Colorado voters in November passed Proposition 123 and elected to devote nearly $300 million a year to a variety of affordable housing programs. But local governments may be a roadblock for nonprofits getting the money in hand.
Alderman and other advocates argued that their nonprofits have no control over what a local government does and that their clients shouldn’t be punished because elected officials eschew the program. Still, proponents have said those requirements are key: They offer local governments millions in exchange for building faster, more densely and more affordably. If those governments can still benefit from some of that money without changing their ways, it undermines the broader intent of the program.
There are two ways advocates are working to ensure the money flows. Alderman’s group, along with the Community Economic Defense Project, a nonprofit that provides housing services, argues that Proposition 123 already allows the money to go to nonprofits, regardless of local government opt-in. They’re working on a legal analysis to support that argument, which they plan to use to urge state regulators to interpret the measure and issue rules to that effect.
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