The historic mining town of Silverton has become the first local government to meet the housing commitments of Colorado’s Proposition 123, passed by voters in 2022 to promote the launch of thousands of affordable housing units.

The alpine community, population 724, met the state’s requirements by adding 10 affordable townhome-style units that are expected to be completed this spring using modular housing construction techniques.

According to the Colorado Department of Local Affairs, which announced the milestone, the project came about through a combination of housing program incentives, community partnerships, and an effort to fast-track the town’s housing permit review process.

Around half of the units, reportedly priced from around $245,000 to $529,000, are pre-sold coming into final construction. Silverton, at 9,300 feet some 50 miles north into the San Juan range from Durango, is viewed as a particularly challenging location to provide affordable products.

A city website on the project says that three two-bedroom units had been made available at 80% of the area’s average median income, and three three-bedrooms were priced at 100% AMI.

91 COMMUNITIES HAVE QUALIFIED

According to a statement from DOLA, some 91 local Colorado communities have met the fast-track requirements outlined in Proposition 123, allowing them to qualify for up to $50,000 in incentive funding. DOLA had announced Dec. 31 as the deadline for that qualification. However, agency officials said another 34 communities could adopt the requirements by June 30 and still qualify.

The affordable construction program emerged during the COVID pandemic as housing costs in Colorado skyrocketed. The federal American Rescue Plan Act provided funds allowing the Colorado Division of Housing to launch the broad initiative.

Critics of Proposition 123 note that the government program is fighting against a wave of market forces that continue to restrain affordable housing construction across the state, including interest rates and rising labor costs.

DOLA Executive Director Maria De Cambra praised the program milestone in a statement accompanying the announcement.

“This is why we’ve been working so closely with local governments and incentivized early adoption of the fast-track requirements to speed up the results that Coloradans can see,” she said.

“With each additional affordable home built, we move closer to our ultimate goal of a home that every Coloradan can afford,” De Cambra said in the release.

In an adjoining statement, Silverton Housing Coordinator Anne Chase added her thanks for the program’s funding.

“For Silverton, 10 new affordable homes represent real progress toward housing stability and community sustainability,” Chase said. “We are grateful for DOLA’s investment in rural communities like Silverton, and look forward to building on this momentum to continue on our state and local housing goals in the years ahead.”

According to DOLA, local jurisdictions can still qualify for adoption incentives by completing the fast-track process by June 30. The statutory deadline for completion of program commitments is Dec. 31.