| Summary |
Housing needs planning. The executive director of the
department of local affairs (director) shall, no later than December 31,
2024, and every 5 years thereafter, issue methodology for developing
statewide, regional, and local housing needs assessments. The statewide
housing needs assessment must determine existing statewide housing
stock and current and future housing needs. The regional housing needs
assessments must allocate the addressing of housing needs identified in
the statewide housing needs assessment to regions of the state. Similarly,
the local housing needs assessments must allocate the addressing of the
housing needs allocated in the regional housing needs assessment to
localities in the relevant region.
The director shall, no later than December 31, 2024, issue
guidance on creating a housing needs plan for both a rural resort job
center municipality and an urban municipality. Following this guidance,
no later than December 31, 2026, and every 5 years thereafter, a rural
resort job center municipality and an urban municipality shall develop a
housing needs plan and submit that plan to the department of local affairs
(department). A housing needs plan must include, among other things,
descriptions of how the plan was created, how the municipality will
address the housing needs it was assigned in the local housing needs
assessment, affordability strategies the municipality has selected to
address its local housing needs assessment, an assessment of
displacement risk and any strategies selected to address identified risks,
and how the locality will comply with other housing requirements in this
bill.
The director shall, no later than December 31, 2024, develop and
publish a menu of affordability strategies to address housing production,
preservation, and affordability. Rural resort job center municipalities and
urban municipalities shall identify at least 2 of these strategies that they
intend to implement in their housing plan, and urban municipalities with
a transit-oriented area must identify at least 3.
The director shall, no later than December 31, 2024, develop and
publish a menu of displacement mitigation measures. This menu must,
among other things, provide guidance for how to identify areas at the
highest risk for displacement and identify displacement mitigation
measures that a locality may adopt. An urban municipality must identify
which of these measures it intends to implement in its housing plan to
address any areas it identifies as at an elevated risk for displacement.
The director shall, no later than March 31, 2024, publish a report
that identifies strategic growth objectives that will incentivize growth in
transit-oriented areas and infill areas and guide growth at the edges of
urban areas. The multi-agency advisory committee shall, no later than
March 31, 2024, submit a report to the general assembly concerning the
strategic growth objectives.
The bill establishes a multi-agency advisory committee and
requires that committee to conduct a public comment and hearing process
on and provide recommendations to the director on:
•
Methodologies for developing statewide, regional, and
local housing needs assessments;
•
Guidance for creating housing needs plans;
•
Developing a menu of affordability strategies;
•
Developing a menu of displacement mitigation measures;
•
Identifying strategic growth objectives; and
•
Developing reporting guidance and templates.
A county or municipality within a rural resort region shall
participate in a regional housing needs planning process. This process
must encourage participating counties and municipalities to identify
strategies that, either individually or through intergovernmental
agreements, address the housing needs assigned to them. A report on this
process must be submitted to the department. Further, within 6 months of
completing this process, a rural resort job center municipality shall submit
a local housing needs plan to the department. Once a year, both rural
resort job centers and urban municipalities shall report to the department
on certain housing data.
A multi-agency group created in the bill and the division of local
government within the department shall provide assistance to localities
in complying with the requirements of this bill. This assistance must
include technical assistance and a grant program.
Accessory dwelling units. The director shall promulgate an
accessory dwelling unit model code that, among other things, requires
accessory dwelling units to be allowed as a use by right in any part of a
municipality where the municipality allows single-unit detached
dwellings as a use by right. The committee shall provide
recommendations to the director for promulgating this model code. In
developing these recommendations, the committee shall conduct a public
comment and hearing process.
Even if a municipality does not adopt the accessory dwelling unit
model code, the municipality shall adhere to accessory dwelling unit
minimum standards established in the bill and by the department. These
minimum standards, among other things, must require a municipality to:
•
Allow accessory dwelling units as a use by right in any part
of the municipality where the municipality allows
single-unit detached dwellings as a use by right;
•
Only adopt or enforce local laws concerning accessory
dwelling units that use objective standards and procedures;
•
Not adopt, enact, or enforce local laws concerning
accessory dwelling units that are more restrictive than local
laws concerning single-unit detached dwellings; and
•
Not apply standards that make the permitting, siting, or
construction of accessory dwelling units infeasible.
Middle housing. The director shall promulgate a middle housing
model code that, among other things, requires middle housing to be
allowed as a use by right in any part of a rural resort job center
municipality or a tier one urban municipality where the municipality
allows single-unit detached dwellings as a use by right. The committee
shall provide recommendations to the director for promulgating this
model code. In developing these recommendations, the committee shall
conduct a public comment and hearing process.
Even if a rural resort job center municipality or a tier one urban
municipality does not adopt the middle housing model code, the
municipality shall adhere to middle housing minimum standards
established in the bill and by the department. These minimum standards,
among other things, must require a municipality to:
•
Allow middle housing as a use by right in certain areas;
•
Only adopt or enforce local laws concerning middle
housing that use objective standards and procedures;
•
Allow properties on which middle housing is allowed to be
split by right using objective standards and procedures;
•
Not adopt, enact, or enforce local laws concerning middle
housing that are more restrictive than local laws concerning
single-unit detached dwellings; and
•
Not apply standards that make the permitting, siting, or
construction of middle housing infeasible.
Transit-oriented areas. The director shall promulgate a
transit-oriented area model code that, among other things, imposes
minimum residential density limits for multifamily residential housing
and mixed-income multifamily residential housing and allows these
developments as a use by right in the transit-oriented areas of tier one
urban municipalities. The committee shall provide recommendations to
the director for promulgating this model code. In developing these
recommendations, the committee shall conduct a public comment and
hearing process.
Even if a tier one urban municipality does not adopt the
transit-oriented model code, the municipality shall adhere to middle
housing minimum standards established in the bill and by the department.
These minimum standards, among other things, must require a
municipality to:
•
Create a zoning district within a transit-oriented area in
which multifamily housing meets a minimum residential
density limit and is allowed as a use by right; and
•
Not apply standards that make the permitting, siting, or
construction of multifamily housing in transit-oriented
areas infeasible.
Key corridors. The director shall promulgate a key corridor model
code that applies to key corridors in rural resort job center municipalities
and tier one urban municipalities. The model code must, among other
things, include requirements for:
•
The percentage of units in mixed-income multifamily
residential housing that must be reserved for low- and
moderate-income households;
•
Minimum residential density limits for multifamily
residential housing; and
•
Mixed-income multifamily residential housing that must be
allowed as a use by right in key corridors.
The committee shall provide recommendations to the director for
promulgating this model code. In developing these recommendations, the
committee shall conduct a public comment and hearing process.
Even if a rural resort job center municipality or a tier one urban
municipality does not adopt the key corridor model code, the municipality
shall adhere to key corridor minimum standards promulgated by the
director and developed by the department. These minimum standards,
among other things, must identify a net residential zoning capacity for a
municipality and must require a municipality to:
•
Allow multifamily residential housing within key corridors
that meets the net residential zoning capacity as a use by
right;
•
Not apply standards that make the permitting, siting, or
construction of multifamily housing in certain areas
infeasible; and
•
Not adopt, enact, or enforce local laws that make satisfying
the required minimum residential density limits infeasible.
The committee shall provide recommendations to the director on
promulgating these minimum standards. In developing these
recommendations, the committee shall conduct a public comment and
hearing process.
Adoption of model codes and minimum standards. A relevant
municipality shall adopt either the model code or local laws that satisfy
the minimum standards concerning accessory dwelling units, middle
housing, transit-oriented areas, and key corridors. Furthermore, a
municipality shall submit a report to the department demonstrating that
it has done so. If a municipality fails to adopt either the model code or
local laws that satisfy the minimum standards by a specified deadline, the
relevant model code immediately goes into effect, and municipalities
shall then approve any proposed projects that meet the standards in the
model code using objective procedures. However, a municipality may
apply to the department for a deadline extension for a deficiency in water
or wastewater infrastructure or supply.
Additional provisions. The bill also:
•
Requires the advisory committee on factory-built structures
and tiny homes to produce a report on the opportunities and
barriers in state law concerning the building of
manufactured homes, mobile homes, and tiny homes;
•
Removes the requirements that manufacturers of
factory-built structures comply with escrow requirements
of down payments and provide a letter of credit, certificate
of deposit issued by a licensed financial institution, or
surety bond issued by an authorized insurer;
•
Prohibits a planned unit development resolution or
ordinance for a planned unit with a residential use from
restricting accessory dwelling units, middle housing,
housing in transit-oriented areas, or housing in key
corridors in a way not allowed by this bill;
•
Prohibits a local government from enacting or enforcing
residential occupancy limits that differ based on the
relationships of the occupants of a dwelling;
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Modifies the content requirements for a county and
municipal master plan, requires counties and municipalities
to adopt or amend master plans as part of an inclusive
process, and requires counties and municipalities to submit
master plans to the department;
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Allows a municipality to sell and dispose of real property
and public buildings for the purpose of providing property
to be used as affordable housing, without requiring the sale
to be submitted to the voters of the municipality;
•
Requires the approval process for manufactured and
modular homes to be based on objective standards and
administrative review equivalent to the approval process
for site-built homes;
•
Prohibits a municipality from imposing more restrictive
standards on manufactured and modular homes than the
municipality imposes on site-built homes;
•
Prohibits certain municipalities from imposing minimum
square footage requirements for residential units in the
approval of residential dwelling unit construction permits;
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Requires certain entities to submit to the Colorado water
conservation board (board) a completed and validated
water loss audit report pursuant to guidelines that the board
shall adopt;
•
Allows the board to make grants from the water efficiency
grant program cash fund to provide water loss audit report
validation assistance to covered entities;
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Allows the board and the Colorado water resources and
power development authority to consider whether an entity
has submitted a required audit report in deciding whether
to release financial assistance to the entity for the
construction of a water diversion, storage, conveyance,
water treatment, or wastewater treatment facility;
•
Prohibits a unit owners' association from restricting
accessory dwelling units, middle housing, housing in
transit-oriented areas, or housing in key corridors;
•
Requires the department of transportation to ensure that the
prioritization criteria for any grant program administered
by the department are consistent with state strategic growth
objectives, so long as doing so does not violate federal law;
•
Requires any regional transportation plan that is created or
updated to address and ensure consistency with state
strategic growth objectives;
•
Requires that expenditures for local and state multimodal
projects from the multimodal transportation options fund
are only to be made for multimodal projects that the
department determines are consistent with state strategic
growth objectives; and
•
For state fiscal year 2023-24, appropriates $15,000,000
from the general fund to the housing plans assistance fund
and makes the department responsible for the accounting
related to the appropriation.
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