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DENVER, CO - The House today advanced legislation in a preliminary vote that would streamline the process for religious and educational institutions to build housing on their land.
“With our housing shortage surpassing 100,000 homes, Colorado’s housing deficit is one of the worst in the country, and religious groups and schools that want to be a part of the solution should be able to build more homes that people can afford,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “From supporting low-income communities to attracting quality educators, the missions of churches, synagogues, and schools often align with our state’s need for more housing. By cutting red tape, this policy is a meaningful solution that will open up thousands of acres of land across our state to help save Coloradans money on housing.”
“As an attorney who represents Coloradans facing the threat of eviction, I’ve seen people in our communities struggle to stay safely housed despite sometimes juggling two or three jobs,” said Rep. Javier Mabrey, D-Denver. “Colorado Democrats have passed laws to strengthen renter protections and lower the cost of housing, and this policy would work in tandem with these efforts to increase housing people can afford on underutilized land. We’re reducing barriers to build more housing and boosting opportunities for Coloradans to find a place to live that works for their budget.”
Beginning December 31, 2026, HB25-1169 would allow faith-based organizations, school districts, and state colleges or universities to build housing and other community services on their land, regardless of current zoning laws.
Under the bill, local governments could not reject the construction of a residential development due to height, as long as the development is no taller than three stories or 45 feet or adheres to the standards of the zoning district or standards that apply to contiguous parcels. Additionally, local governments could not restrict the construction based on the number of units, with some exceptions. Local governments could not apply standards that are more restrictive than the standards that they apply to similar housing developments in their jurisdictions relating to structure setbacks from property lines, lot coverage or open space, on-site parking requirements, number of bedrooms in a multi-family residential development, or on-site landscaping, screening, and buffering requirements.
If zoning allows, these residential developments could also include child care centers and facilities that provide recreational, social, or educational services. Local governments would have the right to restrict these centers and facilities to the ground floor and limit them to 15 percent of the structures in the residential development.
California passed a law in 2023 that makes it easier for higher education and religious institutions to build housing on their land, opening up over 170,000 acres of land to be developed into affordable housing or other uses. A church in Washington D.C., built 99 units for low-income families in addition to amenities like office space, a gym, and a culinary arts training program. An Atlanta church plans to build 300 affordable housing units, two schools, and 10,000 square feet of new retail space on their property.
A 2025 report from the state demographer stated that housing grew in Colorado by 45,500 units while the population grew by 36,000. A recent Denver Post article reported that Denver rents fell 1.5 percent from the end of 2023 to the end of 2024 due to new housing units doubling the typical pace in recent years. They also noted that Denver renters are paying 3.5 percent less when the 2 percent annual rate of inflation is taken into account.