Colorado affordable housing bill would give first-offer rights to cities
DENVER (KDVR) — A measure that would allow local governments the right to first offer or first refusal to preserve long-term affordable housing locations passed the Colorado House on Monday.
The bill passed on third reading by a vote of 38-23 and now heads to the Senate for consideration. If passed into law, the bill would ensure municipalities have the right to make an offer to purchase a qualifying affordable housing property before the property is listed for sale to other parties. However, the right of first offer would be temporary and terminate on Dec. 31, 2029.
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“With rising rents pricing Coloradans out of their communities, local governments need additional tools to help them preserve existing affordable housing options that work for everyday Coloradans,” Rep. Andrew Boesenecker, a Democrat representing Fort Collins and a prime sponsor of the measure, said in a release. “Our bill would allow local governments to purchase and preserve affordable housing properties that they have invested public dollars into. With this legislation, we can preserve and expand affordable housing options in our communities and ease Colorado’s housing crisis.”
Local governments would have the right to purchase existing affordable housing that is a multi-family residential or mixed-use rental property if the government matches any offers the seller receives and continues to use the property for long-term affordable housing.
What is long-term affordable housing?
According to the bill text, properties qualify for the right of first offer under this bill if it is an existing affordable housing multi-family residential or mixed-use rental property with more than five and less than 100 units in urban counties, and not less than three in rural and rural resort counties.
Existing affordable housing is defined in the bill as housing subject to “one or more restricted use covenants or similar recorded agreements to ensure affordability and that is consistent with affordable housing financial assistance requirements.” It also defines “existing” as properties 20 years or older.
“Our bill is one of many steps that Colorado Democrats are taking to combat housing instability and displacement,” said Rep. Emily Sirota, a Democrat representing Denver and a primary sponsor of the measure. “We need a multi-faceted approach to address our affordable housing shortage, which is why we’re carrying this legislation to create new tools for local governments that keep existing affordable housing properties in the rental market.”
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The bill specifically requires the seller of existing affordable housing property to give notice to the local government at least two years before an existing affordability restriction on the property expires, and again when the seller takes certain actions as a precursor to selling the property.
Will Polis pass a measure ensuring right to first offer?
In 2023, Polis vetoed a similar measure that would have given local governments the right of first refusal if multi-unit properties emerged on the market, so long as those governments designated the units for affordable housing. He said on “Colorado Point of View” that he vetoed it because it would have “added additional paperwork cost to real estate transactions. In my opinion, that would have caused upward pressure on the costs for apartments.”
Boesenecker was also a primary sponsor of that bill.
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On Monday, the Colorado House also voted to advance a Senate bill that would update the law to ensure tenants have access to safe housing, such as a hotel room or comparable dwelling unit, and timely repairs when unsafe living conditions arise.
The measure would modify the existing warranty of habitability laws, including renter protections against retaliation and requiring necessary repairs to be completed in seven days for serious conditions.
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