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CITY OF CORTEZ
123 ROGER SMITH AVENUE
CORTEZ, CO 81321

Rachael Marchbanks
Community/Economic Development Director
123 Roger Smith Ave.
Cortez, CO. 81321
rmarchbanks@cortezco.gov

Memorandum

To:

CORTEZ CITY COUNCIL

From:

RACHAEL MARCHBANKS, DIRECTOR OF COMMUNITY/ECONOMIC DEVELOPMENT

Date:

2/13/2024

RE:

DOLA Local Planning Capacity Grant Program

DISCUSSION

The Local Planning Capacity (LPC) Grant Program, which is offered through the Colorado Department of Local Affairs (DOLA), provides grants to eligible local governments. The program supports local governments’ planning capacity to fast track or expedite development review, permitting, or zoning of affordable housing and increasing local government planning department capacity to help impact the number of units built. While the City has shown its commitment to increasing affordable housing production, its resources are greatly limited.

This grant will help provide capacity for the City to pursue its goal of facilitating the increased production of affordable housing. With DOLA’s assistance, the City will hire an independent contractor who will help bring the Housing Action Plan to fruition, support its Proposition 123 commitment, and maintain Prop 123 eligibility for funding opportunities.

This person will assess current processes and procedures for housing development review and recommend improvements. Additionally, they will create and maintain an inventory of potential properties and funding opportunities, develop and implement a method for tracking affordable housing, and will act as an affordable housing/Proposition 123 liaison for the City.

BACKGROUND

As determined by the City’s 2023 Housing Needs Assessment, Cortez is in dire need of housing. The population has increased faster than its housing supply. With limited inventory of for-sale homes and a vacancy rate of under 2% for rentals, competition is driving up prices. This results in very few affordable housing options for locals, and it affects employers’ ability to recruit and retain workers.

To help address these issues, the City adopted a Housing Action Plan in August of 2023, and is currently re-writing its land use code to help remove barriers to housing development. Cortez has also opted in to Proposition 123, the Colorado Affordable Housing Fund, to allow state support for construction of additional affordable and workforce housing units.

FISCAL IMPACT

Total grant request: Not to exceed $166,400
Grant Match: 20% or $33,280
2024: $ 9,707
2025 $16,640
2026: $ 6,933

RECOMMENDATION

Staff recommends that City Council authorize the City of Cortez Community and Economic Development Department to apply for the Colorado Department of Local Affairs (DOLA) Local Planning Capacity Grant Program in an amount not to exceed $166,400 and provide a 20% cash match.

MOTION

If agreed upon by the City Council, a possible motion would be:

I move that City Council authorize the City of Cortez Community and Economic Development Department to apply for the Colorado Department of Local Affairs (DOLA) Local Planning Capacity Grant Program in an amount not to exceed $166,400 and provide a 20% cash match.
.

Attachments

LPC Grant Program Guidelines

Council Memo