Colorado's HOME Act Reshapes Residential Development

Denver-based real estate and construction law firm Volpe Law LLC is urging Colorado property developers, investors, and construction companies to prepare for a sweeping new land use law that will significantly alter where and how residential housing is built across the state. Governor Jared Polis signed House Bill 26-1001, known as the Housing Opportunities Made Easier (HOME) Act, on March 25, 2026, with its key provisions taking effect on December 31, 2027. The legislation aims to address Colorado's housing shortage by requiring local governments with populations exceeding 2,000 to allow residential development on "qualifying properties" through a streamlined administrative approval process.

To qualify, a property must be five acres or less and owned by a "qualifying entity," such as school districts, state colleges and universities, housing authorities, transit districts, or nonprofit organizations with a demonstrated history of providing affordable housing. Once qualified, the law limits how local governments can regulate construction: they cannot block projects based on height if the tallest structure is three stories or less, cannot reject projects based on dwelling unit count, and cannot apply site design standards more restrictive than those applied to similar housing already built within the jurisdiction. However, the law does not override all local authority. Parcels in floodways, airport influence areas, conservation easements, agricultural zones, and industrial zones are exempt, and local governments retain the power to enforce building codes, fire safety standards, infrastructure requirements, and inclusionary zoning ordinances.

"This law is going to create real development opportunities across the state, but it raises new questions for everyone involved in a project," said Ben Volpe, founding attorney at Volpe Law LLC. "Developers need to understand which properties qualify and what standards apply. Qualifying entities that own underutilized land need to evaluate whether residential development aligns with their goals. And construction companies bidding on these projects need contracts that reflect the new regulatory requirements." Jurisdictions actively updating their zoning or development codes to comply by the December 31, 2027 deadline will have until June 30, 2028 to complete those updates. Developers, property owners, and construction companies with questions can contact Volpe Law for a complimentary discovery call. The firm, which handles construction litigation, real estate law, commercial disputes, and more, notes that the HOME Act represents one of the most significant changes to Colorado's zoning framework in years.