Proposition 123: Expanding Affordable Housing Opportunities in Grand Junction (2024-2026 Cycle)

Proposition 123 July 2026 Update: Grand Junction Reaches 588 Approved Housing Units

As of July 8, 2026, the City of Grand Junction has received State approval for 588 qualifying Proposition 123 housing units—214 more units than required to fulfill its original Housing Commitment.

The City met its initial commitment in April 2026 after the State confirmed Grand Junction had successfully documented the required 374 qualifying affordable housing units. Since then, the City has continued working with local housing providers, nonprofit organizations, developers, and homeowners to submit additional qualifying units as projects reach eligible milestones.

Today, that total has grown to 588 approved units, and additional housing units will continue to be submitted as projects move through development.

What is Proposition 123?

Colorado voters approved Proposition 123 in November 2022, creating the State Affordable Housing Fund—a permanent statewide funding source dedicated to increasing affordable housing throughout Colorado.

Funded through 0.1% of state income tax revenues, Proposition 123 provides approximately $300 million annually to support housing initiatives administered by the Colorado Department of Local Affairs (DOLA) and the Colorado Housing and Finance Authority (CHFA).

Communities voluntarily participate by adopting a Housing Commitment to increase their affordable housing supply. In return, affordable housing projects within participating communities become eligible to compete for Proposition 123 funding.

Eligible funding can support:

• Affordable rental housing
• Affordable homeownership
• Infrastructure supporting housing development
• Land acquisition and land banking
• Preservation of affordable housing
• Down payment assistance
• Rental assistance
• Other innovative local housing solutions

Learn more about Proposition 123 (link).

Why Grand Junction Participates

The City voluntarily joined Proposition 123 because it aligns with Grand Junction's long-term housing goals while opening the door to significant state investment in local housing projects.

Participation supports implementation of the City's:

• Housing Needs Assessment
• Housing Action Plan
• Affordable housing partnerships with local developers and nonprofit organizations

Since Proposition 123 was approved, housing projects in Grand Junction have already secured more than $26 million in Proposition 123 funding, helping advance affordable rental housing, homeownership opportunities, and supportive housing throughout the community.

How Housing Units Are Counted

Proposition 123 does not require housing to be complete before it can count toward a community's commitment.

Instead, the State allows communities to submit qualifying housing units as projects reach specific development milestones, including:

• Building permit issuance
• Beginning vertical construction
• Sale of a qualifying affordable home
• Certificate of Occupancy
• Other qualifying milestones established by the State

Because of this process, many of the units counted toward Grand Junction's commitment are currently under construction and are expected to become available over the next one to two years.

Grand Junction's Progress

In August 2023, Grand Junction committed to increasing its affordable housing supply by 374 qualifying housing units during the initial Proposition 123 commitment period.

The City achieved that goal in April 2026, when the State officially confirmed the commitment had been met.

Since then, housing production has continued.

Current Status (July 8, 2026)

• Original Housing Commitment: 374 qualifying units
• State-Approved Qualifying Units: 588
• Units Above Commitment: 214

As additional housing developments receive building permits, begin vertical construction, or complete other qualifying milestones, the City will continue submitting eligible housing units to the State.

Looking Ahead: Regional Collaboration

Although Grand Junction has already fulfilled its original Housing Commitment, qualifying housing units continue to be generated through ongoing development across the community.

Under recent updates to Proposition 123, communities may participate in regional collaborations that allow qualifying housing units beyond a jurisdiction's commitment to help support other participating communities through approved intergovernmental agreements.

In May 2026, the City Council approved an Intergovernmental Agreement establishing a regional partnership between the City of Grand Junction, Mesa County, the Town of Fruita, and the Town of Palisade. This collaboration allows participating jurisdictions to work together in meeting regional housing goals while maintaining eligibility for Proposition 123 funding.

Learn more about the Regional Collaboration (link) Scheduled to be posted on 7/12/2026.

Organizations Contributing to Grand Junction's Housing Commitment

The following organizations have contributed—or are anticipated to contribute—qualifying housing units toward Grand Junction's Proposition 123 Housing Commitment. Housing units are counted as projects reach eligible State milestones, meaning many of these developments are still under construction or in active development.

**Rehabilitation & Preservation Projects: These homes are already built and serving residents, but require significant reinvestment to remain safe, functional, and affordable. Improvements may include major rehabilitation such as roof replacement, building system upgrades, or substantial unit renovations. Preservation projects may also include units that were on the general housing market that were purchased for affordable housing, and had a deed restriction placed on them to remain affordable. Proposition 123 recognizes these investments by allowing qualifying affordable housing units to be counted as preservation, helping ensure they continue serving the households that rely on them for years to come.

Learn More About the Projects

The City is currently developing individual project updates for each housing development and program contributing toward Grand Junction's Proposition 123 Housing Commitment. These project pages will highlight development progress, construction milestones, funding partnerships, timelines, and anticipated completion dates as information becomes available.

To stay informed, follow this Engage GJ project page by selecting the "Follow Project" button on the right side of the page. Subscribers will receive updates as new project information, milestones, and housing announcements are posted.

Many of these developments remain under construction and will continue adding new homes over the next several years as projects move toward completion.