Department of Local Affairs to Offer $50,000 Incentive Funding for Local Governments Early Adoption of Fast Track Development Review
STATEWIDE - The Colorado Department of Local Affairs’ (DOLA) Division of Local Government (DLG) has set aside up to $2 million for an incentive program to encourage early adoption of fast-track policies, otherwise known as expedited development review. Communities that implement fast-track policies reduce housing costs and boost supply by eliminating delays that drive up project expenses. Local governments that adopt a Proposition 123-compliant expedited review process by December 31, 2025 (one year ahead of the December 2026 deadline) will receive up to $50,000 in grant funding, with no local match required.
“The quicker that applications get processed for housing, the better, and this incentive helps local governments turn around applications even faster,” said Governor Jared Polis.
“We know that time is money in the housing space, and Coloradans want to see more housing that people can afford as soon as possible,” said Maria De Cambra, DOLA Executive Director. “While this work is challenging, speeding up review processes will have a transformative impact on housing supply and affordability across our state.”
Communities that achieve early adoption of fast track will be rewarded with incentive funds that could be used for personnel, software, consultants, professional development or any other planning-related expenses that support advancing housing affordability goals, and are eligible under the Local Planning Capacity (LPC) grant program. Local governments would receive a notice of award once DOLA has verified eligibility.
The next funding cycle for Local Planning Capacity grants will open May 1, 2025 and close on Friday, May 30, 2025 at noon. These funds are only available to those local and tribal governments who have filed a Proposition 123 commitment and are eligible for Proposition 123 funds. This grant program supports local government implementation of Proposition 123 requirements including fast track and other planning efforts that advance affordable housing goals or strategies.
Proposition 123 states that in order to remain eligible for the State Affordable Housing Fund, local governments must demonstrate they have implemented an expedited review process by the end of 2026 for housing projects where at least half of the units are affordable. The law recognizes that revising local regulatory processes takes time, therefore some incentives will also be available for local governments that adopt a compliant expedited development review process by June 30, 2026.
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