Dive Brief:
- Colorado Democrats this week introduced three bills designed to increase housing production. The proposals include property tax exemptions for nonprofits building affordable housing; allowing local governments, schools, nonprofits and transit districts to build housing on their land and further incentivizing transit-oriented housing development.
- The legislation builds on previous housing reform efforts, according to Colorado Gov. Jared Polis, including laws that permit more housing density and prevent cities from setting minimum parking mandates for multifamily housing. “Housing costs are one of the biggest pain points for Coloradans and we are doing everything possible to drive down costs,” Polis said in a press release.
- The housing bills come amid a legal tussle between the state and multiple local governments, which have called Colorado’s enforcement of pro-housing policies “overreach.”
Dive Insight:
As the nation experiences a crisis in housing affordability, Colorado ranks as one of the most expensive states to live in.
A study last year found that zoning restrictions throughout much of the state have blocked affordable housing options from development.
The HOME Act, HB26-1001, opens the door for residential development on land owned by nonprofits, school districts, state colleges or universities and transit authorities. The bill would also prevent local governments from objecting to building heights if the buildings are three stories or below.
Rep. Andy Boesenecker, who sponsored the bill, called it a “big swing” at the state’s housing shortage and an effort to remove barriers to build housing on “underutilized land.”
The proposed Transit Investment Area Act would utilize tax-increment financing to allow local governments to invest state sales tax revenue into transportation infrastructure improvements and establish an Affordable Housing in Transit Investment Zones Tax Credit for low- and middle-income housing within transit and housing zones.
“This bill would unlock new tools for communities to harmonize affordable housing and mass transit ridership goals,” Rep. Steven Woodrow stated.
The third bill, HB26-1066, unlocks property tax exemptions for nonprofit organizations that build affordable rental properties, according to state Democrats.
“From my district in the heart of Denver to the furthest corners of our state, Colorado faces a massive crisis in our lack of affordable housing,” Sen. Matt Ball said. “In this environment, every dollar allocated for affordable housing should go to building affordable housing, not paying taxes on vacant land.”
The Colorado cities’ lawsuit seeking to block state efforts to tie housing reform compliance with state grant funding is set to move forward with a virtual status conference in Denver District Court slated for Jan. 27, Colorado Hometown Weekly reported.
