House Transportation & Local Government Committee Passes HB26-1308
HB26-1308 allows homeowners to sell off part of their lot for the construction of another house, creating more and more less expensive homes
Today, on a 8-4 vote, the House Transportation & Local Government Committee passed HB26-1308 which helps address our state’s growing housing shortage and affordability crisis by allowing homeowners to sell off part of the lot their home is on for the construction of another house. This creates more homes that are less expensive, requires less land, increases homeownership opportunities at lower price points, and gives cash-poor, house-rich owners a way to stay in their homes and communities.
Starting December 31, 2027, HB26-1308 removes red tape by creating an administrative approval process for when a homeowner wants to split the original lot their home is on into two new lots if the following conditions are met:
- The area of the original lot is 2,000 square feet or greater before the split;
- If the 2 new lots are not equal in area, the area of the smaller of the 2 new lots is equal to or greater than 40% of the area of the original lot;
- The original lot is not subject to any previously recorded lot split;
- Residential use is allowed on the original lot;
- The original lot is not an exempt lot; and
- The original lot is not located within a common interest community that was created on or before December 31, 2027.
HB26-1308 applies to municipalities that have a population of 1000 or more and are within a metropolitan planning district. The bill also ensures local government flexibility to apply health and safety standards related to water, sewer, stormwater, and other similar requirements.
“Having the freedom to afford a home near where you work, go to school, and make your life is at the heart of every hardworking Coloradan’s economic security, opportunity, and well-being. Across Colorado, more people are getting priced out of the communities they grew up in,” said Laura “Pinky” Reinsch, Executive Director of Centennial State Prosperity. “Many of Colorado’s homeowners are facing the decision of having to sell their home and leave their neighborhood because they are on a fixed income and can’t keep up with rising costs of homeownership.”
“Too many Colorado families are being priced out of the communities they love. This is not because they don’t work hard, but because the cost of land and housing keeps climbing out of reach. HB26-1308 is a practical, homeowner-focused solution that cuts unnecessary red tape and allows people to create more attainable housing on land they already own,” said Speaker Pro Tempore Andy Boesenecker. “By giving homeowners the flexibility to split their lots, we’re opening the door to more starter homes and creating real pathways to homeownership for the next generation. This is about making housing more accessible, more affordable, and more aligned with the needs of Colorado communities.”
“Allowing homeowners to split their lots so we can build more homes on less land is a key strategy for reducing housing costs and adding supply in existing, walkable neighborhoods – a win for affordability, the economy, and the environment,” said Matt Frommer, Transportation & Land Use Policy Manager at South West Energy Efficiency Project.