The Colorado House passed a bill earlier this month that supporters hope can help preserve affordable housing units.
House Bill 1175 would give local governments a “right of first refusal” to buy privately owned affordable housing once its rent restrictions expire.
The bill is just one piece of a big legislative push this session to increase housing inventory in the state.
Colorado Sun reporter Michael Booth joined KUNC's Michael Lyle, Jr. to speak on whether the bill could help cure the state's housing crisis.
"It certainly has a chance," said Booth. "There are thousands of units that will be coming up onto market in the next few years that were previously set aside as affordable housing where governments would say to developers, 'We will give you tax credits and we will help you build if you set aside a certain number of units as affordable.' But those always had a time limit whether it was 20 years or 30 years. A lot of those will be coming back online and back up for sale in the next few years."
Booth said that the right of first refusal stipulation in the bill would only apply to multifamily properties with at least five units that are subject to affordability covenants.
"So if something's about to come back on the market, they at least have to go to the government first and say, look, if you are willing to pay this price, you have the first chance to buy it, keep it on the market as an affordable housing unit and support your residents," said Booth. "So that's passed the House and now going to the Senate for potential amendments."
Governor Jared Polis has spoke in support of affordable housing. In his "State of the State" address to the General Assembly back in January, Polis indicated the need for more housing in the state for residents at all income levels so they can rent or buy in the communities where they want to live.
Booth said that Polis and his administration is in a "wait and see" approach with the progress of the bill before deciding to sign off on it.
"What this tactic does is it gives everybody a chance to lobby in the Senate and at the governor's office and say, look, we need some more changes, and we still will continue to oppose it altogether," said Booth. "So there is this waiting period where we wait and see what kind of momentum it brings forward and see if it passes the Senate in a recognizable form."
Rising costs for housing along with inflation and a tough job market have made it difficult for residents to find a decent place to live and one that fits within their budget.
According to rent data provider Rentometer, prices in five Colorado cities saw an increase starting in the third quarter of 2023. Those cities include Boulder, where the rent price is currently $3,749 with a year-over-year rent price increase of 7%. In Aurora, the rent price is $2,648 with a year-over-year rent price increase of 3% and in Denver, the average price is $3,102 with a year-over-year rent price increase of 2%.
Booth said the hope is that Polis will see those alarming figures as a reason to sign off on the bill and help increase affordable housing inventory across the state.
