Background on Colorado’s Housing Challenges

Rapid population growth in Colorado has significantly increased housing demand, exacerbating affordability issues and resulting in displacement. Many local governments face challenges in accurately assessing housing needs due to limited resources, inconsistent data, and fragmented planning practices. This lack of coordinated local and regional strategy has often led to restrictive zoning policies and unsustainable growth patterns.

Overview of SB24-174 Provisions

SB24-174 establishes a clear, standardized framework for understanding and addressing Colorado’s housing needs at the local, regional and state levels. The bill requires the Department of Local Affairs (DOLA) to develop a Housing Needs Assessment methodology for local governments by December 31, 2024. Local governments with populations exceeding 1,000 residents must then conduct a detailed Housing Needs Assessment by December 31, 2026, and update these assessments every six years. Alternatively, local jurisdictions may collaborate on regional assessments to efficiently pool resources and address cross-boundary housing dynamics (e.g. Denver Regional Council of Government’s Housing Needs Assessment).

The bill also requires local governments to create Housing Action Plans based on their needs assessments by January 1, 2028. These plans must explicitly detail strategies for achieving and maintaining affordability and mitigating displacement. DOLA provides directories of standard and long-term affordable housing strategies, from which local governments must select and incorporate at least three total strategies into their action plans.

SB24-174 also emphasizes sustainability by requiring local governments to include Strategic Growth and Water Supply Elements in their Comprehensive Plans by December 31, 2026. This work will be informed by a state-led Strategic Growth Report to assess the financial and environmental impacts of various growth scenarios and list policy recommendations to promote for more sustainable growth patterns.

Financial and Technical Support

Recognizing the challenges local governments may face, SB24-174 establishes the Housing Planning Grant Program, managed by DOLA. This fund is dedicated to providing essential technical assistance, training, and direct financial support, helping local governments meet planning obligations effectively and efficiently.

Implementation Timeline and Requirements:

• Local Governments:
  • December 31, 2026: Local housing needs assessments due (and at least every six years thereafter)
  • Water Supply and Strategic Growth Elements
    • Required in municipal, county, and regional comprehensive plans by December 31, 2026
    • Updated no less frequently than every five years
  • January 1, 2028: Housing action plan posted locally and submitted to DOLA (and at least every 6 years thereafter)

• State:
  • June 30, 2025: DOLA publishes affordability menus, displacement mitigation strategy directory, and neighborhood center criteria
  • October 31, 2025: DOLA publishes statewide Strategic Growth Report
  • December 31, 2025: DOLA publishes Natural Land and Agricultural Interjurisdictional Opportunities report
  • December 31, 2026: DOLA updates grant award criteria to consider neighborhood centers
  • November 30, 2027: DOLA publishes statewide housing needs assessments, report on all housing needs assessments, and updates grant program criteria

For more information, visit the Department of Local Affairs Housing Plans website.