HB 25-1169
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1169: HOUSING DEVELOPMENTS ON FAITH AND EDU LAND
Prime Sponsors:
Rep. Boesenecker; Mabrey
Sen. Gonzales J.; Exum
Published for: House Trans., Hous. & Local Gov.
Drafting number: LLS 25-0029
Fiscal Analyst:
Colin Gaiser, 303-866-2677
colin.gaiser@coleg.gov
Version: Initial Fiscal Note
Date: February 14, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill requires local governments to allow the construction of residential developments on
properties owned by faith-based organizations, school districts, or state colleges or universities.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis beginning
FY 2026-27:
State Expenditures
Local Government
School Districts
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
Page 2
February 14, 2025 HB 25-1169
Summary of Legislation
Beginning December 31, 2026, local governments must allow the construction of residential
developments on properties owned by faith-based organizations, school districts, or state
colleges or universities. The bill does not prevent a local government from enforcing local
infrastructure standards, codes, or requirements.
The bill prevents a local government from:
disallowing construction of a residential development on a qualifying property if the height
of the development’s tallest structure is less than three stories or 45 feet tall and complies
with height-related standards for the zoning district;
disallowing construction based on the number of dwelling units the development will
contain; and,
applying standards that are more restrictive than those applied to similar housing
constructed in the local government’s jurisdiction.
Local governments must allow residential developments on qualifying property to be used for
child care and recreational, social, or educational services provided by community organizations
for use by local residents. Local governments may require these uses to be on the ground floor
(or no more 15 percent of the ground floor area) of structures in a residential development.
When a local government allows the construction of a residential development on a qualifying
property, the faith-based organization, school district, or state college or university that owns
the property must notify the county of the development’s construction.
State Expenditures
The bill increase workload in the Department of Local Affairs (DOLA) and potentially reduces
state expenditures on school finance beginning in FY 2026-27.
Department of Local Affairs
The bill increases workload in DOLA to develop compliance guidance for local governments,
provide courtesy reviews of local code modifications, respond to inquiries from local
governments, and update its template for land development codes. DOLA can accomplish this
workload increase with existing resources.
School Finance
The bill potentially reduces state expenditures on school finance, assuming new housing
developments on tax exempt land owned by faith-based institutions, school districts, and
institutions of higher education are built and become subject to local property tax. As property
tax revenue for school districts increases, the state share of school finance will decrease. The
state aid obligation may be paid from the General Fund, the State Education Fund, the State
Public School Fund, or a combination of these funds. Page 3
February 14, 2025 HB 25-1169
Local Government – School Districts
The bill increases workload for local governments to update and modify local codes to comply
with the bill’s requirements. It may also increase workload for any school district building a
residential development to notify their respective county when proceeding with construction.
Property Taxes
The bill may result in taxable residential developments being built on land that is currently
exempt from property taxes. If these residential developments would not have been built
elsewhere, the bill may increase property tax revenue to local governments.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State and Local Government Contacts
Counties
Education
Law
Judicial
Local Affairs
Personnel
Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.