allocations, as well as agreement on several policy concepts.

The outline below summarizes these transformational investments. Such investments will mean more new affordable homes will be built and that existing homes at risk of becoming unsafe or unaffordable are maintained. It will lead to greater innovation in how homes are built, reducing costs and expanding access. The recommendations will help reduce disparities and address homelessness. They will help people purchase homes that were out of their financial reach, which will help build intergenerational wealth. With this significant investment, Colorado can and must rise to the challenge.

In January 2022, the Affordable Housing Transformational Task Force reached near unanimous agreement on a set of transformational recommendations that will reshape Colorado’s affordable housing system. The Task Force was created to ensure that this once-in-a-generation, one-time investment of $400 million, made possible by the American Rescue Plan Act (ARPA), will allow Colorado to better meet the growing challenge of affordable housing, ranging from addressing homelessness to supporting housing in Colorado’s workforce. With this report, the Task Force submits its consensus recommendations to the General Assembly and the Governor.

Colorado has been working hard to address the affordable housing crisis over the past few years and is on the precipice of major reform. The Strategic Housing Working Group developed recommendations to address affordable housing challenges. The Division of Housing developed an approach to address homelessness. At the same time, the General Assembly passed a number of bills directed at improving, funding, and incentivizing affordable housing. One key ingredient needed to be transformational is sufficient and flexible funding.

ARPA funds provided the impetus to bring together the legislative and executive branches, as well as diverse stakeholders to tackle the affordable housing crisis and determine where investments would be most impactful. The 16-member Task Force was made up of a bipartisan cohort of ten legislators from Colorado’s General Assembly and six agency directors. A 15-member subpanel of diverse affordable housing experts was appointed to advise the Task Force. Additional insights and input were provided through a public survey, stakeholder participation, and public testimony.

The following report lays out the challenges, outcomes, and recommendations. In order to address these challenges, a series of outcomes are described. The following section provides a summary of the final set of recommendations agreed upon by the Task Force, as well as the policies that were discussed. Following the conclusion, are several appendices, including details of the process of developing and finalizing recommendations.

Colorado saw a dramatic decrease (40%) in the number of homes built across the housing continuum between 2010 and 2020. This significant decrease has coincided with a population increase of 14.8% in the state, creating a situation where low supply and high demand have greatly driven up prices. While programs such as the Low Income Housing Tax Credit (LIHTC) and the State Affordable Housing Tax Credit have helped alleviate some of the pressure of construction for low- to moderate-income households, both programs are oversubscribed and unable to meet the demand for these households.

Also Read: Pakistan National Housing Policy