Gov. Jared Polis this week signed three bills related to affordable housing into law. These measures gained the sought-after support from local governments that had eluded the administration up until now.

All three measures received bipartisan support, differentiating them from most affordable housing legislation that succeeded this year and failed in 2023.

Senate Bill 174 was signed Thursday.

The measure requires the Department of Local Affairs to work with local governments to develop housing needs assessments and provides $15 million in grants to accomplish this.

Unlike most of the partisan housing bills Democrats pushed through the General Assembly in 2024, this measure had the support of local governments and their allies, including the Colorado Municipal League.

The league and legislators whose backgrounds included service on city or town councils or county governments opposed the Polis administration on its 2023 effort, Senate Bill 213, which died on the last day of the session. The bill would have stepped on local government control over land use and zoning issues, which right municipal governments point out is guaranteed under the home rule authority granted by the state constitution.

In the 2024 session, many affordable housing bills attempted to do the same, although the administration planned to break SB 213 into smaller pieces. This did not lessen the opposition from the local governments, but most of those bills, including the major bill on transit-oriented communities, did make it to the governor’s desk. Those measures, including House Bill 1313, were signed on May 13.

SB 174 was sponsored by Sens. Rachel Zenzinger, D-Arvada, and Barbara Kirkmeyer, R-Weld County; in the House, it was sponsored by Reps. Shannon Bird, D-Westminster, and Rose Pugliese, R-Colorado Springs.

The second measure, House Bill 1308, was carried in the House by Reps. Lisa Frizell, R-Castle Rock, Bill Lindstedt, D-Broomfield, and Sen. Julie Gonzales, D-Denver. That bill, signed Friday, requires the Division of Housing at DOLA to implement stricter rules around affordable housing grant programs and stricter reporting requirements.

A third measure, House Bill 1434, expands the state’s affordable housing tax credits issued by the Colorado Housing and Finance Authority, as well as creating a new state income tax credit for taxpayers who invest in qualified low-income housing projects located in a transit-oriented community, as is dictated by both HB 1313 and a bill on accessory dwelling units (HB 1152). House Bill 1434 was backed by Bird and Rep. Ron Weinberg, R-Loveland, and in the Senate by Zenzinger and Sen. Cleave Simpson, R-Alamosa.

However, the signing of SB 174 pleased local governments the most.

In a statement Thursday, Kevin Bommer, who heads the Colorado Municipal League, which represents 271 municipalities, said SB 174 “marks a significant step forward in supporting municipalities” ongoing efforts of addressing housing challenges while preserving local character.”

SB 174 is the most impactful housing bill to become law in decades,” he added. “Instead of contentious and legally questionable preemptions and mandates that could further delay the ability of Colorado cities and towns to meet the needs of current and future residents and businesses, SB 174 is built on the principle of ‘Partnership, Not Preemption.’ It should be a model for other state legislatures to embrace.”

That’s a nod to the bill’s requirements that don’t violate local government control of housing, zoning, or land use.

“This important act allows us to take bold steps in partnership with local governments to make Colorado a more affordable place to live and I am happy to see the bill progressing to this final stage of approval,” Zenzinger said.

“The conditions of this new law push local governments to identify their unique housing needs and plan for growth in a strategic and inclusive way. Local governments will then have access to significant state support while preserving much-needed flexibility to implement solutions to the housing issues that have plagued us statewide for years,” Kirkmeyer added.

Kirkmeyer and Zenzinger worked during the 2023 session to put into SB 213 the housing needs assessment language, but that died along with the bill, as Kirkmeyer noted. “After the lost opportunity last year, we came together and fixed what was broken in a bipartisan way. This bill reflects countless hours of stakeholder meetings that ultimately represent tools and incentives for local governments that they need to keep Colorado a special place for us – and the next generation.”

Bird also noted the partnership that SB 174 would foster between the state and local governments, starkly contrasting to the other housing measures signed this year.

“Our state has an important opportunity to partner with local governments and help provide strategic resources to help them build more affordable communities,” Bird said Thursday.

Pugliese, the House minority leader whose background includes service as a Mesa County commissioner, added that “SB24-174 is a thoughtful approach to affordable housing as it balances the interests and needs of both local and state entities.”