Colorado's HOME Act Loosens Zoning Rules, Opening New Opportunities for Residential Developers

By SoCal Editorial Team•
Colorado's new HOME Act mandates streamlined administrative approval for residential projects on qualifying properties, potentially reshaping housing development and creating opportunities for developers, builders, and landowners.
Colorado's HOME Act Loosens Zoning Rules, Opening New Opportunities for Residential Developers

Colorado Governor Jared Polis signed House Bill 26-1001 into law on March 25, 2026, introducing the Housing Opportunities Made Easier (HOME) Act. The law's key provisions take effect on December 31, 2027, and represent one of the most significant changes to Colorado's zoning framework in years. The HOME Act aims to address Colorado's housing shortage by requiring local governments with populations exceeding 2,000 to allow residential development on "qualifying properties" through a streamlined administrative approval process. This shift could accelerate housing construction and create new opportunities for developers, investors, and construction companies across the state.

To qualify under the HOME Act, a property must be five acres or less and owned by a "qualifying entity," which includes school districts, state colleges and universities, housing authorities, transit districts, and nonprofit organizations with a demonstrated history of providing affordable housing. Once a property qualifies, local governments face limits on how they can regulate development. They cannot block construction based on height if the tallest structure is three stories or less, cannot reject a project based on dwelling unit count, and cannot apply site design standards more restrictive than those applied to similar housing already built within the jurisdiction. These provisions are designed to reduce regulatory barriers that have historically slowed development in communities that need it most.

However, the law does not override all local authority. Parcels in floodways, airport influence areas, conservation easements, agricultural zones, and industrial zones are exempt. Local governments retain the power to enforce building codes, fire safety standards, infrastructure requirements, and inclusionary zoning ordinances. This balanced approach ensures that while development is encouraged, local governments can still address safety and infrastructure concerns.

Ben Volpe, founding attorney at Volpe Law LLC, emphasized the need for stakeholders to understand the new landscape. "This law is going to create real development opportunities across the state, but it raises new questions for everyone involved in a project," Volpe said. "Developers need to understand which properties qualify and what standards apply. Qualifying entities that own underutilized land need to evaluate whether residential development aligns with their goals. And construction companies bidding on these projects need contracts that reflect the new regulatory requirements."

Jurisdictions actively updating their zoning or development codes to comply with the law by the December 31, 2027 deadline will have until June 30, 2028, to complete those updates. This timeline provides local governments with a window to adapt their regulations while developers and qualifying entities can begin planning projects.

The HOME Act could have far-reaching implications for Colorado's housing market. By streamlining approvals and limiting certain local restrictions, it may increase the supply of residential units, particularly in areas with underutilized land owned by qualifying entities. Developers and construction companies should review the new requirements and consider how they align with their business strategies. For more information on the HOME Act and its impact, visit Volpe Law LLC.

SoCal Editorial Team

SoCal Editorial Team

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