Committee Passes Bill to Unlock Local Governments’ Ability to Address Housing Needs

SB26-001 would make funds available for workforce and affordable housing DENVER, CO – The House Transportation, Housing and Local Government Committee today passed bipartisan legislation to give local governments additional flexibility to address housing shortages. SB26-001 passed unanimously by a vote of 12-0.

“Coloradans deserve to be able to live where they work, and this bill would leverage existing tools to better meet the needs of our communities,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “This bill would remove restrictive regulations that prevent local governments from being able to create housing that their communities can actually afford. Colorado Democrats remain committed to delivering housing opportunities, and legislation like this can drive down housing costs so Coloradans can build a successful future.”

SB26-001, also sponsored by Representative Chris Richardson, R-Elbert County, would allow counties to use existing resources to support workforce and affordable housing, removing outdated restrictions that limit their ability to respond to local housing needs. 

The bill would also allow local governments to sell, lease, or acquire property for the purpose of workforce or affordable housing and create a tax exemption for construction materials used for workforce housing projects. Additionally, SB26-001 would update Colorado’s Middle-Income Housing Tax Credit to help projects secure financing by allowing the credits to be transferred to individuals, firms, or corporations that do not own a project interest.

In 2024, Colorado Democrats created the first Middle-Income Housing Tax Credit Pilot Program in the nation. This pilot program offers tax credits to support affordable rental housing projects for middle-income Coloradans. In 2025, nearly $5 million was allocated to projects in the Denver Metro Area and the Western Slope.