House Bill 25-1169 Reengrossed

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)  Colorado urgently needs more housing to meet the

• Page 4, Line 4needs of a growing statewide population and address issues

• Page 4, Line 5directly related to housing, such as transit, commuting, the

• Page 4, Line 6workforce, and the environment. Providing opportunities to

• Page 4, Line 7construct residential developments on underutilized land is a matter of mixed statewide and local concern.

• Page 4, Line 8(f)  Local zoning regulations can prevent housing from

• Page 4, Line 9being developed on vacant properties by prohibiting residential

• Page 4, Line 10development in association with places of assembly, or by

• Page 4, Line 11requiring extensive rezoning processes that add cost and uncertainty to affordable housing projects; and

• Page 4, Line 12(g)  This House Bill 25-1169, enacted in 2025, streamlines

• Page 4, Line 13the building process for qualifying properties, including

• Page 4, Line 14properties owned by faith-based organizations, by providing a

• Page 4, Line 15process that allows residential developments to be constructed

• Page 4, Line 16on qualifying properties as long as certain requirements are satisfied.

• Page 4, Line 17(2)  The general assembly further finds and declares that

• Page 4, Line 18it is the intent of the general assembly that every person

• Page 4, Line 19involved in the construction, management, and operation of a

• Page 4, Line 20qualifying property in connection with this part 5 complies with

• Page 4, Line 21the federal "Fair Housing Act", 42 U.S.C. sec. 3601 et seq., the

• Page 4, Line 22federal "Americans with Disabilities Act of 1990", 42 U.S.C. sec.

• Page 4, Line 2312101 et seq., and all other state and federal laws.

• Page 5, Line 129-35-502.  Definitions.As used in this part 5, unless the context otherwise requires:

• Page 5, Line 2(1)  "Dwelling unit" has the same meaning as set forth in section 29-35-402 (8).

• Page 5, Line 3(2)  "Exempt parcel" means:

• Page 5, Line 4(a)  A parcel that is not served by a domestic water and

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

• Page 5, Line 6served by a well that is not connected to a water distribution

• Page 5, Line 7system, 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 8(b)  A parcel where residential use is prevented or limited

• Page 5, Line 9by state regulation, federal regulation, or deed restriction pursuant to:

• Page 5, Line 10(I)  Federal aviation administration restrictions pursuant to 14 CFR 77;

• Page 5, Line 11(II)  An environmental covenant pursuant to section 25-15-318 to section 25-15-323; or

• Page 5, Line 12(III)  Flammable gas overlay zoning district restrictions;

• Page 5, Line 13(c)  A parcel that is used as a cemetery, as defined in section 10-15-102 (2); or

• Page 5, Line 14(d)  A parcel that is subject to a conservation easement.

• Page 5, Line 15(3)  "Faith-based organization" means any organization, church, body of communicants, or group that is:

• Page 5, Line 16(a)  Gathered in common membership for the purpose of

• Page 5, Line 17propagating its faith or carrying on humanitarian work related to that faith;

• Page 5, Line 18(b)  Located on property owned by a nonprofit organization with a religious mission;

• Page 6, Line 1(c)  Located on property that is used for religious purposes; and

• Page 6, Line 2(d)  Not organized for private gain or corporate profit.

• Page 6, Line 3(4)  "Qualifying property" means real property that

• Page 6, Line 4contains no more than five acres of land and that has been

• Page 6, Line 5owned by a faith-based organization, a school district, as

• Page 6, Line 6defined 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 7(5)  "Residential development" means a development with

• Page 6, Line 8one or more structures that contains permanent dwelling units and does not contain any temporary housing or shelter space.

• Page 6, Line 9(6)  "Similar housing" means housing that is similar in form and number of dwelling units.

• Page 6, Line 10(7)  "Subject jurisdiction" means a local government that

• Page 6, Line 11had a population greater than two thousand people as of the last United States census.

• Page 6, Line 1229-35-503.  Residential developments on qualifying properties.

• Page 6, Line 13(1)  Residential developments onqualifying properties.On or after

• Page 6, Line 14December 31, 2026, a subject jurisdiction shall allow a

• Page 6, Line 15residential development to be constructed on a qualifying

• Page 6, Line 16property that does not contain an exempt parcel, subject to an

• Page 6, Line 17administrative approval process and in accordance with sections 29-35-504 and 29-35-505.

• Page 6, Line 18(2)  Subject jurisdiction administrative practices.Nothing in this section prevents a subject jurisdiction from:

• Page 6, Line 19(a)  Applying and enforcing infrastructure standards in

• Page 7, Line 1local law during the administrative approval process, including

• Page 7, Line 2standards related to utilities, transportation, or public works codes;

• Page 7, Line 3(b)  Applying and enforcing a locally adopted life safety code, including a building, fire, utility, or stormwater code;

• Page 7, Line 4(c)  Applying and enforcing regulations related to human

• Page 7, Line 5and environmental health and safety, including oil and gas setbacks, floodplain regulations, and airport influence areas;

• Page 7, Line 6(d)  Adopting generally applicable requirements for the

• Page 7, Line 7payment of impact fees or other similar development charges in

• Page 7, Line 8accordance with section 29-20-104.5, or the mitigation of impacts in accordance with part 2 of article 20 of this title 29;

• Page 7, Line 9(e)  Requiring a statement by a water or wastewater

• Page 7, Line 10service provider regarding its capacity to service the property as a condition of allowing a residential development;

• Page 7, Line 11(f)  Applying and enforcing inclusionary zoning

• Page 7, Line 12ordinances, deed restrictions, community benefit agreements,

• Page 7, Line 13development agreements, or other affordable housing policies or standards;

• Page 7, Line 14(g)  Applying standards to allow a residential

• Page 7, Line 15development to be constructed on a qualifying property when

• Page 7, Line 16such residential development would otherwise be disallowed

• Page 7, Line 17based on the standards described in section 29-35-504 (1), or

• Page 7, Line 18otherwise offering affordable housing incentives to developers; or

• Page 7, Line 19(h)  Enacting or applying a local law concerning a

• Page 7, Line 20short-term rental, as that term is defined in section 29-35-402 (19), of a dwelling unit on a qualifying property.

• Page 8, Line 1(3)  Changes to tax exempt status.Notwithstanding

• Page 8, Line 2mission-defined activities conducted upon qualifying properties,

• Page 8, Line 3permitted activities outlined in this section are not

• Page 8, Line 4automatically exempt from taxation at the local, state, or federal level.

• Page 8, Line 5(4)  School district administrative practices.Nothing in this

• Page 8, Line 6section prevents a school district from constructing,

• Page 8, Line 7purchasing, or remodeling a teacherage pursuant to section

• Page 8, Line 822-32-110 (1)(d), or from using any of the processes described in section 22-32-124 regarding buildings and structures.

• Page 8, Line 9(5) Prohibition on discrimination.A residential development

• Page 8, Line 10constructed pursuant to this section is considered housing for

• Page 8, Line 11a commercial purpose pursuant to 42 U.S.C. sec. 3607 et seq. Any

• Page 8, Line 12person involved in the construction or maintenance of a residential development pursuant to this section:

• Page 8, Line 13(a)  Must comply with all federal and state laws

• Page 8, Line 14regarding nondiscriminatory access to housing, including the

• Page 8, Line 15federal "Fair Housing Act", 42 U.S.C. sec. 3601 et seq.; the

• Page 8, Line 16"Americans with Disabilities Act of 1990", 42 U.S.C. sec. 12101 et

• Page 8, Line 17seq.; and the Colorado anti-discrimination act, parts 3 through 8 of article 34 of title 24; and

• Page 8, Line 18(b)  May be subject to a discrimination complaint filed with the Colorado civil rights division or other court.

• Page 8, Line 1929-35-504.  Affordability requirements for qualifying

• Page 8, Line 20properties. (1)  A subject jurisdiction shall not allow a

• Page 8, Line 21residential development containing rented dwelling units to be

• Page 9, Line 1constructed on a qualifying property unless the residential development complies with the following requirements:

• Page 9, Line 2(a)  If the subject jurisdiction has adopted an inclusionary

• Page 9, Line 3zoning ordinance or other affordable housing policy that

• Page 9, Line 4applies to the qualifying property, the residential development

• Page 9, Line 5must comply with the inclusionary zoning ordinance or other affordable housing policy;

• Page 9, Line 6(b)  If the subject jurisdiction has not adopted an

• Page 9, Line 7inclusionary zoning ordinance or other affordable housing

• Page 9, Line 8policy that applies to the qualifying property and the market

• Page 9, Line 9rate rent in the subject jurisdiction, as calculated by a

• Page 9, Line 10recognized and publicly available housing industry resource, is

• Page 9, Line 11at or below one hundred twenty percent of the monthly area

• Page 9, Line 12median income as established annually by the United States

• Page 9, Line 13department of housing and urban development for the county in

• Page 9, Line 14which the qualifying property is located, the residential

• Page 9, Line 15development must align with the subject jurisdiction's

• Page 9, Line 16demonstrated housing needs as determined in a housing needs

• Page 9, Line 17assessment published in accordance with section 24-32-3703 or 24-32-3704; or

• Page 9, Line 18(c)  If the subject jurisdiction has not adopted an

• Page 9, Line 19inclusionary zoning ordinance or other affordable housing

• Page 9, Line 20policy that applies to the qualifying property and the market

• Page 9, Line 21rate rent in the subject jurisdiction, as calculated by a

• Page 9, Line 22recognized and publicly available housing industry resource,

• Page 9, Line 23is above one hundred twenty percent of the monthly area

• Page 9, Line 24median income as established annually by the United States

• Page 10, Line 1department of housing and urban development for the county in

• Page 10, Line 2which the qualifying property is located, then at least twenty

• Page 10, Line 3percent of the dwelling units rented in the residential

• Page 10, Line 4development must have a designated imputed income limit by

• Page 10, Line 5household size that does not exceed eighty percent of the area median income.

• Page 10, Line 6(2)  A subject jurisdiction shall not allow a residential

• Page 10, Line 7development containing dwelling units that will be sold to be

• Page 10, Line 8constructed on a qualifying property unless the residential development complies with the following requirements:

• Page 10, Line 9(a)  If the subject jurisdiction has adopted an inclusionary

• Page 10, Line 10zoning ordinance or other affordable housing policy that

• Page 10, Line 11applies to the qualifying property, the residential development

• Page 10, Line 12must comply with the inclusionary zoning ordinance or other affordable housing policy; and

• Page 10, Line 13(b)  If the subject jurisdiction has not adopted an

• Page 10, Line 14inclusionary zoning ordinance or other affordable housing

• Page 10, Line 15policy that applies to the qualifying property, then at least

• Page 10, Line 16twenty percent of the dwelling units sold in the residential

• Page 10, Line 17development must have a designated imputed income limit by

• Page 10, Line 18household size that does not exceed one hundred forty percent of the area median income.

• Page 10, Line 19(3) (a)  If a residential development must comply with

• Page 10, Line 20affordability requirements pursuant to the subject

• Page 10, Line 21jurisdiction's demonstrated housing needs in accordance with

• Page 10, Line 22subsection (1)(b)(I) of this section, or if a residential

• Page 10, Line 23development must comply with affordability requirements

• Page 11, Line 1pursuant to subsection (1)(b)(II) of this section, the

• Page 11, Line 2affordability requirements must be imposed by one of the

• Page 11, Line 3following instruments, which must require that the subject jurisdiction has the right to require specific performance:

• Page 11, Line 4(I)  A deed restriction lasting for at least forty years; or

• Page 11, Line 5(II)  A covenant that runs with the land for at least forty years.

• Page 11, Line 6(b)  The affordability requirements described in subsection

• Page 11, Line 7(2)(b) of this section must be imposed by one of the following

• Page 11, Line 8instruments, which must require that the subject jurisdiction has the right to require specific performance:

• Page 11, Line 9(I)  A deed restriction lasting for at least thirty years; or

• Page 11, Line 10(II)  A covenant that runs with the land for at least thirty years.

• Page 11, Line 1129-35-505.  Qualifying property requirements for a subject jurisdiction - allowable uses. (1)  A subject jurisdiction shall not:

• Page 11, Line 12(a)  Disallow construction of a residential development

• Page 11, Line 13on a qualifying property on the basis of height if the tallest

• Page 11, Line 14structure in the residential development is no more than three stories or forty-five feet tall;

• Page 11, Line 15(b)  Disallow construction of a residential development

• Page 11, Line 16on a qualifying property on the basis of height if the tallest

• Page 11, Line 17structure in the residential development complies with the height-related standards:

• Page 11, Line 18(I)  Of the zoning district in which the residential development will be built; or

• Page 11, Line 19(II)  That apply to any parcel that is contiguous to the

• Page 12, Line 1qualifying property on which the residential development will be built;

• Page 12, Line 2(c)  Disallow construction of a residential development

• Page 12, Line 3on a qualifying property based on the number of dwelling units

• Page 12, Line 4the residential development will contain, except in accordance

• Page 12, Line 5with one of the standards listed in subsection (1)(d) of this section; or

• Page 12, Line 6(d)  Apply standards to a residential development on a

• Page 12, Line 7qualifying property that are more restrictive than the

• Page 12, Line 8standards that the subject jurisdiction applies to similar

• Page 12, Line 9housing constructed within the subject jurisdiction, including standards related to:

• Page 12, Line 10(I)  Structure setbacks from property lines;

• (II)  Lot coverage or open space;

• Page 12, Line 11(III)  On-site parking requirements;

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

• Page 12, Line 13(V)  On-site landscaping, screening, and buffering requirements; or

• Page 12, Line 14(VI)  Minimum dwelling units per acre.

• Page 12, Line 15(2)  Provided that the uses are allowed conditionally or

• Page 12, Line 16by right within the zoning district in which a qualifying property

• Page 12, Line 17is located, a subject jurisdiction shall allow the following uses in a residential development on a qualifying property:

• Page 12, Line 18(a)  Childcare; and

• Page 12, Line 19(b)  The provision of recreational, social, or educational

• Page 12, Line 20services provided by community organizations for use by the

• Page 13, Line 1residents of the residential development and the surrounding community.

• Page 13, Line 2(3)  A subject jurisdiction may condition allowance of the uses described in subsection (2) of this section on:

• Page 13, Line 3(a)  The uses being allowed only on the ground floor of the structures in the residential development; and

• Page 13, Line 4(b)  The uses occupying no more than fifteen percent of the structures in the residential development.

• Page 13, Line 529-35-506.  Notification to county assessor.Within two weeks

• Page 13, Line 6of a subject jurisdiction allowing the construction of a

• Page 13, Line 7residential development on a qualifying property pursuant to

• Page 13, Line 8section 29-35-503 (1), the faith-based organization, school

• Page 13, Line 9district, or state college or university that owns the qualifying

• Page 13, Line 10property shall provide notice of the allowance of the

• Page 13, Line 11construction of the residential development to the county

• Page 13, Line 12assessor in the county in which the qualifying property is

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

• Page 13, Line 14assessor's parcel identification number for the property, and the

• Page 13, Line 15date on which the residential development was allowed by the subject jurisdiction.

• Page 13, Line 16SECTION 2.  Safety clause. The general assembly finds,

• Page 13, Line 17determines, and declares that this act is necessary for the immediate

• Page 13, Line 18preservation of the public peace, health, or safety or for appropriations for

• Page 13, Line 19the support and maintenance of the departments of the state and state institutions.