House Bill 25-1169 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the promotion of residential development on

• Page 1, Line 102qualifying properties.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill requires a subject jurisdiction, on or after December 31, 2026, to allow a residential development to be constructed on a qualifying property that does not contain an exempt parcel, subject to an administrative approval process.

The bill specifies that a subject jurisdiction shall not:

• Disallow construction of a residential development on the basis of height if the tallest structure in the residential development is no more than 3 stories or 45 feet tall;
• Disallow construction of a residential development on the basis of height if the tallest structure in the residential development complies with the height-related standards for the zoning district in which the residential development will be built or any zoning district that is contiguous to the qualifying property on which the residential development will be built;
• Disallow construction of a residential development based on the number of dwelling units that the residential development will contain, except in accordance with standards listed in the bill; or
• Apply standards to a residential development on a qualifying property that are more restrictive than the standards the subject jurisdiction applies to similar housing constructed within the subject jurisdiction, including standards related to structure setbacks from property lines; lot coverage or open space; on-site parking requirements; numbers of bedrooms in a multifamily residential development; or on-site landscaping, screening, and buffering requirements.
• Childcare; and
• The provision of recreational, social, or educational services provided by community organizations for use by the residents of the residential development and the surrounding community.

A subject jurisdiction shall allow the following uses in a residential development on a qualifying property:

A subject jurisdiction may condition additional uses in a residential development on the uses being allowed only on the ground floor of the residential development and the uses occupying no more than 15% of the ground floor area of the residential development.

The bill requires a faith-based organization, school district, or state college or university to notify the county assessor that a subject jurisdiction has allowed the construction of a residential development on a qualifying property within the county.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, add part 5 to article 35 of title 29 as follows:

• Page 2, Line 3PART 5

• RESIDENTIAL DEVELOPMENT ON

• Page 3, Line 1QUALIFYING PROPERTIES

• Page 3, Line 229-35-501.  Legislative declaration. (1)  The general assembly finds and declares that:

• Page 3, Line 3(a)  Coloradans are overwhelmingly burdened with the

• Page 3, Line 4cost of housing. In 2022, forty-five percent of Colorado renters

• Page 3, Line 5spent over thirty percent of their income on rent. In order to

• Page 3, Line 6afford the median rent of one thousand seven hundred

• Page 3, Line 7seventy-one dollars without being cost-burdened, a Colorado

• Page 3, Line 8renter must earn an annual income that exceeds seventy

• Page 3, Line 9thousand dollars. Further, to purchase a median-priced home in

• Page 3, Line 10Colorado with a twenty percent down payment without being

• Page 3, Line 11cost-burdened, a Coloradan must earn an annual income that exceeds one hundred twenty-nine thousand dollars.

• Page 3, Line 12(b)  As of November 2024, the average cost of construction

• Page 3, Line 13in Colorado was approximately four hundred eighty-three

• Page 3, Line 14thousand dollars per unit, representing an increase of over sixty thousand dollars from the previous year;

• Page 3, Line 15(c)  As Colorado grows, so does the challenge of providing

• Page 3, Line 16affordable housing to its residents. While land that is available

• Page 3, Line 17for new housing in established communities is in short supply,

• Page 3, Line 18many qualifying organizations own underutilized properties upon which housing could be built.

• Page 3, Line 19(d)  In Denver, Jefferson, Arapahoe, and Douglas counties

• Page 3, Line 20alone, faith-based organizations own more than five thousand

• Page 3, Line 21acres of undeveloped land, some of which has never been

• Page 3, Line 22developed and some of which has been vacant for over seventy

• Page 4, Line 1years. In many cases, faith-based organizations are mowing or

• Page 4, Line 2maintaining these lots at significant cost with no real benefit to the community.

• Page 4, Line 3(e)  Local zoning regulations can prevent housing from

• Page 4, Line 4being developed on vacant properties by prohibiting residential

• Page 4, Line 5development in association with places of assembly, or by

• Page 4, Line 6requiring extensive rezoning processes that add cost and uncertainty to affordable housing projects; and

• Page 4, Line 7(f)  This House Bill 25-____, enacted in 2025, streamlines

• Page 4, Line 8the building process for qualifying properties, including

• Page 4, Line 9properties owned by faith-based organizations, by providing a

• Page 4, Line 10process that allows residential developments to be constructed

• Page 4, Line 11on qualifying properties as long as certain requirements are satisfied.

• Page 4, Line 12(2)  The general assembly further finds and declares that

• Page 4, Line 13it is the intent of the general assembly that every person

• Page 4, Line 14involved in the construction, management, and operation of a

• Page 4, Line 15qualifying property in connection with this part 5 complies with

• Page 4, Line 16the federal "Fair Housing Act", 42 U.S.C. sec. 3601 et seq., the

• Page 4, Line 17federal "Americans with Disabilities Act of 1990", 42 U.S.C. sec. 12101 et seq., and all other state and federal laws.

• Page 4, Line 1829-35-502.  Definitions.As used in this part 5, unless the context otherwise requires:

• Page 4, Line 19(1)  "Dwelling unit" has the same meaning as set forth in section 29-35-402 (8).

• Page 4, Line 20(2)  "Exempt parcel" means:

• Page 4, Line 21(a)  A parcel that is not served by a domestic water and

• Page 5, Line 1sewage treatment system, as defined in section 24-65.1-104 (5); is

• Page 5, Line 2served by a well that is not connected to a water distribution

• Page 5, Line 3system, as defined in section 25-9-102 (6); or is served by a septic tank, as defined in section 25-10-103 (18);

• Page 5, Line 4(b)  A parcel where residential use is prevented or limited

• Page 5, Line 5by state regulation, federal regulation, or deed restriction pursuant to:

• Page 5, Line 6(I)  Federal aviation administration restrictions pursuant to 14 CFR 77;

• Page 5, Line 7(II)  An environmental covenant pursuant to section 25-15-318 to section 25-15-323; or

• Page 5, Line 8(III)  Flammable gas overlay zoning district restrictions;

• Page 5, Line 9(c)  A parcel that is used as a cemetery, as defined in section 10-15-102 (2); or

• Page 5, Line 10(d)  A parcel that is subject to a conservation easement.

• Page 5, Line 11(3)  "Faith-based organization" means any organization, church, body of communicants, or group that is:

• Page 5, Line 12(a)  Gathered in common membership for the purpose of

• Page 5, Line 13propagating its faith or carrying on humanitarian work related to that faith;

• Page 5, Line 14(b)  Located on property owned by a nonprofit organization with a religious mission;

• Page 5, Line 15(c)  Located on property that is used for religious purposes; and

• Page 5, Line 16(d)  Not organized for private gain or corporate profit.

• Page 5, Line 17(4)  "Qualifying property" means real property that has

• Page 5, Line 18been owned by a faith-based organization, a school district, as

• Page 6, Line 1defined in section 22-30-103 (13), or a state college or university, as defined in section 23-2-102 (15), for at least five years.

• Page 6, Line 2(5)  "Residential development" means a development with

• Page 6, Line 3one or more structures that contains permanent dwelling units and does not contain any temporary housing or shelter space.

• Page 6, Line 4(6)  "Similar housing" means housing that is similar in form and number of dwelling units.

• Page 6, Line 5(7)  "Subject jurisdiction" means a local government.

• Page 6, Line 629-35-503.  Residential developments on qualifying properties.

• Page 6, Line 7(1)  Residential developments onqualifying properties.On or after

• Page 6, Line 8December 31, 2026, a subject jurisdiction shall allow a

• Page 6, Line 9residential development to be constructed on a qualifying

• Page 6, Line 10property that does not contain an exempt parcel, subject to an

• Page 6, Line 11administrative approval process and in accordance with section 29-35-504.

• Page 6, Line 12(2)  Subject jurisdiction administrative practices.Nothing in this section prevents a subject jurisdiction from:

• Page 6, Line 13(a)  Enforcing infrastructure standards in local law

• Page 6, Line 14during the administrative approval process, including standards related to utilities, transportation, or public works codes;

• Page 6, Line 15(b)  Applying and enforcing a locally adopted life safety code, including a building, fire, utility, or stormwater code;

• Page 6, Line 16(c)  Adopting generally applicable requirements for the

• Page 6, Line 17payment of impact fees or other similar development charges in

• Page 6, Line 18accordance with section 29-20-104.5, or the mitigation of impacts in accordance with part 2 of article 20 of this title 29;

• Page 6, Line 19(d)  Requiring a statement by a water or wastewater

• Page 7, Line 1service provider regarding its capacity to service the property as a condition of allowing a residential development;

• Page 7, Line 2(e)  Enforcing or adopting inclusionary zoning ordinances,

• Page 7, Line 3deed restrictions, community benefit agreements, or other housing policies or standards; or

• Page 7, Line 4(f)  Applying standards to allow a residential

• Page 7, Line 5development to be constructed on a qualifying property when

• Page 7, Line 6such residential development would otherwise be disallowed

• Page 7, Line 7based on the standards described in section 29-35-504 (1), or otherwise offering affordable housing incentives to developers.

• Page 7, Line 8(3)  School district administrative practices.Nothing in this

• Page 7, Line 9section prevents a school district from constructing,

• Page 7, Line 10purchasing, or remodeling a teacherage pursuant to section 22-32-110 (1)(d).

• Page 7, Line 1129-35-504.  Qualifying property requirements for a subject jurisdiction - allowable uses. (1)  A subject jurisdiction shall not:

• Page 7, Line 12(a)  Disallow construction of a residential development

• Page 7, Line 13on a qualifying property on the basis of height if the tallest

• Page 7, Line 14structure in the residential development is no more than three stories or forty-five feet tall;

• Page 7, Line 15(b)  Disallow construction of a residential development

• Page 7, Line 16on a qualifying property on the basis of height if the tallest

• Page 7, Line 17structure in the residential development complies with the height-related standards for:

• Page 7, Line 18(I)  The zoning district in which the residential development will be built; or

• Page 7, Line 19(II)  Any zoning district that is contiguous to the

• Page 8, Line 1qualifying property on which the residential development will be built;

• Page 8, Line 2(c)  Disallow construction of a residential development

• Page 8, Line 3on a qualifying property based on the number of dwelling units

• Page 8, Line 4the residential development will contain, except in accordance

• Page 8, Line 5with one of the standards listed in subsection (1)(d) of this section; or

• Page 8, Line 6(d)  Apply standards to a residential development on a

• Page 8, Line 7qualifying property that are more restrictive than the

• Page 8, Line 8standards that the subject jurisdiction applies to similar

• Page 8, Line 9housing constructed within the subject jurisdiction, including standards related to:

• Page 8, Line 10(I)  Structure setbacks from property lines;

• (II)  Lot coverage or open space;

• Page 8, Line 11(III)  On-site parking requirements;

• Page 8, Line 12(IV)  Numbers of bedrooms in a multifamily residential development; or

• Page 8, Line 13(V)  On-site landscaping, screening, and buffering requirements.

• Page 8, Line 14(2)  Provided that the uses are allowed conditionally or

• Page 8, Line 15by right within the zoning district in which a qualifying property

• Page 8, Line 16is located, a subject jurisdiction shall allow the following uses in a residential development on a qualifying property:

• Page 8, Line 17(a)  Childcare; and

• Page 8, Line 18(b)  The provision of recreational, social, or educational

• Page 8, Line 19services provided by community organizations for use by the

• Page 8, Line 20residents of the residential development and the surrounding community.

• Page 9, Line 1(3)  A subject jurisdiction may condition allowance of the uses described in subsection (2) of this section on:

• Page 9, Line 2(a)  The uses being allowed only on the ground floor of the structures in the residential development; and

• Page 9, Line 3(b)  The uses occupying no more than fifteen percent of the

• Page 9, Line 4ground floor area of the structures in the residential development.

• Page 9, Line 529-35-505.  Notification to county assessor.Within two weeks

• Page 9, Line 6of a subject jurisdiction allowing the construction of a

• Page 9, Line 7residential development on a qualifying property pursuant to

• Page 9, Line 8section 29-35-503 (1), the faith-based organization, school

• Page 9, Line 9district, or state college or university that owns the qualifying

• Page 9, Line 10property shall provide notice of the allowance of the

• Page 9, Line 11construction of the residential development to the county

• Page 9, Line 12assessor in the county in which the qualifying property is

• Page 9, Line 13located. The notice must include the property address, the

• Page 9, Line 14assessor's parcel identification number for the property, and the

• Page 9, Line 15date on which the residential development was allowed by the subject jurisdiction.

• Page 9, Line 16SECTION 2.  Safety clause. The general assembly finds,

• Page 9, Line 17determines, and declares that this act is necessary for the immediate

• Page 9, Line 18preservation of the public peace, health, or safety or for appropriations for

• Page 9, Line 19the support and maintenance of the departments of the state and state institutions.