Author: Jon Bell

The 2026 legislative session felt quieter than in recent years for AIA Colorado due to legislators focusing on a $1.5 billion budget deficit. This played out in two ways. First was simply that legislators had to make some tough decisions about what to cut and that took up a significant portion of their time in the 120-day session. The other impact was that legislators had to think carefully before introducing new bills with any cost to the state. This resulted in fewer bills overall and tougher battles to get through the Appropriations committees where fiscal impacts were scrutinized.

Affordability in general has also been a common complaint among constituents and business groups, resulting in a break from new regulatory bills on a variety of subjects of interest to architects such as environmental protection and liability changes for construction professionals.

Meeting our housing needs remains a challenge in Colorado. While the state is not in a financial position to subsidize affordable housing, we are still seeing successful attempts to clear local regulation logjams that are seen as barriers to affordability instead of as necessary regulations to preserve local character and align with master plans. However, we began to see the limits of this heavy-handed approach by the state as multiple key housing bills failed to advance in the senate after passing in the house. Other failed housing bills simply couldn’t justify their cost to the state with the legislature having to address a record budget deficit.

HB26-1001: Housing Developments on Qualifying Properties

Bill status: Signed into law

AIA Colorado Position: Support

Summary:

The Housing Opportunities Made Easier (HOME) Act will promote new residential development on qualifying properties owned by certain entities such as mission-driven non-profit developers, school districts, universities, and transit authorities. Other non-profit property owners may partner with qualifying entities. The bill’s emphasis is on delivering more affordable housing, though it chose to focus on developer qualifications over strict definitions of unit affordability. A qualifying property is defined as being five acres or smaller and typically within a municipality, though certain established areas of unincorporated county land may also qualify.

Beginning in 2028, local jurisdictions must allow the use of an administrative approval process if the property, developer, and the project itself meet the qualifications in the bill. This means that such projects must be approved regardless of local zoning for the properties. Local infrastructure and utility access have to be available to meet the project needs though. Local governments are not obligated to shoulder the burden of new infrastructure costs or to approve projects where resources (water, roads, sewer, electricity, etc.) simply aren’t available. Softer types of infrastructure such as municipal service capacity cannot be used to deny a project.

The key qualifications for developers are that they be registered 501(c)(3) non-profits and have five years of demonstrated history providing affordable housing. Given the variety of definitions and financing restrictions around “affordable” housing, this bill will not dictate that the projects themselves be affordable. This should be seen as promoting flexibility in providing different housing types that are viable to develop given the site and other local circumstances (teacher housing on school district land, for example).

Buildings will typically be allowed to reach three stories regardless of zoning height limits (with certain exemptions). This is a commonly cited density for affordable multi-family residential projects to pencil out from a financing standpoint. The total building size and number of units will otherwise be as allowed by building codes. The state is stepping in to override local control but AIA Colorado supported this bill due to appropriate guardrails and qualifications that will create new opportunities for residential units we desperately need across the state.

Impact

If your firm does affordable or market-rate multifamily residential work, there may be new opportunities for projects on properties not previously developable, especially where existing land ownership can reduce development costs enough to make more projects pencil out. Private developers that are not non-profits won’t be able to take advantage of this bill on their own though.

HB26-1065: Transit and Housing Investment Zones

Bill status: Signed into law

AIA Colorado Position: Support

Summary:

Colorado has multiple regional mass transportation projects in the works, most notably the Colorado Connector Rail along the Front Range and the Mountain Rail connecting Denver to northwest Colorado. Local communities where stops/stations will be located would benefit from new transit-oriented development but need to invest in infrastructure improvements that were not previously planned.

To jump-start new development, this bill creates a tax increment revenue program that can fund improvements in designated transit investment areas. For up to 6 projects that get approved, this program will provide loans that can be repaid with future local tax revenue. Approved projects also qualify for a tax credit for affordable housing within the designated areas.

AIA Colorado supported this bill to help ensure that communities with upcoming mass transit access can start planning for local development and housing that will make the most sense given these new opportunities.

Impact

For firms that do work in communities along new regional mass transit routes, there may be new planning and project opportunities, as well as favorable zoning changes, especially if a municipality qualifies for this new program so they can start this work sooner.

HB26-1066: Tax Exemptions Low Income Rental Property Development

Bill status: Failed to advance out of House Appropriations

AIA Colorado Position: Support

Summary:

Under current law, property taxes are not required to be paid during the development process for qualifying for-sale affordable housing projects. Given unpredictable timelines and challenges to get financing in place, the property taxes charged on vacant lots can be a significant hurdle to making these projects viable. If the project falls through at any point before completion, back taxes are owed.

This bill would have extended the same property tax considerations to rental affordable housing projects. This could have saved considerable amounts of money for multifamily rental housing projects that are less susceptible to construction defect lawsuits. AIA Colorado recognizes the need for more affordable housing units of all types across the state and our members see firsthand how challenging it is to qualify for financing necessary to get these units on the market. We supported this bill to ease some of these challenges during development timelines we can’t control.

Unfortunately, the massive state budget deficit resulted in legislators being very hesitant to eliminate any tax revenue. They were also swayed by many local governments arguing that they have similar budget issues. This is a bill that we expect to see again in the future when the state budget situation isn’t as dire.

Impact

While we don’t know if this bill will return in the future, it has still brought attention to the high cost of property taxes paid during prolonged development timelines for affordable housing projects.

HB26-1206: Improved Funding to Support Development

Bill status: Failed to reconcile differences between House and Senate versions

AIA Colorado Position: Support

Summary:

Local governments can refer ballot measures to residents to raise taxes and citizens can initiate ballot measures to raise taxes. Local housing authorities, however, cannot. This bill would have given them the ability to put ballot measures forward to raise taxes (up to a 1% increase) specifically to fund new housing projects in their jurisdiction.

AIA Colorado supported this bill as there are situations where elected city council members or county commissioners are opposed to considering any tax increase despite a housing shortage in their jurisdiction. This bill would have given voters the ability to approve (or decide against) funding for local affordable housing directly.

Impact

This bill highlights the challenges that housing authorities face in delivering affordable housing when local governments have different taxation philosophies.

HB26-1114: Allowed Minimum Lot Size for Subject Jurisdictions

Bill status: Failed in Senate committee after passing in House

AIA Colorado Position: Monitor

Summary:

This bill would have prevented local governments from requiring single-family residential zoned lots be greater than 2,000 square feet. It also included language to ensure that other zoning regulations didn’t make development on these smaller lots effectively impossible. The intent was to promote smaller residential lot sizes and therefore smaller, more affordable homes.

It would not have prevented developers from subdividing land into larger lot sizes up to any maximums allowed by local regulation. They simply couldn’t be forced into lot sizes above 2,000sf. Existing parcels would not have been affected. Properties zone for 2+ residential units would not be subject to this bill’s requirements.

Despite the bill sponsors’ decision to limit this bill’s scope to Colorado’s metropolitan areas only, AIA Colorado was concerned that without additional clarity or restrictions, the bill could have had a negative impact on local planning efforts from both growth projection and infrastructure planning perspectives. We look forward to working with other stakeholders on the anticipated effort to reintroduce this bill in 2027.

HB26-1308: Lot Splitting Approval by Subject Jurisdictions

Bill status: Failed in Senate committee after passing in House

AIA Colorado Position: Monitor

Summary:

This bill would have allowed the owners of qualifying single-family residential lots to legally split their property though a simple administrative process. That application could not be denied subject to meeting the required criteria. The criteria were focused on ensuring that both new lots could reasonably be built upon and that right-of-way access and utility sharing (as necessary) was handled appropriately. This bill would have applied to properties in Colorado metropolitan areas where accessory dwelling units (ADUs) are already allowed by state law. The split could occur on an empty lot, a lot with a single primary structure, or a lot that already contained an ADU, effectively promoting that to a primary residence on its own new lot.

AIA Colorado identified numerous potential unintended consequences on the viability of newly split lots. While bill amendments attempted to address many of these, there was still significant opposition from local governments. The bill sponsors have already signaled their intent to reintroduce an updated version of the bill in 2027 after more comprehensive stakeholder outreach.

Disaster mitigation and resiliency remain important topics as the state grappled with historic drought conditions and the prospect of elevated wildfire risks.

Large load (AI) data centers were a hot topic during the 2026 legislative session with two competing regulation bills introduced in the House (HB26-1030) and Senate (SB26-102). The house bill favored an incentive approach, giving long-term tax breaks to facilities that met voluntary criteria to reduce utility burdens and be a good neighbor. The senate bill was much stricter, setting various requirements, limits, and disclosures for these facilities. Governor Polis signaled that he wanted the bill sponsors to work together on a compromise, but nothing came of this effort amidst a lot of bad press from other states where AI data centers have proven to be bad neighbors. We expect SB26-102 in particular to come back in some form in 2027.

HB26-1030: Data Center & Utility Modernization

Bill status: Failed to advance out of House committee

AIA Colorado Position: Monitor

Summary:

This bill would have created a data center and incentive program that data centers could opt into for a 100% state sales and use tax exemption for 20 years after project completion. The requirements for the program included a preliminary consultation with the electric utility that would serve the site, commitments for future investment and the creation of full-time jobs in Colorado, using prevailing wages and meet labor requirements, and resource efficiency certification.

We were worried about the viability of an optional program and that long term tax breaks wouldn’t result in enough community and grid investment to offset the loss in state tax revenue. This bill spent nearly the entire session in negations with various parties to find a path to success and AIA Colorado opted to remain in a monitor position while we awaited more detail to evaluate if the proposed program would work as intended. The bill sponsors were unable to find a path forward this year.

Impact

AI Data centers can have a positive economic impact but cause massive community end environmental upheaval along the way. State and local governments will continue to explore how to properly regulate this emerging building type that’s unlike other energy-intensive industrial sites.

HB26-1334: Modify Standards of Wildfire Resiliency Code Board

Bill status: Failed in House committee

AIA Colorado Position: Amend

Summary:

Colorado has a new Wildfire Resiliency Code and map that went into full effect earlier this year. There have been ongoing complaints from smaller local jurisdictions that enforcing the code and performing inspections would be overly burdensome on their available building department staff. Lawmakers have also heard from product manufacturers that they want more time to test their products in accordance with the code requirements. This bill would have pushed the implementation date back another year, as well as make it easier for residents to initiate variance requests.

AIA Colorado took an amend position specifically to request that the variance change be removed from the bill. There is an existing process for local governments to work with the state’s code board on variances and the board does not have the capacity to consider individual project-related requests. This language was removed and AIA Colorado shifted to a monitor position, even though we had reservations about the implementation delay. Committee members at the bill’s first hearing had similar concerns and voted against advancing the bill, allowing the code to go into effect as scheduled.

Impact

Architects who do work in wildland/urban interface zones (in the western half of the state in particular) need to ensure that they’re working with clients, contractors, and local governments to meet the state’s new wildfire resiliency code.

SB26-049: Homeowner Natural Disaster Mitigation

Bill status: Failed in Senate Appropriations

AIA Colorado Position: Support

Summary:

This bill was a creative effort to help homeowners fund the hardening of their homes against disasters and make it easier to pay insurance deductibles for repairs after a disaster. There were two components originally. The first was opening up an existing natural disaster mitigation enterprise fund for local governments to also allow individuals and HOAs to apply for financial assistance. Local governments successfully lobbied against this provision, arguing that their needs were already greater than what the fund could provide.

The second component was the creation of catastrophe savings accounts (CSAs) that would be tax-deductible and work similarly to health savings accounts offered by many health insurance plans. These would have helped some homeowners who have sufficient income to set aside money for insurance deductibles. However, these folks are already in the best financial position to rebuild post-disaster. There were questions about how Colorado would administer these accounts and it was too big of an ask to create a program that would reduce tax revenue given the state’s budget deficit. The bill failed to pass out of the Appropriations Committee that reviews how much bills will cost the state if passed into law.

Impact

Even though this bill didn’t pass, legislators will continue to look for creative and cost-effective ways to help homeowners protect their existing homes in wildfire and hail-prone areas of the state.

SB26-102: Large-Load Data Centers

Bill status: Failed to advance out of Senate committee

AIA Colorado Position: Amend

Summary:

The philosophy behind this bill was that large load (AI) data centers (defined here as 30MW and larger facilities) shouldn’t put any new strain on the electric grid, water availability, and the community where they are located. The first requirement was that the facility’s electricity only be generated from renewable sources, whether on the grid or on-site (in any combination). This was intended to be as restrictive as it sounds and proved very contentious. AIA Colorado took an amend position on this bill as we felt this requirement was ultimately too strict and would effectively ban larger data centers.

AIA Colorado supported the remaining provisions in the bill as measures that would protect the environment, limit utility rate spikes, and ensure that data center operators do community outreach prior to getting approval. The facility would have been required to pay for utility infrastructure needed only by the facility itself (substations, transmission lines, easements, etc.). Water used for cooling equipment was required to utilize water-efficient technologies but the bill deferred to local governments to make this determination. Backup generators powered with fossil fuels had strict usage requirements. There were substantial facility reporting requirements to help confirm they weren’t using excessive electricity and water.

Ultimately, the heavy regulations this bill proposed, however well-intentioned, were perceived as being too strict and would effectively ban larger data centers. Even after months of negotiations, parties couldn’t come to an agreeable set of changes.

Impact

As also noted above for HB26-1030, AI Data centers can have a positive economic impact but cause massive community and environmental upheaval along the way. State and local governments will continue to explore how to properly regulate this emerging building type that’s unlike other energy-intensive industrial sites.

HB26-1007: Improve Customer Use Distributed Energy Resources

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

As solar panel manufacturing costs continue to drop, new products are hitting the market such as plug-in solar generation devices. These panels can be placed in one’s yard or attached to a railing and plugged into a standard wall socket. They would credit the property owner for electricity generated just like rooftop solar. Starting in 2027, electric utilities must allow the use of these portable solar panels, including the installation of a meter collar as needed to achieve intended safety and usage tracking requirements. Of note, common interest communities (HOAs) may not prohibit the use of these plug-in panels provided they are installed and secured properly.

HB26-1268: Renewable Energy Development on Disturbed Lands

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

This bill allows a local government to designate a “renewable energy reinvestment area” where renewable energy generation and energy storage systems may be installed. For qualifying sites, this designation allows an urban renewal authority or county revitalization authority to distribute tax increment revenue to finance or reimburse costs for qualifying projects.

HB26-1326: Sunset Public Utilities Commission

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

Colorado’s Public Utilities Commission is subject to the state’s periodic sunset review process to determine if it remains necessary and is accomplishing its mission in its current form (similar to how architects and other licensed professionals go through state review every 8-15 years). There was no doubt that the commission should continue to regulate public utilities, but this bill was an opportunity to address criticisms and logistical/bureaucratic challenges in how it operates.

The change most relevant to our membership is the acknowledgement that a three-person commission, subject to open meeting laws, has been slow to respond to issues related to the state’s electrical grid capacity and various utility requests to raise their rates. There was a push to expand the commission size and require geographic diversity amongst its members, but the final bill only included the requirement that a study be conducted on how to identify efficiency improvements. Still, this could result in a future commission that better understands the differences between utilities across the state and how to better facilitate long-term efforts to fully electrify more of the built environment.

HB26-1395: Repeal Wildfire Resilient Homes Grant Program

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

This year saw numerous state-funded programs cancelled to address the state’s budget deficit. One casualty of these cuts is the Wildfire Resilient Homes Grant Program created in 2023. This program had allowed homeowners to apply for grants to retrofit or improve structures on their property to be more wildfire resilient. Only about $50,000 in grants were paid out since the program’s inception.

SB26-155: Increase Access Homeowner’s Insurance Enterprise

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

Hail damage to residential roofs in Colorado is a significant driver of increases in homeowners insurance premiums in recent years. This bill creates a government enterprise that will collect an annual fee from insurance companies and provide services and grants back to those insurers. This will allow the state to better understand issues and set consistent standards across the entire insurance industry. The effort is intended to result in better minimum roof installation quality and reduce policy rates in the long term. The fees that insurers pay cannot be passed on to policyholders, though the state cannot prevent insurers from raising rates in general that may end up having the effect of absorbing the fee.

This year saw fewer bills on the subjects of architect liability and building codes.

HB26-1236: Arbitration Reform

Bill status: Vetoed by Governor

AIA Colorado Position: Amend

Summary:

This bill was intended to strengthen consumer and employee protections in arbitration agreements that often cannot be negotiated to ensure the process is fair to all parties. AIA Colorado identified unclear language and potential contradictions in the original version of the bill and worked with its sponsors on amendments that addressed our concerns. We shifted to a monitor position after these amendments were adopted as the bill was no longer harmful to the architecture profession.

Other construction industry groups, as well as the business community in general, were opposed to this bill on principle. There was a fear that arbitration provisions in home sales agreements would be restricted to the point that it would harm for-sale residential development that already lags behind demand. These arguments persuaded Governor Polis to veto the bill. It’s unclear if sponsors will reintroduce the bill in 2027 with a new governor.

Impact

AIA Colorado looks very closely at any liability-related bills that affect architects, developers, and other construction professionals. This bill was a good example of working with a legislator who listened to our concerns and amended their bill to address them. Employee and consumer protections are subjects that will certainly see additional bills in the future.

SB26-109: Building Code Accessibility

Bill status: Signed into law

AIA Colorado Position: Support

Summary:

Colorado statute in CRS 9-5-101 through 9-5-106 contains housing accessibility-related definitions, provisions, and clarifications that are intended to complement the IBC and ICC A117.1 building codes. This statute also contains an existing (unchanged) methodology that supersedes code to determine how many of each accessible dwelling unit type are required depending on project size.

Statute did not previously indicate the applicable version of A117.1 but existing language had been using terms and definitions found in the 2009 version that are no longer in use. This bill makes conforming changes so that statute now refers to and aligns with terminology in the 2017 version of A117.1.

AIA Colorado supported this effort as it reduces confusion and was not intended to make substantive changes to accessibility requirements compared to A117.1 (2017).

Impact

These changes should reduce potential confusion when comparing statute language to the accessibility codes that statute requires to be used for residential projects. Unfortunately, the US Department of Housing and Urban Development (HUD) still has not recognized the latest versions of A117.1 or the IBC as being an FHA safe harbor, but this bill does not change how architects have had to navigate that disconnect.

HB26-1430: Transportation Funding Adjustments

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

The Colorado Contractors Association (disclosure: CCA and AIA Colorado are both members of the Building Jobs 4 Colorado coalition) has led an effort to put forth a constitutional amendment ballot initiative to guarantee minimum annual transportation funding levels. The intent of this amendment is for the state to catch up in road and bridge maintenance and fund future road expansion needs. This money would not be allowed to be used for public transit investment purposes though.

This bill would change gas tax rates and make related changes to effectively cancel out any transportation funding increases that the ballot initiative would enable. The state legislature already faces significant restrictions on how it can spend state tax revenue to meet our annual balanced budget requirement. In tight budget years (often triggered by TABOR restrictions more so than revenue shortfalls), legislators don’t want their hands tied even further than they already are. 

SB26-150: Modernizing Regional Transportation District

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

The Regional Transportation District (RTD) board of directors has long been criticized for its ineffectiveness as both a board and the level of engagement demonstrated by individual board members were in their responsibilities. This bill is the second recent attempt to overhaul and simplify the board composition. It reduces the board composition from 15 elected members down to 5 elected and 4 appointed members. It also modernizes other board-related efforts including accessibility assessments, reporting requirements, and subregional service coordination.

A notable downside to the new system is that the consolidated districts will be significantly larger and more difficult to campaign effectively within, as there is no direct overlap with other political district boundaries. Candidates have already struggled to raise money for effective campaign outreach to voters and reduce representation for the people who live in and use RTD services. Evaluating the effectiveness of this change will take time as the consolidation has to be phased in over multiple election cycles based on when different board seats are up for election.

SB26-172: Front Range Passenger Rail District

Bill status: Signed into law

AIA Colorado Position: Monitor

Summary:

The ongoing effort to create a passenger rail line across the entire Front Range of Colorado took a significant step forward this year with this bill’s creation of a new rail district entity.  It will be tasked with managing and coordinate with all the local municipalities and metropolitan districts along the proposed route. This will include regulating any local actions to establish/increase a tax or create debt to fund local investment in the rail line.

Members from across Colorado’s Western Slope gathered for a West Virtual Connect roundtable focused on the outcomes of the 2026 legislative session and the issues most likely to affect architects practicing in mountain and rural communities. Led by AIA Colorado Advocacy Engagement Director Nikolaus Remus, AIA, and West Section Director Will Otte, AIA, the discussion explored housing, land use, infrastructure, sustainability, and emerging policy issues that could shape the future of practice in the region.

A major focus of the conversation was housing. Participants reviewed several bills aimed at increasing housing opportunities across Colorado, including legislation supporting affordable housing development on underutilized public properties and efforts to encourage transit-oriented development around future rail investments. While some housing-related proposals failed to advance due to the state’s $1.5 billion budget deficit, attendees discussed how affordable housing remains one of the most pressing challenges facing mountain communities and workforce retention.

The group also examined legislation related to wildfire resilience, natural disaster mitigation, and the growing conversation around large-scale AI data centers. Members discussed the potential impacts these facilities could have on Colorado’s energy and water resources, particularly for communities that depend on mountain watersheds. While several proposed regulations did not pass this year, participants noted that many of these issues are expected to return in future legislative sessions.

Additional discussion covered updates to accessibility code references, transportation funding proposals, utility regulation, and workforce-related legislation. Throughout the presentation, Remus emphasized the importance of member engagement in AIA Colorado’s advocacy efforts, noting that input from architects practicing in rural, resort, and mountain communities helps ensure legislators understand how statewide policies affect different regions of Colorado.

The session concluded with a conversation about representation and participation in AIA Colorado’s advocacy work. West Section leaders encouraged members to engage with the Government Affairs Committee and share feedback on legislation affecting their communities, reinforcing the important role local perspectives play in shaping effective advocacy at the Capitol.

Members west of the Front Range convene quarterly in a virtual setting to explore the challenges and opportunities shaping practice in the region. The West Section Advisors regularly host open roundtables, welcoming all members in the West to join and contribute.

RSVP for events at AIA Colorado’s event page.