Affordable housing is one of the most important issues we face in Colorado. If people cannot afford to live here, they simply will not come. That translates into a shrinking economy, fewer jobs and less opportunity. That is why defeating HB23-1190 is so critical to our economy and the future of our state.

This is a challenge that will not go away any time soon. Common Sense Institute estimates the housing deficit in 2022 in Denver alone is in the range of 13,148 to 30,930 units. To meet population growth by 2028 and close the housing deficit, between 31,000 and 49,000 housing units will need to be built.

Unfortunately, in their zeal to address the issue, state legislators have also introduced House Bill 23-1190, the Affordable Housing Right of First Refusal. At its core, HB 23-1190 will be one of the most egregious government intrusions in our history. This legislation, if passed, would destroy one of the most important foundational rights in our country: property rights.

Ultimately, if passed, HB 23-1190 would discourage investment in affordable housing, create administrative and financial burdens for landlords, limit market value, and limit the flexibility of landlords to sell their properties.

The bill will have an arresting effect on the desirability of equity to fund the development of new housing units in Colorado. This bill is a plaintiff attorney’s dream. 

Under this measure, a municipality is given the right of first refusal in purchasing any multifamily residential property and the power to assign the contract. Worse yet, the bill provides no recourse to the seller and no expiration of the right of first refusal. Additionally, the bill dictates the timeline necessary for the local government to make a purchase and that timeline is far outside of what is typical in the market. The market fluctuates quickly, and a project could be tied up in the right of first refusal for months. 

Housing is my business. During the last four-and-a-half decades, I have seen many affordable housing solutions burden the very people who are in the business of providing places for people to live, work, shop and play. HB23-1190 is the worst of these failed policies. Affordable housing is a societal problem and must be solved in a broader manner than this bill presents.

The good news is policy makers and elected officials at every level of government are laser-focused on the lack of affordable housing. Even better, as a state, we are taking positive steps toward achieving a broader base of affordable workforce housing with measures such as the voter approved Proposition 123.

I am a firm believer public policy needs to land on the proactive side of facilitating more affordable housing rather than having government enter the market as a competitor or imposing more regulation, also being a competitor in the market.

The unintended consequences of this bill are significant, but the bottom line is clear. This bill would stifle the affordable housing industry – the last thing Colorado needs. Join me and voice your opposition to HB23-1190.

Buz Koelbel is president of Koelbel and Company and a member of the Common Sense Institute Board of Directors.