.png){kind=logo}
SB25-002 would increase the supply of affordable housing by reducing regulatory barriers on factory-built structures like tiny homes and modular housing
DENVER, CO – The House Transportation, Housing & Local Government Committee today passed legislation to make it easier to build more affordable housing across Colorado. SB25-002, sponsored by Speaker Pro Tempore Andy Boesensecker and Representative Rebekah Stewart, passed by a vote of 10-3.
“Modular homes have proven to lower housing construction costs by up to 21 percent, especially in Colorado’s rural resort communities where nurses, teachers and firefighters are struggling to afford housing,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “This legislation would help streamline the permitting and approval process to increase affordable housing stock while ensuring all proper health and safety standards are met. Colorado is a great place to live, work and raise a family, and this legislation helps create affordable pathways to homeownership.”
“SB25-002 aims to reduce bureaucratic red tape to building modular homes, tiny homes and other affordable housing options to create a more affordable Colorado,” said Rep. Rebekah Stewart, D-Lakewood. “This bill would create more business for Colorado modular housing builders, like those in Aurora and Buena Vista, while providing quickly built, cost-saving housing options for Colorado communities. It’s going to take an all-hands approach to tackle the housing affordability crisis in Colorado, which is why I’m sponsoring this legislation to improve the coordination between state and local governments to create more housing that works for every budget.”
SB25-002 would increase the stock of affordable housing by reducing regulatory barriers to the construction, installation, and inspection of factory-built structures like tiny homes and modular housing. Modular housing is usually less expensive than traditional, stick-built homes constructed on-site and can be assembled faster, which can help expand permanent housing opportunities and build more affordable housing options.
This bill would direct the State Housing Board in the Department of Local Affairs to develop regional building codes for factory-built structures by July 1, 2026. The new building codes would supersede current regulations only for factory-built structures.
The General Assembly passed a bipartisan law in 2022 to create the Innovative Housing Incentive Program to invest in companies pursuing innovative construction methods such as modular housing to create more affordable housing options. So far, the program has invested over $10.5 million with 13 businesses that are contracted to produce over 2,500 units and $20 million in loans to four businesses that will create over 3,300 units per year once their factories are up and running.
In 2024, the town of Breckenridge built a 54-unit modular housing project. They saved 13-percent and completed the project six months faster when compared to quotes for traditional housing construction. The bids for a 37-unit affordable housing project in the town of Granby were 21-percent cheaper than stick-built homes and allowed for the construction to be completed within the seasonal six-month building window.