Gov. Jared Polis and Democratic House Speaker Pro Tempore Andrew Boesenecker on Tuesday unveiled proposed legislation aimed at reducing barriers to building “affordable” housing.

The bill, known as the HOME Act, will enable the construction of more new homes near transit and local businesses, they said.

“Today’s announcement is a big step in Colorado’s nation-leading work to get government out of the business of blocking new housing, and in doing so unleashing the free market to build more homes Coloradans can afford,” said Polis. “In Colorado, we are taking action to tackle our housing needs from every angle to build more homes, lower costs, and save Colorado families money, and this proposal does exactly that.”

As of last month, the average single-family home in Colorado costs $550,000, making the state’s housing some of the least affordable in the country.

A recent analysis from the State Demography Office found that the state’s housing shortage is slowly improving after peaking in 2019, but affordability remains a significant barrier to home ownership.

The State Demography Office estimates that about 106,000 housing units were needed as of 2023, the most recent year in which population and housing data were available, to overcome the state’s housing shortfall. That’s down from its peak in 2019, when the state was short about 140,000 units.

To prevent the housing shortfall from worsening, the state will need to build more than 34,000 new housing units each year for the next decade, excluding second homes and vacation properties, officials and other experts have said.

“Colorado lacks over 100,000 homes, and we need creative solutions to address this housing shortage,” said Boesenecker. “The HOME Act, new legislation I’m sponsoring this session, will empower community organizations and schools to build affordable housing on their land that is often underutilized and centrally located. By reducing barriers, cutting red tape and leveraging existing land, we can help address Colorado’s housing shortfall by spurring the creation of affordable housing that is located where people live, work and play.” 

The bill is also sponsored by Rep. Javier Mabrey, D-Denver, and Sens. Tony Exum, D-Colorado Springs, and Julie Gonzales, D-Denver.