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SB26-001 would make more funding available for workforce and affordable housing
DENVER, CO – The House today passed bipartisan legislation to give local governments additional flexibility to address housing shortages. SB26-001, sponsored by Speaker Pro Tempore Andy Boesenecker, passed by a vote of 53-10.
“This bipartisan effort would unlock more resources to build housing that Coloradans can actually afford,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “We’re creating more flexibility for local governments to use existing tools to be responsive to the housing needs of their communities. This bill is one of many steps that Colorado Democrats are taking to make life more affordable for hardworking Coloradans.”
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R-Elbert County, would allow counties to use existing resources to support workforce and affordable housing, removing outdated restrictions that limit their ability to respond to local housing needs.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.