Fort Collins and Larimer County Show High Compliance with State Housing Laws, Improving Grant Access

Fort Collins and Larimer County are among Colorado communities demonstrating strong compliance with state housing laws designed to increase affordable housing supply, according to an October 7 announcement from the Colorado Department of Local Affairs.

DOLA reported high rates of compliance among local governments statewide with seven laws related to strategic growth passed during the 2024 and 2025 legislative sessions. The compliance determination follows Governor Jared Polis' May 16 Executive Order requiring state agencies to track how jurisdictions are implementing the housing-focused legislation.

Fort Collins and Larimer County were specifically named among communities implementing the strategic growth laws at a high level, alongside Denver, Colorado Springs, Boulder, Longmont, and Wheat Ridge.

"We are seeing local governments, like Denver, Colorado Springs, Boulder, Longmont, Wheat Ridge, Larimer County and Fort Collins to name a few, implement these strategic growth laws at a high level, which showcases the sheer amount of work already done by these communities to build more housing for Coloradans," said Maria De Cambra, DOLA Executive Director.

Compliance Status Affects Grant Prioritization

Beginning October 6, compliance with the state housing laws now serves as a scoring factor for 34 grant opportunities across multiple state agencies, including DOLA, the Office of Economic Development and International Trade, the Colorado Energy Office, and the Colorado Department of Transportation.

The grant programs represent over $200 million in competitive funding awarded annually statewide for housing, climate-friendly initiatives, and infrastructure projects, according to the Southwest Energy Efficiency Project. Compliance does not make jurisdictions ineligible for grants but affects scoring and prioritization.

Fort Collins, Loveland, and Larimer County have regularly received funding through these programs over the past three years, including Community Development Block Grants, multimodal transportation funds, energy code adoption grants, and Safe Routes to School infrastructure grants.

The Executive Order excludes projects necessary solely for public health or safety as well as disaster relief programs from the compliance consideration.

Seven Laws Target Housing Barriers

The strategic growth legislation aims to increase Colorado's housing supply and reduce costs by removing regulatory barriers. The laws address accessory dwelling units, transit-oriented development, housing planning requirements, parking minimums, occupancy limits, regional building codes for factory-built structures, and residential stair modernization.

For accessory dwelling units under HB24-1152, only 9 percent of subject jurisdictions statewide achieved full compliance by the June 30 reporting deadline, while 73 percent showed compliance in progress and 18 percent remained noncompliant.

Larimer County revised its requirements by June 30 so applicants no longer need to undergo a planning process for accessory living areas, according to county building regulations. The county now permits ADUs on any lot zoned for single-family dwellings, with standards no more restrictive than those for single-unit detached homes.

Fort Collins adopted proactive amendments to its Land Use Code before the statewide deadline, aligning local ADU standards with state requirements. The city had already begun allowing ADUs on all single-family lots with objective standards for approval.

Transit and Housing Planning Requirements

For transit-oriented communities under HB24-1313, 60 percent of subject jurisdictions submitted required preliminary reports by the June 30 deadline, while 9 percent showed compliance in progress and 31 percent remained noncompliant.

The housing planning law SB24-174 requires jurisdictions to complete housing needs assessments by December 31, 2026. As of the October 7 announcement, 24 percent of subject jurisdictions had completed the assessment ahead of the deadline, while 76 percent showed compliance in progress.

Larimer County is preparing to adopt its Housing Needs Assessment before year-end 2025 to meet compliance and grant eligibility requirements.

Other laws including parking minimum reductions under HB24-1304 and elimination of occupancy limits under HB24-1007 do not have reporting requirements until December 31, 2026. Subject jurisdictions are assumed compliant unless verified evidence shows otherwise.

Local Support for Strategic Growth

"There is no silver bullet when it comes to solving the affordability crisis in our state. Addressing this crisis requires strong partnerships and utilization of an array of planning tools and development approaches," said Larimer County Commissioner Jody Shadduck-McNally. "Here in Larimer County, we saw the promise of accessory dwelling units and wanted to take advantage of the state's grant program to incentivize the building of these housing units."

Housing advocacy organizations praised the early compliance rates across Colorado.

"As advocates for efficient and climate-friendly urban growth, we are heartened to see so many municipalities embracing planning best practices by aligning their codes with the state's 2024 housing and land use laws," said Matt Frommer, Transportation and Land Use Policy Manager with the Housing Forward Colorado campaign at the Southwest Energy Efficiency Project.

Regional Housing Shortfall Context

The State Demography Office recently released an analysis showing Colorado's housing shortfall reached 106,000 units in 2023, according to DOLA. While the state has narrowed the housing gap since its peak in 2019, significant work remains.

Larimer County faced an estimated housing unit shortfall of 5,870 units as of 2023, according to the State Demography Office, down from approximately 7,300 units in 2019. Weld County had an estimated shortfall of 7,420 units in 2023, compared to roughly 9,900 units in 2019.

The two counties combined account for approximately 12.5 percent of the statewide housing gap.

DOLA must update jurisdictions' compliance status at least once per quarter under the Executive Order, and jurisdictions may submit new information at any time to demonstrate progress toward compliance.

Additional resources and information about strategic growth compliance can be found on DOLA's Tools, Guidance and Engagement webpage, including recordings of past webinars and the public compliance dashboard showing quarterly updates.