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May 8, 2025

Signed! Bill to Reduce Housing Costs, Boost Stock of Factory-Built Housing

SB25-002 will increase the supply of affordable housing by reducing regulatory barriers on factory-built structures like tiny homes and modular housing


DENVER, CO – Legislation sponsored by Senators Tony Exum, D-Colorado Springs, and Jeff Bridges, D-Arapahoe County, and Representatives Andy Boesenecker, D-Fort Collins, and Rebekah Stewart, D-Lakewood, to reduce housing costs by boosting the stock of affordable factory-built housing was signed into law today.


SB25-002 will increase the stock of affordable housing by reducing regulatory barriers to the construction, installation, and inspection of factory-built structures like tiny homes and other types of modular housing. Modular housing is usually less expensive than traditional, stick-built homes constructed on-site and can be assembled faster, which can help expand permanent housing opportunities and build more affordable housing options.


“Right now, the people that keep our communities running – teachers, nurses, and firefighters – can’t afford to live where they work,” said Exum. “Expanding opportunities for them and their families to thrive and grow together in a stable, safe environment is vital to strong, lasting success for Colorado communities.”


“Our law will improve coordination between state and regional partners and cut down on duplicative steps to build more affordable housing in our communities,” said Boesenecker. “Modular homes are a high-quality alternative to traditional housing construction materials, but are faster to assemble and cheaper to build. This law allows us to strategically use tools that have proven to create more affordable housing options for hardworking Coloradans.”


"Every Coloradan should be able to afford to live where they work," said Bridges. "We have an affordability crisis here in Colorado, and while there's no silver bullet for housing, there are silver BBs. This is one of them. This legislation will increase Colorado's housing stock by bringing down construction costs, giving more folks the opportunity to live where they work, raise a family, and call Colorado home.”


“Modular homes are a creative and proven solution to drive down housing costs and allow more Coloradans to realize their dream of homeownership,” said Stewart. “Construction costs, miscommunication and doubling up on regulation have been significant barriers to building affordable housing, and this law aims to streamline regulations to fully benefit from the potential of modular housing. With this new law, we can make high-quality housing more affordable across Colorado.”


This bill directs the State Housing Board in the Department of Local Affairs to develop regional building codes for factory-built structures by July 1, 2026. The new building codes supersede current regulations only for factory-built structures.


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