State Bill Opens Nonprofit Land to Housing; Opponents Say Local Control Would Be Lost

By Anne Boswell

There is no surprise that you have likely heard that housing is hard to find in Colorado. With rising costs to include inflation, taxes, fees and low wages in the Centennial State, many people are struggling to find something they can afford.

Democrat State lawmakers believe they have found a solution under a new bill introduced this year. House Bill 26-1001 would require local governments to allow residential development on qualifying properties owned by certain non-profit organizations, school districts, state colleges or universities, housing authorities, or a transit district or transportation authority. (HB26-1001 Fiscal Note)

Representative Javier Mabery started the discussion this week when the bill was heard in the Transportation, Housing and Local Government Committee. Representative Mabery said he was happy to be able to work on a bill that hopefully will address the housing crisis in the state. He added that Colorado is currently about 100,000 homes short in inventory making the state the second worst in the country to able to find housing. He shared a personal experience from his profession, "many times the primary factor for eviction is the inability to pay." The bill is intended to prevent homelessness, Mabery finished.

The qualifying land that could be used could be owned by a non-profit, or school but cannot be more than five acres in size. It would also be no taller than three stories tall.

According to the bill a local municipality wouldn't be able to say they don't want the development due to height as long as it complies with being no more than three stories tall or 45 feet tall. They also wouldn't be able to say no to the project due to the number of planned units. Local communities wouldn't be allowed to require the project to have higher standards for parking, number of bedrooms and landscaping than what is currently the standard.

The Colorado House Republicans posted about the bill after it passed in committee citing worries of lack of local control to make decisions regarding land and zoning power delivered to the state. Here is the post from their social media:

Despite strong opposition from local mayors and county commissioners across Colorado, HB26-1001 still passed committee. This bill strips local communities of their ability to make basic land use decisions and hands sweeping zoning power to the state, overriding neighborhood rules with little local input. This approach sidelines local governments and risks permanent changes to communities without clear limits or accountability.

Such a project has already been brought to Southeast Colorado in Rocky Ford with the Osborn. The Osborn's land is owned by non-profit agency Total Concept in Fowler. According to the Colorado Housing and Finance Authority the Osborn has 30 units that serve individuals and families exiting homelessness with incomes from 30 to 60 percent of the Area Median Income. CHFA supported the Osborn with an award of $1,029,000 in federal 9 percent Housing Tax Credits.

The bill passed and will be heard again in committee and then moves to the Senate for readings and discussion, and testimony. We will continue to watch this bill as it moves through the Senate.

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