ColoradoHB26-13132026 Regular SessionHouseWALLET

Adjust Requirements Statewide Affordable Housing Fund

Sponsored By: Andrew Boesenecker (Democratic), Lisa Frizell (Republican), Matt Ball (Democratic), Rebekah Stewart (Democratic)

Signed by Governor

HousingLocal Government

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Local governments can seek lower targets

Beginning January 1, 2027, local governments unable to meet housing targets can request an adjustment waiver to preserve funding eligibility. They must have approved faster project approvals and reliable, checkable data explaining why their target cannot be reached within their boundaries. Evidence can include housing studies no more than three years old, restricted-home inventories, growth plans, utility capacity limits, or geographic and environmental barriers. They must propose growth of at least one home per year and document that the 2027 commitment significantly exceeds their prior commitment. Approval is discretionary, and the Division must consider whether and how much the government exceeded its required 2024-cycle increase.

Local governments get extra housing credit

Beginning January 1, 2027, qualifying new or converted affordable homes count toward local targets with deed restrictions lasting at least 15 years. New homes count when permitted; conversions count when permitted and fully funded, and qualifying restrictions must extend beyond the cycle. Homes in larger projects also count when a 15-year deed restriction applies and average rent is affordable at 60% of area median income. Each qualifying home adds 0.10 credit for donated government land, 0.10 per contributing local government, and 0.20 each for qualifying for-sale housing and restrictions serving households at or below 40% of area median income, including supportive housing. Collaboration credits can exceed actual homes only through authorized bonuses; the transition rules give a 0.20 bonus for homes serving households at or below 30% of area median income.

Local governments get missed-target waiver option

Local governments can request a good-faith waiver from June 15 through October 31, 2026, for the 2024–2026 housing cycle. They must achieve at least 65% of required annual increases, receive approval for faster project approvals, and receive Proposition 123 technical guidance. They must also meet the new target formula when applied to that cycle, or show that proportional funding of another jurisdiction’s units supports meeting the 65% threshold. Applications must explain achievements and document land-use or regulatory reforms, plus added funding commitments or cost-cutting methods. Governments must improve processes or capacity to reduce development barriers, or join a formal regional housing agreement; the Division decides whether to approve continued funding eligibility despite a missed target.

Counties get credit for tax-exempt housing

Beginning January 1, 2027, the Division of Housing can count a qualifying affordable home as up to 1.15 units for its county. The credit applies when building construction begins and is not automatic. The project must qualify for a property-tax exemption that reduces county revenue, and the county must provide no development money. Counties must document expected property-tax losses during the project’s financial review. This credit does not directly change a household’s property-tax bill.

New housing targets for local governments

Colorado’s 2024–2026 cycle requires 3% yearly affordable-home growth over a baseline using 2017–2021 Census estimates, achieved by December 31, 2026. Beginning January 1, 2027, each three-year target equals average yearly housing permits or equivalents over the prior three years, multiplied by three and a job-growth factor. That factor is 0.10, 0.15, or 0.20 for county job growth below, near, or above the statewide median. The Division of Housing sets the numerical ranges, and commitments are due November 1 before each cycle. Local governments, excluding housing authorities, must meet growth requirements and approval-process rules or obtain an approved waiver to access direct funding.

Tribal housing funds drop growth targets

Beginning January 1, 2027, tribal governments no longer need affordable-home growth commitments to qualify for state housing funds. They must implement the required faster approval system for affordable-housing projects and submit proof to the Division of Housing. These requirements apply to direct tribal funding and funding for projects within tribal boundaries. The change governs tribal funding access, not a household’s direct eligibility for housing.

Sponsors & Cosponsors

Cosponsors

Eliza Hamrick
Democratic • House
Emily Sirota
Democratic • House
Gretchen Rydin
Democratic • House
Jennifer Bacon
Democratic • House
Jamie Jackson
Democratic • House
Junie Joseph
Democratic • House
Julie McCluskie
Democratic • House
Jacque Phillips
Democratic • House
Kyle Brown
Democratic • House
Karen McCormick
Democratic • House
Kenny Nguyen
Democratic • House
Monica Duran
Democratic • House
Meg Froelich
Democratic • House
Mandy Lindsay
Democratic • House
Manny Rutinel
Democratic • House
Regina English
Democratic • House
Yara Zokaie
Democratic • House
Barbara Kirkmeyer
Republican • Senate
Cathy Kipp
Democratic • Senate
Cleave Simpson
Republican • Senate
Dylan Roberts
Democratic • Senate
Jeff Bridges
Democratic • Senate
James Coleman
Democratic • Senate
Julie Gonzales
Democratic • Senate
Janice Marchman
Democratic • Senate
Kyle Mullica
Democratic • Senate
Katie Wallace
Democratic • Senate
Lisa Cutter
Democratic • Senate
Lindsey Daugherty
Democratic • Senate
Marc Catlin
Republican • Senate
Rod Pelton
Republican • Senate
Tony Exum
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 198 • No: 50

House vote • 5/4/2026

Senate amendments: Repass

Yes: 47 • No: 18

House vote • 5/4/2026

Senate amendments: Concur

Yes: 60 • No: 5

Senate vote • 4/30/2026

Third reading: Bill

Yes: 33 • No: 2

Senate vote • 4/23/2026

Refer House Bill 26-1313, as amended, to the Committee of the Whole.

Yes: 6 • No: 1

House vote • 4/2/2026

Third reading: Bill

Yes: 42 • No: 21

House vote • 3/25/2026

Refer House Bill 26-1313, as amended, to the Committee of the Whole.

Yes: 10 • No: 3

Actions Timeline

Governor Signed
5/26/2026House
Signed by the Speaker of the House
5/18/2026House
Signed by the President of the Senate
5/18/2026Senate
Sent to the Governor
5/18/2026House
House Considered Senate Amendments - Result was to Concur - Repass
5/4/2026House
House Considered Senate Amendments - Result was to Laid Over Daily
5/1/2026House
Senate Third Reading Passed - No Amendments
4/30/2026Senate
Senate Second Reading Special Order - Passed with Amendments - Committee, Floor
4/29/2026Senate
Senate Second Reading Laid Over Daily - No Amendments
4/28/2026Senate
Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
4/23/2026Senate
Introduced In Senate - Assigned to Local Government & Housing
4/8/2026Senate
House Third Reading Passed - No Amendments
4/2/2026House
House Third Reading Laid Over Daily - No Amendments
3/31/2026House
House Second Reading Special Order - Passed with Amendments - Committee, Floor
3/30/2026House
House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
3/25/2026House
Introduced In House - Assigned to Transportation, Housing & Local Government
3/2/2026House

Bill Text

Engrossed
PDF
Final Act
PDF
House Transportation, Housing & Local Government Preamend
PDF
Introduced
PDF
Reengrossed
PDF
Rerevised
PDF
Revised
PDF
Senate Local Government & Housing Preamend
PDF
Signed Act
PDF

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