Colorado Land Use Reform Advances Statewide

HB26-1001 Explained: The Core Rule Change

How HB26-1001 rewires Colorado land use is most visible in its shift from discretionary local hearings to administrative review for qualifying residential developments. The HOME Act takes effect beginning December 31, 2027.

Objective standards, not subjective judgments, control approvals and reduce permitting delays by 28 percent. Oregon’s SB 6 and SB 974 go further by tying missed review deadlines to automatic permit approval.

Faster timelines correlate with lower per unit costs and pressure on housing prices, without mandating affordability.

Local Rules Preempted, New Compliance Risks

For covered projects, state authority limits enforcement of local height, density, setback, parking, landscaping, and buffering requirements.

Eligible public and nonprofit entities, including housing authorities, school districts, colleges, universities, and transit districts, gain residential development authority.

A safety clause prevents voter petition, while assessor notification to the county records construction allowance as implementation approaches.

Which Properties Qualify Under HB26-1001 (5 Acres, Owners, Exclusions)

Eligibility under HB26-1001 turns on a narrow set of property tests that can disqualify a site before any unit count is proposed. With 33,000 listings in July 2025, Colorado’s shift toward a buyer’s market is adding urgency to land use reforms that can support more affordable housing supply.

Qualification Tests and Owner Categories

A qualifying site is five acres or less and located in a local government above 2,000 population.

Coverage begins after December 31, 2027.

Owner categories are limited to eligible nonprofits and defined public owners.

Private ownership qualifies only for nonprofits with a demonstrated affordable housing history, a public transit role, or a partnership with an affordable housing nonprofit.

Public owners include school districts, colleges or universities, housing authorities, transit districts, and BOCES.

Parcel exclusions

1. Any exempt parcel on the property
2. No water or sewage treatment connection
3. State or federal restriction on the land
4. Conservation easement in place

What HB26-1001 Lets You Build: and the Approval Process

Although HB26-1001 is framed as a land use reform, its most disruptive effect is the set of “as of right” development rights. These rights are tied to an administrative approval track starting December 31, 2027.

Building Rights and Approval Disruption

Qualifying residential development is limited to five acres and up to three stories or 45 feet. A project may go higher only if existing district standards already allow more.

Childcare, mixed-use services, and other resident-serving facilities may be included. These uses can be treated as project amenities.

Local governments cannot impose extra height limits within those caps. They also cannot cap unit counts.

They cannot demand stricter setbacks, parking, or landscaping than comparable local housing. The rule is “no tougher than similar housing already allowed locally.”

Beginning December 31, 2027, administrative approval must apply objective standards through an administrative track. This also tightens permit timelines.

Local building codes still apply. Approvals also require notice to the county assessor.

Supporters’ Case: Why HB26-1001 Could Add Housing

Why supporters argue HB26-1001 could add housing is tied to a measurable shortage of roughly 100,000 additional housing opportunities needed statewide.

Supply Disruption

Supporters link high prices to zoning limits that block affordable projects across the state.

They argue more units support cost containment for renters and buyers.

Build Out on Existing Land

They point to allowing nonprofits, schools, universities, and transit districts to develop up to five acres starting December 31, 2027.

They cite streamlined approvals, including evidence of 28 percent faster timelines, as economic stimulus from near-term building.

Sponsors say it builds on prior reforms.

Four pathways

1. Convert underused campuses and parcels.
2. Permit up to three stories.
3. Pair housing with transit access.
4. Prioritize sites with water and sewer.

Local Control Objections: Planning, Infrastructure, and Lawsuits

Supporters frame HB26-1001 as a fast supply lever. Municipal officials and local groups warn it achieves speed by stripping local land use authority.

Planning and Infrastructure Disruption

Cities argue the bill preempts local master plans. They say it would let certain public or nonprofit owners bypass zoning on sites of five acres or less.

They also warn limits on setbacks, parking, landscaping, and buffering could become unenforceable. The same concern applies to three-story height limits.

Local governments say this would weaken coordination for water, roads, and public safety.

Litigation Risk and Grant Pressure

Opponents cite a lawsuit by Colorado cities challenging pro-housing mandates tied to municipal funding. The case has a virtual status conference set for January 27, 2026.

Golden, Cherry Hills Village, and Centennial testified that safety-clause timing and administrative approvals foreclose hearings. They argue this raises uncertainty over legal precedents and owner expectations.

Assessment

HB26-1001 has moved Colorado toward a statewide land use rule that could override some local zoning limits.

The bill’s eligibility thresholds and exclusions narrow its reach, but it still introduces by-right pathways for additional housing on larger parcels.

Supporters argue it can open up stalled capacity amid escalating costs. Opponents warn of infrastructure strain, planning conflicts, and litigation risk.

Its final impact will hinge on implementation, enforcement, and court review across growing markets and rural counties.

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