Let’s start with housing.
Many Coloradans are struggling to find a place where they can afford to live. Many more are being forced out of their neighborhoods with no hope of ever living close to where they work. This means more traffic, lost time and money spent on long commutes, more air pollution, and greater economic and workforce challenges.
This is not just a local problem. Since issues like transportation, water, energy, and more inherently cross jurisdictional boundaries, it becomes a statewide problem that impacts all of us.
We need an approach that creates more housing now, protects Colorado's resources and reduces sprawl. It’s clear that the actions of one jurisdiction impact others, especially when it comes to housing, our environment, transportation systems, roads and transit, water and sewer infrastructure, and indeed our economic prosperity and growth.
Frankly, Coloradans see it that way too and it’s why we’re all here today. The people of Colorado expect us to deliver to make housing more affordable.
And if we don’t act now, we will soon face the point of no return. Just look West. In California, decades of poor planning has led to interruptions of drinking water and electricity for entire towns and cities, average home prices over a million dollars in major cities, and 16-lane freeways with bumper to bumper traffic.
We are not California, we are Colorado.
And I refuse to let us make those same mistakes.
When Colorado is 150 years old, we need our state to have more housing for every Colorado budget, close to where jobs are.
You know the last time Colorado made major land use changes was in 1974 — before I, and most of you, were born! We were a different state then. Over the last half century, housing prices have increased roughly four times the rate of income. That means a house today costs over four times as much compared to today’s income levels than 60 years ago, putting the dream of homeownership out of range for too many Coloradans. This has got to stop. We need to bring our land use policy into the 21st century and prepare ourselves for success these next 150 years.
We need more housing now. It’s simple supply and demand.
These aren’t new ideas. In fact the Good Book offers similar urban planning advice in Isaiah 54:2-3
Make your tent bigger, stretch them out and make them wider, do not hold back. Make the ropes longer and stakes stronger, because you will spread out to the right and to the left, and your children will live again in cities that were once abandoned.
Let us heed the words of Isaiah in our times. It’s time to legalize more housing choices for every Coloradan and give homeowners more freedom, revitalize our cities and towns, while protecting the character of our state.
Colorado can be a place where people live where they want to live – close to their jobs, their kids’ schools and efficient, low-cost transit. We can save Coloradans money on housing and we can do it while meeting our climate goals!
Building smart, efficient housing statewide, especially in urban communities and job centers, won’t just reduce costs, it will save energy, conserve our water, and protect the lands and wildlife that are so important to our Colorado way of life.
It will also support our vision for public transit, which is to create lower-cost ways to travel that gives Coloradans more choices and leads to more breathable air and less traffic.
Together we have laid the foundation for a statewide road and transit system that meets the needs of Coloradans. First, with investments from the historic Senate Bill 260, and then with the creation of the Front Range Rail District, which is scheduled to deliver a draft service plan by 2024. Thank you to President Fenberg, Senator Winter and Senator Zenzinger, for your leadership on those bills. Over the next few years we will continue working toward that vision, and I am asking CDOT to work with local transit partners to identify and take the next steps towards better lower cost transit options.
More housing now is for people, for planet, and for prosperity. It’s for people who need a roof over their head and who want to recognize the dream of home ownership and wealth building. It’s for the planet to reduce our emissions and conserve water. And it’s for our prosperity as a state to ensure that businesses can hire people to power our economy. Let me be clear - Housing policy is climate policy.
Housing policy is economic policy.
Housing policy is transportation policy.
Housing Policy is water policy.
Housing policy is public health and equity policy.
It impacts EVERY part of our lives, which is why it’s so critical that we get this right. We need everyone to come to the table and work toward a real solution.
Now I know this won’t be easy. Nothing worth fighting for ever is. But in Colorado, we don’t shy away from tough challenges; we roll up our sleeves and get to work.
Since 2019 we have invested billions of dollars into housing. We created the first ever dedicated funding source for affordable housing and put American Rescue Plan Act dollars toward projects around the state. Now, voters have passed Prop 123 to dedicate hundreds of millions of dollars in the coming years. But we can't just buy our way out of this, we have to break down government barriers, expand private property rights, and reduce regulations to actually construct more housing options at a lower cost so all Coloradans can thrive.
We took a first step to break down those barriers and support local innovation with House Bill 1271. I want to thank Speaker McCluskie, Representative Jodeh, and Senator Gonzales for their efforts on this bill.
One of the grants from that bill went to support the City of Greeley, which utilized funding to encourage different types of housing, including homes with a smaller footprint, options for accessory dwelling units, manufactured homes, micro homes and more. They are also creating more home ownership opportunities in partnership with Habitat for Humanity.
Today we’re joined by City Manager Raymond Lee and his team, thank you for your work. (UPPER GALLERY - MIDDLE LEFT) We’re seeing this kind of local innovation and leadership in other parts of the state, as well. Summit County and the Town of Breckenridge are building a new 52 unit workforce apartment complex near Downtown Breckenridge to make it easier for workers to find a place to live in their own community.
Projects like this typically take 18-24 months just to get approved, but thanks to Summit County donating the land and the leadership of local officials, this one got the greenlight after just six months, leading to 52 new homes years ahead of schedule and millions of dollars in savings.
From Breckenridge we are joined by Mayor Eric Mamula (MAM-YU-LAH), members of the Town Council, and Senior Planner Laurie Best. From Summit County we are joined by Commissioners Tamara Pogue, Elizabeth Lawrence, and Joshua Blanchard, and Housing Director Jason Dietz.
Please join me in welcoming them all today. (UPPER GALLERY LEFT CORNER) & MAYOR IN WELL TO LEFT
But the innovation and savings don’t end there.
Because Summit County is partnering with modular home company Fading West out of Buena Vista, they are saving roughly 20% on construction costs and months of construction time. If you can believe it, Fading West can build a home in roughly 18 working days, compared to about a year for traditionally built homes. I had the chance to visit their factory in November, and it’s so exciting to see this innovation at work.
Today we’re joined by Fading West CEO Charlie Chupp and Vice President of Sales and Strategic Partnerships Eric Schaefer. They and other modular and prefabricated home companies are committed to building more housing opportunities quicker and at a lower cost. Please join me in thanking them for their cost-saving innovations. (UPPER GALLERY - LEFT CORNER)
But listen, the reality is that projects like these are the exception, not the rule.
The more common scenario is that housing projects are rejected or mired in years of red tape – adding costs and time.
I’m here asking you to help me protect the Colorado we love, so Coloradans can stay in their communities and live near where they work, protect our open space, and reduce traffic. Let’s make sure Colorado stays Colorado.
This means that we need more flexible zoning to allow more housing, streamlined regulations that cut through red tape, expedited approval processes for projects like modular housing, sustainable development, and more building in transit oriented communities.
Of course, we also recognize that the state must be a contributing partner in this work, so we are aggressively making parcels of state-owned land available for housing. One example is the Dowd Junction project in Vail Valley, where we are planning to build 80 units of workforce housing on state land. My budget includes funding for other governments and public land owners like counties, school districts, cities, and transportation districts to proactively partner with the private sector to build more housing, and I call on all of them to join our efforts.
We also want to continue our work to reduce property taxes for Coloradans.
Last year we saved Coloradans more than $700 million through historic property tax relief for homeowners and businesses, while protecting funding for schools thanks to the work of Senator Hansen and Representative Weissman. But residential values grew more than 26% over the last two years, much more than most people’s incomes went up during the same period. If we don’t act, property taxes will go up by hundreds, even thousands, of dollars. We need to prevent these steep increases by taking decisive action.
We must also work together to pass a long-term property tax relief package that reduces residential and commercial property taxes and creates a long-term mechanism to protect homeowners from being priced out of their homes, while protecting school funding. This will make Colorado more competitive and more affordable.
I’m proud that this year, Colorado is the first state in the country where every homeowner can defer paying some of these increases in their property taxes until their property is sold. No one should lose their home simply because its value, and therefore property taxes, went up. I want to thank our state treasurer, Dave Young, for his tireless work to help property owners and I look forward to finding opportunities to expand deferrals to save people money on property taxes.
We should also make the senior homestead tax exemption portable. Our seniors should be able to downsize without having to pay higher property taxes, freeing up their larger old homes for younger, growing families.
A more just tax system that promotes prosperity for all is a passion I share with many of you in this chamber. While we don’t always agree on the path, I know all of us want to save Coloradans money!
It’s no secret that I, and most economists, despise the income tax. I was proud to have supported two successful income tax cuts at the ballot and since I took office our income tax rate has gone from 4.63% to 4.44%, helping produce strong economic growth and low unemployment. We have worked together to close special interest tax loopholes to pay for the income tax cut and provided even greater tax relief to Colorado families, seniors and small businesses. Last year we also worked together to send every tax filer $750 nearly a year ahead of schedule, providing real inflation relief just when people needed it most! Together, we can and should do more.
I don’t expect that we can fully eliminate the income tax by our 150th anniversary, but let’s continue to make progress. With healthy budget surpluses from our strong economy, we should further reduce the income tax rate for everybody while doubling down on relief for working families with policies like expanding the earned income tax credit. We have the tools to save people money. It’s what the voters sent us here to do.
Making our state more affordable and creating more housing now is truly one of the most effective ways to reduce homelessness. We continue seeking proposals from local governments to utilize the $200 Million that this legislature invested last year to reduce homelessness. Thank you to Representatives Woodrow and Valdez, and Senators Gonzales, Hansen, Fields, and Coleman for your work securing that transformational funding. There are many approaches that have worked in other states, and we hope to see those proven models replicated here.
This is going to be a lot of work, and it’s going to take all of us in this chamber to get it done. We are here to solve the big problems, and the cost of housing tops that list.
This is what Coloradans are calling for, and it’s up to us to take action to protect our shared future.