Housing Plans

To address challenges in developing housing for Coloradans of all budgets by allowing local governments and regions to identify and analyze their unique housing needs, take action based on those needs, and implement flexible strategies for growth over time.

Applicability of this law to different local governments varies by requirement. Requirements and their parameters are listed below. Please refer to the SB24-174 Applicability Sheet for an organized list of jurisdictions.

• Housing needs assessments are required of the following local governments (except if they have experienced a 1% negative population change in the most recent decennial census):
  • Municipalities with more than 1,000 residents, 
  • Counties with more than 1,000 residents
• Housing action plans are required of local governments (except if they have experienced a 1% negative population change in the most recent decennial census):
  • With populations of 5,000 or more
  • With populations of 1,000 or more that participated in regional assessment; or
  • Deemed “rural resort communities” (as of January 1, 2024)
• Water supply and strategic growth elements are required in all municipal, county, and regional master/comprehensive plans except:
  • Municipalities, counties, and regions are not required to include a strategic growth element if they have not received funding to do so AND are:
    • Municipalities with a population of 20,000 or less and have experienced negative population change, or with a population of 2,000 or less
    • Counties with population of 20,000 or less and have experienced negative population change, or have a population of 5,000 or less in the county’s unincorporated territory

Local Governments

Housing Needs Assessments

• Housing needs assessments must conform to DOLA’s methodology and requirements in statute. Guidance is provided in DOLA’s Housing Needs Assessment Guide for Colorado Communities included in the Tools and Resources section below. 
• Flexibility: Local governments can choose to participate in a Regional Housing Needs Assessment. 
• Subject jurisdictions must develop a local housing needs assessment or participate in a regional housing needs assessment and submit these plans to DOLA by December 31, 2026 and at least every 6 years thereafter.

Housing Action Plans

• DOLA will produce guidance for housing action plans as part of the housing needs assessment methodologies, which will include the requirements for  inclusive public engagement and baseline components described in statute 
• Flexibility: Local governments can choose from a list of standard affordability, long-term affordability, and displacement mitigation strategies for their housing action plans.
• Housing action plans are subject to the approval by the governing body of a local government following a public hearing
• Housing action plan posted locally and submitted to DOLA by January 1, 2028 (and at least every 6 years thereafter)

Comprehensive Plans

Municipal, county, and regional comprehensive plans must include a strategic growth element and a water supply element in the first comprehensive plan amendment occurring on/after January 1, 2026, and no later than December 31, 2026. Required for all comprehensive plans adopted/amended after December 31, 2026

State

Grant Program

The law establishes the Housing Needs Planning Technical Assistance Fund for housing needs assessments and other related uses specified in statute. Launched in Q1 2025, DOLA’s Housing Planning Grant Program provides grants to local governments and regional entities to help them better understand their housing needs and to develop actionable and compliant housing needs assessments (HNAs), housing action plans (HAPs), and comprehensive plan elements.

Directory

DOLA will produce a directory of affordability strategies and displacement mitigation strategies by June 30, 2025.

State Reports

DOLA will lead and publish a statewide Strategic Growth Report (by October 31, 2025) and a Natural Lands and Agricultural Interjurisdictional Opportunities Report (by December 31, 2025) in consultation with a variety of stakeholders as directed under this law.

State Grants Criteria

Specific state agencies are required under this law to update their grants criteria to consider whether projects are in or supporting neighborhood centers and prioritize projects from those local governments that are compliant with the requirements of this law (including housing needs assessments, housing action plans, and updated comprehensive plans with water supply element and strategic growth elements). 

Local Governments

• December 31, 2026: Local housing needs assessments due (and at least every six years thereafter)
• Water Supply and Strategic Growth Elements 
  • Required for first comprehensive plan amendment occurring On/after January 1, 2026
    • No later than December 31, 2026
  • Required for all comprehensive plans adopted/amended after December 31, 2026
• January 1, 2028: Housing action plan posted locally and submitted to DOLA (and at least every 6 years thereafter)
• Ongoing status reporting

State

• June 30, 2025: DOLA publishes affordability menus, displacement mitigation strategy directory, and neighborhood center criteria
• October 31, 2025: DOLA publishes statewide Strategic Growth Report
• December 31, 2025: DOLA publishes Natural Land and Agricultural Interjurisdictional Opportunities report
• December 31, 2026: DOLA updates grant award criteria to consider neighborhood centers
• November 30, 2027: DOLA publishes statewide housing needs assessments, report on all housing needs assessments, and updates grant program criteria