All attempts to put housing under state control – a key provision of Gov. Jared Polis’ proposal – are being dropped, according to a draft amendment obtained by Colorado Politics.

The 39-page strike-below amendment is on deck for Wednesday’s Senate Appropriations Committee, and it puts the Department of Local Affairs back into its role as a resource and partner to local governments, instead of making it a regulatory agency.

Those were two of the biggest issues that pitted local governments against the Polis administration.

Senate Bill 213 had been scheduled three times in the past week for the Senate Appropriations Committee, but it was pulled off the calendar twice because of expected opposition from the committee’s chair and vice-chair.

Sen. Rachel Zenzinger, D-Arvada, the vice-chair, has said on several occasions that state control of housing, which she called unconstitutional, is her “bright line” and that she would not vote for the bill as a result. On the 4-3 Democratic-led committee, even one “no” vote from a party mate of the governor would have doomed the bill. 

The bill went through a lengthy amendment process last week in the Senate Transportation and Local Government Committee, with 18 amendments added, mostly backed by Democrats. But an amendment from Sen. Barbara Kirkmeyer, R-Brighton, that would have taken out state control failed to win committee support.

Kirkmeyer said the bill in its’ strike-below version remains a big disappointment, but it retains some ideas she supports, such as a statewide housing needs assessment.

Under the legislation, that housing needs assessment sets housing goals at the statewide, regional and local levels. Municipalities would identify how they meet their goals through local housing needs plans, and the bill encourages municipalities to utilize their existing housing plans. The plan will also include reports from municipalities on zoning, affordability and “anti-displacement” implementation and strategies.

The latter is a key requirement to get the support of Sen. Julie Gonzales, D-Denver.

The amendment also blocks local governments from enforcing residential occupancy limits based on familial relationships, a holdover from the original bill.

In addition, a section on strategic planning will outline growth objectives at the statewide, regional and local levels, including linking housing, transportation and land use planning – but without the statewide mandate that drew so much opposition from local governments.

The amendment also includes “new planning and streamlining efforts” for those three areas, as well as protecting water resources.

That remains a key requirement for Sen. Dylan Roberts, D-Avon, who told reporters this morning he still wants to see more guardrails around water planning for Front Range municipalities, as well as a definition of “affordability” that takes into account regional differences, particularly for mountain resort communities. 

One aspect of the amendment that isn’t likely to win it any fans is a 13-member multi-agency committee with both an urban and rural resort subcommittees that would develop recommendations on housing, along with public hearings. That idea has drawn opposition from lawmakers, who raised concerns that the committees, made up of unelected officials, would omit public input on land use decisions that have been the hallmark of local governments.

The amendment also says that local governments covered under the measure cannot treat the development modular housing any differently than “site-built” units.

Sen. Dominick Moreno, D-Commerce City, will sponsor the strike-below proposal.

Zenzinger told Colorado Politics the new version still needs work.

“We had to push things to the brink. In that regard, [the amendment] is a positive step. Now, we can talk about the tenets of the bill and whether they will work or not,” Zenzinger said.

She also complimented bill sponsor Moreno for his efforts to find a path forward.

“This is now an opportunity for partnership with local governments,” Kirkmeyer added.

“I like it,” said Kevin Bommer, executive director of the Colorado Municipal, of the strike-below. He said there are technical issues to clean up, but CML has told Moreno and the governor’s office if the leaders commit to the strike-below, barring any other changes, CML will drop its opposition to the measure. That also requires a commitment from the bill’s House sponsors, Bommer said. 

The governor’s office issued a statement, first reported by the Colorado Sun, lauding the original bill’s support but without addressing the strike-below. 

Editor’s note: This is a developing story and will be updated.