Colorado Gov. Jared Polis signed an executive order Wednesday that threatens to cut off millions in state funding to local governments that do not comply with recently passed housing laws — escalating his push to expand affordable housing statewide.
The order, an extension of another Polis signed in May, directs state agencies to prioritize municipalities and counties that comply with housing policies he signed into law in 2024 and 2025.
“We are building more housing now and breaking down government barriers to new homes. It is more important than ever to lower the cost of living,” Polis said in a statement announcing the executive order. “This action will lead to more housing that people can afford. Today, I am directing relevant state agencies to ensure state grant support goes to communities that are stepping up to be part of our housing solution.”
According to the executive order, local governments have until Oct. 6 to comply with the state’s recently passed “strategic growth laws.” Those that do comply will be prioritized when state agencies — including the Department of Local Affairs, the Department of Transportation, the Colorado Energy Office, and the Office of Economic Development and International Trade — award funds, which span 34 different funding streams.
“As stated in (the May executive order), the strategic growth laws passed by the legislature and that I signed into law in 2024 and 2025 provide mechanisms to foster a stable quality and quantity of housing for Coloradans of all income levels in all parts of the state,” Polis said in Wednesday's executive order. “Especially at a time of economic uncertainty and federal policies negatively impacting state revenue, it is important to ensure that state funds are spent on local projects that lower the cost of living for Coloradans — including housing and transportation costs — and ease the pressure on our climate and natural resources.”
The strategic housing laws include policies that address legalizing accessory dwelling units, also known as ADUs; eliminating minimum parking requirements near transit; allowing single-staircase apartment buildings in large cities; ending discriminatory occupancy limits; requiring regular assessments of unmet housing needs; implementing right-of-first-refusal policies for affordable housing; and adopting regional building codes for factory-built housing.
Cities file suit over housing laws
Some disagree with Polis’ executive orders and the housing laws passed over the past few years.
“Nice try, Governor, but the cost of building new housing has skyrocketed thanks to the choking regulations and costly fees you signed into law,” Colorado Senate Republicans said in a post Wednesday on X. “If you actually cared enough to build more affordable housing, you (and your party) would support our ongoing efforts to cut red tape.”
Following his May 16 executive order, six home-rule municipalities sued the Polis administration, arguing that it violates their right to local control over zoning and land use. The home-rule designation stipulates that a city operates under its own municipal charter, allowing it to pass ordinances, levy taxes, and structure its government — so long as its actions don't conflict with state or federal law.
Those six cities are Greenwood Village, Arvada, Aurora, Glendale, Lafayette and Westminster.
