Governor’s Executive Order provides clarity to state agencies and local governments around the enforcement of state strategic growth laws

DENVER - On May 16, 2025, Governor Polis signed an Executive Order to help increase Colorado’s housing supply, reduce housing costs, and increase energy efficiency, by giving further guidance to state agencies on how to best support local governments who are taking needed action to deliver more housing and help ensure statewide compliance with strategic growth laws passed by the General Assembly and signed into law by Governor Polis.

“We need more housing now. Coloradans are demanding solutions to the high cost of housing. Thoughtful and strategic growth is about the supply and cost of housing, as well as the impact on the environment, and how people can move around our state quickly and easily. In partnership with the legislature and local governments, we are taking major steps to build more housing that people can afford near where they live and work. Costly government regulations should never be a barrier to reducing the cost of living or stand in the way of a person or family finding a home they can afford,” said Governor Polis.

“Colorado is making important progress to increase housing supply and reduce costs for Coloradans in communities around the state, but the cost of housing still remains a major pain point for too many hardworking people. Housing is a multi-jurisdictional concern and today's action prioritizes the building of new homes in communities that are working to successfully implement more housing now for all budgets,” he continued.

Since taking office, Governor Polis has signed landmark laws to build more housing people can afford and near transit, break down barriers to housing, and cut through government red tape to allow for more housing. Major steps forward include new laws around transit-oriented communities and accessory dwelling units, and eliminating discriminatory occupancy limits and costly parking requirements.

Governor Polis and the General Assembly built on that work again this year with new legislation to address construction defects to help build more condos, allow for more smart-stair buildings that create more homes Coloradans can afford, and break down barriers to modular housing.

To date, the state has taken important actions to increase housing units across the state:

• The Division of Housing has awarded over $768 million in housing development awards since the 2020-2021 state fiscal year that have resulted in the creation or preservation of almost 20,000 housing units.
• The Division of Housing has provided Emergency Rental Assistance through three programs and supported almost 65,000 households, with a total investment of over $538 million.
• The Division of Local Government (DLG) has achieved the following since January 2020:
• Awarded almost $153 million for housing in Colorado, which includes more than $17 million for planning and over $135 million for infrastructure.
• Supported the construction of almost 10,000 affordable housing units through implementation and infrastructure projects.
• Assisted over 200 local governments working to implement affordable housing strategies using DLG planning grants.

Today, Governor Polis signed an Executive Order giving the Department of Local Affairs, the Department of Transportation, the Colorado Energy Office, and the Office of Economic Development and International Trade guidance to compile a list of funding opportunities administered by these state agencies for the purpose of establishing priority for communities in compliance with state strategic growth laws.

Specific laws include:

• HB24-1007 - Prohibit Residential Occupancy Limits
• HB24-1152 - Accessory Dwelling Units
• HB24-1304 - Minimum Parking Requirements
• HB24-1313 - Transit-Oriented Communities
• SB24-174 - Sustainable Affordable Housing
• HB25-1273 - Residential Building Stair Modernization
• SB25-002 - Regional Building Codes for Factory-Built Structures

DOLA is also directed to create and update quarterly a list of all Strategic Growth Compliant, Strategic Growth Compliance-in-Progress, and Strategic Growth Non-Compliant local governments by October 6, 2025. DOLA shall make the list available for relevant agencies to establish priority for applicable funding opportunities.

Projects excluded from this consideration include:

• Funding Opportunities that are funded solely based on formulas, statutory criteria or other criteria for which the Relevant Agency has no discretion;
• Funding Opportunities that are federally funded for which the Relevant Agency has no discretion;
• Funding Opportunities that were awarded prior to October 6, 2025 or for which the application process or grant cycle has started by October 6, 2025;
• Funding Opportunities for individuals;
• Funding Opportunities for supportive services or other tenant supports for housing; and
• Funding Opportunities solely for economic development

Once the group of potential funding opportunities is submitted, projects that are necessary for public health or safety and disaster relief programs will be excluded. The Executive Order will be updated to reflect the grants identified by state agencies that are subject to the declarations in the order.

Read the Governor’s full Executive Order.