Wellington Renews Proposition 123 Commitment, Advances Affordable Housing

Town secures $2.88 million grant, recommits to state housing initiative, and celebrates 60 years of the Wellington Housing Authority

By North Forty News Staff | NorthFortyNews.com

WELLINGTON, Colo. — The Town of Wellington is advancing its affordable housing strategy with a renewed commitment to Colorado’s Proposition 123 program and a $2.88 million state grant aimed at expanding housing opportunities while reducing development costs.

The Wellington Board of Trustees voted unanimously on July 28 to opt into the 2027–2029 Proposition 123 funding cycle after Town staff reported Wellington had already met the goals of its initial commitment during the 2024–2026 cycle.

Approved by Colorado voters in 2022, Proposition 123 dedicates 0.1% of state income tax revenue each year to affordable housing initiatives. Participating communities commit to increasing affordable housing inventory by an average of 3% annually and streamlining the review process for affordable housing developments.

Planning Director Cody Bird told trustees the Town had fulfilled its previous commitment despite joining during the final year of the original funding cycle.

“Ensuring access to affordable housing is one of the vital functions of local government,” Mayor Rebekka Dailey said. “I’m proud to have served on Boards — both current and past — that have prioritized securing that access for our residents. As a Town, we will continue to seek out and use all the resources available to us as we navigate the challenge of affordable housing in the years to come.”

The renewed commitment follows Wellington’s recent award of a $2.88 million Local Implementation, Mitigation, and Policy Action (Local IMPACT) Accelerator Grant from the Colorado Energy Office.

The funding will help the Town update land development policies, encourage the construction of accessory dwelling units (ADUs), and establish a rebate program to reduce development fees for qualifying affordable housing projects. Officials said the grant allows Wellington to pursue these initiatives without placing additional strain on the Town’s general operating budget.

“Receiving the Local IMPACT Accelerator Grant is a significant opportunity for Wellington,” Bird said. “The funding will help us build on the work we’re already doing by supporting housing policy updates and a development fee rebate program that will make it easier to provide more housing options and improve affordability for current and future residents.”

Town officials said the grant will also help address housing challenges identified in Wellington’s 2025 Housing Needs Assessment, which evaluated local housing supply, affordability and future community needs.

Wellington Housing Authority marks 60 years

The announcement comes as the Wellington Housing Authority (WHA) celebrates its 60th anniversary.

Established on Dec. 28, 1965, the Authority was created after Town leaders identified a shortage of affordable housing. Its first actions included approving Wellington’s first low-rent public housing development and beginning planning efforts for future affordable housing.

Today, through a partnership with Housing Catalyst, the Wellington Housing Authority manages 17 senior housing units and 25 family housing units serving low- and moderate-income residents. The partnership also connects residents with financial stability and employment support services.

“For 60 years, the Wellington Housing Authority has played an important role in providing housing opportunities for our community,” Bird said. “We’re proud to celebrate that legacy while continuing the Town’s work to support housing affordability.”

Residents can learn more about Wellington’s Housing Needs Assessment, Proposition 123, and the Wellington Housing Authority through the Town of Wellington.

Source: Town of Wellington