Matters Memo

City of Boulder City Council Agenda Item Meeting Date: September 3, 2026 Agenda Title Update to City Council on recent State Legislation and State Funding Land Use Code Changes.

Staff Contact • •

Karl Guiler, Development Code Amendment Manager, Planning and Development Services Brad Mueller, Director, Planning and Development Services

Executive Summary The purpose of this item is to introduce City Council to several code changes that will be reviewed by the council over the next two years in response to state legislation and state funding. This item will also provide an overview and summary of recently adopted city ordinances in reaction to state bills on land use. This item is for informational purposes only and does not require City Council action at this time. This memorandum focuses on three pieces of state legislation that are yet to be addressed by the city in the Land Use Code. They include: •

Proposition 123, a voter initiative that created affordable housing state funding for jurisdictions that facilitate expedited or fast track reviews of applications and permits for affordable housing projects and committing to increase existing affordable housing units by 3% a year. Since its adoption, the Colorado legislature has amended the affordable housing program originally created by Proposition 123 through several state bills.

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Housing for Transit Oriented Communities, which seeks to establish higher density housing along transit corridors with a specified Housing Opportunity Goal in efforts to mitigate increasing housing costs and in turn, increase transit use. Housing Opportunities Made Easier (HOME) Act, which intends to increase the number of affordable housing units across the state by making local zoning regulations more flexible by increasing housing stock on underutilized land (like school district properties) typically not used for multi-unit housing projects.

Where prior bills were aimed at changing technical land use requirements, such as removing local growth limits, allowing more accessory dwelling units, or removing limits on how many people can occupy a home, recent state bills have taken aim at review process and discretion, as these have been identified by the state and localities as zoning barriers to housing. More specifically, the common themes of the three state initiatives are: •

Allowing more residential projects through administrative review (staff level) with no call up or public hearing requirements

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Removing subjective standards that add uncertainty into the process and allowing for review of residential projects solely for compliance with on objective standards

The state bills were discussed with Planning Board on Aug. 4, 2026 and will be discussed with Housing Advisory Board on Sept. 23, 2026.

Questions for Council •

Does City Council have any questions or feedback on Proposition 123 changes to establish an expedited review process for affordable housing projects?

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Does City Council have any questions about the Housing in Transit-Oriented Communities (TOC) bill or any feedback on the proposed approaches to comply?

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Does City Council have any questions about the Housing Opportunities Made Easier (HOME) Act or any feedback on the proposed approaches to comply?

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Alignment with City Plans and City Council History Sustainability, Equity, and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Provision of housing options is one of the city’s primary goals to help mitigate the costs of housing in Boulder. Housing along transit, a theme of some of the state bills, is also mentioned in the SER framework as illustrated below: Healthy and Socially Thriving All Boulder residents are able to meet their critical needs, enjoy high levels of social, physical, and mental well-being, and have access to abundant recreational, cultural and educational opportunities in an environment that respects and celebrates human rights. Livable High-performing, safe, and well-maintained buildings and infrastructure that accommodate a diverse set of community needs for working, learning, playing, and living. • • • •

Provides a variety of housing types with a full range of affordability. Supports community members who are unhoused or underhoused to navigate systems, programs, and services to achieve housing security. Encourages sustainable and well-regulated development of buildings supported by reliable and affordable city services and public infrastructure. Increases the prevalence of 15-minute neighborhoods, in which individuals can access their most basic needs within a 15-minute walk from home.

Accessible and Connected A safe, accessible, and sustainable multimodal transportation system that connects people with each other and where they want to go. Open access to information is provided both physically and digitally to foster connectivity and promote community engagement. • • •

Offers and encourages a variety of safe, comfortable, affordable, reliable, convenient, and clean mobility options. Supports a balanced transportation system that reflects effective land use, manages congestion, and facilitates strong regional multimodal connections. Encourages diverse populations to connect through places of work, educational opportunities, retail, and nature to strengthen the larger community.

Citywide Strategic Plan Strategy 4. Strengthen equity-focused programs that help meet community members’ basic needs, including mental, physical, and behavioral health, financial assistance, and access to services. 3

Strategy 5. Support and provide holistic and accessible programs and services to enable diverse individuals and families to live in Boulder. Strategy 6. Define and establish Boulder’s 15-minute neighborhood model. Strategy 7. Invest in and maintain a transportation system with an array of multi-modal choices to reduce vehicle miles traveled and greenhouse gas emissions. Strategy 10. Continue advancement toward the city’s goal of an eighty percent reduction in emissions and the community’s goal of a seventy percent reduction by 2030. Strategy 12. Implement organizational and financial best practices to continuously improve asset management, customer experience, and project and program performance. Strategy 15. Streamline processes for housing, parking, infrastructure, land use, and events that tie directly to priority community outcomes. Staff Notes Removing zoning barriers to housing, allowing more housing options near transit, and streamlining review processes are consistent with the SER framework of making the city more accessible and affordable for residents. Encouraging the concentration of housing and uses in key locations is also consistent with the SER framework and strategies of the Citywide Strategic Plan to define and develop 15-minute neighborhoods and to encourage the use of transit in line with the city’s environmental goals.

Alignment with Additional City Plans The Boulder Valley Comprehensive Plan (BVCP) is the overarching policy document for the city. Several relevant policies are adopted within the BVCP, particularly these policies directly related to housing, transit, and 15-minute neighborhoods, as outlined below: Built Environment Policy 2.24 Commitment to a Walkable & Accessible City The city will promote the development of a walkable and accessible city by designing neighborhoods and mixed-use business areas to provide easy and safe access by foot, bike and transit to places such as neighborhood centers, community facilities, transit stops or centers and shared public spaces and amenities (i.e., 15-minute neighborhoods). The city will consider additional neighborhood centers or small mixeduse retail areas where appropriate and supported by the neighbors they would serve. In some cases, the definition of mixed use and scale and character will be achieved through area planning. Transportation Policy 6.19 Transportation Infrastructure to Support Walkable 15Minute Neighborhoods The city will continue to build improvements to transportation facilities in neighborhoods

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that create a variety of neighborhood supporting activities and infrastructure within approximately a one-quarter-mile walk radius where residents and employees can fulfill more of their daily needs through safe, healthy and convenient walking and biking. Such infrastructure also has health and fuel consumption-reducing benefits. Housing Policy 7.01 Local Solutions to Affordable Housing The city and county will employ local regulations, policies and programs to meet the housing needs of low, moderate and middle-income households. Appropriate federal, state and local programs and resources will be used locally and in collaboration with other jurisdictions. The city and county recognize that affordable housing provides a significant community benefit and will continually monitor and evaluate policies, processes, programs and regulations to further the region’s affordable housing goals. The city and county will work to integrate effective community engagement with funding and development requirements and other processes to achieve effective local solutions. Housing Policy 7.07 Mixture of Housing Types The city and county, through their land use regulations and housing policies, will encourage the private sector to provide and maintain a mixture of housing types with varied prices, sizes and densities to meet the housing needs of the low-, moderate- and middle-income households of the Boulder Valley population. The city will encourage property owners to provide a mix of housing types, as appropriate. This may include support for ADUs/OAUs, alley houses, cottage courts and building multiple small units rather than one large house on a lot. Housing Policy 7.10 Housing for a Full Range of Households The city and county will encourage preservation and development of housing attractive to current and future households, persons at all stages of life and abilities, and to a variety of household incomes and configurations. This includes singles, couples, families with children and other dependents, extended families, non-traditional households and seniors.

City Council History City Council has passed several ordnances over the last few years to align the city’s Land Use Code with the recent state legislation impacting local land use. The primary purpose of this item is to introduce three pieces of state legislation that staff is addressing through upcoming ordinances, as well as providing a brief summary of previous ordinances passed in reaction to recent state bills in Attachment B.

Planning Board Review Staff presented the three pieces of state legislation and potential paths forward to Planning Board on Aug. 4 as a matters item. Staff indicated that prior state bills related to changing local technical zoning requirements (e.g., occupancy and ADU rules), whereas the new legislation is related more to process and procedures by removing call up and public hearing requirements for various development projects to streamline 5

reviews and produce more housing. While the board expressed concerns about lack of board involvement, they understood the rationale for removing call up and public hearings for some reviews and generally supported staff in developing ordinances that would comply with the state legislation. In regard to each piece of legislation, Planning Board: -

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Proposition 123: Supported changes recommended by staff to remove call-ups and automatic Planning Board hearings for Site Reviews with certain characteristics. The board recommended exploring a way to make information about the projects easily available to the public on a website and ensuring there are regular evaluations of the code changes in the future to determine if any updates are necessary. TOC Bill: Supported compliance with the TOC Bill indicating a preference towards working with the state on the data to get to compliance under current zoning conditions. If compliance is not possible under current zoning, the board supported removing the call up provisions for Form-Based Code (FBC) reviews and tightening up some FBC design standards. HOME Act: Had several questions about the eligibility requirements of this bill, along with the potential outcomes of this bill. Similar to the other two bills, the board accepted having limited discretion over potential housing projects produced by the HOME Act.

Analysis Over the last few years, Colorado legislators have passed many land use related bills. Some of these have prompted staff to prepare ordinances to comply with state bills like those related to accessory dwelling units, occupancy, and the Residential Growth Management System, all of which are summarized in this memorandum. In addition, in 2022 voters passed Proposition 123, which established new affordable housing funding for jurisdictions that meet certain requirements. Much of the state legislation seeks fewer discretionary reviews and more administrative approvals of land use applications. Whether it has been specifically requiring administrative approvals, eliminating zoning requirements like minimum parking, requiring a certain level of density to be approved administratively, or establishing a maximum review timeline, zoning-related process and approval barriers have been a main target of housing reform at the state level. Board and council review of applications have been highlighted as an impediment to housing affordability due to impacts on approval timelines.

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Many city efforts in the last few years have also aimed to simplify and streamline development review processes. To align the city with these new state initiatives, several changes to the land use code have been passed recently and others are still needed. A brief summary of the changes that were made in recent years to address state legislation, including but not limited to addressing the residential growth management system, occupancy reform, and accessory dwelling units, are provided within Attachment B. The following state bills and initiatives are those that are yet to be addressed in the land use code.

Proposition 123 – State Affordable Housing Fund Expedited Review Timelines Background State Affordable Housing Fund Colorado voters approved Proposition 123 in 2022 to create the State Affordable Housing Fund, a dedicated revenue stream for affordable housing development. Funded by 0.1% of state income tax revenue, the program supports a broad range of housing initiatives, including new construction, preservation, land banking, and rental assistance. Funding is provided by the Department of Local Affairs (DOLA) and Colorado Office of Economic Development and International Trade (OEDIT) through grants and loans to nonprofit agencies, community land trusts, nonprofit and for-profit developers, and local governments. To be eligible for the funding, affordable housing projects must be located in a jurisdiction that has completed a Proposition 123 Local Government Affordable Housing Commitment to increase existing affordable housing units by 3% a year. As part of the commitment for the next cycle (2027-2029), local governments must also demonstrate that they have implemented a fast-track review process to remain eligible for future Proposition 123 funding and commitment cycles. The fast-track review process means that final decision of a complete application must be made within 90 calendar days. (Note, however, that this “final decision” can be denial or recommendation for denial, if appropriate due to a non-compliant application.) The process is required for housing developments where 50% or more units are affordable. It is not required for every application type. A list of other communities that have already adopted a fast-track process is available here and is regularly updated by DOLA. In the first three-year funding cycle (2023-2026), the following projects within the City of Boulder received grant and loan funding through the State Affordable Housing Fund: 7

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$2.84 million: City of Boulder, Homeownership, Rehabilitation $2.6 million: Thistle Communities, Land Banking, Rental $2.5 million: Koelbel and Company, Concessionary Debt, LIHTC Gap $2.2 million: Various providers and agencies, Persons Experiencing Homelessness

In addition, Proposition 123 funds are distributed to regional programs that support projects within the city. For example, $14 million was awarded to the state chapter of Habitat for Humanity to fund affordable homeownership throughout the state. The local chapter of Habitat (Flatirons) has received a portion of these dollars to help fund affordable homeownership at the Ponderosa community (approximately $70,000 per home). In addition, $2.1 million was awarded to the Boulder County Regional Housing Partnership for homeownership scattered site acquisition and rehabilitation projects. Lastly, approximately $1.4 million was awarded to regional entities for programs that support homelessness. While these funds are not specific to the city, they help support a wide range of housing initiatives within the city. Applicable Projects For future cycles, Proposition 123 funding will only be available in jurisdictions that have an approved fast-track review process for eligible projects. The process must be available for all applications where 50% or more of the units are affordable, which is defined as: •

Rental housing units: monthly rent is less than or equal to 30% of the monthly income of a household earning at or below 60% Area Median Income (AMI).

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For-sale housing units: monthly mortgage payments are less than or equal to 30% of the monthly income of a household at or below 120% AMI.

Over the last six years, five projects built in Boulder would have met this affordability threshold: • • • • •

2021: Rally Sport, 2727 29th St – Site Review, Height Modification 2022: Grace Commons, 1603 Walnut St – Site Review, Height Modification 2024: Alpine Balsam, 1015 Alpine Ave – Form Based Code Review 2024: Geological Society, 3300 Penrose Place – Site Review, Height Modification 2024: 34th Street Neighborhood, 3125 34th St – Site Review

Four additional projects were approved in the last six years that did not meet the 50% threshold of affordable housing but could potentially have been included in the expedited review program if the qualification criteria were expanded beyond the state minimum.

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Timeline In order to maintain the city’s eligibility for this funding, and to enable Proposition 123 funding for developers of these projects within the city, a fast-track review process must be in place by December 31, 2026. Potential Changes Many recent code changes have focused on simplifying and streamlining development review processes to speed up approval timelines in Boulder. For land use reviews, staff has studied the existing processes and identified two major impediments to the feasibility of reviewing projects within the 90-day timeline: call-ups and automatic public hearings for projects with certain characteristics. These represent the most significant opportunity for time savings in the overall development review process. Call-Ups Boulder’s land use code allows many application types to be decided administratively by the City Manager (delegated to staff), but then Planning Board members have the opportunity to call up the City Manager’s decision. The applications that may be called up are summarized in Table 4-1. Once called up, the Planning Board holds a public hearing at a future meeting and makes a decision on the application. Similarly, the City Council has the authority to call up any Planning Board decision but may only call up an application on a majority vote. In addition, an applicant or any two interested people can appeal any staff decision. Call-up memos describe the application and staff provides a full analysis of the request and ultimate staff decision. Most of the applications brought to the Planning Board are not ultimately called up. However, the call-up procedure provides an opportunity for the Planning Board to discuss and decide on an application directly. Application types that are currently subject to call-up by the Planning Board are: -

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Expansion of Nonconforming Use Final Plat Form-Based Code Review Geophysical Exploration Permit Minor Amendment Minor Subdivision Site Review

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Site Review Amendment Use Review

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Between 2018-2023, 174 applications were brought to the Planning Board for potential call-up, averaging about 29 per year. After City Council passed Ordinance 8622 in 2024, call-up requirements were removed for floodplain permits, wetland permits, and use reviews for nonresidential uses without site changes. Additionally, the code was amended to require two Planning Board members or community members, rather than just one, to appeal or call an item up. After these changes went into effect, from July 2024 – July 2026, 31 applications were brought to Planning Board for potential call up, averaging 16 per year. As expected, the changes in Ordinance 8622 reduced the number of call-ups reviewed by Planning Board by 45% on average annually. In 2024-2026, three applications were called up by the Planning Board, for a 9.6% call-up rate. The previous call-up rate was 3.4%. One application was appealed by neighbors. Due primarily to scheduling constraints, on average the items that were called up by Planning Board or appealed by community members did not reach final decision for 93 additional days beyond the initial potential call-up review by Planning Board. The potential for call up is often an uncertain aspect of development review for applicants. Even if not called up, the call up process can add a significant amount of time to the review of projects. In 2024, the Minor Use Review process was created which is essentially a Use Review without a call up. Since then, 18 Use Reviews have been processed instead as Minor Use Reviews. While the median time for a Use Review approval from 2018-2023 was 200 days, the Minor Use Reviews have been reviewed in a median of 76 days, a reduction of 62%. When accounting for time outside of the city’s control, in the first year the city’s review time was reduced by 85%. Removing the call-up option and potential public hearing for these Use Reviews has had a very significant impact on overall approval timelines. Automatic Planning Board Public Hearings Other applications always require a public hearing at Planning Board, rather than a potential call-up. Previous requirements for automatic hearings for nonresidential uses in residential zoning districts and residential uses in the Public zoning district were removed during the process simplification changes in 2024. Prior to 2025, projects requesting parking reductions over 50% were also required to be heard at Planning Board. While this is more predictable than a call-up, it adds substantial time to the review process. Currently, Use Reviews for oil and gas operations require an automatic Planning Board public hearing per 9-2-15(d)(1). In addition, per 9-2-14(g), all Site Review applications are reviewed administratively (with potential for Planning Board call-up), except for 10

projects with the following, which are automatically referred to the Planning Board for decision: • •

A reduction of the open space or lot area requirements Height over the maximum permitted by Section 9-7-1

In the last two years, 17 Site Review or Site Review Amendment applications were reviewed at a Planning Board public hearing. 12 of these (71%) included a height modification request. Proposed Code Change As evidenced by the success of the Minor Use Review process in vastly decreasing review times, eliminating both call-up and automatic Planning Board public hearings would allow the city to comply with the 90-day fast-track review requirement for affordable housing projects. Without these changes, it is unlikely that the city could be compliant and would lose eligibility for Proposition 123 affordable housing funds. As noted earlier, this ineligibility applies not just to city projects but partners such as Boulder Housing Partners, Thistle, Habitat, and for-profit affordable housing developers as well. DOLA staff implementing Proposition 123 legislation has interpreted that appeals are not subject to the 90-day expedited review timeline, under that interpretation, creating a process for appealing applications would remain an option. This would take an appeal out of the 90-day timeline and allow for public hearings at Planning Board and potentially City Council providing due process. Staff is also considering recommending to extend the eligibility of the 90-day process to projects that have affordable housing units on site but fewer than 50% of the units are affordable. This would likely result in one more project per year being reviewed under the 90-day timeline and would further support affordable housing. Proposed Process Changes In addition to changes to the land use code, staff proposes creation of a new process to ensure accurate tracking of the 90-day timelines, communication and expectation setting with applicants, as well as more thorough completeness checks prior to accepting applications. These would all be administrative actions taken in management of department activities.

Housing in Transit-Oriented Communities (HB24-1313) Background Colorado House Bill 1313 (HB24-1313) was adopted by the state legislature in May 2024. The bill is intended to address the current housing crisis by requiring communities

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to ensure that their local zoning regulations enable the potential for a specified amount of housing units along transit corridors. HB24-1313 specifically requires jurisdictions to: •

Calculate the “Transit Area” in the community based on existing bus and bus rapid transit (or light rail) routes that have a peak service of at least every 15 minutes during peak periods per the Regional Transportation District (RTD) optimization plan. The Transit Area includes the total land area of transit corridors that are ¼ mile from any qualifying route, not to be confused with the “Transit Centers” discussed below.

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Determine the Housing Opportunity Goal (HOG) specific to the community based on the Transit Area acreage. The calculation in the state bill is to achieve a minimum density of 40 dwelling units per acre (du/ac) along the corridors within the Transit Area. The HOG results in a total number of units that zoning should be calibrated to allow.

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Analyze existing zoning density requirements and determine whether the HOG will be met at the 40 du/ac figure.

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Designate “Transit Centers”, which are areas/zoning districts where the combined Transit Center areas (subsets of the total Transit Area) will enable at least the potential number of housing units per the HOG. The state bill allows an additional ¼ mile buffer area beyond the Transit Area to be used to calculate the capacity for purposes of meeting the HOG. The bill states that zoning districts that only allow less than 15 dwelling units per acre may not be designated Transit Centers. This results in the exclusion of most zones that are predominantly detached dwelling units and many medium density zones.

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Establish an administrative approval process (by-right) for multi-unit residential development on parcels within designated Transit Centers that are 5 acres or less in size. An administrative review process means a process where a development application is approved, approved with conditions, or denied by local government staff solely based on objective standards set forth in the local law and does not require, and cannot be elevated to require, a public hearing, a recommendation, or a decision by an elected or appointed public body or hearing officer (e.g., no discretionary review). This is to streamline the creation of housing without required call-up procedures, public hearings, or subjective criteria. Discretionary approvals like Site Review are specifically targeted, because such processes can delay projects or deter developers from moving forward with projects due to the uncertainty and the extra cost and time.

Executive Order D 2025 0005 On May 16, 2025, Governor Polis signed an executive order directing DOLA and other state agencies to identify grants, contracts, loans, incentive programs, and discretionary tax credits administered by them that provide support to local governments relating to housing development, land use, transportation, infrastructure, historic preservation, mixed-use incentives, conservation, energy, or climate. Additionally, DOLA was directed to publish a list of individual local government compliance with implementation 12

of seven state bills1 that were passed in 2024 or 2025, including HB24-1313. DOLA is required to update this list quarterly. The executive order directs relevant agencies to review a local government’s compliance with and progress implementing these bills in establishing priority for funding opportunities. This means that compliance with HB241313 may impact Boulder’s ability to receive grants, contracts, loans, tax credits, and other incentive programs. Timeline HB24-1313 states that jurisdictions must submit a report to DOLA by the end of 2026 on whether their zoning meets the HOG or not. If the jurisdiction does not meet the HOG, the bill states that jurisdictions would have to update their zoning to meet the minimum requirements by the end of 2027. Potential Changes Staff’s current analysis indicates that the HOG for Boulder would be just over 123,000 housing units. For reference on the scale of this number, Boulder currently has roughly 48,000 housing units. While the HOG is significant in number, it is important to note that this is an aspirational figure and the state bill does not specify that this number of units must be built. Rather, it means that zoning in designated Transit Centers allows the city to hypothetically reach that number through by-right review on parcels 5 acres or less in size or with Site Review on properties greater than 5 acres within designated Transit Centers. Staff’s current estimate of the number of housing units allowed to be included in the HOG is close to 112,000 housing units and is just shy of meeting the HOG. This means that land use code changes may be necessary in 2027 if the city is to comply with HB24-1313. At present, the following potential changes to the land use code have been identified: •

Remove the call up provision for Form-Based Code (FBC) reviews. This would enable the FBC areas used as designated Transit Centers and may add just enough units to confidently meet the HOG. Alternatively, the call up provision could be removed for properties 5 acres or less but retained for larger sites.

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Remove discretionary reviews (e.g., Site Review and Use Review) for Residential in Industrial zone projects.

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Modify the Site Review minimum site size threshold in certain zones in areas designated as Transit Centers to be no less than 5 acres. Some zoning districts require Site Review on properties of two or three acres in size. These minimum thresholds for required Site Review could be changed to 5 acres, which would likely reduce the number of Site Reviews and increase by-

1 HB24-1007 (prohibiting residential occupancy limits), HB24-1152 (accessory dwelling units), HB24-1304

(minimum parking regulations), HB24-1313 (housing in transit-oriented communities), SB24-174 (sustainable affordable housing assistance), HB25-1273 (residential building stair modernization), and SB25-002 (regional building codes for factory-built structures)

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right applications. However, developers and applicants could still elect to go through Site Review in many instances to allow modifications or to ask for additional height and floor area, as allowed. This is consistent with the TOC bill. Changing the minimum thresholds would enable more projects to move forward by right and would enable the possible number of units to be added to the HOG. Residential projects that are greater than 5 acres and ones less than Site Review thresholds may be added to the HOG. •

Remove or reduce the restrictions related to residential uses on the ground floor in business zoning districts. The Business Regional (BR) and Business Community (BC) zones only allow residential uses on the ground floor with Use Review approval. This is intended to reserve ground floor space for commercial uses.

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Create minimum design standards for by-right projects. If more projects are made to be administrative (no call up or public hearings), the building and site design quality ensured by Site Review could be diminished, especially for highly visible projects along transit corridors. As the TOC bill allows objective standards similar to the FBC, minimum design standards could be added to the code applying to either all by-right projects or those within Transit Centers or along specified corridors. Examples of such standards are minimum building material requirements (e.g., percentage of brick, wood, or metal), minimum amount of window openings on façades, requirements for parking to be behind buildings and not fronting on the street, and/or requiring building entries to front on a street.

Figure 1 is a map of Boulder showing the transit area (blue outline) versus the zones (color polygons) that could be included in transit centers (e.g., are within ¼ of a transit corridor plus an additional ¼ mile and allow more than 15 dwelling units per acre).

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The current data is a snapshot of the analysis thus far. If land use code changes are not pursued, staff is also looking at other updates to the data that could get to the 123,000 HOG number, but these would necessitate meetings with DOLA to confirm that the calculations are consistent with the TOC bill. For instance, projects in higher intensity zones like Business Regional (BR) could be updated with a maximum height of four stories instead of three stories, since many projects in BR have four stories consistent with design guidelines and area plans.

Figure 1- Transit Area (blue outline) vs. Zones that can be a transit center.

Staff has met with DOLA regularly before and after passage of the TOC bill and plans to meet with them in the near future for a courtesy review of the latest figures. If the ultimate calculations fall short of meeting HB24-1313, staff recommends the removal of the FBC Review call up requirement to meet the HOG. Staff suggests this as the original intent of FBC was to remove discretion and increase predictability by applying objective standards that would not require call up or public hearings. This is a best practice and core intent of other form-based codes across the nation. In 2016, City Council and Planning Board were hesitant to remove the call up discretion as the FBC at the time was a pilot and thus, it was kept in the code. Planning Board has expressed concerns within the past year about some FBC Review projects and suggested a council work program item to assess the FBC standards to support desirable design outcomes. If an ordinance is to proceed to remove call up for FBC projects, staff could address the board’s suggestions as part of the ordinance. Additional FBC updates could be done in the future based on observation as well. Staff is always monitoring the land use code for areas of improvement.

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Housing Opportunities Made Easier (HOME) Act (HB26-1001) Background House Bill 26-1001, Housing Opportunities Made Easier (HOME) Act was passed in March 2026. The stated purpose of the HOME Act is to increase the number of affordable housing units across the state by making local zoning regulations more flexible and by quickening the approval process for certain housing developments. This bill supports the development of underutilized land into housing stock in areas of Boulder that have not historically been used for housing. This legislation supports City Council’s goals to streamline processes, which intend to accelerate development timelines and reduce construction costs for future affordable housing projects. Qualifying Properties The bill defines land subject to its standards as “qualifying properties” that are no larger than five acres. These qualifying properties must be owned by school districts, state colleges or universities, boards of cooperative services3, housing authorities, local or regional transportation authorities, nonprofits with a history of providing affordable housing, or nonprofits who have entered into an agreement with (an)other nonprofit(s) with a history of providing affordable housing to develop a residential development on the property. See Attachment A for a list of exemptions to this bill. Per the HOME Act, residential development of a Qualifying Property cannot be denied on the basis of: •

Height, if the maximum height of the development is no taller than three stories, or no taller than 38 feet, or no taller than the height standard that applies to similar housing constructed within the jurisdiction, whichever is most permissive

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Standards, if the regulations are more restrictive than the regulations of similar multi-unit residential developments elsewhere in the jurisdiction

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Density (du/ac) or number of dwelling units, if the development otherwise meets the applicable form and bulk standards

See Attachment A for more details of these provisions. Additionally, where the zoning allows or conditionally allows the following use types on a qualifying property, they must also be allowed in the residential development of such parcel: •

On-site childcare

3 Defined in Section 22-5-103(2) Colorado Revised Statutes as a regional educational service unit designed to

provide supporting, instructional, administrative, facility, community, or any other services contracted by participating members. Participating members can, for example, be boards of education of two or more school districts.

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Any uses that provide “recreational, social, or educational services” to the community

The housing projects produced are subject to administrative approval, meaning the review for these projects would be conducted by staff using objective standards established in this bill and in Title 9. Impacts Based on these eligibility criteria, staff expect qualifying properties to be located only in certain areas of Boulder. Below is a preliminary map that remains under development and will continue to evolve to better represent where new future housing stock could be built under this bill.

Figure 2: Map of Expected Qualifying Properties

Timeline The bill states that jurisdictions must begin fulfilling the expectations of this bill by December 31, 2027. Full compliance of the bill is set for June 30, 2028.

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Potential Changes Staff recommends moving forward with changes to the code, as granting flexibility to use regulations, density requirements, and building height maximums on qualifying parcels will produce more housing in Boulder. Future analysis should study which zoning districts qualifying parcels exist in to better understand the process required to accommodate these demands. Additionally, staff intends to explore how neighboring Colorado communities are meeting the expectations of this new bill. Administrative Approval The State notes that housing produced under the HOME Act is subject to administrative approval or administrative review. Administrative approval process has the same definition under the HOME Act as the TOC Bill, described above. The process requires staff to make decisions about these projects based solely on objective criteria (no site review and no Planning Board or City Council call-up or public hearing) (9-2-2). This procedural change would be implemented through a code change (9-2-1). Other Potential Code Changes To comply with the bill, this new development option would require additional code changes related to form and bulk standards, definitions, and, potentially, to use standards. These potential code changes are listed below: •

Adjust maximum height requirement for principal buildings and uses (Table 7-1) as stated in the bill (38 feet or greater depending on context)

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Update definitions with new terminology, including “Boards of Cooperative Services,” “Exempt Parcel,” “Historic District,” “Nonprofit Organization,” “Qualifying Entity,” “Qualifying Property,” “Recreational, Social, or Economic Services,” “Similar Housing,” “Subject Jurisdiction,” and “Transferable Development Rights Program,” (9-16-1)

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Explore changes to use permissions for “Daycare Center,” “Home Daycare,” and all uses related to “Recreational, Social, or Educational Services” so they are allowed or conditionally permitted per existing zoning district regulations (Table 6-1)

Anticipated Fiscal and Workplan Impacts Analysis of state bills related to land use and development of options to align the Boulder Revised Code with such changes is within the city’s anticipated work plan. This, however, is noted in recognition that capacity for new state and federal requirements and priorities from Council will be impacted by these mandated reforms.

Equity Analysis Zoning changes to allow more housing and increased variety of housing types at different price points is consistent with the city’s equity goals. Ordinances are being 18

prepared for Planning Board and City Council review to align city zoning with the state bills. Staff intends to conduct a racial equity analysis for each of the ordinances before advancing them for decision.

Climate, Resilience, and Sustainability Considerations Concentrating housing along transit corridors is consistent with city goals on accessibility to transit, encouraging transit use to reduce greenhouse gas emissions, and enhanced walkability intended through 15-minute neighborhoods. If more housing is permitted in areas of the city that are within the Wildland Urban Interface, further analysis will be necessary to balance these goals with goals related to neighborhood safety and reducing wildfire threat.

Community Engagement For the most part, these state-related code changes have focused on an inform level of engagement, though each approach has been tailored to the specific topic. Depending on the scope of the changes for each of the future projects, a public engagement plan will be developed in more detail.

Next Steps for City Council Staff is providing this introduction to familiarize City Council with the anticipated changes prior to staff bringing drafted code language to the board. Initial feedback from the Planning Board will help to guide staff’s scoping and drafting. The Proposition 123 changes are expected to come to City Council in October. The TOC changes, if necessary, are expected in 2027 and the HOME Act changes are anticipated for 2027 or early 2028 at the latest. Consistent with the intent of the state laws, staff intends to continue exploring code changes that would: • •

Allow more residential projects through administrative review (staff level) with no call up or public hearing requirements, and Remove some subjective standards for residential projects.

Such changes will likely be in discrete ordinances directly tied to the state bills discussed in this memorandum and others may be included as part of anticipated future changes to the Land Use Code intended to implement the upcoming Boulder Valley Comprehensive Plan update.

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Attachments Attachment A – Housing Opportunities Made Easier (HOME) Act Exemptions and Provisions Attachment B – Summary of Prior Ordinances Adopted by City Council on State Bills

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