Colorado鈥檚 housing crisis is no longer a distant concern; it is a daily reality in communities across our state across all generations. When people can鈥檛 afford to live in the communities where they work, the whole system feels the strain. Professionals from a spectrum of sectors are being priced out the communities they serve.
Young adults are moving into their parents鈥� basements. Older adults are finding it difficult to downsize in the communities they鈥檝e lived in for decades. Families are commuting farther, placing additional strain on infrastructure and quality of life. Employers are struggling to recruit and retain talent.
In 2022, Colorado voters recognized this challenge and acted by approving Proposition 123, a dedicated funding stream to support income-aligned housing statewide. It was a clear directive: invest in housing solutions that help working Coloradans afford to live in their communities.
That is why the recent decision to advance legislation (House Bill 1360, the Affordable Housing Financing Fund) to divert approximately $130 million from Proposition 123 funds is so concerning.
Colorado’s mayors recognize that balancing the state budget requires difficult choices. But when voters dedicate funding to a specific purpose, especially one as urgent as housing, it is critical that we honor their commitment. Colorado has a strong track record of collaborative problem-solving. That is why these eight Colorado mayors encouraged me to write this piece calling for continued funding of Proposition 123: Broomfield Mayor Guyleen Castriotta; Aurora Mayor Mike Coffman; Louisville Mayor Chris Leh; Parker Mayor Josh Rivero; Littleton Mayor Kyle Schlachter and Golden Mayor Laura Weinberg.
These are not abstract dollars. They represent real projects, real homes, and real opportunities that may now be delayed or lost. One of the most significant barriers to housing production is financing. Without the right financial tools, even the most well-planned housing developments will not move forward.
But here is the fundamental issue: we cannot create new financing mechanisms on one hand while redirecting existing, voter-approved housing funding on the other. Proposition 123 was designed to provide critical and sustained funding for housing in our communities. As written, HB-1360 guts funding, denying communities reliable, long-term investment in housing.
Diverting those funds undermines both the intent of voters and the effectiveness of new legislative efforts. Across Colorado, local governments are already putting Proposition 123 dollars to work in thoughtful and practical ways.
In Broomfield, the city and county utilized these resources to help income-qualified residents achieve homeownership through down payment assistance, and in Louisville, the funds enabled a planning capacity grant that supports a comprehensive housing code rewrite.
In Littleton, the Meadowood Village Cooperative was able to preserve housing by purchasing their manufactured housing community, which ensures community stability and affordable housing preservation for decades to come, also supporting housing diversity and accessible options for senior residents.
In Aurora, this funding supported an 85-unit intergenerational affordable multifamily development. There are many more examples on the Proposition 123 Dashboard website.
These are exactly the types of locally driven, community-specific solutions voters intended — expanding planning capacity, supporting homeownership, preserving existing housing, and building new homes. Simultaneously, local governments are navigating an increasing number of state-level mandates aimed at increasing housing density, often at the expense of local land use authority. We are told these changes are necessary to address the housing shortage. But zoning alone does not build housing.
Financing is the single greatest barrier to delivering income-aligned housing. Rising construction costs, higher interest rates, and infrastructure needs all require substantial financial investment. Local governments are stepping up, updating codes, engaging communities, identifying sites, and building partnerships, but without reliable funding, even the best plans cannot move forward. This is where alignment matters. If the legislature is serious about increasing housing supply, then policy, funding, and local implementation must work together, not at cross purposes.
The path forward is clear. Protect Proposition 123. Ensure that local governments have both the authority and the resources to deliver housing solutions that meet the needs of their communities. Because at the end of the day, this is not just about policy; it is about whether the people who keep our communities running can afford to call them home.
Heidi Williams is the president and CEO of Civic Results and the executive director of the Metro Mayors Caucus. She is the former mayor of Thornton.
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