Senate Committee of Reference Report

Committee on Local Government & Housing

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January 29, 2026

After consideration on the merits, the Committee recommends the following:

SB26-001     be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:

Page 1, Line 1Amend printed bill, page 2, after line 1 insert:

Page 1, Line 2"SECTION 1.  In Colorado Revised Statutes, 30-35-202, add

Page 1, Line 3(1)(d) as follows:

Page 1, Line 430-35-202.  Power to sell public works - sell or lease property.

Page 1, Line 5(1)  The governing body shall have the following additional

Page 1, Line 6powers:

Page 1, Line 7(d)  Notwithstanding subsections (1)(a) and (1)(b) of this

Page 1, Line 8section, to sell and dispose of, by ordinance, any public building

Page 1, Line 9or real property owned by a county that is held for government

Page 1, Line 10purposes, other than park purposes, if the sale and disposition of

Page 1, Line 11the public building or real property is for the purpose of

Page 1, Line 12providing property to be used for the development of affordable

Page 1, Line 13housing or housing identified in a housing needs assessment

Page 1, Line 14conducted pursuant to sections 24-32-3703 or 24-32-3704. The

Page 1, Line 15governing body shall determine the terms and conditions of the

Page 1, Line 16sale and disposition at a regular or special meeting.

Page 1, Line 17SECTION 2.  In Colorado Revised Statutes, 31-15-713, add

Page 1, Line 18(1)(d) as follows:

Page 1, Line 1931-15-713.  Power to sell public works - real property.

Page 1, Line 20(1)  The governing body of each municipality has the power:

Page 1, Line 21(d)  Notwithstanding subsections (1)(a) and (1)(b) of this

Page 1, Line 22section, to sell and dispose of, by ordinance, any public building

Page 1, Line 23or real property owned by a municipality that is held for

Page 1, Line 24government purposes, other than park purposes, if the sale and

Page 1, Line 25disposition of the public building or real property is for the

Page 1, Line 26purpose of providing property to be used for the development of

Page 1, Line 27affordable housing or housing identified in a housing needs

Page 1, Line 28assessment conducted pursuant to sections 24-32-3703 or 24-32-

Page 2, Line 13704. The governing body shall determine the terms and

Page 2, Line 2conditions of the sale and disposition at a regular or special

Page 2, Line 3meeting.

Page 2, Line 4SECTION 3.  In Colorado Revised Statutes, amend 31-15-801 as

Page 2, Line 5follows:

Page 2, Line 631-15-801.  Agreements - ordinance - financing.

Page 2, Line 7In order to provide necessary land, buildings, equipment, and other

Page 2, Line 8property for governmental or proprietary purposes, including for the

Page 2, Line 9development of affordable housing or housing identified in a

Page 2, Line 10housing needs assessment conducted pursuant to sections

Page 2, Line 1124-32-3703 or 24-32-3704, or for financing of forest health projects, as

Page 2, Line 12defined in section 37-95-103 (4.9), any municipality is authorized to enter

Page 2, Line 13into long-term rental or leasehold agreements. but in no event shall this

Page 2, Line 14be construed as authorizing the use by any municipality of leasehold

Page 2, Line 15agreements to finance residential housing. Such agreements may include

Page 2, Line 16an option to purchase and acquire title to such leased or rented property

Page 2, Line 17within a period not exceeding the useful life of such property and in no

Page 2, Line 18case exceeding thirty years. Each such agreement and the terms thereof

Page 2, Line 19shall be concluded by an ordinance duly enacted by the municipality. No

Page 2, Line 20such ordinance shall take effect before thirty days after its passage and

Page 2, Line 21publication. The governing body of any municipality is authorized to

Page 2, Line 22provide for the payment of said rentals from a general levy imposed upon

Page 2, Line 23both personal and real property included within the boundaries of the

Page 2, Line 24municipality; by imposing rates, tolls, and service charges for the use of

Page 2, Line 25such property or any part thereof by others; from any other available

Page 2, Line 26municipal income; or from any one or more of the said sources. The

Page 2, Line 27obligation to pay such rentals shall not constitute an indebtedness of said

Page 2, Line 28municipality within the meaning of the constitutional limitations on

Page 2, Line 29contracting of indebtedness by municipalities.

Page 2, Line 30SECTION 4.  In Colorado Revised Statutes, 29-1-204.5, amend

Page 2, Line 31(7.5)(c); and add (7.5)(d) as follows:

Page 2, Line 3229-1-204.5.  Establishment of multijurisdictional housing

Page 2, Line 33authorities.

Page 2, Line 34(c)  The questions proposed to the registered electors under

Page 2, Line 35paragraphs (a) and (b) of this subsection pursuant to subsections

Page 2, Line 36(7.5)(a) and (7.5)(b) of this section shall be submitted at a general

Page 2, Line 37election, biennial local election, or any election to be held on the first

Page 2, Line 38Tuesday in November of an odd-numbered year. The action shall not take

Page 2, Line 39effect unless a majority of the registered electors voting thereon at the

Page 2, Line 40election vote in favor thereof. The election shall be conducted in

Page 2, Line 41substantially the same manner as county elections and the county clerk

Page 2, Line 42and recorder of each county in which the election is conducted shall assist

Page 2, Line 43the authority in conducting the election. The authority shall pay the costs

Page 3, Line 1incurred by each county in conducting such an election. No moneys

Page 3, Line 2money of the authority may be used to urge or oppose passage of an

Page 3, Line 3election required under this section.

Page 3, Line 4(d)  The contract establishing the authority may be

Page 3, Line 5conditioned upon voter approval by the individual contracting

Page 3, Line 6jurisdiction as such terms may be defined in the contract. The

Page 3, Line 7question of establishing the authority may be combined with a

Page 3, Line 8question about a tax, impact fee, multiple-fiscal year debt, or

Page 3, Line 9other financial obligation required by subsections (7.5)(a) or

Page 3, Line 10(7.5)(b) of this section.".

Page 3, Line 11Renumber succeeding sections accordingly.

Page 3, Line 12Page 2, line 8, after "housing," insert "housing programs,".

Page 3, Line 13Page 3, after line 23 insert:

Page 3, Line 14"SECTION 7.  In Colorado Revised Statutes, 39-26-708, add

Page 3, Line 15(1)(a)(III) and (2)(a)(III) as follows:

Page 3, Line 1639-26-708.  Construction and building materials - legislative

Page 3, Line 17declaration - definition.

Page 3, Line 18(1)  There shall be exempt from taxation under part 1 of this article

Page 3, Line 1926 all sales of construction and building materials to contractors and

Page 3, Line 20subcontractors for use in the building, erection, alteration, or repair of

Page 3, Line 21structures, highways, roads, streets, and other public works owned and

Page 3, Line 22used by:

Page 3, Line 23(a) (III)  As used in this subsection (1)(a), "governmental

Page 3, Line 24capacities" includes the building, erection, alteration, or repair

Page 3, Line 25of structures for workforce housing projects undertaken by

Page 3, Line 26counties;

Page 3, Line 27(2)  There shall be exempt from taxation under part 2 of this article

Page 3, Line 2826 the storage, use, or consumption by a contractor or subcontractor of

Page 3, Line 29construction and building materials for use in the building, erection,

Page 3, Line 30alteration, or repair of structures, highways, roads, streets, and other

Page 3, Line 31public works owned and used by:

Page 3, Line 32(a) (III)  As used in this subsection (2)(a), "governmental

Page 3, Line 33capacities" includes the building, erection, alteration, or repair

Page 3, Line 34of structures for workforce housing projects undertaken by

Page 3, Line 35counties;".

Page 3, Line 36Renumber succeeding section accordingly.