Colorado: DOLA Invests $22.3 Million to Build More Housing, Strengthen Local Economies, and Improve Schoolyards and Community Gathering Spaces

STATEWIDE – Through the first half of 2026, the Department of Local Affairs invested $22.3 million in grant funds in communities across Colorado to build more housing people can afford, strengthen local economies, improve important infrastructure like water lines, and improve public spaces and schoolyards. These funds made important investments in communities across the state to make life more affordable and enhance the high quality of life in Colorado.

"I am proud to support Colorado communities by directly investing in and incentivizing local governments, to increase the supply of housing, make land use planning more efficient, and help make life in Colorado more affordable for future generations. I look forward to seeing the positive impacts these investments make to improve the lives of Coloradans, save people money, and build even stronger communities in Colorado," said Governor Polis.

"Through this funding, DOLA is proud to play a part in the work Colorado communities are doing to become stronger and more resilient. From critical water and wastewater improvements to regional efforts that will provide homes for more Coloradans, these dollars truly strengthen local communities," said Maria De Cambra, DOLA's Executive Director.

Strategic investments from the state help improve the lives of Coloradans, strengthen Colorado's economy, and make Colorado one of the best places to live, work, play, raise a family and start a business. Examples of initiatives and projects underway from these strategic investments include:

Energy Mineral/Impact Assistance Fund (EIAF)

The Energy/Mineral Impact Assistance Fund Grant program assists local governments and special districts that are socially and/or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels. Funding supports planning, public infrastructure and the provision of public services. For this cycle, DOLA awarded nearly $15 million to 50 local governments. Efforts include:

• The Town of Kersey was awarded $496,340 for replacement of a 60-year-old waterline, relining an aging sewer trunk line, and installation of a storm sewer interceptor system to reduce flooding risk and improve utility reliability.
• The Town of Rangely was awarded $400,000 to replace failing water lines and upgrade deficient fire hydrants to reduce water loss, improve fireflow capacity, and ensure a reliable water supply along Highway 64.

Rural Economic Development Initiative (REDI)

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The Rural Economic Development Initiative is designed to help rural communities comprehensively diversify their local economy and create stronger communities. DOLA awarded over $900,000 to 13 local governments. Highlights include:

• The Town of Kiowa was awarded $50,000 for their Main Street Facade and Sign Improvement Grant Program. This program will revitalize the downtown corridor by providing financial assistance for exterior renovations and historic preservation of local businesses.
• The Town of Grand Lake was awarded over $89,000 for the Rocky Mountain Folk School Makerspace. In partnership with the Rocky Mountain Folk School, this project establishes a community makerspace with professional equipment for woodworking, leatherworking, and silversmithing. It functions as both a workforce training center and a small-scale business incubation hub for local artisans.

Local Match Program (LOMA)

The Local Match Program supports local governments in meeting their non-federal match requirement when they are applying directly to the federal government for Infrastructure Investment and Jobs Act (IIJA) funding. DOLA recently awarded $1.3 million to three communities. Initiatives include:

• Boulder County was awarded $1 million for engineering and construction of the southern segment of the US 36 North Foothills Safety for All Project, including development of a physically separated multi-use path/bikeway and related safety improvements between Broadway and Longhorn Road.
• The Town of Aguilar was awarded nearly $98,000 to replace aging and inaccurate water meters and Meter Transceiver Units (an off-site meter reading system).
• Clear Creek County was awarded $70,000 for a planning and demonstration grant that will be used to develop Clear Creek County's first Comprehensive Safety Action Plan.

Housing Planning Grant Program (HPLN)

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The Housing Planning Grant Program provides grants to local governments and regional entities to help them better understand the local housing need and to develop actionable and compliant housing needs assessments (HNAs), housing action plans, and comprehensive plan elements. DOLA awarded 21 projects representing 26 local governments totaling over $1.3 million in the latest funding round. The program encourages regional collaboration. For example:

Rio Grande County, including the City of Monte Vista and the Town of Del Norte, along with Saguache County and the Town of Moffat, were awarded $41,000 to update the 2021 Regional Housing Needs Assessment and Housing Action Plan completed by the San Luis Valley Housing Coalition.

Community Schoolyards Grant Program

The Community Schoolyards Grant Program was designed to address existing inequities in underserved and underfunded schools and communities by transforming traditional school grounds into accessible, park-like environments. The program aims to foster hands-on learning, enhance health and well-being, strengthen local ecological systems, and create vital social opportunities for both students and the broader community. DOLA awarded $3.8 million for seven initiatives at six schools and one special district across the state. These include North Routt Charter and Steamboat Montessori in Routt County, Carlson Elementary in Clear Creek County, Riverview Elementary in Durango, Running Creek Elementary in Elizabeth, Yale Elementary in Aurora, and Centennial High School in San Luis.

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