First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO. 23-0548.01 Jed Franklin x5484 HOUSE BILL 23-1255 House Committees Senate Committees Transportation, Housing & Local Government Local Government & Housing A BILL FOR AN ACT C ONCERNING PREEMPTION OF LOCAL REGULATIONS LIMITING THE101 NUMBER OF BUILDING PERMITS ISSUED FOR DEVELOPMENT .102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Currently, several local governments have laws restricting the growth of residential housing. The bill declares that the state has an interest in encouraging housing growth statewide, preempts any existing local housing growth restriction, and forbids the enactment or enforcement of any future local housing growth restriction, unless the local government has experienced a disaster emergency. SENATE 3rd Reading Unamended May 4, 2023 SENATE Amended 2nd Reading May 3, 2023 HOUSE 3rd Reading Unamended April 24, 2023 HOUSE Amended 2nd Reading April 21, 2023 HOUSE SPONSORSHIP Lindstedt and Dickson, deGruy Kennedy, Epps, Froelich, Garcia, Jodeh, Lindsay, Mabrey, Michaelson Jenet, Sharbini, Sirota, Woodrow SENATE SPONSORSHIP Gonzales, Buckner, Cutter, Hinrichsen, Moreno, Priola, Winter F. Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add 29-20-104.2 as2 follows:3 29-20-104.2. Anti-growth law - preemption - legislative4 declaration - definitions. (1) T HE GENERAL ASSEMBLY FINDS AND5 DECLARES THAT:6 (a) A RELIABLE PUBLIC POLICY ENVIRONMENT THAT SUPPORTS AN7 ADEQUATE AND AFFORDABLE HOUSING SUPPLY IS A MATTER OF8 STATEWIDE CONCERN, AND A HEALTHY SUPPLY OF HOUSING UNITS TO9 MATCH BOTH CURRENT DEMAND AND FUTURE DEMAND DRIVEN BY10 POPULATION GROWTH IS CRITICAL FOR JOB CREATION, HOUSING STABILITY,11 AFFORDABILITY, AND THE OVERALL ECONOMIC WELL -BEING OF ALL12 C OLORADANS;13 (b) T HE LACK OF AFFORDABLE HOUSING IN COLORADO IS DIRECTLY14 ATTRIBUTABLE TO THE SCARCITY OF HOUSING UNITS ;15 (c) A CCORDING TO A STUDY OF HOUSING DEVELOPMENT IN16 C OLORADO, THE STATE HAS OVER ONE HUNDRED SEVENTY -FIVE17 THOUSAND FEWER HOUSING UNITS THAN NEEDED TO RESTORE ITS18 HISTORICAL POPULATION-TO-HOUSING RATIO FROM 1986 THROUGH 2008;19 (d) T O CLOSE THE DEFICIT AND ACCOUNT FOR PROJECTED20 POPULATION GROWTH, THE STATE WILL NEED TO ADD OVER ONE HUNDRED21 SIXTY-TWO THOUSAND HOUSING UNITS BY 2027;22 (e) A NTI-GROWTH LAWS ENACTED BY LOCAL GOVERNMENTS23 SEVERELY UNDERMINE THE ABILITY TO CONSTRUCT THE ADDITIONAL24 HOUSING UNITS COLORADANS NEED;25 (f) A NTI-GROWTH LAWS DO IRREPARABLE ECONOMIC HARM TO26 1255-2- WORKING CLASS COLORADANS BY LIMITING THE HOUSING SUPPLY AND1 DRIVING UP HOUSING PRICES AND RENTS . FURTHERMORE, ANTI-GROWTH2 LAWS THREATEN THE LIVELIHOOD OF COLORADANS EMPLOYED IN3 CONSTRUCTION AND OTHER BUILDING TRADES AS WELL AS BUSINESSES4 ACROSS THE STATE THAT RELY ON THE COMMERCE ASSOCIATED WITH5 HOME BUILDING.6 (g) U NIFORMITY IN LAND USE LAWS CONCERNING RESIDENTIAL7 GROWTH IS NECESSARY FOR EFFICIENT RESIDENTIAL DEVELOPMENT8 STATEWIDE AND FOR THE ENCOURAGEMENT OF CONSTRUCTION OF NEW9 HOUSING UNITS;10 (h) T HE ENACTMENT OR ENFORCEMENT OF ANTI -GROWTH LAWS BY11 SOME LOCAL GOVERNMENTS DECREASES HOUSING DEVELOPMENT IN THESE12 LOCATIONS AND PUTS PRESSURE ON OTHER LOCAL GOVERNMENTS '13 RESIDENTIAL HOUSING STOCK, ROADS, UTILITIES, AND OTHER SERVICES;14 AND15 (i) I T IS THEREFORE NECESSARY FOR THE GENERAL ASSEMBLY TO16 PREEMPT AND PROHIBIT THE ENFORCEMENT OF EXISTING ANTI -GROWTH17 LAWS AND PROHIBIT THE ENACTMENT AND ENFORCEMENT OF NEW18 ANTI-GROWTH LAWS.19 (2) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE20 REQUIRES:21 (a) "ANTI-GROWTH LAW" MEANS A LAND USE LAW THAT22 EXPLICITLY LIMITS EITHER THE GROWTH OF THE POPULATION IN THE23 GOVERNMENTAL ENTITY 'S JURISDICTION OR THE NUMBER OF24 DEVELOPMENT PERMITS OR BUILDING PERMIT APPLICATIONS FOR25 RESIDENTIAL DEVELOPMENT OR THE RESIDENTIAL COMPONENT OF ANY26 MIXED USE DEVELOPMENT SUBMITTED TO, REVIEWED BY, APPROVED BY,27 1255 -3- OR ISSUED BY A GOVERNMENTAL ENTITY FOR ANY CALENDAR OR FISCAL1 YEAR. AS USED IN THIS SUBSECTION (2)(a), "LAND USE LAW" MEANS ANY2 STATUTE, RESOLUTION, ORDINANCE, CODE, RULE, REGULATION, PLAN,3 POLICY, PROCEDURE, STANDARD, INITIATIVE, GUIDELINE, REQUIREMENT,4 OR LAW THAT REGULATES THE USE OR DIVISION OF PROPERTY OR ANY5 INTEREST IN PROPERTY.6 (b) "G OVERNMENTAL ENTITY" MEANS:7 (I) A STATUTORY OR HOME RULE COUNTY , A CITY AND COUNTY, OR8 A MUNICIPALITY; AND9 (II) A NY SPECIAL DISTRICT OR AGENCY, AUTHORITY, POLITICAL10 SUBDIVISION, OR INSTRUMENTALITY OF A COUNTY , OR OF A CITY AND11 COUNTY, OR OF A MUNICIPALITY.12 13 (c) "PROPERTY" MEANS REAL PROPERTY LOCATED WITHIN THE14 STATE THAT IS NOT PUBLICLY OWNED .15 (3) N OTWITHSTANDING ANY PROVISION OF SECTION 29-20-104 TO16 THE CONTRARY, A GOVERNMENTAL ENTITY SHALL NOT ENACT OR ENFORCE17 AN ANTI-GROWTH LAW AFFECTING PROPERTY . 18 (4) (a) NOTWITHSTANDING ANY PROVISION OF SECTION 29-20-10419 OR SUBSECTION (3) OF THIS SECTION TO THE CONTRARY , A20 GOVERNMENTAL ENTITY MAY ENACT AND ENFORCE A TEMPORARY ,21 NONRENEWABLE ANTI-GROWTH LAW:22 (I) FOLLOWING A DISASTER EMERGENCY DECLARED BY THE23 GOVERNOR OR LOCAL GOVERNMENT THAT OCCURRED IN THE JURISDICTION24 OF THE GOVERNMENTAL ENTITY ;25 (II) FOR THE PURPOSE OF DEVELOPING OR AMENDING LAND USE26 PLANS OR LAND USE LAWS COVERING RESIDENTIAL DEVELOPMENT OR THE27 1255 -4- RESIDENTIAL COMPONENT OF A MIXED -USE DEVELOPMENT; OR1 (III) TO PROVIDE FOR THE EXTENSION OR ACQUISITION OF PUBLIC2 INFRASTRUCTURE, PUBLIC SERVICES, OR WATER RESOURCES.3 (b) A TEMPORARY, NONRENEWABLE ANTI-GROWTH LAW4 AFFECTING PROPERTY ALLOWED BY SUBSECTION (4)(a) OF THIS SECTION5 MAY BE EFFECTIVE FOR NO MORE THAN TWENTY -FOUR MONTHS IN ANY6 FIVE-YEAR PERIOD.7 (5) (a) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (4)(b) OF8 THIS SECTION, NOTHING IN THIS SECTION REQUIRES A GOVERNMENTAL9 ENTITY TO APPROVE A PERMIT APPLICATION OR PRECLUDES A10 GOVERNMENTAL ENTITY FROM REGULATING THE USE OF LAND ,11 DEVELOPING LAND USE PLANS, ENACTING AFFORDABILITY REQUIREMENTS12 THAT REGULATE OR RESTRICT MARKET RATE DEVELOPMENT OR13 REDEVELOPMENT IN ORDER TO ENFORCE AFFORDABILITY REQUIREMENTS ,14 REGULATING THE RENTAL OF ANY PROPERTY OR PORTION OF A PROPERTY15 THAT IS AVAILABLE FOR LODGING FOR LESS THAN THIRTY DAYS , OR16 DENYING A PERMIT FOR ANY REASON, INCLUDING EXTENDING OR17 ACQUIRING INFRASTRUCTURE , WATER RESOURCES, OR SERVICES.18 (b) SUBSECTION (4)(a) OF THIS SECTION DOES NOT APPLY TO A19 HOTEL UNIT PORTION OF A STRUCTURE THAT IS USED BY A BUSINESS20 ESTABLISHMENT TO PROVIDE COMMERCIAL LODGING TO THE GENERAL21 PUBLIC FOR PREDOMINANTLY OVERNIGHT OR WEEKLY STAYS, THAT IS22 CLASSIFIED AS A HOTEL OR MOTEL FOR PURPOSES OF PROPERTY TAXATION ,23 THAT IS NOT A UNIT, AS DEFINED IN SECTION 38-33.3-103 (30), IN A24 CONDOMINIUM, AND THAT IS ZONED OR PERMITTED BY A GOVERNMENTAL25 ENTITY FOR USE AS A HOTEL.26 SECTION 2. In Colorado Revised Statutes, 29-20-104, amend27 1255 -5- (1) introductory portion as follows:1 29-20-104. Powers of local governments - definition.2 (1) Except as expressly provided in section 29-20-104.5 SECTION3 29-20-104.2 OR 29-20-104.5, the power and authority granted by this4 section does not limit any power or authority presently exercised or5 previously granted. E XCEPT AS PROVIDED IN SECTION 29-20-104.2, each6 local government within its respective jurisdiction has the authority to7 plan for and regulate the use of land by:8 SECTION 3. Act subject to petition - effective date. This act9 takes effect at 12:01 a.m. on the day following the expiration of the10 ninety-day period after final adjournment of the general assembly; except11 that, if a referendum petition is filed pursuant to section 1 (3) of article V12 of the state constitution against this act or an item, section, or part of this13 act within such period, then the act, item, section, or part will not take14 effect unless approved by the people at the general election to be held in15 November 2024 and, in such case, will take effect on the date of the16 official declaration of the vote thereon by the governor.17 1255 -6-