House Passes Bill to Reduce Housing Costs, Save Coloradans Money

DENVER, CO - The House today passed a bill to drive down housing costs and save Coloradans money. HB26-1065, which passed by a vote of 44-21, would fund transit infrastructure improvements and transit-oriented housing.

“Housing costs continue to be too high for Coloradans, which is why we are laser-focused on making Colorado a more affordable place to live,” said Speaker Julie McCluskie, D-Dillon. “This new financing tool creates a pathway for local governments to boost funding for multimodal transit systems and housing that Coloradans can afford so we can better meet the needs of our communities, especially in the High Country.”

“We’re helping build affordable housing and transit centers closer to where Coloradans live, shop and go to school,” said Rep. Steven Woodrow, D-Denver. “Strategic planning would increase transit ridership to reduce traffic congestion and greenhouse gas emissions while providing more affordable places to live for hardworking Coloradans. Colorado Democrats are serious about saving people money, which is why we’re bringing this bill to lower housing and transportation costs.”

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. 

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.

Under the bill, the Colorado Economic Development Commission would also set an annual limit on the amount of revenue that can be allocated for a transit investment project. 

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 tax credits per calendar year from 2027 to 2033 for a total investment of $350 million by 2038.