Following an executive order signed by Colorado Gov. Jared Polis last week that could withhold funding from local governments not complying with the state's new housing laws, city officials and housing experts are weighing in on the potential impact on local municipalities and the housing market.
Six cities across the Denver metropolitan area filed suit after Polis signed a similar executive order in May, arguing it violates their right to local control over zoning and land use. The cities, including Greenwood Village, Arvada, Aurora, Glendale, Lafayette and Westminster, are home rule cities. A home rule city has its own charter and can decide things like zoning, housing and land use without needing state approval — unless it conflicts with state or federal law.
Other municipalities, not part of the lawsuit but also home rule cities, are still assessing whether they would be affected. Communities like Littleton and Englewood support efforts to improve housing affordability, even if they chafe at the method of forcing compliance.
Cities have until October to comply
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 award various funds.
“Coloradans expect state and local leaders to work together on solutions that grow our attainable housing supply. More starter homes mean more pathways to homeownership,” the Colorado Association of Realtors said in an emailed statement to Homes.com on Aug. 15. “Helping renters become homeowners builds intergenerational wealth and strengthens our communities, and we will continue to push for housing solutions that benefit Coloradans.”
The order, which extends his May order, directs various state agencies to prioritize cities and counties that comply with housing policies signed into law over the last few years.
The strategic housing laws include policies that address legalizing accessory dwelling units, or 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.
In an Aug. 15 press release, highlighting the importance of removing zoning restrictions that hinder housing growth, Polis said every Coloradan deserves access to affordable, livable homes.
“It is not rocket science that by increasing housing supply we can decrease rent spikes and help more Coloradans realize the dream of home ownership," Polis said. "Breaking down barriers to housing includes getting rid of parking requirements, building more housing near transit lines, and reworking zoning in order to save people money and help Coloradans live where we want to live."
Home rule cities speak out
Rachael Kuroiwa, director of communications and engagement for the city of Arvada, said the governor's executive order places $280 million in state grant funding at risk.
“The six cities challenging these laws, including Arvada, are not opposed to increasing affordable housing or reducing dependence on gas vehicles," she said. "Rather, we object to the state’s unlawful intrusion into local decision-making, which strips communities of the ability to hold public meetings and hear from residents on critical land use matters.”
Kuroiwa said Arvada has taken steps that align with the governor’s goals, including eliminating maximum density limits in many transit-oriented areas, reducing parking requirements,and expanding affordable and multi-family housing options.
“Despite these efforts, the executive order punishes municipalities deemed ‘noncompliant’ by withholding the very grant funding needed to build affordable housing, expand clean energy infrastructure, and improve alternative transportation,” Kuroiwa said. “This order not only undermines local governance but also delays progress toward the shared objectives we all support. It is an overreach of his constitutional authority.”
Englewood is still determining the potential impact of the executive order.
“The City of Englewood is reviewing the governor’s executive order to better understand its implications for our community,” said Chris Harguth, director of communications for Englewood, in an Aug. 15 email to Homes.com. “We remain committed to working constructively with state partners while evaluating how any changes may align with local priorities.”
Littleton does not feel it will be directly affected by the governor's executive order.
“While we disagree with the governor’s approach, Littleton should not be negatively impacted because city council has made reducing barriers to housing development a priority for the past 10 years," said Littleton Mayor Kyle Schlachter.
