Proposition 123 - Colorado Affordable Housing Fund
Overview
Passed by Colorado voters in November 2022, Proposition 123 established the State Affordable Housing Fund to advance the development and preservation of affordable housing across Colorado. It dedicates a portion of state income tax revenue to housing programs.
Fund Allocation
- 40% directed to the Colorado Affordable Housing Support Fund
- 60% directed to the Colorado Affordable Housing Financing Fund
- Programs promote homeownership, prevent homelessness, fund emergency rental assistance, and support affordable housing development
Key Programs Under Prop 123
- Emergency rental assistance and supportive services (funded through DOLA)
- Affordable rental housing development (for units at or below 60% AMI)
- Homeownership programs
- Tenant Equity Vehicle (TEV): Launched January 2026, this program shares Prop 123 earnings with tenants to help build savings for down payments or other needs
Affordable Housing Definition
Under Prop 123, affordable housing means rental housing at or below 60% Area Median Income (AMI), costing the household less than 30% of monthly income.
2026 Budget Challenges
- Colorado's state budget proposal would cut $130 million from Prop 123
- Cuts most sharply affect low-income rental apartment funding (slashed by ~75%)
- The end of pandemic-era one-time federal funds is forcing reductions across housing programs statewide
How This Affects You
Prop 123 doesn't have a direct individual application; it funds the programs that provide assistance. The programs it supports include:
- Colorado Emergency Rental Assistance (ERAP)
- Affordable housing developments statewide
- Homeownership assistance programs
Contact
- DOLA Prop 123 FAQ: cdola.colorado.gov/prop-123-frequently-asked-questions
- Prop 123 Funding Opportunities: cdola.colorado.gov/prop123-funding-opportunities
- Prop 123 Impact: prop123.works