How Prop 123 is
Redefining Housing
Colorado is pioneering groundbreaking strategies that go beyond traditional affordable housing funding. From wealth-building for renters to the largest state investment in modular housing, Prop 123 is changing the game.
0.1% of Income Tax
Dedicated funding without raising taxes. Redirects existing revenue to affordable housing.
170,000 Units
Goal to create 170,000 houses and rental units over 20 years across Colorado.
3% Annual Growth
Local governments commit to 3% annual growth in affordable housing to access funding.
Tenant Equity Vehicle
For the first time in the nation, renters can build wealth just like homeowners. The Tenant Equity Vehicle redirects investment returns directly to tenants living in Prop 123-funded developments.
Approximately $500 per household annually, delivered via debit card
Average improvement among participants in pilot programs
Down payments, emergency savings, groceries, or other household needs
“This ability to actually build equity when you're not a homeowner is a game changer for the people that we work with.”
— Jonathan Cappelli, Neighborhood Development Collaborative
How It Works
State Provides Low-Cost Loans
Colorado offers below-market financing to developers building affordable housing
Interest Payments Redirected
Instead of keeping lender profits, the state shares returns with tenants
Tenants Build Wealth
After 1 year of residency, tenants receive cash payments via the Stake platform
Full Statewide Launch
January 2026
Three Pillars of Impact
Prop 123 funding flows through three main agencies, each addressing different aspects of Colorado's housing needs.
OEDIT
Office of Economic Development & International Trade
Receives 60% of Prop 123 funds, administered by CHFA for:
- Equity investments in rental developments
- Land banking for future housing
- Low-interest development loans
DOH
Division of Housing (DOLA)
Administers programs serving households directly:
- Down payment assistance
- Homelessness prevention
- Tenancy support services
DLG
Division of Local Government (DOLA)
Builds local capacity to accelerate housing:
- Planning department grants
- Fast-track permitting support
- Zoning and land use assistance
Concessionary Equity: The Missing Middle
Traditional funding leaves a critical gap. LIHTC covers households at 60% AMI and below. Market-rate developers target 120%+ AMI. But what about the workforce families in between?
Market-Rate
120%+ AMI
Uncapped returns incentivize market-rate development
LIHTC
30-60% AMI
Tax credits subsidize low-income housing but don't cover workforce housing
Prop 123 Equity
60-120% AMI
Blended equity creates competitive returns while ensuring affordability
Why Concessionary Equity Works
Affordable workforce housing has limited Net Operating Income (NOI) because families earning 60-120% AMI can't pay high rents, but construction costs remain the same. Without incentives, developers choose market-rate projects with better returns.
Prop 123's concessionary equity accepts a lower return, blending with traditional equity to make workforce housing financially viable while still providing competitive returns to private investors.
Market-rate investors get competitive returns when blended with Prop 123 equity
Public-private blending builds more housing than public capital alone
Teachers, nurses, firefighters, and essential workers can afford to live where they work
$38 Million for Innovation
The largest one-time investment by any state into the modular housing industry. Colorado is backing cutting-edge construction technologies to build homes faster and more affordably.
8
Manufacturers Funded
4
Technology Types
Building Smarter, Faster
Traditional construction can't keep pace with Colorado's housing demand. Prop 123 is investing in innovative manufacturing technologies to accelerate production.
CHFA Program Links
The Colorado Housing and Finance Authority administers Prop 123's Affordable Housing Financing Fund. Explore their programs below.
See the Impact in Action
Explore how Prop 123 funding is transforming communities across Colorado with interactive data visualizations.