Colorado Housing Bill Targets Local Zoning, Spurs City-State Standoff

Townhome-style units from Mosaica, a new housing development in Colorado Springs, CO. (Source: Mosaica.)

Colorado Governor Jared Polis and state legislative leaders have introduced an ambitious plan to address the state’s housing crisis. The new land use bill would bar local communities from banning duplexes, triplexes, certain multiplexes, and accessory dwelling units (ADUs), and expand housing construction options near transit stops. Sponsors of the legislation say it will remove barriers to creating new housing, many of which are caused by single-family zoning, and allow more building types that fall in the category of missing-middle housing.

“We're at a real inflection point here where we need a smart plan, in an inter-jurisdictional way, for more housing, for rent and for purchase, close to where jobs are and along transit lines with opportunities for people to get where they want to go,” Polis told Colorado Public Radio.

Colorado’s population grew 15.1% between 2010 and 2021. With a net gain of 764,530 new residents, it has struggled to accommodate the growth, and the problem takes different contours throughout the state. Denver and Boulder are grappling with the broader question of where to put all the new residents, while Colorado’s appealing mountain towns have become so popular that rising property values are driving out workers who can no longer afford to rent or own them. 

The omnibus legislation is called Senate Bill 23-213, and was introduced by the governor, its legislative sponsors, and a group of supporters at the state capitol on March 22. There are several other pieces of housing-related legislation under consideration this session, including bills that would remove local growth caps, expand tenants’ rights, and enable more public-private partnerships to provide housing. 

The zoning preemption would only occur at the municipal level and not at the county level. As in other states that have pursued such an approach, local governments have expressed strong resistance. 

The city of Colorado Springs just passed its own land use revisions, and its mayor bristles at the state-level incursion. “Apparently we’re too stupid to understand the need for affordable housing and only the state understands what we need to do … I just resent it,” Colorado Springs Mayor John Suthers told the Denver Post.

The Colorado Municipal League, which represents the state’s cities and towns, also opposes the state-level action and has vowed to fight the bill. Its leader, Kevin Bommer, calls the governor’s proposal a  “sweeping and breathtaking attempt to centralize local land use and zoning policy in the state Capitol.”

The bill would determine the level of state intervention based on the size of a municipality. So-called Tier 1 cities, which include Denver, Boulder, and Colorado Springs, would be forbidden from preventing construction of duplexes, triplexes, and multiplex projects up to six units, as well as ADUs. They must also remove any parking requirements on those projects. 

Smaller cities (Tier 2 in the bill) with populations of 5,000 to 25,000 people would have to allow ADUs and remove parking restrictions, but would still be able to block multiplex housing and be exempt from rules about development near transit. 

A third category, called Rural Resort Job Centers, comprises many of Colorado’s famous ski towns, such as Aspen and Vail. These places would have to allow ADUs, but be exempt from other Tier 1 terms. According to the text of the legislation, “This category is intended to prompt local governments to work with their surrounding region to address housing shortfalls.”  

Under the bill, municipalities would also be required to file reports every five years with “a menu of affordability strategies to address housing production, preservation, and affordability.”

Like a recent proposal in Washington state, new projects near transit stops would preempt local zoning restrictions and allow for a greater variety of types. 

Colorado has also struggled with different housing development models. A recent Strong Towns article details how the town of Castle Rock has accrued almost a billion dollars in debt for a special taxing district that provides infrastructure to enable housing construction. Homeowners in these districts can face multiple taxing authorities.

Colorado’s zoning reform legislation echoes similar action that has taken place in other states, including California, Oregon, and, soon, Montana. These bills represent a welcome trend, according to  Daniel Herriges, editor-in-chief of Strong Towns. “Fundamentally, they’re a step toward allowing every neighborhood to grow and evolve, instead of trying to restrict new housing to small pockets of our cities. The next increment of development needs to be available everywhere,” says Herriges. 

With such heated rhetoric, the progress of the legislation promises to be contentious. But the governor’s party holds strong advantages in the state House (46 Democrats to 19 Republicans) and Senate (23–12), so if Governor Polis can convince lawmakers of his own party to support the bill, it would pass.

The current legislative session runs through May 8, 2023. Strong Towns will continue to monitor the progress of Colorado’s housing reform efforts and provide a detailed report if they pass. 

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