State & Local Legislation
Colorado Enacts Housing Development Laws
March 25, 2026
Colorado has enacted two significant laws, HB26-1001 (HOME Act) and SB26-001, aimed at accelerating affordable housing development by reducing regulatory barriers and providing tax incentives. These laws empower local governments, housing authorities, and non-profits with increased flexibility and resources to address housing shortages across the state, including cities like Denver, Fort Collins, Colorado Springs, and Frisco. The state allocated $5 million in 2025 under Proposition 123 and Middle-Income Housing Tax Credit programs to support these initiatives.
- Procurement professionals should anticipate increased contracting opportunities in affordable housing construction and development projects driven by these new laws.
- Local governments and housing authorities will have expanded authority and incentives to procure services and materials for housing projects, potentially streamlining procurement processes.
- Contractors and developers specializing in affordable housing should evaluate how these laws and funding programs can create new business opportunities in Colorado's housing market.
- Organizations involved in community development and housing finance may find enhanced collaboration prospects with state and local agencies leveraging these legislative changes.
The HOME Act and SB26-001 remove barriers to getting affordable housing built and create more flexibility for local governments and communities to use existing tools to be responsive to the housing needs of their communities.
— Andy Boesenecker
If weβre serious about solving the housing crisis in Colorado, we need to open up every available option to get our neighbors secure and affordable housing.
— Tony Exum
This bill will cut red tape and give counties, municipalities, and housing authorities more tools to help them build and maintain housing for more working families and individuals.
— Dylan Roberts
Agencies
Colorado State Government, Local Governments in Colorado, Housing Authorities
Contracts
$5 million allocated in 2025