Proposition 123: Dedicated state income tax revenue for affordable housing programs

Oct. 16—What it asks: "Shall there be a change to the Colorado Revised Statutes concerning statewide funding for additional affordable housing, and, in connection therewith, dedicating state revenues collected from an existing tax of one-tenth of one percent on federal taxable income of every individual, estate, trust, and corporation, as defined in law, for affordable housing and exempting the dedicated revenues from the constitutional limitation on state fiscal year spending; allocating 60% of the dedicated revenues to affordable housing financing programs that will reduce rents, purchase land for affordable housing development, and build assets for renters; allocating 40% of the dedicated revenues to programs that support affordable home ownership, serve persons experiencing homelessness, and support local planning capacity; requiring local governments that seek additional affordable housing funding to expedite development approvals for affordable housing projects and commit to increasing the number of affordable housing units by 3% annually; and specifying that the dedicated revenues shall not supplant existing appropriations for affordable housing programs?"

What it means: The initiative would create the State Affordable Housing Fund and dedicate one-tenth of one percent of state income tax revenue to fund affordable housing programs and projects.

What supporters say: The measure would result in 10,000 more affordable units every year in Colorado and help build more permanent supportive housing units to get people off the streets.

What opponents say: The Colorado Legislative Council Staff estimated that $270 million would be transferred from the state general fund to the State Affordable Housing Fund. The initiative would authorize the state to retain and spend these funds, which would otherwise be refunded to taxpayers.