Colorado Gov. Polis Threatens Grant Loss Over Housing Law Compliance

Colorado Governor Jared Polis issued an executive order threatening to withhold over $100 million in state grants from cities and counties that do not comply with recent state housing laws aimed at increasing housing options and affordability. The order mandates state agencies to prioritize funding for local governments that demonstrate compliance with laws covering issues such as accessory dwelling units, occupancy limits, higher-density housing near transit, and elimination of minimum parking requirements. Polis emphasized that the directive is designed to encourage local governments to implement these laws in good faith, positioning housing as a statewide concern requiring coordinated action. However, some local officials, including Westminster’s mayor, have criticized the order for undermining local control over land use, citing constitutional protections and practical challenges like limited undeveloped land and water scarcity. Polis acknowledged the diversity of responses from local governments and indicated that the order allows time for communities to develop plans to comply while linking funding eligibility to adherence. The executive order marks an escalation in the state’s enforcement approach, tying critical discretionary grants related to economic development, transportation, and energy efficiency to housing law compliance.