Housing

The act requires a subject jurisdiction to, on or after December 31, 2027, subject to an administrative approval process, allow the construction of a residential development on a qualifying property that does not contain an exempt parcel; except that, if on December 31, 2027, a subject jurisdiction is actively in the process of updating the subject jurisdiction's zoning or development code to comply with the act, the subject jurisdiction is required to complete the updates and allow the construction of a residential development on a qualifying property that does not contain an exempt parcel by June 30, 2028. A qualifying property is real property that contains no more than 5 acres of land and is owned by:A school district;A state college or university;A board of cooperative services;A housing authority;A local or regional transit district or a regional transportation authority serving one or more counties;A nonprofit organization with a demonstrated history of providing affordable housing; orA nonprofit organization that has entered into an agreement with another nonprofit organization with a demonstrated history of providing affordable housing, provided that the agreement requires the nonprofit organization with a demonstrated history of providing affordable housing to develop a residential development on the property.     If a subject jurisdiction requests, as part of an initial development application, that a nonprofit organization with a demonstrated history of providing affordable housing provide documentation that the nonprofit meets required criteria, the nonprofit organization shall provide the documentation. A subject jurisdiction is not required to allow a residential development on a qualifying property if the subject jurisdiction implements a transferable development rights program on the qualifying property and if the transferable development rights program includes a policy for affordable resident housing that is restricted in ownership and occupancy in perpetuity.     A subject jurisdiction shall not:Disallow construction of a residential development on a qualifying property on the basis of height if the tallest structure in the residential development is no more than 3 stories or 38 feet tall, except in certain circumstances;Disallow construction of a residential development on a qualifying property on the basis of height if the tallest structure in the residential development complies with the height requirements of the zoning district in which the residential development will be built or the height requirements that apply to any parcel zoned to allow for residential development that is contiguous to the qualifying property on which the residential development will be built;Disallow construction of a residential development on a qualifying property based on the number of dwelling units the residential development will contain, except in accordance with standards listed in the act; orApply site design standards to a residential development on a qualifying property that are more restrictive than the site design standards the subject jurisdiction applies to similar housing constructed within the subject jurisdiction, including standards related to structure setbacks from property lines; lot coverage or open space; on-site parking requirements; numbers of bedrooms in a multifamily residential development; on-site landscaping, screening, and buffering requirements; solar access; minimum dwelling units per acre; or other objective setback standards that apply to residential dwellings, including setbacks from oil and gas facilities, oil and gas operations, stream corridors, riparian areas, wetlands, and sensitive wildlife habitats.     Provided that the uses are allowed conditionally or by right within the zoning district in which a qualifying property is located, a subject jurisdiction shall allow the following uses in a residential development on a qualifying property:Child care; andThe provision of recreational, social, or educational services provided by community organizations for use by the residents of the residential development and the surrounding community.     On or before December 31, 2027, the department of local affairs is required to publish guidance to assist subject jurisdictions in verifying the status of a nonprofit organization with a demonstrated history of providing affordable housing.(Note: This summary applies to this bill as enacted.)

The act allows a board of county commissioners and the governing body of a municipality to sell and dispose of property owned by the county or municipality, as applicable, to provide for affordable housing and allows a municipality to enter into a long-term rental or lease agreement for the development of affordable housing.     The act allows for the approval of a mutijurisdictional housing authority at a biennial local election instead of only during a general election or an election held on the first Tuesday in November of an odd-numbered year. The ballot question about establishing the authority may be combined with a question about a tax, impact fee, multiple-fiscal year debt, or other financial obligation.     The act allows a board of county commissioners to use ad valorem tax revenue for housing authorities, housing programs, and workforce housing.     The act entitles an entity subject to income tax to which a middle-income housing tax credit is transferred by a governmental entity or quasi-governmental entity to claim the credit without owning an interest in a qualified project.     The sale and use of construction materials by contractors is exempt from taxation if the materials are used by the state in its governmental capacity only. The act provides that 'governmental capacity' includes the construction of workforce housing projects undertaken by counties.(Note: This summary applies to this bill as enacted.)

The act specifies relevant factors for assessing reasonable accommodations related to assistance animals that may be necessary for an individual with a disability to have an equal opportunity to use and enjoy housing under the 'Colorado Anti-Discrimination Act'. Permitting an assistance animal is presumed to be a reasonable accommodation if a housing provider has been given an opportunity to engage in an interactive accommodation process with the individual requesting the accommodation. The act also:Defines 'reasonable accommodation', as it applies to discriminatory housing practices, as an exception or adjustment to a rule, policy, practice, or service that may be necessary for an individual with a disability to have an equal opportunity to use and enjoy housing, including public and common-use spaces;Defines 'assistance animal' as an animal that does work, performs tasks, assists, or provides therapeutic emotional support to an individual with a disability. 'Assistance animal' includes emotional support animals and service animals.Defines 'emotional support animal' as an animal that provides solely emotional support to an individual to alleviate a symptom or an effect of a disability;Permits a housing provider to request reasonable documentation to support an individual's claim of disability or disability-related need for an assistance animal if the individual's disability or disability-related need is not obvious; andPermits a housing provider, when considering a reasonable accommodation request, to consider documented, specific conduct of an assistance animal that poses a direct threat to the health or safety of others or that causes substantial physical damage to property.(Note: This summary applies to this bill as enacted.)

The act authorizes landlords to use a ratio utility billing system to allocate utility charges for a residential premises to individual tenants. The landlord may charge tenants a utility bill using a ratio utility billing system if the landlord meets certain requirements, such as:The aggregate amount billed to all tenants does not exceed the amount charged by the utility provider for service to the entire residential premises;The landlord does not apply a fee or other charge to the tenant in addition to the actual charges from the utility;The utility costs for common areas or shared facilities are excluded from the charges to the tenant; andThe landlord clearly discloses the method of allocation for the dwelling unit in the tenant's rental agreement.     For residential premises constructed with permits applied for on or after July 1, 2027, utility service must be metered directly by the utility provider or by a submeter.(Note: This summary applies to this bill as enacted.)

The bill creates a targeted allocation priority within Colorado's administration of federal and state affordable housing tax credits to support development of integrated, community-based housing for persons with intellectual and developmental disabilities. The bill requires a set aside of at least 10% of the state's annual allocation of competitive federal low-income housing tax credits (federal tax credits) for "community integration housing". To qualify, a development must comply with federal tax credit requirements, meet federal home- and community-based services settings standards, reserve at least 20% of its units for persons with intellectual and developmental disabilities, and partner with a community-centered board or certified case-management agency. The bill authorizes the Colorado housing and finance authority (authority) to reallocate unused credits from the set aside at the end of a calendar year for allocation to any eligible project.The bill amends the state affordable housing tax credit (state tax credit) to require the authority to provide priority scoring or preference to qualified developments that have received a federal tax credit as a qualified community integration housing development and that continue to meet all requirements for community integration housing. The requirement for priority scoring or preference does not waive or otherwise limit the authority's ability to enforce all applicable eligibility requirements or to determine the amount of the state tax credit to be allocated to any qualified development.(Note: This summary applies to this bill as introduced.)

Current law provides an exemption for taxation on property acquired and developed for low-income housing by nonprofit housing providers, community land trusts, and nonprofit affordable homeownership developers. The bill expands the exemption to also include property intended for low-income residential rental property.(Note: This summary applies to this bill as introduced.)

Under current law, the Colorado homeless contribution tax credit (credit) may only be claimed through state income tax year 2026. The act amends the credit to allow taxpayers to claim the credit through state income tax year 2030.(Note: This summary applies to this bill as enacted.)

The bill authorizes a county or municipality (local government), after approval by the electors of the local government, to impose an excise or a property tax, or both, on vacant residential properties within the boundaries of the local government (local taxes on vacant residential properties) ( sections 1 and 3 of the bill). A local government may use the revenues collected from either tax only for affordable, attainable, or workforce housing. A county assessor has no duty in implementing local taxes on vacant residential properties, but in an assessor's discretion, the assessor may assist by providing data and information to a local government or local housing tax authority, and may enter into an intergovernmental agreement that provides for compensation in exchange for the assessor's assistance.The bill also creates a process for the creation of a local housing tax authority (authority) by intergovernmental agreement to allow 2 or more counties, cities and counties, or municipalities to form a joint taxing authority to collectively establish, levy, collect, and enforce local taxes on vacant residential properties within the boundaries of the authority ( section 2 ).(Note: This summary applies to this bill as introduced.)

The division of housing in the department of local affairs (division) administers an affordable home ownership program (program) that makes grants to nonprofit organizations, local governments, community development financial institutions, and community land trusts (eligible organizations) and tribal governments to support affordable home ownership, including the development of residential housing units that are described in an eligible organization's funding request (project). Current law specifies that only a household with an income less than or equal to 120% of the area median income is eligible for assistance through the program, but it is unclear whether this requirement applies to housing units constructed by an eligible organization through one of its projects. The act clarifies that only a household with an income less than or equal to either 120% of the area median income of households of that size in the jurisdiction of a local government in which the households are located, or 120% of the statewide area median income of households of that size, is eligible for housing constructed by an eligible organization through one of its projects.     In addition, the act requires the program to offer housing that costs not more than 38% of a household's monthly income unless the ownership program is providing a homeowner with assistance for home rehabilitation.     The act also requires the program to offer grants and loans to groups or associations of mobile home owners and their assignees to support affordable homeownership for households with income less than or equal to 120% of the area median income of households of that size in the territory or jurisdiction of the local government in which the households are located, and specifies that the monthly housing payment must not cost more than 35% of the monthly household income. The act allows the division to modify the maximum percentage of income that a household may allocate pursuant to the program as applied to a residential unit constructed by an eligible organization as part of an affordable housing project pursuant to a waiver process initiated by an eligible organization if a substantial need for housing the project's target population exists, the unit has been adequately marketed to eligible buyers for purchase for at least 6 months after final completion of the unit, and the unit has not been purchased by an eligible buyer within that 6-month period.     For grants from the program to support tribal government programs, the tribe is responsible for establishing limitations on household income and maximum percentage of income that a household may allocate for monthly housing costs and a tribal affordability mechanism in lieu of any state-prescribed use covenant. The tribe shall submit evidence to the division that it has satisfied these requirements but is not required to disclose confidential tribal data, including the specific limitations or mechanisms it sets.     The division also administers a land banking program (land banking program) that makes grants to local and tribal governments and loans to nonprofits to acquire and preserve land for the development of affordable housing. For grants made to local governments or loans to nonprofits, the development of affordable housing includes rental housing projects with an imputed income limit by household size not to exceed 60% of area median income. Regulated units in the project must have a gross rent limit that does not exceed 30% of the imputed income limitation applicable to the units. Current law requires that a project provide for-sale housing that may be purchased by a household with an annual income of 100% of area median income. The act changes the income limit to 120% of area median income. For land banking program grants to support tribal government programs, the tribe is required to establish income limits by household size and gross rent limits and is not required to use the limits otherwise required for eligible organizations. The tribal government is required to submit evidence that it has established income and gross rent limits but is not required to disclose confidential tribal data, including what the specific limitations are.     The division may issue a waiver with housing cost limits that are different from those requested by an eligible organization if different housing cost limits would better serve needs identified in the community, the project remains financially feasible, and there are eligible buyers that meet the division's requirements. Alternatively, the division may modify the total amount of funding to account for an increase in the sales price of the unit. In lieu of this process, the division may approve an eligible organization's process for determining when to exceed the maximum monthly household income for a unit funded by the program, which shall not require a 6-month marketing period.     The division may allow an eligible organization to rent residential units constructed as part of the project. On or before December 31, 2026, the division is required to issue guidance for when units within a project may be rented and develop a process by which rented units may return to the for-sale market. A homeowner may rent a unit funded by the ownership program as long as the unit remains their primary residence.(Note: This summary applies to this bill as enacted.)