What is a Disadvantaged Community (DAC)?

A CO disadvantaged community (DAC) has a population of 10,000 or less and meets other factors, including income levels, household value, and unemployment rates.

How to Determine if Your Community Qualifies as a DAC

Communities must have combination of factors related to income, housing costs, population trends, unemployment rates, and water affordability.

To qualify your community must meet:

  • At least 2 Primary Factors, or
  • 1 Primary + at least 3 Secondary Factors

Primary Factors

  • Low household income: Community median household income is ≤ 80% of CO’s median
  • Low home values: Community median home value is below CO’s median
  • High unemployment or job loss: Local unemployment exceeds the CO average, or the community has experienced long-term job loss

Secondary Factors

  • Low county income: County median household income is ≤ 80% of CO’s median
  • Population decline: Community population has decreased over the past 10 years
  • Low property values: Assessed value per household is below CO’s median
  • High water debt burden: Water/sewer debt per household is high relative to home value
  • High water or sewer costs: Water system costs are high relative to income or compared to other Colorado communities

If your community does not qualify as a DAC based on these factors, you may still be eligible for SRF benefits through a business case scenario. This allows communities to present alternative data to demonstrate financial need, particularly if standard metrics don’t fully reflect current conditions or fall just short of the DAC thresholds. Business cases are typically considered after submission of the Project Needs Assessment stage of the application process.