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DENVER, CO - The House Transportation, Housing and Local Government Committee today passed a bill to create more affordable housing opportunities by allowing certain property owners to split their lot. HB26-1308, sponsored by Speaker Pro Tempore Andy Boesenecker and Representative Steven Woodrow, passed by a vote of 8-4.
“Every Coloradan deserves the chance to become a homeowner, and this legislation would make that dream a reality for more hardworking people,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “Housing affordability is a major issue throughout our state, which has made it harder and harder for Coloradans to be able to transition from renter to homeowner. This bill aims to create more affordable housing options, especially starter homes, in our communities to make life more affordable for Coloradans.”
“We’re increasing homeownership opportunities, especially for first-time homeowners,” said Rep. Steven Woodrow, D-Denver. “Our bill would allow homeowners to split their lot, decreasing their own housing costs while adding more affordable housing to the market. There is a serious housing affordability issue in Colorado, which is why Colorado Democrats are taking every possible approach to create housing opportunities that Coloradans can afford.”
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.
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 support local governments that build transit-oriented housing. This session, the legislature is considering bills to reduce housing costs by streamlining the process for non-profits, schools and transit districts to build housing on their underutilized land, removing minimum lot size restrictions and fund transit infrastructure improvements and transit-oriented housing.