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DENVER, CO - The House Finance Committee today passed a bill to drive down housing costs and save Coloradans money. HB26-1065 would fund transit infrastructure improvements and transit-oriented housing.
“Affordable housing is crucial for Coloradans’ success, and creating housing and transit investment zones would help communities across the state build affordable housing near transit centers,” said Speaker Julie McCluskie, D-Dillon. “By creating a funding mechanism to spur affordable housing and connective infrastructure near transit hubs, we’re making transit ridership a more attractive option for travel and encouraging more rental opportunities that Coloradans can afford. Our bill would provide this financial tool to local governments across the state, supporting both Front Range transit hubs and rural projects like mountain passenger rail and commuter routes on the Western Slope. This bill would make it easier to call Colorado home so everyone can enjoy the Colorado Way of Life.”
“Colorado Democrats’ top priority is saving Coloradans money, especially when it comes to housing,” said Rep. Steven Woodrow, D-Denver. “From encouraging transit-oriented communities to removing parking minimum mandates, the legislature has passed laws to build in a strategic way that reduces our carbon footprint while reducing housing costs. This bill would build on our work to create more eco-friendly transportation options and boost housing that Coloradans can actually afford.”
HB26-1065, The Transit Investment Area Act, would create a new financing tool to improve transportation infrastructure and establish a tax credit to build more transit-oriented affordable housing.
The bill would use tax-increment financing to allow local governments to invest state sales tax revenue into transportation infrastructure. Local governments, in partnership with transit agencies, would be able to apply to create a transit and housing investment zone. These zones would fund transportation infrastructure projects within 2 miles of a transportation facility, like safety improvements and centering transit stops within the community to increase ridership. Local governments would be required to suggest an annual limit on the amount of revenue that could be allocated to the transit investment project in the application process. Under the bill, the Colorado Economic Development Commission would also set an annual limit of the amount of revenue that can be allocated for a transit investment project. The bill would allow up to three transit investment projects to be approved in a calendar year, with no more than six projects funded through the bill in total.
HB26-1065 would also create the Colorado Affordable Housing in Transit Investment Zones Tax Credit. This tax credit is reserved for projects that serve low- and middle-income housing within newly created transit and housing investment zones. The bill would allow up to $50 million in these tax credits per calendar year from 2027 to 2033 for a total investment of $350 million by 2038.
The bill passed by a vote of 7-4.