C.R.S. § 29-35-101 Short title
29-35-101. Short title. The short title of this article 35 is the "State Land Use Criteria for Strategic Growth Act".
State Land Use Criteria for Strategic Growth
C.R.S. tit. 29, art. 35
in effectC.R.S. § 29-35-102 Legislative declaration
29-35-102. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that:
(a) Since the "Local Government Land Use Control Enabling Act of 1974", article 20 of this title 29, was adopted, Colorado's population has more than doubled, with the state growing at twice the national rate between 2010 and 2020;
(b) The Colorado state demography office estimates that Colorado will add one million seven hundred thousand two hundred people by 2050, bringing Colorado's population to nearly seven million five hundred thousand. The need for housing for the growing population is an issue that affects all Colorado communities regardless of region or size. In a bipartisan poll conducted by the Colorado Polling Institute in November 2023, Colorado voters listed housing affordability as one of their top five issues for the Colorado state government to address. Therefore, it is critical to address the cost and availability of housing across the state to address historic population growth.
(c) In experiencing significant population growth at a time of increased vehicle ownership and commute times, the supply and affordability of housing in one community affects the resources of neighboring communities. Colorado's need for housing impacts the state's transit, transportation, employment, economy, energy, water, and infrastructure and requires innovative, collaborative solutions.
(d) Colorado's housing supply has not kept pace with population growth in the state. Between 2010 and 2020, Colorado added one hundred twenty-six thousand fewer housing units than in the prior decade, despite Colorado's population increasing by a similar amount in each decade. The state demographer estimates that between approximately sixty-five thousand and ninety thousand housing units are needed to keep pace with Colorado's current population growth.
(e) Across the state, Colorado needs more housing urgently to support our growing workforce, and housing opportunities are needed across all income levels. Addressing the critical issue of cost and availability of housing requires maintaining and expanding access to affordable and attainable housing by removing barriers to and expediting new housing opportunities for every community, especially near transit. As housing rents and prices have increased faster than wages across the state, individual households are experiencing displacement from homes they could once afford and having to live farther from work with increased commute times. As state and local governments seek to increase housing options and address affordability for residents, it is essential to provide solutions that incorporate transit needs as well.
(f) Between 2010 and 2021, the percentage of Coloradans making less than seventy-five thousand dollars a year who were housing cost-burdened, meaning they spend more than thirty percent of their income on housing needs, increased from fifty-four percent to sixty-one percent, and, for renters making less than seventy-five thousand dollars a year, that percentage increased from fifty-nine percent to seventy-three percent, according to the American Community Survey;
(g) Nationally, cities with the highest housing costs and lowest vacancy rates experience the highest rates of homelessness, according to a report by the Urban Institute, "Unsheltered Homelessness: Trends, Characteristics, and Homeless Histories". These indicators explain a greater portion of the variation in regional rates of homelessness than other commonly assumed factors, such as poverty rate, substance use, or mental illness, according to a study in the European Journal of Housing Policy, "The Economics of Homelessness: The Evidence from North America".
itute, "Unsheltered Homelessness: Trends, Characteristics, and Homeless Histories". These indicators explain a greater portion of the variation in regional rates of homelessness than other commonly assumed factors, such as poverty rate, substance use, or mental illness, according to a study in the European Journal of Housing Policy, "The Economics of Homelessness: The Evidence from North America".
(h) Housing prices are typically higher when housing supply is restricted by local land use regulations in a metropolitan region, according to studies such as the National Bureau Of Economic Research working papers "Regulation and Housing Supply" and "The Impact of Zoning on Housing Affordability". Increasing housing supply moderates price increases and improves housing affordability across all incomes, according to studies such as "The Economic Implications of Housing Supply", in the Journal of Economic Perspectives, and "Supply Skepticism: Housing Supply and Affordability", in the journal Housing Policy Debate.
(i) Researchers have found substantial evidence that new housing construction enables households to move within a region, opens up housing options for more diverse income levels, and promotes competition that limits housing cost increases, according to the New York University Law and Economics research paper "Supply Skepticism Revisited". While new housing supply can rarely meet the needs of the lowest income households, enabling new housing supply can moderate price increases and reduce the number of households that need subsidies to afford housing. Resident opposition frequently limits new housing development in existing communities and either leads to less housing production and increased housing costs or pushes housing development to greenfield areas where there are fewer neighbors but greater environmental and fiscal costs.
C.R.S. § 29-35-103 Definitions
29-35-103. Definitions. As used in this article 35, unless the context otherwise requires:
(1) "Accessible unit" means a housing unit that:
(a) Satisfies the requirements of the federal "Fair Housing Act", 42 U.S.C. sec. 3601 et seq., as amended;
(b) Incorporates universal design; or
(c) Is a type A dwelling unit, as defined in section 9-5-101 (10); a type A multistory dwelling unit, as defined in section 9-5-101 (11); a type B dwelling unit, as defined in section 9-5-101 (12); or a type B multistory dwelling unit, as defined in section 9-5-101 (13).
(2) (a) "Administrative approval process" means a process in which:
(I) A development proposal for a specified project is approved, approved with conditions, or denied by local government administrative staff based solely on its compliance with objective standards set forth in local laws; and
(II) Does not require, and cannot be elevated to require, a public hearing, a recommendation, or a decision by an elected or appointed public body or a hearing officer.
(b) Notwithstanding subsection (2)(a) of this section, an "administrative approval process" may require an appointed historic preservation commission to make a decision, or to make a recommendation to local government administrative staff, regarding a development application involving a property that the local government has designated as a historic property, provided that:
(I) The state historic preservation office within history Colorado has designated the local government as a certified local government; and
(II) The appointed historic preservation commission's decision or recommendation is based on standards either set forth in local law or established by the secretary of the interior of the United States.
(3) "Applicable transit plan" means a plan of a transit agency whose service territory is within a metropolitan planning organization, including a system optimization plan or a transit master plan that:
(a) Has been approved by the governing body of a transit agency on or after January 1, 2019, and on or before January 1, 2024;
(b) Identifies the planned frequency and span of service for transit service or specific transit routes; and
(c) Identifies specific transit routes for short-term implementation according to that plan, or implementation before January 1, 2030.
(4) "Bus rapid transit service" means a transit service:
(a) That is identified as bus rapid transit by a transit agency, in a metropolitan planning organization's fiscally constrained long range transportation plan or in an applicable transit plan; and
(b) That typically includes any number of the following:
(I) Service that is scheduled to run every fifteen minutes or less during the highest frequency service hours;
(II) Dedicated lanes or busways;
(III) Traffic signal priority;
(IV) Off-board fare collection;
(V) Elevated platforms; or
(VI) Enhanced stations.
(5) "Commuter bus rapid transit service" means a bus rapid transit service that operates for a majority of its route on a freeway with access that is limited to grade-separated interchanges.
(6) "Commuter rail" means a passenger rail transit service between and within metropolitan and suburban areas.
(7) "County" means a county including a home rule county, but excluding a city and county.
(8) "Department" means the department of local affairs.
(9) "Displacement" means:
(a) The involuntary relocation of residents, particularly low-income residents, or locally-owned community-serving businesses and institutions due to:
(I) Increased real estate prices, rents, property rehabilitation, redevelopment, demolition, or other economic factors;
(II) Physical conditions resulting from neglect and underinvestment that render a residence uninhabitable; or
(III) Physical displacement wherein existing housing units and commercial spaces are lost due to property rehabilitation, redevelopment, or demolition;
tutions due to:
(I) Increased real estate prices, rents, property rehabilitation, redevelopment, demolition, or other economic factors;
(II) Physical conditions resulting from neglect and underinvestment that render a residence uninhabitable; or
(III) Physical displacement wherein existing housing units and commercial spaces are lost due to property rehabilitation, redevelopment, or demolition;
(b) Indirect displacement resulting from changes in neighborhood population, if, when low-income households move out of housing units, those same housing units do not remain affordable to other low-income households in the neighborhood, or demographic changes that reflect the relocation of existing residents following widespread relocation of their community and community-serving entities.
(10) "Light rail" means a passenger rail transit service that uses electrically powered rail-borne cars.
(11) "Local government" means a municipality, county, or tribal nation with jurisdiction in Colorado.
(12) "Local law" means any code, law, ordinance, policy, regulation, or rule enacted by a local government that governs the development and use of land, including but not limited to land use codes, zoning codes, and subdivision codes.
(13) "Metropolitan planning organization" means a metropolitan planning organization under the "Federal Transit Act of 1998", 49 U.S.C. sec. 5301 et seq., as amended.
(14) "Municipality" means a home rule or statutory city or town, territorial charter city or town, or city and county.
(15) "Objective standard" means a standard that:
(a) Is a defined benchmark or criterion that allows for determinations of compliance to be consistently decided regardless of the decision maker; and
(b) Does not require a subjective determination concerning a development proposal, including but not limited to whether the application for the development proposal is:
(I) Consistent with master plans or other development plans;
(II) Compatible with the land use or development of the area surrounding the area described in the application; or
(III) Consistent with public welfare, community character, or neighborhood character.
(16) "Regulated affordable housing" means affordable housing that:
(a) Has received loans, grants, equity, bonds, or tax credits from any source to support the creation, preservation, or rehabilitation of affordable housing that, as a condition of funding, encumbers the property with a restricted use covenant or similar recorded agreement to ensure affordability, or has been income-restricted under a local inclusionary zoning ordinance or other regulation or program;
(b) Restricts or limits maximum rental or sale price for households of a given size at a given area median income, as established annually by the United States department of housing and urban development; and
(c) Ensures occupancy by low- to moderate-income households for a specified period detailed in a restrictive use covenant or similar recorded agreement.
(17) "Universal design" means any dwelling unit designed and constructed to be safe and accessible for any individual regardless of age or abilities.
(18) "Urban bus rapid transit service" means a bus rapid transit service that operates on a surface street for the majority of its route.
(19) "Visitable unit" means a dwelling unit that a person with a disability can enter, move around the primary entrance floor of, and use the bathroom in.
C.R.S. § 29-35-201 Legislative declaration
29-35-201. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that:
(a) Multifamily housing is typically more affordable than single-unit dwellings. According to the American Community Survey, Colorado multifamily units cost between fourteen and forty-three percent less to rent in 2019, depending on the size of the building, compared to single-unit detached dwellings.
(b) Allowing higher density residential development is important for the cost effectiveness and availability of affordable housing. An analysis of over sixty affordable housing projects funded by the U.S. department of housing and urban development in transit-oriented areas in Colorado since 2010 found that half were developed at over fifty units per acre, and twenty percent were over one hundred units per acre.
(c) Throughout Colorado, less than half of available zoning capacity is typically utilized, and greater utilization of zoning capacity is necessary to meet anticipated housing needs. Numerous factors currently prevent development from fully utilizing available zoning capacity and allowed densities, including site level constraints, financial feasibility and demand, and landowners' willingness to sell or redevelop.
(d) Colorado has invested significantly in public transit in the last several decades, funding over six billion dollars across eighty-five miles of new rail lines. The investments will continue in the coming years with new bus rapid transit and rail systems along the front range. Despite these investments, transit ridership lags behind peer agencies around the country, due at least in part to a lack of density near these transit lines. Before the COVID-19 pandemic, the regional transportation district had two and three-tenths rides per vehicle revenue mile on their rail system, compared to over four rides per vehicle revenue mile for agencies in Minneapolis and Portland and over eight rides per vehicle revenue mile in Seattle, according to data from the federal transit administration's national transit database.
(e) Allowing higher density residential development near transit is important for increasing transit ridership and improving the cost effectiveness of transit services. Researchers have found that higher built gross densities citywide increase cost-effectiveness for light rail and bus rapid transit services, as described in the article, "Cost of a Ride: The Effects of Densities on Fixed-Guideway Transit Ridership and Costs" by Erick Guerra and Robert Cervero.
(f) Most light and commuter rail stations and frequent bus corridors in Colorado have lower housing unit density than is necessary to support frequent transit. Based on 2020 census block housing unit data, over ninety percent of rail stations and eighty-four percent of bus rapid transit and frequent bus corridors in Colorado have less than fifteen housing units per acre on average within walking distance. Researchers have generally found a minimum of fifteen housing units per acre of built density is needed to support frequent transit.
(g) Living near transit, jobs, and services enables households to also save on transportation costs by owning fewer vehicles and reducing fuel consumption. Coloradans commute over fifty minutes to and from work on average, according to the latest American Community Survey's five-year estimates. Analyses of transit-oriented communities have found that residents take an average of forty-four percent fewer vehicle trips, according to the article "Vehicle Trip Reduction Impacts of Transit-Oriented Housing" in the Journal of Public Transportation.
mption. Coloradans commute over fifty minutes to and from work on average, according to the latest American Community Survey's five-year estimates. Analyses of transit-oriented communities have found that residents take an average of forty-four percent fewer vehicle trips, according to the article "Vehicle Trip Reduction Impacts of Transit-Oriented Housing" in the Journal of Public Transportation.
(h) In Colorado, households in more dense areas, which are defined as census tracts with more than four thousand units per square mile or about fifteen units per acre, drive twenty percent less than the state average, and higher density areas, census tracts with more than ten thousand units per square mile or about forty units per acre, drive forty percent less than the state average, according to data from the 2017 national household travel survey;
(i) High transportation costs impact low-income households in particular. Households making less than forty thousand dollars per year in the western United States are spending over twenty-four percent of their income on transportation, when spending more than fifteen percent of income on transportation is considered cost burdened, according to data from the bureau of labor statistics consumer expenditure surveys.
(j) In addition to saving on transportation costs by living near transit, owning fewer vehicles and traveling to work and accessing services without driving or driving less reduces greenhouse gas emissions and air pollution, which impacts air quality not just in transit-oriented communities but in greater regions across the state;
(k) In Colorado, household energy demand on average is seventy percent less for multifamily housing compared to single-unit detached dwellings, according to the national renewable energy laboratory restock analysis tool;
(l) Scenarios analyzed for the "Colorado Water and Growth Dialogue Final Report" with higher percentage of future housing shifting to higher densities were estimated to achieve a total decrease in water demand between four and eight-tenths percent and nineteen and four-tenths percent;
(m) National studies, such as the article "Relationships between Density and per Capita Municipal Spending in the United States", published in Urban Science, have found that lower density communities have higher government capital and maintenance costs for water, sewer, and transportation infrastructure and lower property and sales tax revenue. These increased costs are often borne by both state and local governments.
(n) A study for a municipality in Colorado found that doubling the average residential density for future growth would save thirty-one percent in capital and maintenance costs over twenty years;
(o) According to a 2022 article titled "Does Discretion Delay Development?" in the Journal of the American Planning Association, residential projects using administrative approval processes are approved twenty-eight percent faster than those using discretionary approval processes, and faster approval times reduce developer costs and therefore housing costs. Studies have shown that homebuilders, including affordable housing developers, will avoid parcels that need to go through a discretionary process.
(p) Community opposition to specific affordable housing developments frequently causes delays, increases costs, reduces the number of housing units delivered, pushes siting of affordable housing to less opportunity-rich areas, and prevents developments from occurring altogether, according to studies such as "Democracy in Action? NIMBY as Impediment to Equitable Affordable Housing Siting" in the journal Housing Studies;
on to specific affordable housing developments frequently causes delays, increases costs, reduces the number of housing units delivered, pushes siting of affordable housing to less opportunity-rich areas, and prevents developments from occurring altogether, according to studies such as "Democracy in Action? NIMBY as Impediment to Equitable Affordable Housing Siting" in the journal Housing Studies;
(q) Researchers have found that upward mobility is significantly greater in more compact development areas than in low-density areas, primarily due to better job accessibility by multiple transportation modes, according to the study "Does Urban Sprawl Hold Down Upward Mobility?", published in the Journal of Landscape and Urban Planning;
(r) Transit-oriented development, including connecting housing opportunities and services with safe multimodal infrastructure and public transit, improves the accessibility of cities for people with disabilities and those with limited mobility. People with disabilities are more likely to live in households with zero cars, are less likely to drive, and are more likely to rely on public transit or paratransit, according to the 2017 "National Household Travel Survey";
(s) According to the greenhouse gas pollution reduction roadmap published by the Colorado energy office, dated January 14, 2021, the transportation sector is the single largest source of greenhouse gas pollution in Colorado. Nearly sixty percent of the greenhouse gas emissions from the transportation sector come from light-duty vehicles, which are the majority of cars and trucks that Coloradans drive every day.
(t) Motor vehicle pollution, including greenhouse gas emissions, does not stay within the geographic boundaries of the local government where it is emitted;
(u) The greenhouse gas transportation planning standard adopted by the transportation commission of Colorado in 2021 set a statewide target to reduce transportation greenhouse gas emissions through the transportation planning process by one million five hundred thousand tons by 2030; and
(v) The United States environmental protection agency has classified the Denver Metro and North Front Range area as being in severe non-attainment for ozone and ground level ozone, which has serious impacts on human health, particularly for vulnerable populations.
(2) The general assembly further finds and declares that:
(a) The consequences of community opposition and local land use policies that limit housing supply in transit-oriented communities impact housing options for Coloradans of low and moderate incomes and workforce housing to support employment growth. Increasing higher-density housing in transit-oriented communities ensures stable quantity and quality of housing for everyone and corrects policies that perpetuate segregated and unequal communities, reduced mobility and long commutes, reduced options for older adults to age in their community of choice, loss of open space and agricultural land, high water usage, and increased greenhouse gas and air pollution.
gher-density housing in transit-oriented communities ensures stable quantity and quality of housing for everyone and corrects policies that perpetuate segregated and unequal communities, reduced mobility and long commutes, reduced options for older adults to age in their community of choice, loss of open space and agricultural land, high water usage, and increased greenhouse gas and air pollution.
(b) There is an extraterritorial impact when local governments restrict housing development within their jurisdictions. The call for job growth in one community that does not also address the need for additional housing affects the demand of housing development in neighboring jurisdictions. In Colorado, the number of jobs within large municipalities is generally correlated to the municipality's transit service, and research has shown that regional imbalances between jobs and housing have a significant impact on vehicle miles traveled and commute times across jurisdictions, according to studies such as "Which Reduces Vehicle Travel More: Jobs-Housing Balance or Retail-Housing Mixing?", published in the Journal of the American Planning Association. When people are unable to live near where they work, workers have no options but to spend more hours on the road commuting to and from work. The longer commute increases vehicle traffic and puts additional strain on Colorado's roads and increases pollution.
(c) The availability of affordable housing is a matter of mixed statewide and local concern. Therefore, it is the intent of the general assembly in enacting this part 2 to:
(I) Provide funding for infrastructure and affordable housing to support local governments whose zoning does meet the goals of this part 2, and to encourage more dense multifamily housing development projects that can address the state's housing shortage for all parts of the income spectrum, and support more fiscally and environmentally sustainable development patterns;
(II) Improve regional collaboration and outcomes by reducing the ability of individual local governments' land use restrictions to negatively influence regional concerns such as housing affordability, open space, traffic, and air pollution; and
(III) Colorado has a legitimate state interest in managing population and development growth and ensuring stable quality and quantity of housing for Coloradans; and
(d) Colorado has a legitimate state interest in managing population and development growth and ensuring stable quality and quantity of housing for Coloradans as this is among the most pressing problems currently facing communities throughout Colorado.
(3) Therefore, the general assembly finds, determines, and declares that the lack of housing supply and unsustainable development patterns require a statewide solution that addresses local government policies that effectively limit the construction of a diverse range of housing types in areas already served by infrastructure or in close proximity to jobs and public transit, along with a lack of funding for infrastructure and affordable housing near transit-oriented communities.
(4) Therefore, the general assembly declares that increasing housing in transit-oriented communities is a matter of mixed statewide and local concern.
C.R.S. § 29-35-202 Definitions
29-35-202. Definitions. As used in this part 2, unless the context otherwise requires:
(1) "Certified transit-oriented community" means a transit-oriented community that has met the requirements of section 29-35-204 (4).
(2) "Exempt parcel" means:
(a) Any parcel that a transit-oriented community has applied to the department for qualification as an exempt parcel because the transit-oriented community believes the parcel cannot be developed for reasons including health and safety, topography, or practical limitations and for which the department has approved the transit-oriented community's application according to a process established by policies and procedures developed by the department;
(b) A parcel that, as of January 1, 2024, is not served by a domestic water and sewage treatment system, as defined in section 24-65.1-104 (5), is served by a well that is not connected to a water distribution system, as defined in section 25-9-102 (6), or is served by a septic tank, as defined in section 25-10-103 (18);
(c) Any part of a parcel that, as of January 1, 2024, is located within an unincorporated area as defined in subsection (11)(d)(II) of this section, and is served by a domestic water and sewage treatment system, as defined in section 24-65.1-104 (5), that is owned by a municipality;
(d) A parcel that, as of January 1, 2024, is in an agricultural, forestry, natural resource preservation, or open space zoning district;
(e) A parcel that, as of January 1, 2024, is zoned or used primarily for industrial use, which, for purposes of this subsection (2)(e), means a business use or activity at a scale greater than home industry involving manufacturing, fabrication, mineral or gravel extraction, assembly, warehousing, or storage, and parcels that are identified within the United States environmental protection agency's toxic release inventory;
(f) Any part of a parcel that, as of January 1, 2024, is in a floodway or in a one- hundred-year floodplain, as identified by the federal emergency management agency;
(g) Any part of a parcel that, as of January 1, 2024, is subject to an easement for a major electric or natural gas facility, as defined in section 29-20-108 (3);
(h) A parcel that, as of January 1, 2024, is used as a cemetery, as defined in section 31-25-701 (2);
(i) Any part of a parcel that, as of January 1, 2024, is subject to a conservation easement;
(j) A parcel or easement that, as of January 1, 2024, is owned by, used as, or operated by an airport;
(k) A public or railroad right-of-way that exists as of January 1, 2024;
(l) A parcel that, as of January 1, 2024, is used as a mobile home park, as defined in section 38-12-201.5 (6);
(m) A parcel that is:
(I) Within a transit station area;
(II) Separated by a state-owned limited-access highway or railroad track from all exits to the transit station that is used to establish the transit station area referenced in subsection (1)(j)(I) of this section; and
(III) Wholly beyond an area that is reachable by a person walking a distance of no more than one-half mile from the transit station referenced in subsection (1)(j)(II) of this section, as designated by the walkshed map published by the department pursuant to section 29-35-207 (1)(b);
(n) A parcel that, as of January 1, 2024, is owned by a federal, state, or local government entity;
(o) Any part of a parcel that, as of January 1, 2024, includes land that is park and open space, as defined in section 29-7.5-103 (2);
(p) A parcel that as of January 1, 2024, is owned by a school district, as defined in section 22-30-103 (13); or
department pursuant to section 29-35-207 (1)(b);
(n) A parcel that, as of January 1, 2024, is owned by a federal, state, or local government entity;
(o) Any part of a parcel that, as of January 1, 2024, includes land that is park and open space, as defined in section 29-7.5-103 (2);
(p) A parcel that as of January 1, 2024, is owned by a school district, as defined in section 22-30-103 (13); or
(q) Any part of a parcel's zoning capacity where residential use is prevented or limited to less than forty dwelling units per acre by state regulation, federal regulation, or deed restriction pursuant to either:
(I) Federal aviation administration restrictions pursuant to 14 CFR part 77;
(II) An environmental covenant pursuant to sections 25-15-318 to 25-15-323; or
(III) Restrictions within a flammable gas overlay zoning district.
(3) "Housing opportunity goal" means a goal for the zoning capacity for residential units in a transit-oriented community. A local government shall calculate its housing opportunity goal pursuant to section 29-35-204 (2).
(4) "Mixed-use pedestrian-oriented neighborhood" means an area that integrates land use types that include residential and nonresidential uses within a walkable neighborhood.
(5) "Neighborhood center" means an area that both meets the requirements of section 29-35-206 and is designated as a neighborhood center by a local government.
(6) "Net housing density" means the number of residential units allowed per acre of land on parcels that allow for residential development. In calculating net housing density for an area, a local government shall incorporate any dimensional or other restrictions in local laws used to regulate allowed density in the area, including but not limited to restrictions related to units per acre, lot area per unit, lot coverage, site level open space requirements, floor area ratios, setbacks, minimum parking requirements, and maximum height. Nothing in this subsection (6) means that, in calculating net housing density for an area, a local government shall include an area of an individual parcel required for stormwater drainage or a utility easement.
(7) "Optional transit area" means the total area, measured in acres, within a transit-oriented community that is within one-quarter mile of a public bus route or bus rapid transit corridor as identified in the criteria in subsection 29-35-207 (4).
(8) "Transit area" means both a transit station area, as defined in subsection (12) of this section, or a transit corridor area, as defined in subsection (10) of this section.
(9) "Transit center" means an area that both meets the requirements of section 29-35-205 and is designated as a transit center by a transit-oriented community.
(10) "Transit corridor area" means the total area, measured in acres, within a transit-oriented community that is within one-quarter mile of a public bus route as identified in the criteria in section 29-35-207 (3).
(11) "Transit-oriented community" means a local government that:
(a) Is either entirely or partially within a metropolitan planning organization;
(b) Has a population of four thousand or more according to the most recent data from the state demography office;
(c) Contains at least seventy-five acres of transit area; and
a public bus route as identified in the criteria in section 29-35-207 (3).
(11) "Transit-oriented community" means a local government that:
(a) Is either entirely or partially within a metropolitan planning organization;
(b) Has a population of four thousand or more according to the most recent data from the state demography office;
(c) Contains at least seventy-five acres of transit area; and
(d) If the local government is a county, contains either:
(I) A part of a transit station area that is both in an unincorporated part of the county and within one-half mile of a transit station that serves one or both of a commuter rail or a light rail service; or
(II) A part of a transit corridor area that is both in an unincorporated part of the county and fully surrounded by one or more municipalities.
(12) "Transit station area" means the total area, measured in acres, within a transit-oriented community that is within one-half mile of a station, as identified in the criteria in section 29-35-207 (2).
(13) "Zoning capacity" means the total number of housing units allowed in an area, as limited by the restrictions in local law that regulate density in that area, and as calculated by totaling the net housing density of all parcels within the area.
(14) "Zoning capacity buffer" means the ratio of the number of housing units anticipated to be constructed in an area to the zoning capacity of the area.
C.R.S. § 29-35-203 Department of local affairs collaboration - goals - transit-oriented community authority
29-35-203. Department of local affairs collaboration - goals - transit-oriented community authority. (1) As determined to be appropriate by the executive director of the department, the department shall collaborate with the department of transportation and the Colorado energy office in fulfilling the requirements and goals of this part 2.
(2) The goals of this part 2 are to:
(a) Increase opportunities to construct housing near transit in order to provide benefits including regulated affordable housing, accessible housing, regional equity through a balance of jobs and housing, improved and expanded transit service, and multimodal access to daily needs within mixed-use pedestrian-oriented neighborhoods; and
(b) Increase opportunities for housing production by providing appropriate zoning capacity buffers.
(3) Nothing in this part 2 prevents a transit-oriented community, or other relevant entity, from:
(a) Enforcing infrastructure standards in local law that result in the denial or conditioning of permits or approvals for specific housing projects in a transit center, including but not limited to utilities, transportation, or public works codes or standards;
(b) Adopting generally applicable requirements for the payment of impact fees or other similar development charges, in accordance with section 29-20-104.5, or the mitigation of impacts in accordance with part 2 of article 20 of this title 29;
(c) Approving a development application at a lower net housing density than the maximum allowed net housing density;
(d) Allowing a high amount of zoning capacity in one transit area, while allowing a very low amount of or no zoning capacity in another transit area;
(e) Implementing discretionary approval processes for subdivisions, rezonings, variances, or other processes in transit centers outside of project-specific zoning standards;
(f) Creating an optional discretionary review process that may approve greater density or other more permissive standards than the objective standards subject to administrative approval in a transit center;
(g) Creating a discretionary review process in transit centers that is available at the applicant's option and is subject to criteria consistent with the purposes of this part 2 as established in subsection (2) of this section, including processes such as planned unit developments;
(h) Not publicly disclosing any confidential information related to water supplies or facilities;
(i) Allowing commercial uses, business uses, or mixed-use development on a parcel in a designated transit center; and
(j) Denying or conditioning development projects or building permit approvals for a failure to meet the requirements of a traffic study that is conducted using objective standards.
C.R.S. § 29-35-204 Transit-oriented community housing opportunity goal calculation - preliminary transit-oriented community assessment report - housing opportunity goal compliance - insufficient water supplies for meeting a housing opportunity goal - affordability and displacement mitigation strategies - housing opportunity goal report - legislative declaration
29-35-204. Transit-oriented community housing opportunity goal calculation - preliminary transit-oriented community assessment report - housing opportunity goal compliance - insufficient water supplies for meeting a housing opportunity goal - affordability and displacement mitigation strategies - housing opportunity goal report - legislative declaration. (1) Legislative declaration. The general assembly hereby finds and declares that:
(a) Transit ridership, land use development patterns, affordability and availability of housing, roads, and greenhouse gas emissions from the transportation sector are interconnected issues that have impacts and concerns well beyond the borders of a single local community;
(b) Colorado has an interest in ensuring a stable quantity and quality of housing in alignment with population growth and ensuring that shared resources, investments, and goals such as roads, infrastructure, transit, air quality, water, and greenhouse gas mitigation are protected in the process; and
(c) Increasing housing density in transit-oriented communities is a matter of mixed statewide and local concern that requires statewide cooperation.
(2) Housing opportunity goal calculation. A transit-oriented community shall calculate its housing opportunity goal by multiplying the total area of the transit areas, as defined in the transit areas map created pursuant to section 29-35-207 (1), within the local government's jurisdiction, exclusive of the exempt parcels in those transit areas, by forty dwelling units per acre.
(3) Preliminary transit-oriented community assessment report. (a) On or before June 30, 2025, a transit-oriented community shall, in a form and manner determined by the department, submit a preliminary transit-oriented community assessment report that includes:
(I) The transit-oriented community's housing opportunity goal and the data and method the transit-oriented community used to calculate its housing opportunity goal; and
(II) A map of existing zoning districts within the transit-oriented community that may qualify as transit centers and preliminary evidence for this qualification, including the standards applicable to these zoning districts.
(b) If applicable, a transit-oriented community may include in the report described in subsection (3)(a) of this section any affordability or displacement strategies that the transit-oriented community has implemented.
(c) The department shall review a preliminary transit-oriented community assessment report submitted by a transit-oriented community pursuant to this subsection (3) and either provide written notice approving the report or provide direction for amending and resubmitting the report.
(4) Housing opportunity goal compliance. On or before December 31, 2027, a transit-oriented community shall satisfy the following criteria, which must be satisfied to qualify as a certified transit-oriented community. A transit-oriented community shall:
(a) Designate areas within the transit-oriented community as transit centers and ensure that those areas satisfy the requirements in section 29-35-205;
(b) Ensure that the total zoning capacity for all transit centers within the transit-oriented community is greater than or equal to the transit-oriented community's housing opportunity goal;
(c) Submit a housing opportunity goal report and have the report approved by the department pursuant to subsection (8) of this section; and
ure that those areas satisfy the requirements in section 29-35-205;
(b) Ensure that the total zoning capacity for all transit centers within the transit-oriented community is greater than or equal to the transit-oriented community's housing opportunity goal;
(c) Submit a housing opportunity goal report and have the report approved by the department pursuant to subsection (8) of this section; and
(d) Three years after submitting a housing opportunity goal report pursuant to subsection (8) of this section, and every three years thereafter, submit a status report pursuant to subsection (9) of this section that is approved by the department.
(5) Insufficient water supplies for meeting a housing opportunity goal. (a) On or before December 31, 2026, and every three years thereafter, a transit-oriented community may submit a notice, in a form and manner determined by the department, that the supply of water from all water supply entities, as defined in section 29-20-302 (2), that serve the transit-oriented community is insufficient during the next three-year period to provide the domestic water service necessary to meet the transit-oriented community's housing opportunity goal. The water supply entities shall provide information and assistance as necessary to complete the notice allowed by this subsection (5). The notice allowed by this subsection (5) must include, but is not limited to:
(I) An analysis of water demand based on:
(A) Projected housing and population growth, as estimated by the state demography office or a relevant metropolitan planning organization; and
(B) A reasonable zoning capacity buffer, as estimated based on relevant local, regional, or state data.
(II) Any data, professional opinions, or other information used to create the analysis in subsection (5)(a)(I) of this section;
(III) Documentation demonstrating both an up-to-date water supply plan that complies with section 29-20-304 (3) and an up-to-date water efficiency plan that complies with section 37-60-126 (1) to (5); and
(IV) A proposal that may include:
(A) Evidence that the water supply entity lacks adequate water supply to provide the amount of water identified in subsection (5)(a)(I) of this section; and
(B) A request for a modification of the housing opportunity goal during the next three-year period based on the analysis of water demand identified in subsection (5)(a)(I) of this section.
(b) Upon receiving the notice described in subsection (5)(a) of this section, the department shall review the notice and determine whether to accept, provide comment on, or deny the proposal described in subsection (5)(a)(IV) of this section.
(6) Affordability strategies. (a) On or before December 31, 2026, a transit-oriented community shall identify affordability strategies that it will implement or has already implemented while meeting its housing opportunity goal. In so doing, the transit-oriented community shall identify affordability strategies based on the demonstrated housing needs within the transit-oriented community, including for-sale and rental housing needs and the housing needs of low-, moderate-, and medium-income households, as designated by the United States department of housing and urban development.
ile meeting its housing opportunity goal. In so doing, the transit-oriented community shall identify affordability strategies based on the demonstrated housing needs within the transit-oriented community, including for-sale and rental housing needs and the housing needs of low-, moderate-, and medium-income households, as designated by the United States department of housing and urban development.
(b) (I) On or before December 31, 2026, a transit-oriented community shall include the following in its housing opportunity goal report submitted pursuant to subsection (8)(a)(IV) of this section:
(A) At least two strategies included in the standard affordability strategies menu described in section 29-35-208 (1) that the transit-oriented community identified pursuant to subsection (6)(a) of this section and intends to implement;
(B) At least one strategy included in the long-term affordability strategies menu described in section 29-35-208 (2) that the transit-oriented community identified pursuant to subsection (6)(a) of this section and intends to implement; and
(C) An implementation plan describing how the transit-oriented community has or will implement the affordability strategies identified pursuant to subsections (6)(b)(I)(A) and (6)(b)(I)(B) of this section.
(II) For purposes of satisfying the requirements of this subsection (6)(b), a transit-oriented community shall not:
(A) Count one or both of the strategies described in sections 29-35-208 (1)(e) and (2)(c) toward satisfying the requirements of both subsections (6)(b)(I)(A) and (6)(b)(I)(B) of this section; or
(B) Count any strategy described in section 29-35-208 that is otherwise required by state law.
(7) Displacement mitigation strategies. On or before December 31, 2026, a transit-oriented community shall include the following in its housing opportunity goal report, pursuant to subsection (8)(a)(V) of this section:
(a) Two displacement mitigation strategies that the transit-oriented community has adopted or will adopt from the long-term displacement mitigation strategies menu developed by the department pursuant to section 29-35-209 (3) to mitigate displacement risks while meeting its housing opportunity goal; and
(b) An implementation plan describing how the transit-oriented community will implement the displacement mitigation strategies it identifies pursuant to subsection (7)(a) of this section.
(8) Housing opportunity goal report. (a) On or before December 31, 2026, a transit-oriented community shall submit a housing opportunity goal report to the department in a form and manner determined by the department. If a transit-oriented community cannot include any of the following items in its housing opportunity goal report on or before December 31, 2026, the transit-oriented community shall indicate why it cannot do so and its progress toward being able to include those items in its housing opportunity goal report. The report must include the following, along with any other elements identified by the department:
(I) The transit-oriented community's housing opportunity goal;
(II) Evidence that the transit-oriented community has met its housing opportunity goal pursuant to subsection (4)(b) of this section;
(III) A map that identifies the boundaries of any transit centers within the transit-oriented community and evidence that those areas satisfy the requirements in section 29-35-205;
(IV) Affordability strategies identified pursuant to subsections (6)(b)(I)(A) and (6)(b)(I)(B) of this section and the implementation plan described pursuant to subsection (6)(b)(I)(C) of this section;
(V) Displacement mitigation strategies identified pursuant to subsection (7)(a) of this section and the implementation plan described pursuant to subsection (7)(b) of this section;
tion 29-35-205;
(IV) Affordability strategies identified pursuant to subsections (6)(b)(I)(A) and (6)(b)(I)(B) of this section and the implementation plan described pursuant to subsection (6)(b)(I)(C) of this section;
(V) Displacement mitigation strategies identified pursuant to subsection (7)(a) of this section and the implementation plan described pursuant to subsection (7)(b) of this section;
(VI) A description of community engagement that the transit-oriented community conducted in the process of meeting its housing opportunity goal, identifying affordability strategies pursuant to subsections (6)(b)(I)(A) and (6)(b)(I)(B) of this section and identifying displacement mitigation strategies pursuant to subsection (7)(a) of this section; and
(VII) If applicable, and if the transit-oriented community so chooses, evidence that the transit-oriented community has satisfied the requirements of subsection (5) of this section.
(b) The department shall review a housing opportunity goal report submitted by a transit-oriented community pursuant to subsection (8)(a) of this section and provide written notice that either:
(I) Approves the report and affirms that the transit-oriented community has satisfied the relevant requirements of this section and is therefore considered a certified transit-oriented community; or
(II) Provides direction for amending and resubmitting the report and requires that the transit-oriented community resubmit the report within ninety days of receiving the written notice.
(c) If the department has not approved a transit-oriented community's housing opportunity goal report on or before December 31, 2027, the department shall provide the transit-oriented community written notice that the transit-oriented community is in non-compliance with this part 2 and is not a certified transit-oriented community.
(d) (I) The department shall identify certified transit-oriented communities for the purpose of establishing eligibility for state grant and incentive programs.
(II) Pursuant to section 29-35-210 (6), a certified transit-oriented community is eligible for the award of a transit-oriented communities infrastructure grant program grant.
(III) The department shall identify certified transit-oriented communities, including compliance with the requirements for affordability strategies in subsection (8)(a)(IV) of this section and displacement mitigation strategies in subsection (8)(a)(V) of this section, for the purposes of establishing eligibility for the Colorado affordable housing in transit-oriented communities income tax credit in part 54 of article 22 of title 39.
(9) Status report. (a) Every three years after submitting a housing opportunity goal report pursuant to subsection (8)(a) of this section, a transit-oriented community shall submit a status report to the department in a form and manner determined by the department that confirms that the transit-oriented community is still a certified transit-oriented community.
(b) The department shall review a status report submitted by a transit-oriented community pursuant to subsection (9)(a) of this section and provide written notice that either:
(I) Approves the report and affirms that the transit-oriented community has satisfied the relevant requirements of this section and is therefore considered a certified transit-oriented community; or
(II) Provides direction for amending and resubmitting the report and requires that the transit-oriented community resubmit the report within ninety days of receiving the written notice.
(c) If a transit-oriented community fails to submit a status report to the department pursuant to subsection (9)(a) of this section or fails to submit an amended status report pursuant to subsection (9)(b)(II) of this section, the department shall provide the transit-oriented community written notice stating that the transit-oriented community will not be deemed a certified transit-oriented community.
C.R.S. § 29-35-205 Criteria for qualification as a transit center - criteria for qualification as a transit center outside of a transit area
29-35-205. Criteria for qualification as a transit center - criteria for qualification as a transit center outside of a transit area. (1) To designate an area as a transit center, a transit-oriented community shall:
(a) Ensure that the area is composed solely of zoning districts that uniformly allow a net housing density of at least fifteen units per acre with no parcel or zoning district being counted as allowing a net housing density of more than five hundred units per acre;
(b) (I) Identify a net housing density allowed for the area or for subdistricts within the area. As part of the guidance the department develops pursuant to section 29-35-207 (7), the department shall provide local governments with simple and effective methods of calculating net housing density. The identified net housing density must:
(A) Reflect any significant dimensional or other restrictions in local laws used to regulate density in the area, including but not limited to restrictions related to units per acre, lot area per unit, lot coverage, site level open space requirements, floor area ratios, setbacks, minimum parking requirements, and maximum height. Where a dimensional restriction has multiple potential outcomes within the same zoning district or within related zoning districts, the average outcome of the dimensional restriction may be utilized by the transit-oriented community to measure net housing density.
(B) Assume minimum parking requirements are met with surface parking; except that three-fourths of a parking space per dwelling unit may be counted as structured parking within the building footprint;
(C) Assume an average housing unit size, as determined based on either the typical size of a multifamily housing unit that was recently built in Colorado as established in the census's American housing survey or the typical size of a multifamily housing unit in the transit-oriented community according to local data;
(II) Nothing in this subsection (1)(b) requires a local government to include areas of individual parcels required for stormwater drainage or utility easements in calculating net housing density; and
(III) If a parcel's existing residential uses have a higher net housing density than the net housing density allowed for the parcel by current restrictions in local law, the net housing density of the existing residential use may be counted;
(c) Exclude any area where local law exclusively restricts housing occupancy based on age or other factors;
(d) Establish an administrative approval process for multifamily residential development on parcels in the area that are no more than five acres in size. For multifamily residential development applications on parcels greater than five acres in size, a transit-oriented community shall identify a target net housing density for the parcels to count the parcels as part of the transit center that covers the area. This subsection (1)(d) does not prevent the establishment of developer agreements between the local government and developers.
acres in size. For multifamily residential development applications on parcels greater than five acres in size, a transit-oriented community shall identify a target net housing density for the parcels to count the parcels as part of the transit center that covers the area. This subsection (1)(d) does not prevent the establishment of developer agreements between the local government and developers.
(e) Ensure that the area of a transit center is composed of parcels that are located wholly or partially within either:
(I) A transit area or optional transit area; or
(II) One-quarter mile from the boundary of a transit area or optional transit area.
(2) (a) Notwithstanding subsection (1)(e) of this section, a transit-oriented community may only designate an area as a transit center within an optional transit area as described in section 29-35-207 (4), if the transit-oriented community has provided reasonable evidence in the housing opportunity goal report submitted pursuant to section 29-35-204 (8) that:
(I) To the maximum extent feasible, an average net housing density of at least forty dwelling units per acre is allowed on all parcels within the transit area that are both one-half acre or more in size and not exempt parcels; and
(II) Areas within the optional transit area have fewer barriers to housing development than areas within the transit area.
(b) For purposes of subsection (2)(a)(II) of this section, barriers to housing development may include:
(I) An anticipated lack of water supply, after accounting for a reasonable zoning capacity buffer;
(II) An anticipated lack of sufficient future infrastructure capacity, including water treatment plants, wastewater treatment plants, or electrical power networks in the area, after accounting for a reasonable zoning capacity buffer;
(III) Unique site characteristics which contribute to a high cost of housing development; or
(IV) Sites that are infeasible for housing development.
C.R.S. § 29-35-206 Criteria for qualification as a neighborhood center
29-35-206. Criteria for qualification as a neighborhood center. (1) (a) To designate an area as a neighborhood center, a local government shall, in accordance with policies and procedures adopted by the department that may include different criteria for varying regional and local contexts, identify areas that meet the following criteria:
(I) Allow a net housing density that supports mixed-use pedestrian-oriented neighborhoods, the development of regulated affordable housing, and increased public transit ridership;
(II) Within census urbanized areas, as defined in the latest federal decennial census, establish an administrative approval process for multifamily residential development on parcels in the area that are no larger than a size determined by the department;
(III) Ensure that the area has a mixed-use pedestrian-oriented neighborhood, as determined by criteria established by the department; and
(IV) Satisfy any other criteria, as determined by the department, and as may vary by regional context, for the qualification of an area as a neighborhood center.
(b) Notwithstanding the requirements for a local government designating an area as a neighborhood center pursuant to subsection (1)(a) of this section, the department shall establish separate requirements for local governments designating areas within potential transit areas identified by the department of transportation pursuant to section 29-35-207 (5).
(2) If a local government designates an area as a neighborhood center pursuant to subsection (1) of this section, the local government shall submit a neighborhood center report to the department in a form and manner determined by the department.
C.R.S. § 29-35-207 Transit areas map - transit station area criteria - transit corridor area criteria - housing opportunity goals, models, and guidance
29-35-207. Transit areas map - transit station area criteria - transit corridor area criteria - housing opportunity goals, models, and guidance. (1) Transit areas map. (a) On or before September 30, 2024, the department, in consultation with metropolitan planning organizations, and transit agencies that operate within metropolitan planning organizations, shall publish a transit area map, or transit area maps, based on the criteria in subsections (2), (3), (4), (5) and (6), of this section. Only transit areas that are identified pursuant to subsections (2) and (3) of this section and identified on a transit area map pursuant to this subsection (1) must be included in the calculation of a housing opportunity goal pursuant to section 29-35-204 (2).
(b) In publishing the map described in subsection (1)(a) of this section, the department shall also publish a walkshed map that identifies the areas that are reachable by a person walking a distance of not more than one-half mile from a transit station where part of the transit station area based on that transit station is separated from any exit to the transit station by a state-owned limited-access highway or railroad track, using simple and efficient geospatial analysis methods and readily available network data.
(2) Transit station criteria. The department shall designate transit station areas, for purposes of subsection (1) of this section, based on routes identified in an applicable transit plan for existing stations for:
(a) Commuter bus rapid transit;
(b) Commuter rail; and
(c) Light rail.
(3) Transit corridor area criteria. (a) The department shall designate transit corridor areas, for purposes of subsection (1) of this section, by identifying transit routes that meet one or more of the following criteria:
(I) An urban bus rapid transit service that is identified within:
(A) A metropolitan planning organization's fiscally-constrained, long-range transportation plan adopted prior to January 1, 2024, and planned for implementation, according to that plan, prior to January 1, 2030; or
(B) An applicable transit plan that has been planned for short-term implementation, according to that plan;
(II) A public bus route that:
(A) Has a planned frequency or scheduled frequency of fifteen minutes or more frequent for eight hours or more on weekdays; and
(B) Is identified within an applicable transit plan for short-term implementation or implementation before January 1, 2030, according to that plan.
(b) For transit agencies within metropolitan planning organizations that do not have applicable transit plans, the department shall designate transit corridor areas, for purposes of subsection (1) of this section, by identifying any public bus routes with existing transit service levels as of January 1, 2024, with a scheduled frequency of fifteen minutes or more frequent for eight hours or more on weekdays.
ansit agencies within metropolitan planning organizations that do not have applicable transit plans, the department shall designate transit corridor areas, for purposes of subsection (1) of this section, by identifying any public bus routes with existing transit service levels as of January 1, 2024, with a scheduled frequency of fifteen minutes or more frequent for eight hours or more on weekdays.
(c) Notwithstanding subsection (3)(a) and (3)(b) of this section, the department shall not designate transit corridor areas, for purposes of subsection (1) of this section, within a transit-oriented community that has designated twenty percent or more of its area as a manufactured home zoning district as of January 1, 2024.
(4) Optional transit area criteria. (a) The department shall designate optional transit areas, for purposes of subsection (1) of this section, based on the following criteria:
(I) A bus rapid transit service that is identified within a metropolitan planning organization's fiscally-constrained, long-range transportation plan adopted prior to January 1, 2024, and intended for implementation after January 1, 2030, and before December 31, 2050;
(II) Public bus routes other than those identified in subsection (3)(a)(II)(B) of this section that operate at a planned or scheduled frequency of thirty minutes or more frequent during the highest frequency service hours as identified by:
(A) Existing service as of January 1, 2024; or
(B) Identified within an applicable transit plan; and
(III) Other areas planned as mixed-use pedestrian oriented neighborhoods.
(b) For purposes of subsection (4)(a)(III) of this section, a transit oriented community may request that the department designate a mixed-use pedestrian-oriented neighborhood as an optional transit area. The department shall review and approve or reject such a request based on whether the mixed-use pedestrian-oriented neighborhood fulfills the goals of this part 2 established in section 29-35-203 (2).
(5) Potential transit area criteria. (a) The department shall designate an area as a potential transit area, for purposes of subsection (1) of this section, if it consists of corridors, as identified by the department of transportation that:
(I) Include major travelsheds, as defined by common travel patterns in an area, that impact anticipated new or modified interchanges on state-owned highways; and
(II) Are outside of census urbanized areas, as identified in the latest federal decennial census;
(b) In designating potential transit areas, for purposes of subsection (1) of this section, the department shall attempt to identify areas where future transit service and neighborhood centers could potentially align to provide information for state, regional, and local planning efforts.
(c) In updating the transit area map pursuant to subsection (1) of this section, the department shall identify any neighborhood centers that a local government has designated within a potential transit area.
(6) In identifying the boundaries of transit areas and optional transit areas pursuant to this section, the department shall use:
(a) Geospatial data from relevant transit agencies and metropolitan planning organizations; and
(b) Roadway locations based upon the centerline of the roadway.
(7) Housing opportunity goals, models, and guidance. On or before February 28, 2025, the department shall publish models and guidance to satisfy the goals of this part 2 as established in section 29-35-203 (2) and interpret the density and dimensional standards established in section 29-35-205 (1)(b) with the intent of providing simple and efficient methods for local governments to calculate the net housing density of transit centers in order to meet their housing opportunity goals. In publishing models and guidance, the department shall establish models, guidance, and typical building typologies for local governments with form-based codes.
C.R.S. § 29-35-208 Standard affordability strategies menu - long-term affordability strategies menu - alternative affordability strategies - impact fees
29-35-208. Standard affordability strategies menu - long-term affordability strategies menu - alternative affordability strategies - impact fees. (1) Standard affordability strategies menu. On or before June 30, 2025, the department shall develop a standard affordability strategies menu for transit-oriented communities and shall update this menu as necessary. The menu must include the following strategies:
(a) Implementing a local inclusionary zoning ordinance that accounts for local housing market conditions, is crafted to maximize regulated affordable housing, and complies with the requirements of section 29-20-104 (1)(e.5) and (1)(e.7);
(b) Adopting a local law or plan to leverage publicly owned, sold, or managed land for regulated affordable housing development;
(c) Creating or significantly expanding a program to subsidize or otherwise reduce impact fees or other similar development charges for regulated affordable housing development;
(d) Establishing a density bonus program for transit centers that grants increased floor area ratio, density, or height for regulated affordable housing units;
(e) Creating a program to prioritize and expedite development approvals for regulated affordable housing development;
(f) Reducing local parking requirements for regulated affordable housing to one-half space per unit of regulated affordable housing, without lowering the protections provided for individuals with disabilities, including the number of parking spaces for individuals who are mobility impaired, under the federal "Americans with Disabilities Act of 1990", 42 U.S.C. sec. 12101 et seq., and parts 6 and 8 of article 34 of title 24; except that, upon the passage of House Bill 24-1304, this subsection (1)(f) shall not be identified by a transit-oriented community as an affordability strategy that satisfies the requirements of 29-35-204 (6)(b)(I)(A);
(g) Enacting local laws that incentivize the construction of accessible and visitable regulated affordable housing units;
(h) Enacting local laws that support housing for families, such as incentivizing construction of housing units with multiple bedrooms; and
(i) Any other strategy designated by the department that offers a comparable impact on local housing affordability.
(2) Long-term affordability strategies menu. On or before June 30, 2025, the department shall develop a long-term affordability strategies menu and shall update this menu as necessary. The menu must include the following strategies:
(a) Establishing a dedicated local revenue source for regulated affordable housing development, such as instituting a linkage fee on market rate housing development to support new regulated affordable housing developments;
(b) Regulating short-term rentals, second homes, or other underutilized or vacant units in a way, such as vacancy fees for underutilized units, that promotes maximizing the use of local housing stock for local housing needs;
(c) Making a commitment to and remaining eligible to receive funding pursuant to article 32 of this title 29;
(d) Incentivizing or creating a dedicated local program that facilitates investment in land banking or community land trusts;
(e) Establishing an affordable homeownership strategy such as:
(I) Acquiring or preserving deed restrictions on current housing units;
(II) Establishing an incentive program to encourage realtors to work with low-income and minority prospective home buyers;
(III) Establishing an affordable rent-to-own program; or
(IV) Incentivizing affordable condominium developments; and
mmunity land trusts;
(e) Establishing an affordable homeownership strategy such as:
(I) Acquiring or preserving deed restrictions on current housing units;
(II) Establishing an incentive program to encourage realtors to work with low-income and minority prospective home buyers;
(III) Establishing an affordable rent-to-own program; or
(IV) Incentivizing affordable condominium developments; and
(f) Any other strategy designated by the department that offers a comparable impact on local housing affordability.
(3) Alternative affordability strategies. A transit-oriented community may submit an existing or proposed local law or program, in a form and manner determined by the department, to the department, and the department may determine that the adoption of that local law or program qualifies as an affordability strategy for purposes of section 29-35-204 (6)(a) and (6)(b), so long as the local law or program supports equal or greater opportunity for regulated affordable housing and accessible units than the strategies described in subsections (1) and (2) of this section.
C.R.S. § 29-35-209 Displacement risk assessment - displacement mitigation strategies menu - displacement mitigation strategies menu goals - alternative displacement mitigation strategies
29-35-209. Displacement risk assessment - displacement mitigation strategies menu - displacement mitigation strategies menu goals - alternative displacement mitigation strategies. (1) On or before June 30, 2025, the department shall conduct an assessment that includes recommendations identifying the resources necessary to implement the displacement mitigation strategies in the displacement risk mitigation strategies menu described in subsection (3) of this section. The assessment must identify:
(a) Appropriate local, regional, or nonprofit entities to assist residents at elevated risk of displacement, with a focus on residents in local governments that have a smaller population and fewer financial resources than other local governments within the same metropolitan planning organization; and
(b) Appropriate sources of financial and other resources to implement the displacement mitigation strategies in the displacement risk mitigation strategies menu described in subsection (3) of this section, while taking into account regional disparities in resources.
(2) (a) No later than June 30, 2025, the department shall develop guidance for transit-oriented communities in conducting a displacement risk assessment and implementing displacement mitigation strategies. The department shall update this guidance as necessary.
(b) In creating guidance for the displacement risk assessment described in subsection (2)(a) of this section, the department shall develop a methodology, with variations for different local contexts including the size and resource levels of local governments, for transit-oriented communities within metropolitan planning organization boundaries to use to:
(I) Gather feedback through community engagement; and
(II) Identify information from neighborhood-level early displacement warning and response systems, or if those systems are unavailable, identify the best available local, regional, state, or federal data that can be analyzed to identify residents at elevated displacement risk, which may include:
(A) The percentage of households that are extremely low-income, very low-income, and low-income, as designated by the United States department of housing and urban development;
(B) The percentage of households that are renters;
(C) The percentage of cost-burdened households, defined as households that spend more than thirty percent of the household's income on housing needs;
(D) The number of adults who are twenty-five years of age or older and have not earned at least a high school diploma;
(E) The percentage of households in which English is not the primary spoken language;
(F) The percentage of housing stock built prior to 1970;
(G) The location of manufactured home parks;
(H) Areas that qualify as disadvantaged as determined with the climate and economic justice screening tool developed by the council on environmental quality in the office of the president of the United States; and
(I) The transit-oriented communities where increases in zoning capacity will occur as a result of the requirements of this part 2.
(3) On or before June 30, 2025, the department shall develop a long-term displacement mitigation strategies menu that includes the following strategies:
(a) Developing a program to offer technical assistance and financial support for community organizations to develop independent community land trusts;
(b) Prioritizing spending on regulated affordable housing unit preservation or implementing or continuing deed restrictions for regulated affordable housing units;
(c) Providing homestead tax exemptions for either long-time homeowners in neighborhoods that a displacement risk assessment identifies as vulnerable to displacement or low- to moderate-income homeowners within, or within one-half mile of, a designated transit center;
ulated affordable housing unit preservation or implementing or continuing deed restrictions for regulated affordable housing units;
(c) Providing homestead tax exemptions for either long-time homeowners in neighborhoods that a displacement risk assessment identifies as vulnerable to displacement or low- to moderate-income homeowners within, or within one-half mile of, a designated transit center;
(d) Requiring multifamily housing developers to create a community benefits agreement with affected populations within one-quarter mile of a development built in an area that is vulnerable to displacement;
(e) Ensuring no net loss within the designated area of affordable units such that affordability levels are equal or greater than existing levels of family serving units that include three or more bedrooms;
(f) Establishing a program to provide community or small local business investment in an area that is vulnerable to displacement; and
(g) Other strategies identified by the department that provide displacement mitigation equivalent to the other strategies described in this subsection (3).
(4) In developing the displacement risk mitigation strategies menu described in subsection (3) of this section, the department's goals must be to support:
(a) Resources, services, and investments that serve vulnerable homeowners and renters with elevated risk of displacement;
(b) The preservation of regulated affordable housing stock;
(c) Local government planning and land use decisions that incorporate inclusive and equitable displacement mitigation strategies, and the empowerment of low-income persons and communities of color to participate in those decisions; and
(d) The ability of vulnerable residents to remain in or return to their neighborhoods or communities by accessing new affordable housing opportunities in their neighborhoods or communities.
C.R.S. § 29-35-210 Transit-oriented communities infrastructure grant program - transit-oriented communities infrastructure fund - definitions
29-35-210. Transit-oriented communities infrastructure grant program - transit-oriented communities infrastructure fund - definitions. (1) Grant program created. The transit-oriented communities infrastructure grant program is created in the department. The purpose of the grant program is to assist local governments in upgrading infrastructure and supporting regulated affordable housing in transit centers and neighborhood centers.
(2) Allowable purposes. Grant recipients may use money received through the grant program to fund:
(a) On-site infrastructure for affordable housing, including regulated affordable housing, within a transit center or neighborhood center;
(b) Public infrastructure projects that are within, or that primarily benefit, a transit center or neighborhood center;
(c) Public infrastructure projects that benefit affordable housing, including regulated affordable housing, in a transit center or neighborhood center;
(d) Activities related to determining where and how best to improve infrastructure to support a transit center or neighborhood center;
(e) Infrastructure project delivery, planning, and community engagement; and
(f) Activities contracted by an area agency on aging, as defined in section 26-11-201 (2), to a transit-oriented community to provide services within, or that benefit, transit centers and neighborhood centers, and that further the goals of this part 2.
(3) Grant program administration. The department shall administer the grant program and, subject to available appropriations, award grants as provided in subsection (7) of this section and provide technical assistance to local governments in complying with the requirements of this part 2.
(4) Grant program policies and procedures. The department shall implement the grant program in accordance with this section. The department shall develop policies and procedures as necessary to implement the grant program.
(5) Grant application. To receive a grant, a local government must submit an application to the department in accordance with policies and procedures developed by the department.
(6) Grant program criteria. The department shall review the applications received pursuant to this section and shall only award grants to certified transit-oriented communities. In awarding grants, the department shall consider the following criteria:
(a) The potential impact of a project that a local government would fund with a grant award on the development of regulated affordable housing, mixed-use development, accessible or visitable housing units, or the creation or enhancement of home ownership opportunities within a transit center or neighborhood center. If a project is a large-scale infill development project, subject to a discretionary approval process, and adjacent to an established neighborhood, the department shall give priority to such a project if a community benefits agreement has been established in connection with the project.
(b) In response to demonstrated needs, the extent to which the local government has:
(I) Integrated mixed-use development by allowing neighborhood commercial uses that have the main purpose of meeting consumer demands for goods and services with an emphasis on serving the surrounding residential neighborhood within one-quarter mile of a transit center or neighborhood center;
(II) Adopted affordability strategies from the affordability strategies menus in section 29-35-208 based on the local government's demonstrated housing needs, including housing needs for rental and for-sale housing and for low-, moderate-, and medium-income households, as designated by the United States department of housing and urban development, and permanent supportive housing;
(III) Adopted displacement mitigation strategies from the displacement mitigation strategies menu in section 29-35-209; and
(IV) Designated neighborhood centers within optional transit areas; and
s for rental and for-sale housing and for low-, moderate-, and medium-income households, as designated by the United States department of housing and urban development, and permanent supportive housing;
(III) Adopted displacement mitigation strategies from the displacement mitigation strategies menu in section 29-35-209; and
(IV) Designated neighborhood centers within optional transit areas; and
(c) Information contained in the reports submitted by a local government pursuant to section 29-35-204 that provides evidence that the local government has met the requirements of section 29-35-204.
(7) Grant awards. Subject to available appropriations, the department shall award grants using money in the fund as provided in this section.
(8) Transit-oriented communities infrastructure fund. (a) (I) The transit-oriented communities infrastructure fund is created in the state treasury. The fund consists of money transferred to the fund pursuant to subsection (8)(a)(III) of this section, gifts, grants, and donations, and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(II) Money in the fund is continuously appropriated to the department for the purpose of implementing the grant program, and the department may expend up to six percent of any money in the fund for costs incurred by the department in administering the grant program.
(III) On July 1, 2024, the state treasurer shall transfer thirty-five million dollars from the general fund to the fund.
(9) Reporting. (a) On or before January 1, 2025, and each January 1 thereafter for the duration of the grant program, the department shall submit a summarized report to the house of representatives transportation, housing, and local government committee and the senate local government and housing committee, or their successor committees, on relevant information regarding the grant program.
(b) Notwithstanding section 24-1-136 (11)(a)(I), the reporting requirements set forth in this section continue until all grant program money is fully expended.
(10) Definitions. As used in this section, unless the context otherwise requires:
(a) "Fund" means the transit-oriented communities infrastructure fund created in subsection (8)(a) of this section.
(b) "Grant program" means the transit-oriented communities infrastructure grant program created in this section.
C.R.S. § 29-35-301 Legislative declaration
29-35-301. Legislative declaration. (1) The general assembly finds, determines, and declares that:
(a) There is an extraterritorial impact when local governments enact land use decisions that require a minimum amount of parking spaces;
(b) Residential developments frequently have more parking than is utilized, which adds to housing costs and encourages additional vehicle ownership and vehicle miles traveled. According to the regional transportation district study titled "Residential Parking in Station Areas: A Study of Metro Denver", unsubsidized housing developments near regional transportation district stations provide forty percent more parking than residents utilize at peak times, and income-restricted housing developments provide fifty percent more parking than is used.
(c) The 2021 study "Parking & Affordable Housing" of parking utilization at affordable housing developments along the front range found that half of parking spaces built on average go unused, and that requirements can be up to five times the need especially for buildings serving lower area median incomes;
(d) Local government land use decisions that require a minimum amount of parking spaces beyond what is necessary to meet market demand increase vehicle miles traveled and associated greenhouse gas emissions. According to a University of California Institute of Transportation Studies article titled "What Do Residential Lotteries Show Us About Transportation Choices?", higher amounts of free parking provided in residential developments cause higher rates of vehicle ownership, higher rates of vehicle miles traveled, and less frequent transit use.
(e) According to the study "Effects of Parking Provision on Automobile Use in U.S. Cities: Inferring Causality" in the journal Transportation Research Record, an increase in parking provisions from one-tenth to one-half parking space per person is associated with an increase in automobile mode share of roughly thirty percent;
(f) According to the article "Households with Constrained Off-Street Parking Drive Fewer Miles" in the journal Transportation, vehicle ownership rates are fourteen percent higher for households with more than one available parking space per unit compared to those with one or fewer, and for every additional vehicle per household, the household travels on average seventeen more miles of total vehicle miles traveled per day;
(g) Coloradans drive more miles per person than they used to, which puts stress on transportation infrastructure and increasing household costs. Since 1981, per capita vehicle miles traveled in Colorado have risen by over twenty percent according to data from the federal highway administration.
(h) Increased vehicle ownership and the resulting vehicle miles traveled impact neighboring jurisdictions by increasing congestion, roadway infrastructure maintenance costs, air pollution, noise, and greenhouse gas emissions;
(i) Given the close proximity and interconnected nature of jurisdictions within Colorado's metropolitan regions, many residents travel frequently between jurisdictions for work, shopping, recreation, and other trips;
(j) In Colorado's major cities, a significant share of employees commute to jobs in the city but live elsewhere, including seventy percent of employees in Denver, forty-five percent in Colorado Springs, sixty percent in Fort Collins, fifty percent in Pueblo, and sixty-five percent in Grand Junction, according to 2021 data from the federal census;
(k) Excessive parking requirements limit compact, walkable development by mandating additional space between uses, which then necessitates driving to reach most destinations;
eventy percent of employees in Denver, forty-five percent in Colorado Springs, sixty percent in Fort Collins, fifty percent in Pueblo, and sixty-five percent in Grand Junction, according to 2021 data from the federal census;
(k) Excessive parking requirements limit compact, walkable development by mandating additional space between uses, which then necessitates driving to reach most destinations;
(l) Lower density development has lowered revenue and increased capital and maintenance costs compared to more compact development. National studies, such as the article "Relationships between Density and per Capita Municipal Spending in the United States", published in Urban Science, have found that lower density communities have higher government capital and maintenance costs for water, sewer, and transportation infrastructure and lower property and sales tax revenue. These increased costs are often borne by both state and local governments.
(m) Vehicle traffic, which increases when land use patterns are more dispersed, contributes twenty percent of nitrogen oxide emissions, a key ozone precursor, according to the executive summary of the Moderate Area Ozone state implementation plan for the 2015 Ozone National Ambient Air Quality Standards by the Regional Air Quality Council;
(n) The United States environmental protection agency has classified the Denver metro area and the north front range area as being in severe nonattainment for ozone and ground level ozone, which has serious impacts on human health, particularly for vulnerable populations;
(o) According to the greenhouse gas pollution reduction roadmap, published by the Colorado energy office and dated January 14, 2021, the transportation sector is the single largest source of greenhouse gas pollution in Colorado;
(p) Nearly sixty percent of the greenhouse gas emissions from the transportation sector come from light-duty vehicles, the majority of cars and trucks that Coloradans drive every day;
(q) Section 43-1-128 (3) directs the department of transportation to establish greenhouse gas reduction targets, guidelines, and procedures for state and regional transportation plans, and the resulting greenhouse gas planning rule and associated mitigation policy directives include a list of greenhouse gas mitigation measures to achieve those targets, including the elimination of minimum parking requirements and other parking management strategies;
(r) Local government land use decisions that require a minimum amount of parking spaces increase the cost of new residential projects, which increases housing costs. According to the regional transportation district study titled "Residential Parking in Station Areas: A Study of Metro Denver", structured parking spaces in the Denver metropolitan area cost twenty-five thousand dollars each to build in 2020 and use space that would otherwise be used for revenue generating residential units, decreasing the profitability of residential development. As a result, parking requirements that necessitate the construction of structured parking spaces may discourage developers from building new residential projects, or, if they do move forward with projects, force them to recoup the costs of building excessive parking by increasing housing prices.
used for revenue generating residential units, decreasing the profitability of residential development. As a result, parking requirements that necessitate the construction of structured parking spaces may discourage developers from building new residential projects, or, if they do move forward with projects, force them to recoup the costs of building excessive parking by increasing housing prices.
(s) Off-street surface parking costs up to ten thousand dollars per space, and each space requires up to two and one-half times its square footage to accommodate. As a result, off-street surface parking requirements also may discourage developers from building new residential projects, or, if they do move forward with projects, force them to build fewer units than they otherwise could and recoup the excessive cost by increasing home prices and rents. An analysis conducted by the Parking Reform Network found that an off-street parking space can add between two hundred and five hundred dollars per month in rent. Whether these costs are necessary varies from one building project to the next, and those variables are not accounted for in mandated parking minimums.
(t) Minimum parking requirements put small businesses at a disadvantage relative to large corporations. Large corporations have more capital at their disposal to fulfill costly parking requirements and are less reliant on foot traffic, human-scale visibility, and a sense of place to attract customers.
(u) Impervious surfaces such as those built for vehicle parking create an urban heat island effect, contributing to rising temperatures, increasing energy costs for air conditioning, and worsening ground level air quality. Excessive land coverage of this kind makes stormwater management difficult and expensive, and contributes to flash flooding and erosion, causing interjurisdictional conflicts and legal disputes.
(2) Therefore, the general assembly declares that the required minimum amount of parking spaces for a real property is a matter of mixed statewide and local concern.
C.R.S. § 29-35-302 Definitions
29-35-302. Definitions. As used in this part 3, unless the context otherwise requires:
(1) "Adaptive reuse" means the conversion of an existing structure from the use for which it was constructed to a new use by maintaining elements of the structure and adapting such elements to a new use.
(2) "Applicable transit plan" means a plan of a transit agency whose service territory is within a metropolitan planning organization, including a system optimization plan or a transit master plan that:
(a) Has been approved by the governing body of a transit agency on or after January 1, 2019, and on or before January 1, 2024;
(b) Identifies the planned frequency and span of service for transit service or specific transit routes; and
(c) Identifies specific transit routes for short-term implementation according to that plan, or implementation before January 1, 2027.
(3) "Applicable transit service area" means an area designated by the map created in section 29-35-306.
(4) "Bus rapid transit service" means a transit service that:
(a) Is identified as bus rapid transit by a transit agency, in a metropolitan planning organization's fiscally constrained long range transportation plan or in an applicable transit plan; and
(b) Includes any number of the following:
(I) Service that is scheduled to run every fifteen minutes or less for four hours or more on weekdays, excluding seasonal service;
(II) Dedicated lanes or busways;
(III) Traffic signal priority;
(IV) Off-board fare collection;
(V) Elevated platforms; or
(VI) Enhanced stations.
(5) "Community-based organization" means a Colorado-based nonprofit entity that:
(a) Has a mission to improve the environmental, economic, social, cultural, or quality of life conditions of a common community of interest;
(b) Is accessible for residents of all ages, incomes, languages, and abilities; or
(c) Addresses the needs of disproportionately impacted and marginalized communities in the region and centers voices of marginalized communities in transportation planning, both in their community and around the region.
(6) "Commuter bus rapid transit service" means a bus rapid transit service that operates for a majority of its route on a freeway with access that is limited to grade-separated interchanges.
(7) "County" means a county, including a home rule county but excluding a city and county.
(8) "Land use approval" means any final action of a local government that has the effect of authorizing the use or development of a particular parcel of real property.
(9) "Loading space" means an off-street space or berth that:
(a) Is on the same site with a building or contiguous to a group of buildings;
(b) Is designated for the temporary parking of either:
(I) A commercial vehicle while materials are loaded in or unloaded from the vehicle; or
(II) A vehicle while passengers board or disembark from the vehicle; and
f a particular parcel of real property.
(9) "Loading space" means an off-street space or berth that:
(a) Is on the same site with a building or contiguous to a group of buildings;
(b) Is designated for the temporary parking of either:
(I) A commercial vehicle while materials are loaded in or unloaded from the vehicle; or
(II) A vehicle while passengers board or disembark from the vehicle; and
(c) Abuts upon a street, alley, or other means of access.
(10) "Local government" means a municipality that is within a metropolitan planning organization or a county that has unincorporated areas within a metropolitan planning organization.
(11) "Local law" means any code, law, ordinance, policy, regulation, or rule enacted by a local government that governs the development and use of land, including land use codes, zoning codes, and subdivision codes.
(12) "Maximum parking requirement" means a requirement established in local law that limits the number of parking spaces that may be made available in connection with a real property.
(13) "Metropolitan planning organization" means a metropolitan planning organization under the "Federal Transit Act of 1998", 49 U.S.C. sec. 5301 et seq., as amended.
(14) "Minimum parking requirement" means a requirement established in local law that a number of parking spaces be made available in connection with a real property.
(15) "Municipality" means a home rule or statutory city or town, territorial charter city or town, or city and county.
(16) "Parking space" means an off-street space designated for motor vehicle parking. A parking space does not include a loading space.
(17) "Regulated affordable housing" means affordable housing that:
(a) Has received loans, grants, equity, bonds, or tax credits from any source to support the creation, preservation, or rehabilitation of affordable housing that, as a condition of funding, encumbers the property with a restricted use covenant or similar recorded agreement to ensure affordability, or has been income-restricted under a local inclusionary zoning ordinance or other regulation or program;
(b) Restricts or limits maximum rental or sale price for households of a given size at a given area median income, as established annually by the United States department of housing and urban development; and
(c) Ensures occupancy by low- to moderate-income households for a specified period detailed in a restrictive use covenant or similar recorded agreement.
C.R.S. § 29-35-303 Limitations on minimum parking requirements
29-35-303. Limitations on minimum parking requirements. (1) On or after June 30, 2025, a municipality shall neither enact nor enforce local laws that establish a minimum parking requirement that applies to a land use approval for a multifamily residential development, adaptive re-use for residential purposes, or adaptive re-use mixed-use purposes which include at least fifty percent of use for residential purposes that is within the municipality, a metropolitan planning organization, and at least partially within an applicable transit service area.
(2) On or after June 30, 2025, a county shall neither enact nor enforce local laws that establish a minimum parking requirement that applies to a land use approval for a multifamily residential development, adaptive re-use for residential purposes, or adaptive re-use mixed-use purposes which include at least fifty percent of use for residential purposes that is within the unincorporated area of the county, a metropolitan planning organization, and at least partially within an applicable transit service area.
(3) Nothing in this section:
(a) Lowers the protections provided for persons with disabilities, including the number of parking spaces for persons who are mobility impaired, under the federal "Americans with Disabilities Act of 1990", 42 U.S.C. sec. 12101 et seq., and parts 6 and 8 of article 34 of title 24;
(b) Prevents a local government from enacting or enforcing local laws that establish a maximum parking requirement;
(c) Prevents a local government or a developer from being awarded funding for affordable housing that requires a ratio of a certain number of parking spaces;
(d) Affects the ability of a local government to enforce any agreement made in connection with a land use approval prior to August 7, 2024, to provide regulated affordable housing in exchange for reducing minimum parking requirements;
(e) Prevents a local government from enacting or enforcing local laws that establish a minimum requirement for bicycle parking; or
(f) Prevents a local government from imposing the following requirements on a parking space that is voluntarily provided in connection with a land use approval:
(I) That the owners of such a parking space charge for the use of the space;
(II) That the owner of a such a parking space contribute to a parking enterprise, permitting system, or shared parking plan; and
(III) That such a parking space allows for electric vehicle charging stations in accordance with existing law.
C.R.S. § 29-35-304 Minimum parking requirements for housing developments
29-35-304. Minimum parking requirements for housing developments. (1) Notwithstanding section 29-35-303, a local government may impose or enforce a minimum parking requirement in connection with a housing development project that is intended to contain twenty units or more or contain regulated affordable housing by requiring no more than one parking space per dwelling unit in the housing development.
(2) (a) In order to impose a minimum parking requirement pursuant to subsection (1) of this section in connection with a housing development project, a local government must, no later than ninety days after receiving a completed application for the housing development project, publicly publish written findings that find that not imposing or enforcing a minimum parking requirement in connection with the housing development project would have a substantial negative impact.
(b) A local government's written findings published pursuant to subsection (2)(a) must:
(I) Be supported by substantial evidence that supports the finding of a substantial negative impact on:
(A) Safe pedestrian, bicycle, or emergency access to the housing development project; or
(B) Existing on- or off-street parking spaces within one eighth-mile of the housing development project;
(II) Be reviewed and approved by a professional engineer, as defined in section 12-120-202 (7).
(III) Include parking utilization data collected from the area within one eighth-mile of the housing development project; and
(IV) Demonstrate that the local government implementation of strategies to manage demand for on-street parking for the area within one eighth-mile of the housing development project would not be effective to mitigate a substantial negative impact found pursuant to this section.
(3) On or before December 31, 2026, and every December 31st thereafter, if applicable, a local government shall, in a form and manner determined by the department of local affairs, submit information regarding a minimum parking requirement imposed or enforced pursuant to this section to the department of local affairs.
(4) The department of local affairs may issue policies and procedures as necessary to implement this section.
C.R.S. § 29-35-305 Parking management technical assistance
29-35-305. Parking management technical assistance. (1) (a) On or before December 31, 2024, the department of local affairs, in consultation with the department of transportation, and the Colorado energy office, shall, within existing resources, to the extent feasible, develop and publish best practices and technical assistance materials concerning optimizing parking supply and managing parking in ways that increase the production of affordable housing and housing supply. These best practices and technical assistance materials must include, but are not limited to, elements related to:
(I) The implementation of local parking maximums;
(II) Sample language to replace existing local parking codes with other incentives for the production of affordable housing, transportation demand management strategies, and other desired outcomes;
(III) The design and implementation of parking benefit districts and on-street parking management;
(IV) Strategies for developers to manage the supply and price of parking spaces to minimize parking demand based on different location and land use characteristics and taking into consideration the number of residents who need access to parking and access to mass transit;
(V) Strategies that prioritize the transportation needs of residents of regulated affordable housing, low-income communities, and communities with low rates of car ownership;
(VI) Strategies to optimize the use of existing parking through shared parking agreements and other strategies; and
(VII) Information from affordable housing providers and existing studies on parking needs for residents of regulated affordable housing based on different location and land use characteristics.
(b) In developing the materials and best practices described in subsection (1)(a) of this section, the department of local affairs shall consult with various stakeholders, including local governments, metropolitan planning organizations, disproportionately impacted communities, community-based organizations, affordable housing providers, transit agencies, and active transportation organizations. In consulting with these stakeholders, the department of local affairs may collect this feedback through multiple means, including online or in-person surveys or public feedback sessions.
(2) During the first regular session of the seventy-fifth general assembly, the department of local affairs shall present the materials and best practices described in subsection (1)(a) of this section to the local government and housing committee of the senate and the transportation, housing and local government committee of the house of representatives or their successor committees.
C.R.S. § 29-35-306 Applicable transit service areas map
29-35-306. Applicable transit service areas map. (1) On or before September 30, 2024, the department of local affairs, in consultation with the department of transportation, Colorado energy office, metropolitan planning organizations, and transit agencies that operate within metropolitan planning organizations, shall publish a map that designates applicable transit service areas to be used by local governments in complying with this part 3.
(2) In publishing the map described in subsection (1) of this section, the department of local affairs shall designate applicable transit service areas as areas that are within:
(a) One-quarter mile of existing stations served by routes identified in an applicable transit plan for:
(I) Commuter bus rapid transit;
(II) Commuter rail with planned or scheduled service that is scheduled to run every thirty minutes or more frequent between seven a.m. and ten a.m. and between four p.m. and seven p.m.;
(III) Light rail with planned or scheduled service that is scheduled to run every thirty minutes or more frequent between seven a.m. and ten a.m. and between four p.m. and seven p.m.; and
(IV) A public bus route that has a planned or scheduled frequency of every thirty minutes or more frequent for four hours or more on weekdays, excluding seasonal service;
(b) One-quarter mile of currently planned or existing stations and stops served by public bus routes that:
(I) Have a planned or scheduled frequency of every thirty minutes or more frequent for four hours or more on weekdays, excluding seasonal service; and
(II) Are identified within an applicable transit plan for short-term implementation or implementation before January 1, 2030, according to that plan; or
(c) For transit agencies within metropolitan planning organizations that do not have applicable transit plans, one-quarter mile of public bus routes with existing transit service levels as of January 1, 2024, with a scheduled frequency of every thirty minutes or more frequent during the four hours or more on weekdays, excluding seasonal service.
C.R.S. § 29-35-401 Legislative declaration
29-35-401. Legislative declaration. (1) (a) The general assembly hereby finds, determines, and declares that:
(I) Accessory dwelling units offer a way to provide compact, relatively affordable housing in established neighborhoods with minimal impacts to infrastructure and to supply new housing opportunities without added dispersed low-density housing;
(II) Accessory dwelling units generate rental income to help homeowners cover mortgage payments or other costs, which can be important for a variety of residents, such as older homeowners on fixed incomes and low- and moderate-income homeowners;
(III) Accessory dwelling units provide families with options for intergenerational living arrangements that enable child or elder care and aging in place, and a 2021 survey by the AARP found that approximately seventy-five percent of people fifty years of age or older want to stay in their homes or communities for as long as they can. According to a 2018 study by the Center for American Progress, fifty-one percent of Coloradans live in a child care desert-a community where there are no child care providers or so few options that there are more than three times as many children as there are licensed child care slots. These child care deserts are situated within rural, suburban, and urban communities and are a major reason for working parents to leave the workforce.
(IV) Accessory dwelling units are often occupied at low to no rent by family members, and if they are rented privately, their rents are relatively affordable because of their small size;
(V) As Colorado's population ages and typical household size continues to decrease, accessory dwelling units offer more compact housing options that align with the state's changing demographics, and Coloradans over sixty-five years of age are the fastest-growing age cohort in Colorado according to the state demography office;
(VI) Accessory dwelling units enable seniors to downsize, move into accessible units, or live with family or a caregiver while remaining in their communities. A 2018 AARP survey found that sixty-seven percent of adults would consider living in an accessory dwelling unit to be close to someone but still have a separate space. Most seniors do not live in homes that are accessible, even though disability is prevalent among the senior population and increases with age. Less than four percent of existing housing units in the United States are estimated to be livable for people with moderate mobility difficulties, according to "Housing for an Aging Population" in the journal Housing Policy Debate.
(VII) Relative to dispersed, low-density development, compact infill development, including accessory dwelling unit development, reduces water use, greenhouse gas emissions, infrastructure costs, and household energy and transportation costs;
(VIII) Accessory dwelling units use significantly less energy for heating and cooling than single-unit detached dwellings because of their smaller size, which reduces household energy costs and greenhouse gas emissions. Accessory dwelling units can reduce lifetime carbon dioxide emissions by forty percent compared to medium-sized single-family homes, according to a report from the Oregon department of environmental quality. Reducing emissions from the housing sector is critical for meeting the state's greenhouse gas emissions targets established in section 25-7-102. According to "The Carbon Footprint of Household Energy Use in the United States" in the Proceedings of the National Academy of Sciences, reducing floor space per capita is a critical strategy to reaching mid-century climate goals.
(IX) Compact infill development reduces water demand and infrastructure costs by using less piping, which reduces water loss; includes less landscaped space per unit; and makes better use of existing infrastructure.
Energy Use in the United States" in the Proceedings of the National Academy of Sciences, reducing floor space per capita is a critical strategy to reaching mid-century climate goals.
(IX) Compact infill development reduces water demand and infrastructure costs by using less piping, which reduces water loss; includes less landscaped space per unit; and makes better use of existing infrastructure.
(X) Accessory dwelling units reduce government capital and maintenance costs for infrastructure since accessory dwelling units are built in existing neighborhoods and have a relatively small impact on existing infrastructure. National studies such as "Relationships between Density and per Capita Municipal Spending in the United States", published in Urban Science, have found that lower density communities have higher government capital and maintenance costs for water, sewer, and transportation infrastructure and lower property and sales tax revenue. These increased costs are often borne by both state and local governments.
(XI) A number of local land use laws prohibit homeowners from building an accessory dwelling unit, or apply regulations to accessory dwelling units that significantly limit their construction;
(XII) A number of municipalities have removed barriers to accessory dwelling unit construction such as parking requirements, owner occupancy requirements, and restrictive size and design limitations, which has resulted in accessory dwelling unit permits increasing to ten to twenty percent of total new housing permits and an overall increase in the total housing supply. Since California implemented various reforms to encourage accessory dwelling unit construction, including requiring cities to allow accessory dwelling units as a use by right, preventing the imposition of parking requirements, and preventing owner occupancy requirements, accessory dwelling unit construction has increased significantly in California. Following reforms to California's accessory dwelling unit law in 2016, accessory dwelling unit development has increased rapidly from around one thousand accessory dwelling units permitted in 2016 to over twenty-four thousand in 2022, or about twenty percent of new housing permits statewide, according to data from the California Department of Housing and Community Development and analysis by the Bipartisan Policy Center.
(XIII) Housing supply impacts housing affordability, and housing prices are typically higher when housing supply is restricted by local land use regulations in a metropolitan region, according to the National Bureau of Economic Research in working papers such as "Regulation and Housing Supply", "The Impact of Zoning on Housing Affordability", and "The Impact of Local Residential Land Use Restrictions on Land Values Across and Within Single Family Housing Markets";
(XIV) Increasing housing supply moderates price increases and improves housing affordability across all incomes, according to studies such as "The Economic Implications of Housing Supply" in the Journal of Economic Perspectives and "Supply Skepticism: Housing Supply and Affordability" in the journal Housing Policy Debate;
(XV) Academic research such as "The Impact of Building Restrictions on Housing Affordability" in the Federal Reserve Bank of New York Economic Policy Review has identified zoning and other land use controls as a primary driver of rising housing costs in the most expensive housing markets;
Perspectives and "Supply Skepticism: Housing Supply and Affordability" in the journal Housing Policy Debate;
(XV) Academic research such as "The Impact of Building Restrictions on Housing Affordability" in the Federal Reserve Bank of New York Economic Policy Review has identified zoning and other land use controls as a primary driver of rising housing costs in the most expensive housing markets;
(XVI) Accessory dwelling units offer affordable and attainable options to live in high-opportunity neighborhoods, which can help improve equity outcomes regionally and statewide. An analysis of accessory dwelling unit permitting in California found that accessory dwelling units are typically permitted on parcels with relatively good access to jobs compared to surrounding areas, according to "Where Will Accessory Dwelling Units Sprout Up When a State Lets Them Grow? Evidence From California" in Cityscape: A Journal of Policy Development and Research.
(XVII) Local government regulation of accessory dwelling units varies significantly within regions and statewide in Colorado in terms of where they are allowed, the dimensional and design restrictions applied, and other requirements. This inconsistency inhibits the development of a robust market of accessory dwelling unit developers, modular accessory dwelling unit designs, and associated cost reductions. Colorado is similar to most states in this regard, and, according to "Zoning By a Thousand Cuts" in the Pepperdine Law Review, which analyzed accessory dwelling unit regulations across Connecticut, "The high degree of regulatory variation thwarts the development of prototype designs or prefabricated [accessory dwelling units] that could satisfy different rules across jurisdictions".
(XVIII) More permissive regulation by local governments of accessory dwelling units provides a reasonable chance for homeowners to construct or convert an accessory dwelling unit and thereby increase housing supply, stabilize housing costs, and contribute to affordable and equitable home ownership to adequately meet the housing needs of a growing Colorado population.
(b) Therefore, the general assembly declares that increasing the housing supply through the construction or conversion of accessory dwelling units is a matter of mixed statewide and local concern.
C.R.S. § 29-35-402 Definitions
29-35-402. Definitions. As used in this part 4, unless the context otherwise requires:
(1) "Accessible unit" means a housing unit that:
(a) Satisfies the requirements of the federal "Fair Housing Act", 42 U.S.C. sec. 3601 et seq., as amended;
(b) Incorporates universal design; or
(c) Is either a type A dwelling unit, as defined in section 9-5-101 (10), or a type B dwelling unit, as defined in section 9-5-101 (12).
(2) "Accessory dwelling unit" means an internal, attached, or detached dwelling unit that:
(a) Provides complete independent living facilities for one or more individuals;
(b) Is located on the same lot as a proposed or existing primary residence; and
(c) Includes facilities for living, sleeping, eating, cooking, and sanitation.
(3) "Accessory dwelling unit supportive jurisdiction" means a local government that the department has certified pursuant to section 29-35-404 as an accessory dwelling unit supportive jurisdiction.
(4) "Accessory use" means a structure or the use of a structure on the same lot with, and of a nature customarily incidental and subordinate to, the principal structure or use of the structure.
(5) (a) "Administrative approval process" means a process in which:
(I) A development proposal for a specified project is approved, approved with conditions, or denied by local government administrative staff based solely on its compliance with objective standards set forth in local laws; and
(II) Does not require, and cannot be elevated to require, a public hearing, a recommendation, or a decision by an elected or appointed public body or a hearing officer.
(b) Notwithstanding subsection (5)(a) of this section, an administrative approval process may require an appointed historic preservation commission to make a decision, or to make a recommendation to local government administrative staff, regarding a development application involving a property that the local government has designated as a historic property, provided that:
(I) The state historic preservation office within history Colorado has designated the local government as a certified local government; and
(II) The appointed historic preservation commission's decision or recommendation is based on standards either set forth in local law or established by the secretary of the interior of the United States.
(6) "County" means a county, including a home rule county but excluding a city and county.
(7) "Department" means the department of local affairs.
(8) "Dwelling unit" means a single unit providing complete independent living facilities for one or more individuals, including permanent facilities for cooking, eating, living, sanitation, and sleeping.
(9) "Exempt parcel" means a parcel that is:
(a) Not served by a domestic water and sewage treatment system, as defined in section 24-65.1-104 (5), or is served by a well with a permit that cannot supply an additional dwelling unit;
(b) A historic property that is not within a historic district; or
(c) In a floodway or in a one hundred year floodplain, as identified by the federal emergency management agency.
(10) "Historic district" means a district established by local law that meets the definition of "district" set forth in 36 CFR 60.3 (d).
(11) "Historic property" means a property listed:
(a) On the national register of historic places;
(b) On the Colorado state register of historic properties; or
way or in a one hundred year floodplain, as identified by the federal emergency management agency.
(10) "Historic district" means a district established by local law that meets the definition of "district" set forth in 36 CFR 60.3 (d).
(11) "Historic property" means a property listed:
(a) On the national register of historic places;
(b) On the Colorado state register of historic properties; or
(c) As a contributing structure or historic landmark by a certified local government, as defined in section 39-22-514.5 (2)(b).
(12) "Local government" means a municipality, county, or tribal nation with jurisdiction in Colorado.
(13) "Local law" means any code, law, ordinance, policy, regulation, or rule enacted by a local government that governs the development and use of land, including land use codes, zoning codes, and subdivision codes.
(14) "Low- and moderate-income household" means a household that is considered low-, moderate-, or medium-income, as determined by the federal department of housing and urban development.
(15) "Metropolitan planning organization" means a metropolitan planning organization under the "Federal Transit Act of 1998", 49 U.S.C. sec. 5301 et seq., as amended.
(16) "Municipality" means a home rule or statutory city or town, territorial charter city or town, or city and county.
(17) "Objective standard" means a standard that:
(a) Is a defined benchmark or criterion that allows for determinations of compliance to be consistently decided regardless of the decision maker; and
(b) Does not require a subjective determination concerning a development proposal, including but not limited to whether the application for the development proposal is:
(I) Consistent with master plans, or other development plans;
(II) Compatible with the land use or development of the area surrounding the area described in the application; or
(III) Consistent with public welfare, community character, or neighborhood character.
(18) "Restrictive design or dimension standard" means a standard in a local law that:
(a) Requires an architectural style, building material, or landscaping that is more restrictive for an accessory dwelling unit than for a single-unit detached dwelling in the same zoning district;
(b) Does not allow for accessory dwelling unit sizes between five hundred and seven hundred fifty square feet;
(c) Requires side setbacks for an accessory dwelling unit that are larger than the side setbacks required for a primary dwelling unit in the same zoning district;
(d) Requires a rear setback for an accessory dwelling unit that is larger than the greater of:
(I) The rear setback required for other accessory building types in the same zoning district; or
(II) Five feet;
(e) Is a more restrictive minimum lot size standard for an accessory dwelling unit than for a single-unit detached dwelling in the same zoning district; or
(f) Applies more restrictive aesthetic design or dimensional standards to accessory dwelling units that are factory-built residential structures, as defined in section 24-32-3302 (10), than other accessory dwelling units.
(19) (a) "Short-term rental" means the rental of a lodging unit for less than thirty days. As used in this subsection (19), "lodging unit" means any property or portion of a property that is available for lodging; except that the term excludes a hotel or motel unit.
(b) Notwithstanding subsection (19)(a) of this section, a local government may apply its own definition of "short-term rental" for purposes of this part 4.
(20) "Single-unit detached dwelling" means a detached building with a single dwelling unit on a single lot.
(21) "Subject jurisdiction" means either:
(a) A municipality that both has a population of one thousand or more, as reported by the state demography office, and is within a metropolitan planning organization; or
apply its own definition of "short-term rental" for purposes of this part 4.
(20) "Single-unit detached dwelling" means a detached building with a single dwelling unit on a single lot.
(21) "Subject jurisdiction" means either:
(a) A municipality that both has a population of one thousand or more, as reported by the state demography office, and is within a metropolitan planning organization; or
(b) The portion of a county that is both within a census designated place with a population of forty thousand or more, as reported in the most recent decennial census, and within a metropolitan planning organization.
(22) "Tandem parking space" means a parking space that is located either in front of or behind one or more other parking spaces that share the same point of access.
(23) "Universal design" means any dwelling unit designed and constructed to be safe and accessible for any individual regardless of age or abilities.
(24) "Visitable unit" means a dwelling unit that a person with a disability can enter, move around the primary entrance floor of, and use the bathroom in.
C.R.S. § 29-35-403 Accessory dwelling unit requirements for a subject jurisdiction
29-35-403. Accessory dwelling unit requirements for a subject jurisdiction. (1) On or after June 30, 2025, a subject jurisdiction shall allow, subject to an administrative approval process, one accessory dwelling unit as an accessory use to a single-unit detached dwelling in any part of the subject jurisdiction where the jurisdiction allows single-unit detached dwellings.
(2) On or after June 30, 2025, a subject jurisdiction shall not:
(a) Require the construction of a new off-street parking space in connection with the construction or conversion of an accessory dwelling unit, except as described in subsections (3)(a) and (3)(b) of this section;
(b) Require an accessory dwelling unit, or any other dwelling on the same lot as an accessory dwelling unit, to be owner-occupied; except that a subject jurisdiction may require a property owner to demonstrate that the property owner resides on the parcel when an application is submitted:
(I) To construct or convert an accessory dwelling unit. This exception does not apply for an accessory dwelling unit that is being constructed simultaneously with a new primary dwelling unit.
(II) For a license or permit for a short-term rental on the parcel through a local law or program.
(c) Apply a restrictive design or dimension standard to an accessory dwelling unit.
(3) Nothing in this section prevents a subject jurisdiction or other local government from:
(a) Requiring the designation of an off-street parking space in connection with an accessory dwelling unit, so long as there is an existing driveway, garage, tandem parking space, or other off-street parking space available for such a designation at the time of the construction or conversion of the accessory dwelling unit;
(b) Requiring, in connection with the construction or conversion of an accessory dwelling unit, one new parking space on a parcel that:
(I) Does not have an existing off-street parking space, including a driveway, garage, or tandem parking space, that could be used for an accessory dwelling unit;
(II) Is in a zoning district that, as of January 1, 2024, requires one or more parking spaces for the primary dwelling unit; and
(III) Is located on a block where on-street parking is prohibited for any reason including ensuring access for emergency services;
(c) Allowing the construction or conversion of an accessory dwelling unit that is smaller than five hundred square feet or greater than eight hundred square feet, or restricting the size of an accessory dwelling unit so that it is no larger than the size of the principal dwelling unit on the same lot as the accessory dwelling unit;
(d) Allowing the construction or conversion of multiple accessory dwelling units on the same lot;
(e) Applying a design or dimension standard to an accessory dwelling unit that is not a restrictive design or dimension standard;
(f) Adopting or enforcing a generally applicable requirement for:
(I) The payment of an impact fee or other similar development charge, pursuant to section 29-20-104.5; or
(II) The mitigation of impacts in conformance with the requirements of part 2 of article 20 of this title 29;
(g) Enacting or applying a local law concerning the short-term rental of an accessory dwelling unit or any other dwelling on the same lot as an accessory dwelling unit;
(h) Applying the design standards and procedures of a historic district to a lot on which an accessory dwelling unit is allowed in that historic district, including a standard or procedure related to demolition;
(i) Applying and enforcing a locally adopted life safety code, including but not limited to, a building, fire, utility, or stormwater code;
(j) Allowing the construction of, or issuing a permit for the construction of, a single-unit detached dwelling in an area zoned for single-unit detached dwellings;
is allowed in that historic district, including a standard or procedure related to demolition;
(i) Applying and enforcing a locally adopted life safety code, including but not limited to, a building, fire, utility, or stormwater code;
(j) Allowing the construction of, or issuing a permit for the construction of, a single-unit detached dwelling in an area zoned for single-unit detached dwellings;
(k) Encouraging the construction of accessory dwelling units that are, through the application of local laws or programs including through deed restrictions, made affordable to households under certain income limits or used primarily to house the local workforce pursuant to a local, regional, or state affordable housing program;
(l) Defining accessory dwelling unit in local law as including or excluding other dwelling unit types such as a "motor home", as defined in section 42-1-102 (57), a "multipurpose trailer", as defined in section 42-1-102 (60.3), and a "recreational vehicle", as defined in section 24-32-902 (9); or
(m) Requiring a statement by a water or wastewater service provider regarding its capacity to service the property as a condition of permitting an accessory dwelling unit.
(4) This section only applies to a parcel in a subject jurisdiction that is not an exempt parcel.
C.R.S. § 29-35-404 Accessory dwelling unit supportive jurisdiction report - certification of a jurisdiction as an accessory dwelling unit supportive jurisdiction
29-35-404. Accessory dwelling unit supportive jurisdiction report - certification of a jurisdiction as an accessory dwelling unit supportive jurisdiction. (1) (a) In order to be certified as an accessory dwelling unit supportive jurisdiction by the department, a local government must submit to the department, in a form and manner determined by the department, a report demonstrating evidence of the local government:
(I) Complying with section 29-35-403 as a subject jurisdiction or, if the local government is not a subject jurisdiction, as if the local government were a subject jurisdiction for purposes of section 29-35-403; and
(II) Implementing one or more of the following strategies:
(A) Waiving, reducing, or providing financial assistance for accessory dwelling unit-related fees that are incurred by low- and moderate-income households;
(B) Enacting local laws or programs that incentivize the affordability of certain accessory dwelling units including accessory dwelling units used primarily to house the local workforce;
(C) Providing pre-approved plans for the construction of accessory dwelling units;
(D) Implementing a program to provide education and technical assistance to homeowners to construct or convert an accessory dwelling unit;
(E) Implementing a program to regulate the use of accessory dwelling units for short-term rentals;
(F) Enacting local laws that incentivize the construction and conversion of accessible and visitable accessory dwelling units;
(G) Assisting property owners with ensuring that pre-existing accessory dwelling units comply with local laws;
(H) Enabling a pathway for the separate sale of an accessory dwelling unit;
(I) Enacting local laws that encourage the construction of accessory dwelling units that are factory-built residential structures, as defined in section 24-32-3302 (10); or
(J) Any other strategy that is approved by the department and that encourages the construction, conversion, or use of accessory dwelling units.
(b) (I) On or before June 30, 2025, a subject jurisdiction shall submit the report described in subsection (1)(a) of this section.
(II) Notwithstanding subsection (1)(b)(I) of this section, the department may allow a subject jurisdiction to submit the report described in subsection (1)(a) of this section no more than six months after the deadline described in subsection (1)(b)(I) of this section if the subject jurisdiction demonstrates, in a form and manner determined by the department, that the subject jurisdiction has:
(A) Initiated a process to update its local laws as necessary to comply with the requirements of the report described in subsection (1)(a) of this section;
(B) A plan and timeline to update its local laws as necessary to comply with the requirements of the report described in subsection (1)(a) of this section; and
(C) Provided an explanation for not being able to meet the deadline described in subsection (1)(b)(I) of this section.
(c) If a local government that is not a subject jurisdiction submits a report pursuant to subsection (1)(a) of this section, that local government shall, as part of the report, submit evidence of complying with the requirements for a subject jurisdiction described in section 29-35-403.
(2) (a) Within ninety days of receiving a local government's report submitted pursuant to subsection (1)(a) of this section, the department shall review the report, either approve or reject the report, and provide feedback to the local government on the report.
(b) If the department approves a local government's report submitted pursuant to subsection (1)(a) of this section, the department shall issue to that local government a certificate indicating that the local government qualifies as an accessory dwelling unit supportive jurisdiction. The department may revoke such a certificate if a local government does not satisfy the requirements of subsection (1)(a) of this section.
approves a local government's report submitted pursuant to subsection (1)(a) of this section, the department shall issue to that local government a certificate indicating that the local government qualifies as an accessory dwelling unit supportive jurisdiction. The department may revoke such a certificate if a local government does not satisfy the requirements of subsection (1)(a) of this section.
(c) If the department rejects a local government's report submitted pursuant to subsection (1)(a) of this section, the department may grant the local government an additional one hundred twenty days to correct any deficiencies identified in the report and resubmit an amended report. Within ninety days of receiving an amended report, the department shall review the amended report, either approve or reject the amended report, and provide feedback on the amended report.
(3) The department, in consultation with the department of transportation, the Colorado energy office, and the Colorado office of economic development, may develop policies and procedures as necessary to implement this section.
C.R.S. § 29-35-405 Accessory dwelling unit fee reduction and encouragement grant program - created - application - criteria - awards - fund - reporting requirements - rules - definitions - repeal
29-35-405. Accessory dwelling unit fee reduction and encouragement grant program - created - application - criteria - awards - fund - reporting requirements - rules - definitions - repeal. (1) The accessory dwelling unit fee reduction and encouragement grant program is created in the department to provide grants to accessory dwelling unit supportive jurisdictions for activities that promote the construction of accessory dwelling units, including but not limited to, offsetting costs incurred in connection with developing pre-approved accessory dwelling unit plans, providing technical assistance to persons converting or constructing accessory dwelling units, or waiving, reducing, or providing financial assistance for accessory dwelling unit associated fees and other required costs.
(2) Grant recipients may use the money received through the grant program to offset both eligible costs and the cost of waiving, reducing, or providing financial assistance for reasonable and necessary accessory dwelling unit fees and other required costs for:
(a) Low- and moderate-income households;
(b) Affordable accessory dwelling units;
(c) Accessible or visitable accessory dwelling units;
(d) Accessory dwelling units used as long-term rentals for members of the local workforce; or
(e) Accessory dwelling units used to support other demonstrated housing needs in the community.
(3) The department shall administer the grant program and, subject to available appropriations, provide technical assistance, develop a toolkit to support local governments in encouraging accessory dwelling unit construction, receive grant applications and award grants as provided in this section.
(4) To receive a grant, an accessory dwelling unit supportive jurisdiction must submit an application to the department in accordance with the policies and procedures developed by the department pursuant to subsection (9) of this section. At a minimum, the application must include the following:
(a) A copy of the certificate issued by the department pursuant to section 29-35-404 certifying that the local government is an accessory dwelling unit supportive jurisdiction;
(b) The number of accessory dwelling units that the local government has permitted and when the local government permitted those accessory dwelling units;
(c) The type and costs of fees and other eligible costs that the local government is proposing to use a grant award to pay for;
(d) The number of accessory dwelling units that the local government expects to support with a grant award and the period for which the local government intends to support those accessory dwelling units; and
(e) Information about the types of households and accessory dwelling units that the local government intends to support with a grant award, such as whether the local government intends to support low- and moderate-income households, affordable accessory dwelling units, accessible or visitable accessory dwelling units, accessory dwelling units for housing the local workforce, or accessory dwelling units supporting other demonstrated housing needs in the community.
(5) The department shall review the applications received pursuant to subsection (4) of this section. In awarding grants, the department shall give priority to local governments that:
(a) Impose accessory dwelling unit fees and costs that are reasonable and necessary;
(b) Have demonstrated a significant commitment to further construction and conversion of accessory dwelling units through the adoption of strategies described in section 29-35-404 (1)(a)(II); and
to subsection (4) of this section. In awarding grants, the department shall give priority to local governments that:
(a) Impose accessory dwelling unit fees and costs that are reasonable and necessary;
(b) Have demonstrated a significant commitment to further construction and conversion of accessory dwelling units through the adoption of strategies described in section 29-35-404 (1)(a)(II); and
(c) Provide offsets for, or waive a greater number of accessory dwelling unit fees for:
(I) Low- and moderate-income households; or
(II) Accessory dwelling units that are rented to low- and moderate-income households.
(6) In awarding a grant, the department shall award a local government an amount equal to no more than fifteen thousand dollars per accessory dwelling unit permitted by the local government, to be reimbursed based on the number of permitted accessory dwelling units.
(7) (a) The accessory dwelling unit fee reduction and encouragement grant program fund is created in the state treasury. The fund consists of any money that the general assembly may transfer or appropriate to the fund and gifts, grants, or donations credited to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(b) Subject to annual appropriation by the general assembly, the department may expend money from the fund for the purpose of implementing and administering the grant program.
(c) On or before June 30, 2024, the state treasurer shall transfer five million dollars from the general fund to the fund.
(8) In accordance with the policies and procedures developed by the department pursuant to subsection (9) of this section, each local government that receives a grant through the grant program shall submit a report to the department. At a minimum, the report must include the following information:
(a) The number of accessory dwelling units with accessory dwelling unit fees or costs that local governments waived, reduced, or provided financial assistance for in the past year;
(b) The total amount of eligible costs that local governments incurred and were reimbursed for through the grant program in the past year in connection with the grant program;
(c) The number of the accessory dwelling units described in subsection (8)(a) of this section that were built in the past year that were built by low- and moderate-income households, that are affordable accessory dwelling units, and that are visitable or accessible accessory dwelling units;
(d) The number of accessory dwelling units that are factory-built residential structures, as defined in section 24-32-3302 (10); and
(e) The number of accessory dwelling unit permits awarded, denied, or in progress in the local government's jurisdiction.
(9) The department shall implement the grant program in accordance with this section. The department shall develop, in consultation with the department of transportation, the Colorado energy office, and the Colorado office of economic development, policies and procedures both as required in this section and as may be necessary to implement the grant program.
(10) As used in this section, unless the context otherwise requires:
(a) "Accessory dwelling unit fee" means a reasonable and necessary fee collected or required by a local government in connection with the construction or conversion of an accessory dwelling unit. Such a fee may include impact fees.
ocedures both as required in this section and as may be necessary to implement the grant program.
(10) As used in this section, unless the context otherwise requires:
(a) "Accessory dwelling unit fee" means a reasonable and necessary fee collected or required by a local government in connection with the construction or conversion of an accessory dwelling unit. Such a fee may include impact fees.
(b) (I) "Eligible costs" means costs incurred by a local government and determined by the department to be incurred in connection with developing pre-approved accessory dwelling unit plans, providing technical assistance to persons converting or constructing accessory dwelling units, or other reasonable and necessary fees levied by or costs borne by the local government for the construction or conversion of an accessory dwelling unit.
(II) Notwithstanding subsection (10)(b)(I) of this section, in order for costs incurred by a local government in connection with developing pre-approved accessory dwelling unit plans to qualify as eligible costs, at least one such pre-approved accessory dwelling unit plan must be for an accessible or visitable accessory dwelling unit.
(c) "Fund" means the accessory dwelling unit fee reduction and encouragement grant program fund created in subsection (7) of this section.
(d) "Grant program" means the accessory dwelling unit fee reduction and encouragement grant program created in this section.
(11) This section is repealed, effective December 31, 2030.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-29.docxFetched: 10/6/2026