NDC Supports Proposition 123

by | Oct 25, 2022 | Policy

Neighborhood Development Collaborative stands in favor of Proposition 123.  We’ve joined a growing coalition of 225+ organizations and local community leaders supporting this measure, which is on statewide ballots on November 8, 2022.  We believe voting yes on Prop 123 will finally give local communities the tools we need to address Colorado’s deepening housing crisis.

More than half of Coloradans can no longer afford to live here, and 86% of our state’s residents say the rising cost of housing is a serious concern. Without raising taxes, Proposition 123 requires that a portion of the state budget is set aside to fund programs that will make housing more affordable for working people, including providing down payment assistance for first-time homebuyers, lowering rent, and building more affordable housing.

This is the first time in state history we’ve given voters a chance to weigh in on this matter. We hope you’ll join us in voting yes on Prop 123.

How did Colorado’s housing crisis come to be?

  • Over the last 50 years, wages in our state have stagnated while home sales and rental costs have more than doubled.
  • Housing prices in Colorado have increased by more than 133%, resulting in a median home price of more than $570,000 dollars.
  • More than 50 percent of our renters are housing burdened, meaning many of them can no longer afford to live in the communities they serve.
  • We’ve built 40% fewer homes from 2010 to 2020 than we did from 2000 to 2010, leaving supply dangerously low.

Click to explore an interactive map showing lack of affordable housing for Colorado teachers

What is Proposition 123?

Without raising taxes, Prop 123 will make housing more affordable for hard-working Coloradans like teachers, firefighters, nurses, small business owners and seniors who can no longer afford to live here by providing down payment assistance for first-time homebuyers, lowering rent, and building more affordable housing across Colorado. Prop 123 would do this by requiring a small portion of the state budget be set aside to help fix Colorado’s housing crisis.

How do I vote on Proposition 123?

Proposition 123 is part of the Colorado 2022 general election. To take part in the election, you must be over the age of 18 years and registered to vote in the state of Colorado. You can vote using your mail-in ballot by 11/8 or you can vote at an official polling location on 11/8.

How can I learn more?

Visit the Yes on 123 website and social media accounts:

How can I get involved?

  • Sign up for the Prop 123 campaign newsletter, which will provide updates on the campaign as well as ways to get involved.
  • Show your support by picking up a yard sign from these statewide locations — you can also email a request for yard signs directly to the campaign at info@yeson123co.com.
  • Consider sharing these messages on your social media platforms or with your friends, family and neighbors.

 

  • Email the campaign directly at info@yeson123co.com to share your story, especially if you’ve experienced our housing crisis firsthand and especially if you or someone you know is an essential worker like a teacher, nurse, firefighter or first responder.
  • Post on social media with the following hashtags:
    • #yeson123co
    • #makecoaffordable
    • #affordablehousing
    • #housingcrisis
    • #election2022
    • #coleg
    • #copols
    • #copolitics

Questions Your Fellow Voters Are Asking

Will this ballot measure impact TABOR refunds?
In the best case scenario, this measure will not impact future TABOR refund checks at all. In the worst case scenario, in a year like 2022, when taxpayers are getting $750 TABOR refund checks, $43 would be withheld to support this measure.

Isn’t withholding $43 from our TABOR returns a tax hike?
This is not a tax hike, because the ballot measure taps into the state’s existing state income tax revenue. Additionally, it’s possible our legislators could absorb this program into the state budget moving forward, and your TABOR refunds will not be impacted.

Does Prop 123 cut into the general fund and force budget cuts to services like education, especially if the income tax reduction in Prop 121 passes?
All available forecasts project large enough TABOR surpluses to fully fund Prop 123 without any impact on the general fund, even if Prop 121 also passes.  In the event of a severe economic recession, the state also has $3 billion dollars in reserves allowing it to offset revenue losses and continue funding Prop 123 and other priorities without any cuts to the general fund.

How will local governments become eligible for funding?
In order to be eligible for funding, a local government must establish a process to prioritize permit reviews for affordable housing projects and make a commitment to increase its number of affordable housing units by at least 3% annually. The commitment must prioritize:

  • high-density housing
  • mixed-income housing
  • projects that promote environmental sustainability
  • affordable housing in communities in which low concentrations of affordable housing exist.

How does Prop 123 help everyday Coloradans get into homes?

Land Preservation — This ballot measure has funds dedicated to securing land for the purposes of affordable housing development, which is a vital piece of this puzzle.

Eligibility — As far as everyday Coloradans are concerned, there are different qualifications to be eligible for housing under this measure, which are dependent upon your location and household makeup. But generally speaking, if a household has an income under 120% of the average median income in the county, that household would be eligible for assistance under this measure.

Rental Assistance & Tenant Equity — When it comes to getting folks into rental units, this is how the measure works: You have direct financing through the ballot measure first that subsidizes developers to create these permanently affordable units. And these units would be made deed restricted, so that occupants would never be asked to pay more than 30% of their household income. And as far as the property owner is concerned, the difference between that affordable rate and the market rate for the unit is financed by the ballot measure.

Subsidized Development & Down Payment Assistance — When it comes to helping folks become first-time homebuyers, this is how the measure works: Say you have a housing developer or a nonprofit who wants to build housing. They would get subsidized by this ballot measure to build the housing stock and sell it at an affordable rate. The homeowner would then be supported with down payment assistance to be able to purchase the home. Once they’re in the home, the homeowner pays a mortgage like any other homeowner, and they’re able to stay in the home as long as they want.

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