Common sense at the state legislature prevailed last week when it came to ensuring more Coloradans will have the opportunity to achieve the American dream of home ownership.

Faced with the choice between passing a one-sided bill that would essentially prohibit the future construction of most roads, sewer and parks in residential communities around the state during down markets, or a bipartisan bill that balanced increased homeowner protections while creating a path forward to build future public infrastructure at a critical time in our history, lawmakers chose the latter. The result is a law that addresses Colorado’s housing affordability crisis by delivering accountability, transparency and important guardrails to home buyers while not compromising on the amenities people desire and the public infrastructure they need.

Short supply and rising prices of homes has made home ownership out of reach for many Coloradans. National reports have ranked Colorado near the top of the list of most expensive areas. Prices of starter and lower-priced homes have increased by 83% since 2015. In the Denver metro area, middle-class and first-home buyers have fewer options than anywhere in the country.

Over the past 70 years, metro districts – there are 2,300 in the state – have emerged as a critical financing tool to build infrastructure and homes due to the absence of an active tax base at the time of construction. These costs are financed over time and typically paid through the property taxes of the homes within the district’s boundaries, much like a mortgage. Usually most debt issued for metro districts is bought by public bond buyers. However, a small percentage is often purchased by developers to build necessary infrastructure at the beginning of a project because public bond buyers view the start of a development as a potentially risky investment.

If developers were entirely prohibited from purchasing bonds – which is what the bill rejected by the legislature proposed to do – far fewer homes would be built because cities and counties don’t have the resources to pay for streets, sidewalks, water and sewer systems, parks and other public infrastructure. For the few districts that would be constructed, homeowners would be forced to pay much higher prices as the cost of infrastructure and amenities would be front-loaded on the home cost.

Sterling Ranch, Dominion Water & Sanitation District and Highlands Ranch, to name just a few, are all examples of metro districts that would not exist without developer-purchased bonds.

Instead of throwing out the entire system, the new law adopts the best practices of metro districts around the state, strengthening homeowner protections through the imposition of debt limits and mill levy caps. Developer bonds will only be issued at the same or lower rates and terms as those on the public market, and homeowners are ensured property taxes don’t rise above a certain level. All bonds issued by a metro district that are bought by a developer must be approved by a certified municipal advisor to confirm the interest rate on the debt is at or below market rate.

Additionally, in order to ensure greater accountability and transparency, annual town hall meetings between every metro district board and the local community are mandatory, and disclosure must be provided to a prospective property purchaser early in the buying process that directs the buyer to the metro district website where financial information must be posted.

As an organization dedicated to increasing the supply of attainable, affordable home ownership, we wholeheartedly support this sensible law that provides more opportunities for Coloradans to buy homes while also providing more home-buyer protections.

Dave Davia is the executive vice president and CEO of the Rocky Mountain Mechanical Contractors Association and chair of the Homeownership Opportunity Alliance – a bipartisan, statewide coalition of diverse community leaders working to ensure that Coloradans have the opportunity to achieve home ownership.