Colorado § 29-35-208 - Standard affordability strategies menu - long-term affordability strategies menu - alternative affordability strategies - impact fees.

§ 29-35-208. Standard affordability strategies menu - long-term affordability strategies menu - alternative affordability strategies - impact fees.

(1) Standard affordability strategies menu. On or before June 30, 2025, the department shall develop a standard affordability strategies menu for transit-oriented communities and shall update this menu as necessary. The menu must include the following strategies:

(a) Implementing a local inclusionary zoning ordinance that accounts for local housing market conditions, is crafted to maximize regulated affordable housing, and complies with the requirements of section 29-20-104 (1)(e.5) and (1)(e.7);

(b) Adopting a local law or plan to leverage publicly owned, sold, or managed land for regulated affordable housing development;

(c) Creating or significantly expanding a program to subsidize or otherwise reduce impact fees or other similar development charges for regulated affordable housing development;

(d) Establishing a density bonus program for transit centers that grants increased floor area ratio, density, or height for regulated affordable housing units;

(e) Creating a program to prioritize and expedite development approvals for regulated affordable housing development;

(f) Reducing local parking requirements for regulated affordable housing to one-half space per unit of regulated affordable housing, without lowering the protections provided for individuals with disabilities, including the number of parking spaces for individuals who are mobility impaired, under the federal "Americans with Disabilities Act of 1990", 42 U.S.C. sec. 12101 et seq., and parts 6 and 8 of article 34 of title 24; except that, upon the passage of House Bill 24-1304, this subsection (1)(f) shall not be identified by a transit-oriented community as an affordability strategy that satisfies the requirements of 29-35-204 (6)(b)(I)(A);

(g) Enacting local laws that incentivize the construction of accessible and visitable regulated affordable housing units;

(h) Enacting local laws that support housing for families, such as incentivizing construction of housing units with multiple bedrooms; and

(i) Any other strategy designated by the department that offers a comparable impact on local housing affordability.

(2) Long-term affordability strategies menu. On or before June 30, 2025, the department shall develop a long-term affordability strategies menu and shall update this menu as necessary. The menu must include the following strategies:

(a) Establishing a dedicated local revenue source for regulated affordable housing development, such as instituting a linkage fee on market rate housing development to support new regulated affordable housing developments;

(b) Regulating short-term rentals, second homes, or other underutilized or vacant units in a way, such as vacancy fees for underutilized units, that promotes maximizing the use of local housing stock for local housing needs;

(c) Making a commitment to and remaining eligible to receive funding pursuant to article 32 of this title 29;

(d) Incentivizing or creating a dedicated local program that facilitates investment in land banking or community land trusts;

(e) Establishing an affordable homeownership strategy such as:

(I) Acquiring or preserving deed restrictions on current housing units;

(II) Establishing an incentive program to encourage realtors to work with low-income and minority prospective home buyers;

(III) Establishing an affordable rent-to-own program; or

(IV) Incentivizing affordable condominium developments; and

(f) Any other strategy designated by the department that offers a comparable impact on local housing affordability.

(3) Alternative affordability strategies. A transit-oriented community may submit an existing or proposed local law or program, in a form and manner determined by the department, to the department, and the department may determine that the adoption of that local law or program qualifies as an affordability strategy for purposes of section 29-35-204 (6)(a) and (6)(b), so long as the local law or program supports equal or greater opportunity for regulated affordable housing and accessible units than the strategies described in subsections (1) and (2) of this section.

Source: L. 2024: Entire article added (see the editor's note following the part 2 heading), (HB 24-1313), ch. 168, p. 860, § 1, effective May 13.