Colorado Lawmakers Boost Housing Tax Credits to Fight Affordability Crisis

The Colorado General Assembly passed Senate Bill 26-001, "Workforce Housing & Housing Tax Credit," on March 11, 2026, empowering counties and municipalities to sell or lease public land for affordable and workforce housing projects.[3][4] Sponsored by Speaker Pro Tempore Andy Boesenecker, D-Fort Collins, and Rep. Chris Richardson, R-Elbert County, the omnibus bill clarifies county commissioners' authority under C.R.S. § 30-11-107 to allocate unlimited general fund money for housing initiatives, extending beyond low-income programs to workforce housing for middle-income workers in high-cost areas like Summit and Pitkin counties.[3][6] Building on HB24-1434, approved by Gov. Jared Polis on May 30, 2024, SB26-001 complements expansions to the Colorado Affordable Housing Tax Credit (AHTC), administered by the Colorado Housing and Finance Authority (CHFA).[2][7] HB24-1434 ramps up annual allocations from $20 million in 2024 to $20 million through 2031, plus a new Transit-Oriented Communities credit starting at $2 million in 2025 and reaching $13 million in 2029 for projects near Denver's RTD lines and other transit hubs.[2] These credits, claimed accelerated at 70% in year one, are projected to drive $1.17 billion in investment, yielding thousands of units like the 10,782 produced since 2014.[7] SB26-001 also extends sales and use tax exemptions on construction materials to county workforce housing, slashing costs in rural resort communities where workers earning above affordable thresholds still face market-rate barriers.[3] It updates the Middle-Income Housing Tax Credit (MIHTC) to allow transfers to non-owners, easing financing for projects statewide.[4][6] Most provisions activate 90 days after session adjournment, aligning with Prop 123 funding that counts affordable units at 1.1 for grants on up to five-acre parcels.[6] Local impacts loom large in Front Range cities and Western Slope counties, where housing shortages fuel 20% rent hikes in places like Fort Collins and Grand Junction. CHFA's toolkit now addresses gaps, with Boesenecker hailing it as a 'breakthrough' to deploy tools responsive to community needs.[6]