What is Landbanking?

Land banking is a strategy where cities or nonprofits acquire underused or vacant land and hold it until it can be developed for community goals—like affordable housing. Rather than speculation, this approach allows for strategic, long-term investing in land, enabling developments when conditions align and preserving affordability.

Colorado’s Proposition 123: A Statewide Model

Proposition 123, passed by Colorado voters in 2022, channels state funds into housing development.

• 60% is managed by the Colorado Affordable Housing Financing Fund (via OEDIT and CHFA) for land banking, concessionary debt, and equity.

• 40% goes to the Affordable Housing Support Fund via DOLA for related programs

• Additional Resources: Colorado Newsline Common Sense

This structure helps ensure that land can be set aside for housing without waiting for private market timing—protecting public purpose while encouraging private-sector investment.

Local Examples—

• Aurora, Colorado
  The city has signed on to the Prop 123 land banking framework, positioning itself to secure land for future affordable housing without overburdening taxpayers. Learn more Here.

• Fort Collins, Colorado
  Fort Collins employs a land bank focused on acquiring sites lacking infrastructure. By holding these parcels until development becomes feasible, the city promotes affordable housing in a cost-effective, market-aligned way: Time Article

• Denver, Colorado – Urban Land Conservancy (ULC)
  In parts of the city, the Urban Land Conservancy acts like a land bank—acquiring property and preserving long-term affordability through ground leases. This model anchors private and nonprofit investment while keeping housing costs stable. Learn More Here.

Why It Works—Especially for Market-Driven Priorities

• Fiscal Stewardship & Predictability
  Planning development pathways ahead of rising land values preserves affordability—without resorting to permanent subsidies or regulatory overreach.

• Enables Private Market Participation
  By resolving the land-cost barrier first, developers can use conventional financing tools, LIHTCs, or modular construction to build housing effectively.

• Reduces Risk & Encourages Early Action
  Private developers can move confidently when land is pre-acquired, infrastructure is planned, and opportunities align with their business and community goals.