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Home»World»Colorado could give millions in tax dollars to cities willing to build more housing near transit
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Colorado could give millions in tax dollars to cities willing to build more housing near transit

February 22, 2024No Comments7 Mins Read
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State lawmakers’ newest try to spice up denser housing in Colorado cities would give native governments a selection: Embrace newly required density targets and unlock hundreds of thousands of {dollars} in grants and tax credit to assist obtain them.

Or flout the brand new mandate, lose out on hundreds of thousands extra in shared tax cash — after which be required to include the density targets anyway.

That’s the carrot-and-stick strategy contained in HB24-1313, a invoice launched Tuesday that’s more likely to be one of the hotly debated payments within the state Capitol this session as native governments push to maintain their management over land use. The measure, a part of a package deal of land-use payments pursued by the bulk Democrats and Gov. Jared Polis, is a redo of an identical effort that collapsed on the finish of final yr’s legislative session.

Whereas completely different in strategy and conception, this try shares the identical objective: to bolster the state’s lagging housing inventory, in addition to its transit programs, by requiring native governments to permit extra housing improvement in denser concentrations.

“Low-density housing creates sprawl, forcing Coloradans to stay farther from their jobs, grocery shops and colleges,” mentioned Rep. Iman Jodeh, an Aurora Democrat sponsoring the invoice with fellow Democratic Rep. Steven Woodrow, in an announcement. “It doesn’t should be this fashion. We are able to change the established order to create a extra inexpensive Colorado that works for its individuals.”

Broadly, the invoice would require roughly 30 Entrance Vary cities, cities and counties to calculate a housing-unit density objective in designated transit areas and to offer a plan for a way they’ll hit that concentrate on. Native governments might take a number of routes to succeed in the objective, together with permitting for taller buildings; clearing the way in which for triplexes or city properties in single-family areas; or streamlining approval processes.

These municipalities additionally can be required to incorporate affordability and anti-gentrification insurance policies of their plans. That’s a nod to issues from housing advocates and inexpensive housing builders who fear that market-rate improvement transferring into newly rezoned — and newly profitable — areas would displace longtime residents by pricing them out.

Jodeh and Woodrow additionally backed final yr’s land-use reform effort. Like the ultimate model of final yr’s invoice, this measure’s mandates wouldn’t apply to rural or mountain communities, leaving out some cities with stark housing and financial disparities. That’s a shift from how land-use reforms have been first pitched — as a statewide resolution to a statewide housing disaster.

Woodrow mentioned the brand new invoice is targeted on transit-oriented improvement and thus applies to areas of the state with probably the most sturdy transit choices.

The invoice’s introduction was hailed Tuesday by a spectrum of Colorado teams, together with housing advocates, the Boulder Chamber and the president and CEO of Gary Neighborhood Ventures, a philanthropic basis that’s pushed for inexpensive housing funding on the state degree.

Half of a bigger package deal of reforms

The opposite payments within the Polis-backed land-use package deal embrace measures to remove parking minimums and occupancy limits; a measure to permit accessory-dwelling items in Entrance Vary communities; and a invoice finding out native governments’ housing wants.

All of these proposals, except the research invoice, have now been launched. The invoice barring occupancy limits, besides to uphold well being and security requirements, has already handed the Home and is now headed for the Senate.

The transit-oriented communities invoice, as supporters have dubbed Woodrow and Jodeh’s measure, doubtless would be the most controversial. Although it consists of incentives and a two-year window for native governments to come back into compliance, it might nonetheless in the end require native governments to vary their land-use and density plans.

Native land-use choices lengthy have been beneath the unique management of native authorities. Any try to pre-empt that authority is for certain to set off resistance from municipalities and sympathetic legislators from each events, as was the case final yr.

“On the finish of the day, a mandate is a mandate,” mentioned Kevin Bommer, the manager director of the Colorado Municipal League, which represents native governments. ” … All of it is wordsmithed very properly, however on the finish of the day, this isn’t (an instance of) working collectively.

“That is the state attempting to find out how, particularly, municipalities and communities (ought to) develop, with out really working collectively to do it.”

A judge this week turned down ...
The Regional Transportation District’s G-Line practice travels by Arvada in 2018. The suburban metropolis has seen denser residential improvement, together with house buildings, constructed close to G-Line stations. (Picture by Andy Cross/JHB)

If native governments aren’t in compliance with the brand new necessities by the tip of 2027, the state might pursue a courtroom injunction in opposition to the entity that requires officers to conform, in accordance with the invoice.

Woodrow and Jodeh have taken pains to level out the variations on this yr’s strategy after final yr’s effort drew criticism for sidelining native pursuits. Stakeholders have met publicly every Tuesday for months, and the invoice is starting its legislative journey in February, with greater than half of the legislative session nonetheless to go.

Supporters even have overtly mentioned the invoice’s contents for months.

Final yr’s laws, by comparability, was drafted largely in non-public, and it wasn’t launched till the third week of March.

Nonetheless, each supporters and opponents acknowledged that generally, no quantity of assembly, negotiating and conferring with stakeholders can repair what has develop into a elementary coverage disagreement over the query: Ought to the state have a say in native land-use choices?

Land-use reform seen as resolution to housing crunch

For Woodrow, Jodeh, Polis and their supporters, the reply to that query is a convincing sure.

They argue that extra housing provide is required to deal with the broader affordability disaster in Colorado, the place practically half of renters in a ballot final yr expressed anxiousness about dropping their housing due to rising prices.

Polis has described land-use reform as a broad panacea for the state’s numerous challenges. Denser improvement means much less sprawl in a state that’s projected to develop by 35,000 households per yr by the tip of the last decade, in accordance with the governor’s workplace. Improvement close to transit traces like trains and frequent bus routes means fewer automobiles on the street, a better-supported transit system, much less air pollution, and extra environment friendly use of infrastructure and water.

Native land use choices, the argument goes, have restricted their very own density potential and are too influenced by vocal opposition on the bottom.

However native authorities officers have argued that they know what’s greatest to deal with their native housing wants and that they’ve already been working to deal with their housing crises on their very own.

In addition they say they need to associate with — not be directed by — the state in that work.

In change for willingly accepting the invoice’s density necessities, the state would offer $35 million a yr in grant funding for infrastructure upgrades close to transit-rich areas, plus hundreds of thousands extra in tax credit. If native governments don’t voluntarily embrace this system inside two years, they might be hit with the identical necessities — whereas additionally dropping out on hundreds of thousands of {dollars} from the state’s Freeway Customers Tax Fund.

“At a sure level, we are able to’t let the residents of the group fall by the wayside as a result of their management desires to thumb their nostril on the state,” Woodrow mentioned.

Sen. Barbara Kirkmeyer, a Brighton Republican and vocal opponent of final yr’s land-use invoice, expressed comparable opposition Tuesday.

She known as the invoice “irresponsible,” notably due to its proposed “punishment” of withholding cash from native governments that don’t fall in line.

“As an alternative of claiming to native governments, ‘We’re going to work with you on this. We’ll try to discover further funding should you can’t comply with these targets,’ ” she mentioned, the message is: “Neglect the partnership. We’re not solely going to preempt you, we’re going to punish you.”

Keep up-to-date with Colorado Politics by signing up for our weekly e-newsletter, The Spot.

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