Colorado Passes Law to Boost Affordable Housing

Colorado Governor Jared Polis signed House Bill 1001 — the Housing Opportunities Made Easier Act, or HOME Act — into law, allowing public schools, colleges, nonprofits, transit agencies, and housing authorities to bypass local zoning codes and build affordable housing on land they own. This move is part of a broader effort to address the state's housing shortage, a problem that's particularly pressing in areas like the Western Slope, where affordable housing options are scarce.

The new law requires local governments with populations over 2,000 people to permit qualifying organizations to build residential units on their land, regardless of zoning restrictions, starting in 2028. Properties must be within three miles of a municipality or part of a county with a population of 5,000 people or more to qualify. Housing developments on these properties can be up to three stories tall or as tall as an area's local zoning rules allow.

Supporters of the bill, including Governor Polis, argue that it will help reduce barriers and red tape, making it easier for organizations to create sustainable, affordable housing. Eagle County School District Superintendent Philip Qualman noted that this will allow superintendents to create more opportunities for affordable housing, leading to shorter commutes and less need for second jobs.

However, not everyone is on board with the new law. The Colorado Municipal League, which represents over 270 cities and towns, opposed the legislation, citing concerns that it ignores municipal planning efforts and creates a one-size-fits-all policy with no requirement that new housing be affordable. Kevin Bommer, the group's executive director, stated that the HOME Act "ignores municipal planning efforts and creates a one-size-fits-all policy with no requirement that new housing be affordable." Counties and Commissioners Acting Together, a coalition of commissioners from nearly two dozen counties, supported the bill after amendments were made to address local land-use concerns. Tamara Pogue, a Summit County commissioner, noted that while not every commissioner supported the HOME Act, the vast majority of its membership was brought on board due to engagement they received from the bill's sponsors.

The bill's sponsors, including Reps. Andrew Boesenecker and Javier Mabrey, and Sens. Tony Exum and Julie Gonzales, engaged in dialogue with local governments and made amendments to address concerns. The law does not allow entities to bypass zoning rules for land that is not connected to water and sewage treatment systems, has state or federal regulations that restrict residential housing, or is zoned for industrial or agricultural use, floodplains, or open space. This law will have a significant impact on the way housing is developed in Colorado, particularly in areas with limited affordable housing options. The question is, will it be enough to address the state's housing shortage? Worth watching is how local governments will implement this new law and whether it will lead to an increase in affordable housing options for Coloradans.

The short version is that this law aims to boost the state's affordable housing stock by allowing certain organizations to build on their own land, regardless of local zoning rules. However, the devil is in the details, and the effects of this law are still unfolding. 106,000 homes are needed to meet demand, according to a report from the State Demography Office. That's a staggering number, and it's clear that something needs to be done to address this shortage. Governor Polis said, "We, as a state, by passing this bill, are saying we want our partners to contribute to the housing solution." The HOME Act is a key component of the state's efforts to expand access to affordable housing, and its implementation will be crucial to the state's overall housing strategy, which involves multiple initiatives and stakeholders working together to address the housing shortage.