New legislation and lawsuit loom over Colorado housing shortage

Three new bills recently introduced in the Colorado legislature are intended to alleviate the state’s housing shortage.

Meanwhile, a lawsuit by multiple local governments charging state overreach of its authority over already passed housing legislation will advance in January. The new proposals provide property tax exemptions for nonprofits for affordable housing construction; permission for local governments, schools, nonprofits and transit districts to build housing on their land; and incentives for transit-oriented housing.

One bill would prevent local governments from objecting to building heights if the buildings are three stories or shorter. The proposed Transit Investment Area Act would use tax-increment financing to allow local governments to invest state sales tax revenue into transportation infrastructure improvements.

It would also establish an Affordable Housing in Transit Investment Zones Tax Credit for low- and middle-income housing within transit housing zones. A study last year found that zoning restrictions throughout much of the state have blocked affordable housing options from development, Multifamily Dive reported.