Signed! Bill to Reduce Housing Costs, Save Coloradans Money

DENVER, CO - Governor Jared Polis today signed legislation into law that will help drive down housing costs and save Coloradans money. HB26-1065 funds transit infrastructure improvements and transit-oriented housing.

“Housing costs continue to be too high for Coloradans, which is why we are laser-focused on making Colorado a more affordable place to live,” said Speaker Julie McCluskie, D-Dillon. “This new financing tool creates a pathway for local governments to boost funding for multimodal transit systems and housing that Coloradans can afford so we can better meet the needs of our communities, especially in the High Country. I am excited to deliver affordable, transit-oriented housing across the state.”

"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 sponsor this legislation that will help finance and build homes that working families need and can afford,” said Senator Dylan Roberts, D-Frisco. “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.”

“We’re building affordable housing and transit centers so Coloradans can quickly get where they need to go,” said Rep. Steven Woodrow, D-Denver. “This law helps increase transit ridership while reducing housing costs and traffic congestion. Colorado Democrats are serious about addressing our affordability crisis, and this law shows we’re finding innovative ways to do just that.”

“I’m proud to sponsor this new law to tackle the most common concern I hear from my constituents: the cost of housing,” said Senator Tony Exum, D-Colorado Springs. “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 legislation 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, creates a new financing tool to improve transportation infrastructure and establish a tax credit to build more transit-oriented affordable housing. 

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

The law allows 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 law, the Colorado Economic Development Commission will also set an annual limit on the amount of revenue that can be allocated for a transit investment project. 

HB26-1065 also creates 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 law allows up to $50 million in tax credits per calendar year from 2027 to 2033 for a total investment of $350 million by 2038.