Local Planning Capacity Grant Program

The Local Planning Capacity Grant Program is administered through the Colorado Division of Local Government and is intended to increase the capacity of local governments to advance affordable housing goals, streamline development review, and achieve commitments associated with Proposition 123. A major funding priority from 2023 through 2026 has been helping local governments implement Proposition 123 fast-track requirements. The program also supports planning capacity, local affordable housing strategies, and work intended to increase the number of affordable housing units developed or preserved. Eligible projects generally must focus on land use planning or community development activities and lead to new development or preservation of affordable housing, or they must add capacity to local and tribal government planning and permitting functions needed to achieve Proposition 123 requirements, including fast-track review or affordable housing unit commitments. Proposition 123 requires local governments seeking continued eligibility for Proposition 123 funding during the 2027-2029 cycle to demonstrate implementation of an expedited review process for qualifying housing projects where at least half of the units are affordable. The expedited review requirement calls for review within 90 calendar days of a complete application, while DOLA guidance provides strategies and approaches communities may adapt to their local processes. Eligible applicants include municipalities, counties, and tribal governments whose Proposition 123 commitment has been accepted by DOLA. Collaborative, multijurisdictional, and regional projects are permitted, provided one participating entity acts as the lead fiscal agent for the application and project implementation. The suggested maximum grant award is $250,000, although larger requests may be considered, particularly for multijurisdictional projects. A 20 percent local match is required for most awards. Comprehensive plan and land use code updates require a 50 percent match. Other DOLA grant funds may not be used to satisfy the local match. Applicants demonstrating financial hardship may request a reduced-match waiver before submitting an application. For the fall 2026 cycle, applications opened August 24, 2026 and are due September 24, 2026 at 12:00 noon. Interested applicants must schedule a pre-application meeting with the LPC Program Manager by mid-September in order to gain access to the online grant application form. The meeting is intended to provide feedback on the proposed project and technical assistance before submission. The Notice of Funding Availability and online application form are published in the DLG Grants Portal on the opening date of each application cycle. Available application resources include an LPC Grant Application Template of Questions, an LPC Grant Application Form Viewer, and an LPC Grant Budget Worksheet. Applications are generally open for approximately one month, and award decisions are expected approximately one month after the application deadline. Application cycles are scheduled twice each year, in fall and spring, typically around September and February. For fiscal year 2026-2027, $6.8 million is available to be awarded as grants. The program states that approximately $6 million is ordinarily available annually from July 1 through June 30. Funding decisions emphasize projects that advance affordable housing and Proposition 123 implementation, including fast-track development review, planning and permitting capacity, and strategies that support increased affordable housing production or preservation. Applicants may contact Robyn DiFalco, LPC Grant Program Manager, at robyn.difalco@state.co.us or 720-682-5202. Jessica Rupe, LPC Grant Program Assistant, is available at jessica.rupe@state.co.us or 720-557-4902. Initial program-interest inquiries may also be directed to the appropriate Regional Manager. Program resources include the LPC Program Guidelines, an informational webinar and slides, Proposition 123 Fast Track resources, and application materials provided through the program page and DLG Grants Portal.

Prioritize proposals that advance Proposition 123 affordable housing commitments, particularly fast-track implementation, planning and permitting capacity, and activities leading to new or preserved affordable housing. Use the required pre-application meeting to obtain project feedback and technical assistance before submission.