Senate Approves Bill to Reduce Housing Costs and Save Coloradans Money

DENVER, CO – The Senate today passed legislation sponsored by Senators Dylan Roberts, D-Frisco, and Tony Exum, Sr., D-Colorado Springs, to drive down housing costs and save Coloradans money. 

"The mountain and rural communities that I represent have some of the most severe housing shortage and cost crises in the state, and so I’m proud to be sponsoring this legislation that will help finance and build homes that working families need and can afford,” Roberts said. “In partnership with towns, counties, nonprofits and private industry, HB26-1065 will help finance new transit infrastructure and housing options in all parts of our state.”

“I’m proud to sponsor this legislation to tackle the most common concern I hear from my constituents: the cost of housing,” Exum said. “By making it possible to build more homes near reliable transit, we are taking action to address Colorado’s housing shortage. At the end of the day, this bill is about making sure that working families have the transit and mobility options they need and are not forced to leave the communities they love.”

HB26-1065, the Transit Investment Area Act, would create a new financing tool to improve transportation infrastructure and establish a tax credit to build more transit-oriented affordable housing. 

The bill would use tax-increment financing to allow local governments to invest state sales tax revenue into transportation infrastructure. Local governments, in partnership with transit agencies, would be able to apply to create a transit and housing investment zone. These zones would fund transportation infrastructure projects within 2 miles of a transportation facility, like safety improvements and centering transit stops within the community to increase ridership. Local governments would be required to suggest an annual limit on the amount of revenue that could be allocated to the transit investment project in the application process. 

The bill would allow up to three transit investment projects to be approved in a calendar year, with no more than six projects funded through the bill in total.

Under the bill, the Colorado Economic Development Commission would also set an annual limit on the amount of revenue that can be allocated for a transit investment project. 

HB26-1065 would also create the Colorado Affordable Housing in Transit Investment Zones Tax Credit. This tax credit is reserved for projects that serve low- and middle-income housing within newly created transit and housing investment zones. The bill would allow up to $50 million in tax credits per calendar year from 2027 to 2033 for a total investment of $350 million by 2038.

HB26-1065 now moves back to the House for consideration of amendments. Track its progress here.