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DENVER, CO - The House today passed a bill, sponsored by Speaker Pro Tempore Andy Boesenecker and Representative Steven Woodrow, to create more affordable housing opportunities by allowing certain property owners to split their lot.
“This bill will create more opportunities for Coloradans to find a home they can afford,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “Rising land costs are increasing housing prices, making it nearly impossible for hardworking people to buy a house. Too many families in our state are seeing their dream of owning a home one day slip away. With this bill, we’re removing barriers to build generational wealth and create new opportunities for homeownership.”
“The status quo is not working. We need commonsense legislation to help create housing that Coloradans can afford,” said Rep. Steven Woodrow, D-Denver. “Outdated zoning laws are preventing Coloradans from aging in place and building generational wealth. Our bill encourages sustainable growth through the creation of starter homes within our communities to create new pathways to homeownership and save Coloradans money on housing.”
Beginning December 31, 2027, HB26-1308 would require a subject jurisdiction to allow residential lots to be split into two lots if they meet the following requirements:
The lot undergoes any applicable administrative approval processes,
The minimum lot size after splitting is 1,200 square feet,
If the two new lots are unequal in size, the smaller lot must be at least 30 percent of the area of the total lot size,
Residential use is allowed on the original lot and the lots have access to the street and certain utilities, and
If the lot is subject to a mortgage loan, any lenders holding the debt have approved of the split.
The bill also removes setback requirements for any accessory dwelling units or other structures that exist on a split lot. HB26-1308 passed by a vote of 39-26.
In 2025, the Colorado State Demography Office reported a housing shortfall of around 106,000 units. The state must add approximately 34,100 new housing units each year just to avoid an increase in the existing housing shortfall. Lot splitting would allow communities to create more affordable housing opportunities to address the housing shortfall and save Coloradans money on housing.
A 2025 report found that the average age of first-time homebuyers hit an all-time high of 40 years old.
Reps. Boesenecker and Woodrow have prioritized housing affordability efforts in recent years, passing laws to remove regulatory barriers for cost-saving modular and factory-built homes and supporting local governments that build transit-oriented housing. This session, the legislature passed a bill to reduce housing costs by streamlining the process for non-profits, schools and transit districts to build housing on their underutilized land, and is considering legislation that would remove minimum lot size restrictions and fund transit infrastructure improvements and transit-oriented housing.