Colorado Bill Mandates Higher Density Housing Near Transit
Colorado Bill Mandates Higher Density Housing Near Transit
Why it matters
The Colorado legislature has passed a groundbreaking bill (pun intended), HB24-1313, that requires cities designated as "transit-oriented communities" to allow greater residential density near transit lines. The move is expected to increase housing affordability and promote sustainable development in the state.
Key provisions
Defines "transit-oriented communities" based on population, proximity to transit, and other factors.
Requires these communities to meet a "housing opportunity goal" by ensuring enough areas qualify as "transit centers" with a minimum net housing density of 15 units per acre.
Mandates an administrative approval process for multifamily residential development on parcels 5 acres or less in transit centers.
Communities must submit housing opportunity goal reports and progress reports to the Department of Local Affairs (DOLA).
Establishes consequences for noncompliance, including diversion of highway funds and potential injunctions.
Funding and incentives:
The $35 million Transit-Oriented Communities Infrastructure Fund Grant Program is created to help local governments upgrade infrastructure in transit and neighborhood centers.
Increases the Colorado Affordable Housing Tax Credit by up to $8.3 million annually from 2024-2031, with 70% of the credit claimed in the first year.
Introduces a new refundable Colorado Affordable Housing in Transit-Oriented Communities Income Tax Credit for projects in compliant communities, worth up to $8.6 million annually from 2025-2029.
The debate:
Supporters argue the bill will help address Colorado's housing crisis by promoting dense, sustainable development near transit. In addition to standard NIMBY talking points, Critics worry about limited water constraints, while the bill includes some flexibility for those communities.
What's next:
Governor Jared Polis is expected to sign the bill into law. Transit-oriented communities will have until December 31, 2026, to submit their housing opportunity goal reports to DOLA. In the coming years, we will likely see a significant shift in Colorado's urban landscape as cities work to meet the new density requirements.