| Summary |
Housing needs assessments. The bill requires the executive
director of the department of local affairs (director), no later than
December 31, 2024, to develop reasonable methodologies for conducting
statewide, regional, and local housing needs assessments and reasonable
guidance for a local government to identify areas at elevated risk of
displacement.
The bill requires the director, no later than November 30, 2027,
and every 6 years thereafter, to conduct a statewide housing needs
assessment that analyzes existing and future statewide housing needs and
to publish a report identifying current housing stock and estimating
statewide housing needs.
The bill requires each local government, beginning December 31,
2026, and every 6 years thereafter, to conduct and publish a local housing
needs assessment. The bill outlines the process for a local government
conducting a local housing needs assessment and for determining when
a local government is exempt from conducting a local housing needs
assessment. The bill requires local governments to submit local housing
needs assessments to the department of local affairs (department), which
shall publish those assessments on the department's website.
Relatedly, the bill allows a regional entity to conduct a regional
housing needs assessment. If a regional entity conducts a regional housing
needs assessment, the bill requires the regional entity to submit the
assessment both to each local government in the region and to the
department, which shall publish those assessments on the department's
website.
Housing action plans. A housing action plan is an advisory
document that demonstrates a local government's commitment to address
housing needs and that guides a local government in developing
legislative actions, promoting regional coordination, and informing the
public of the local government's efforts to address housing needs in the
local government's jurisdiction. The bill requires a local government with
a population of 1,000 or more to make a housing action plan no later than
January 1, 2028, and every 6 years thereafter. The bill identifies the
specific elements that a housing action plan must include, explains how
a local government may update a housing action plan, requires a local
government to report its progress in implementing the plan to the
department, and requires a local government to submit a housing action
plan to the department, which shall publish those assessments on the
department's website.
Publishing of reports. The bill requires the director to publish
reports on the following no later than December 31, 2024:
•
A directory of housing and land use strategies to guide
local governments in encouraging the development of a
range of housing types with a primary focus on increasing
housing affordability; and
•
A directory of housing and land use strategies to guide
local governments in avoiding, reducing, and mitigating the
impact of displacement.
The bill establishes the minimum required elements for both types of
directories of housing and land use strategies. The bill also requires the
director to develop and publish:
•
No later than June 30, 2025, in consultation with the
Colorado water conservation board, a joint report
concerning water supply; and
•
No later than December 31, 2025, in coordination with
relevant state agencies, a natural land and agricultural
interjurisdictional opportunities report.
Technical assistance. The bill requires the division of local
government (division) to provide technical assistance and guidance
through a grant program, the provision of consultant services, or both to
aid local governments in:
•
Establishing regional entities;
•
Creating local and regional housing needs assessments;
•
Making a housing action plan;
•
Enacting laws and policies that encourage the development
of a range of housing types or mitigate the impact of
displacement; and
•
Creating strategic growth elements in master plans.
The bill creates the continuously appropriated housing needs
planning technical assistance fund to contain the money necessary for the
division to provide this technical assistance and guidance. The bill
requires the state treasurer to transfer $15 million from the general fund
to this fund.
Further, the bill directs the division to serve as a clearing house for
the benefit of local governments and regional entities in accomplishing
the goals of the bill. The division shall report on the assistance requested
and provided under the bill.
Grant program prioritization criteria. On and after December
1, 2027, for any grant program conducted by the department, the
Colorado energy office, the office of economic development the
department of transportation, the department of natural resources, the
department of public health and environment, and the department of
personnel and administration that awards grants to local governments for
the primary purpose of supporting land use planning or housing, the bill
requires the awarding entity to prioritize awarding grants to a local
government that:
•
Is the subject of a completed and filed housing needs
assessment;
•
Has adopted a housing action plan that has been accepted
by the department;
•
Has reported progress to the department regarding the
adoption of any strategies or changes to local laws
identified in the housing action plan; and
•
Is the subject of a master plan that includes a water element
and a strategic growth element.
In the case of a local government that is not required to do any of the
above, the department is required to prioritize that local government in
the same way that it prioritizes a local government that has done all of the
above.
Master plans. The bill modifies the requirements of both county
and municipal master plans so that those master plans must include:
•
A narrative description of the procedure used for the
development and adoption of the master plan;
•
No later than December 31, 2026, a water supply element;
and
•
No later than December 31, 2026, a strategic growth
element, so long as the county or municipality meets
certain requirements.
The water element in a county or municipal master plan must
identify the general location and extent of an adequate and suitable supply
of water, identify supplies and facilities sufficient to meet the needs of
local infrastructure, and include water conservation policies.
The strategic growth element in a master plan must include:
•
A buildable sites analysis that identifies vacant, partially
vacant, and underutilized land that can accommodate infill
development, redevelopment, and new development
without the development of previously undeveloped land;
•
An identification of areas within a reasonable distance of
rail transit and frequent bus service that can accommodate
the development of housing to address the housing needs
of current and future residents at all income levels; and
•
A description of existing and needed infrastructure,
transportation, and public facilities and services to serve
these sites.
The bill requires both counties and municipalities to submit their
master plan and any separately approved water or strategic growth
element to the division for the division's review.
Prohibition contrary to public policy. The bill prohibits a unit
owners' association of a common interest community from, through any
declaration or bylaw, rules, or regulation adopted or amended by an
association on or after July 1, 2024, prohibiting or restricting the
construction of accessory dwelling units or middle housing, if the zoning
laws of the association's local jurisdiction would otherwise allow such
construction.
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