This report was prepared on behalf of OHCS & the Department of Education, Early Learning Division by the Low Income Investment Fund (LIIF) and ECONorthwest in response to the Oregon Joint Committee on Ways and Means’ request in HB 5011 for a study and formal set of recommendations on how the state might best use funding to support co-location. Following a brief literature review below on the rationale behind efforts to co-locate ECE facilities with affordable housing, the report is organized in four core sections: 1. Assessing the Field – Results of case study analysis, review of demographic data, and stakeholder interviews on need and commonalities in Oregon related to co-location. 2. What Does it Take to Co-Locate? – Overview of the systems and policies influencing co-located development, as well as a presentation of basic design, financing, and other considerations housing developers and ECE operators should consider when pursuing such projects. 3. Program Design Recommendations – Recommendations on how the state might use the $10 million appropriation in HB 5011 to incentivize co-located developments. 4. Other Policy Recommendations – Steps and considerations Oregon officials might consider beyond HB 5011 to support co-location of affordable housing and ECE. (author abstract)