DENVER | Colorado Gov. Jared Polis and Democratic lawmakers touted three bills on Wednesday that they say will make it easier to build affordable housing in the state, a continuation of a multi-year campaign to spur development and allow more housing types across the state.
“Fundamentally, it’s about the landscape of Colorado being one that, over the next several years, leads to a more livable and affordable one,” Polis said of the legislation.
In past years, Polis has signed bills that tweak land use codes in Colorado’s largest cities, encourage development near bus stops and train stations, and incentivize construction of housing like condominiums, modular homes and accessory dwelling units. The state’s demography office estimates that Colorado has a housing shortfall of about 106,000 units.
Most of those laws directly affect cities along the Front Range, and the push for reforms has put Polis and lawmakers at odds with some cities, which want to maintain local control over their land and development policies.
“Even when we have had conflict with some of our local leaders around land use and the ways that we should pursue increasing housing inventory in this state, it’s the fact that we’ve all stayed at the table and continue to work on problem solving,” House Speaker Julie McCluskie, a Dillon Democrat, said.
One of the bills up this year, House Bill 26-1001, is a new take on legislation from last year that would have allowed faith organizations like churches, universities and public schools to build housing more easily on unused land they own. This year’s version excludes churches but loops in nonprofits, housing authorities and transit districts.
“These groups know what works, and they, as subject matter experts, ought to be able to have that freedom and flexibility to address the housing crisis in a way that works best for them,” Sen. Julie Gonzales, a Denver Democrat sponsoring HB-1001, said. “They often have the land that is centrally located that they want to put to good use, but their hands are tied due to bureaucracy and red tape, and so that land sits vacant and unused while the housing costs continue to skyrocket.”
Under the bill, local governments would need to allow housing projects on such land under an administrative review process. They couldn’t reject a project based on height as long as it follows standards within the zoning district, and they couldn’t require stricter standards than similar projects. The bill was introduced last week on the first day of the legislative session, signaling it as a priority.
The Colorado Municipal League is opposed to HB-1001 over concerns that it preempts local control.
“Municipal leaders across Colorado are actively working to increase affordable and attainable housing opportunities,” CML Executive Director Kevin Bommer said in a statement. “One-size-fits-all policies from the state Capitol ignore the unique needs of each community. House Bill 26-1001 would strip away local authority that has been the foundation of responsible growth and balanced planning in Colorado for decades.”
Public transit and housing
House Bill 26-1065 would create a funding mechanism that local governments could use to pay for projects aimed at boosting transit use. Officials could use sales tax revenue collected within one and a half miles of transit stops — dubbed a transit investment area — to fund infrastructure like bike lanes and crosswalks. The bill would allow three projects per year.
Lawmakers passed a bill in 2024 that requires many cities to allow denser housing development near so-called transit corridors, with the philosophy that reliable public transit and housing that working people can afford should be complementary goals.
“We can’t treat every bus stop and light rail station like it’s a Park-n-Ride. People want public transit where they actually live, and workers need housing where bus and commuter routes are available,” said bill sponsor Rep. Steven Woodrow, a Denver Democrat.
That bill would also allow up to $50 million in annual tax credits between 2027 and 2033 to support construction of affordable housing near transit.
Affordable rentals
The third bill, House Bill 26-1066, would expand a property tax exemption for land used for affordable rental units. An existing law established that exemption for land used for for-sale homes.
“Nonprofit providers looking to build affordable rental units are subject to exorbitant taxes and fees in the pre-development phases of the building project. Because of this, we’re seeing projects cut short, long before shovels even hit the ground,” bill sponsor Sen. Matt Ball, a Denver Democrat, said. “Every dollar allocated to affordable housing should go to building affordable housing, not paying taxes on vacant land.”
Both HB-1065 and HB-1066 were introduced on Wednesday afternoon.