Gov. Jared Polis on Tuesday vetoed legislation that would given local governments the right to first buy apartment complexes, among a slew of legislation that supporters said would provide long-term, affordable housing in Colorado.

The bill sought to create a “right of first refusal” – meaning a property owner can only sell an apartment complex, for example, if the municipality or county where it is located refuses to purchase it first.

Under the measure, local governments would match offers on apartment buildings in hopes they’d turn those units into affordable housing.

Critics feared it would distort and disrupt the multifamily housing market, while supporters said it’s another tool in not only creating affordable housing, but also in preventing the loss of such units. 

Mike Kopp, president and CEO of the business group Colorado Concern, said its enactment would have “dramatically hurt investment in Colorado’s multi-family housing market, ultimately limiting supply, the key driver of lowering prices.”

“This critical veto has averted a $1.57 billion dollar single-day loss in multi-family property value,” Kopp said following the governor’s veto, citing a report from The CoStar Group, which provides commercial real estate information.

One developer called it the worst real estate bill he’s seen in 15 years.

Supporters, on the other hand, said it will provide another tool for local governments starved for affordable housing.

“It’s a mess,” said Bill Callison, a real estate attorney who said he has worked on affordable housing for 35 years, including helping to draft legislation on the issue.

On the other side, the bill drew support from the Colorado Counties Acting Together (CCAT), a group of county commissioners in largely Democratic-led counties.

Summit County Commissioner Tamara Pogue told committee members HB 1190 is her favorite housing bill of this session and probably for several sessions before.

In her resort county, where they are desperate to provide affordable housing, local governments can’t compete when properties don’t sit on the market long enough for the county to even put in a bid, she said. Properties are sold within brokerage firms, from one agent to another, without being listed, sold within 24 hours or with cash offers, she said.

“We often are unable to bid on the properties we most need to protect our residents,” she said.