Governor Jared Polis signed five new laws aimed at reducing housing costs and planning for strategic growth in Colorado. These bipartisan efforts focus on expanding affordable housing and introducing a pioneering middle-income housing tax credit.
Key Legislation Highlights:
- HB24-1434: Increased Affordable Housing Tax Credit
- Expands Colorado’s Affordable Housing Tax Credit (AHTC) by $816 million over eight years.
- Aims to amplify the impact of federal incentives, fostering the development of more affordable housing units across the state.
- SB24-174: Statewide Housing Needs Assessment and Strategic Planning
- Mandates the Department of Local Affairs (DOLA) to conduct comprehensive housing needs assessments and provide grants to local governments.
- Requires local governments to develop and update housing action plans every six years, focusing on strategic growth and infrastructure planning.
- HB24-1316: Middle-Income Housing Tax Credit Pilot Program
- Establishes the nation’s first tax credit program for middle-income housing, targeting Coloradans earning 80 to 120% of the area median income (AMI).
- Allocates up to $10 million per year in state income tax credits from 2025 to 2029 to encourage the development of rental housing for middle-income earners.
Impact and Goals:
- These laws are designed to address Colorado’s housing crisis by increasing the availability of affordable and middle-income housing.
- They also emphasize strategic growth, particularly in transit-oriented communities, ensuring that housing developments are well-connected to jobs and public transit.
- The legislation is expected to make housing more accessible for essential workers like teachers, first responders, and nurses, enabling them to live closer to their workplaces.
Statements from Lawmakers:
- Senator Rachel Zenzinger emphasized the importance of strategic partnerships between state and local governments to address housing needs.
- Representative Shannon Bird highlighted the success of the AHTC program and its significant role in boosting affordable housing projects.
- Senator Jeff Bridges and Representative William Lindstedt stressed the urgent need for middle-income housing solutions, noting that even those with stable jobs struggle to afford homes in Colorado.
These legislative measures are part of Colorado Democrats’ broader effort to tackle housing affordability and ensure sustainable community development.