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--- version:Reengrossed+++ version:(document, no version)@@ -1,296 +1,10 @@-Second Regular Session-Seventy-fifth General Assembly-STATE OF COLORADO-REENGROSSED-This Version Includes All Amendments-Adopted in the House of Introduction-LLS NO. 26-0047.01 Caroline Martin x5902 HOUSE BILL 26-1308-House Committees Senate Committees-Transportation, Housing & Local Government-A BILL FOR AN ACT-CONCERNING LOT SPLITTING APPROVAL BY SUBJECT JURISDICTIONS.101-Bill Summary-(Note: This summary applies to this bill as introduced and does-not reflect any amendments that may be subsequently adopted. If this bill-passes third reading in the house of introduction, a bill summary that-applies to the reengrossed version of this bill will be available at-http://leg.colorado.gov-.)-The bill provides that, on or after December 31, 2027, subject to-an administrative approval process, a subject jurisdiction shall approve-the split of an original lot into 2 new lots if the following conditions are-met:-! The area of the original lot is 2,000 square feet or greater-before the split;-! If the 2 new lots are not equal in area, the area of the-smaller of the 2 new lots is equal to or greater than 40% of-HOUSE-3rd Reading Unamended-March 24, 2026-HOUSE-Amended 2nd Reading-March 23, 2026-HOUSE SPONSORSHIP-Boesenecker and Woodrow, Camacho, Froelich, Lindsay, McCormick, Nguyen, Phillips,-Rutinel, Smith, Stewart R.-SENATE SPONSORSHIP-Amabile and Ball,-Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.-Capital letters or bold & italic numbers indicate new material to be added to existing law.-Dashes through the words or numbers indicate deletions from existing law.-the area of the original lot;-! The original lot is not subject to any previously recorded lot-split;-! Residential use is allowed on the original lot;-! The original lot is not an exempt lot; and-! The original lot is not located within a common interest-community that was created on or before December 31,-2027.-If an original lot or any structure built on the original lot is subject-to an evidence of debt constituting a residential mortgage loan, then prior-to approving the split of an original lot, a subject jurisdiction shall verify-that the holder of the evidence of debt constituting a residential mortgage-loan (holder) has received notice of the proposed lot split and has-consented to the lot split in writing. The holder may condition consent to-the lot split on the satisfaction of specified conditions.-The written consent of the holder must include:-! The signature of the holder or the agent of the holder;-! The name of the record owner or ground lessee of the-original lot;-! The legal description of the original lot; and-! The identities of all parties with an interest in the original-lot, as reflected in the real property records.-The written consent of the holder must be recorded in the office of-the county recorder of the county in which the original lot is located. If-the holder does not provide written consent to the lot split, the subject-jurisdiction shall not approve the lot split.-Be it enacted by the General Assembly of the State of Colorado:1-SECTION 1. In Colorado Revised Statutes, add part 5 to article2-35 of title 29 as follows:3-PART 54-LOT SPLITTING5-29-35-501. Legislative declaration.6-(1) T-HE GENERAL ASSEMBLY FINDS AND DECLARES THAT:7-(a) THE DIVISION OF AN EXISTING RESIDENTIAL LOT RESULTING IN8-THE CREATION OF ONE ADDITIONAL RESIDENTIAL LOT PROVIDES9-MEANINGFUL BENEFITS TO BOTH CURRENT PROPERTY OWNERS AND10-1308-2--PROSPECTIVE HOMEBUYERS . ADMINISTRATIVE LOT SPLITTING CAN1-PROVIDE EXISTING HOMEOWNERS WITH THE FLEXIBILITY NEEDED TO2-ADAPT TO CHANGING LIFE CIRCUMSTANCES SUCH AS AGING IN PLACE ,3-MULTIGENERATIONAL LIVING, AND OTHER CHANGES IN FINANCIAL NEEDS4-WHILE MAINTAINING HOMEOWNERSHIP. LOT SPLITTING, PARTNERED WITH5-A LOW MINIMUM LOT SIZE , CAN EXPAND ATTAINABLE HOMEOWNERSHIP6-OPPORTUNITIES FOR FIRST -TIME HOMEBUYERS AND HOMEBUYERS WITH7-MODERATE-INCOMES;8-(b) THE NEED FOR ADDITIONAL HOUSING UNITS ACROSS THE STATE9-REMAINS URGENT. ACCORDING TO THE COLORADO STATE DEMOGRAPHY10-OFFICE IN ITS SEPTEMBER 2025 RESEARCH BRIEF TITLED "COLORADO'S11-HOUSING SHORTFALL: AN ESTIMATE AND REVIEW OF EXISTING STUDIES,"12-THE STATE'S HOUSING SHORTFALL IS ESTIMATED AT APPROXIMATELY ONE13-HUNDRED SIX THOUSAND UNITS. BASED ON THE MOST RECENT POPULATION14-PROJECTIONS BY THE COLORADO STATE DEMOGRAPHY OFFICE, THE STATE15-MUST ADD APPROXIMATELY THIRTY-FOUR THOUSAND ONE HUNDRED NEW16-HOUSING UNITS ANNUALLY OVER THE NEXT DECADE TO PREVENT AN17-INCREASE IN THE EXISTING HOUSING SHORTFALL;18-(c) ACCORDING TO DATA FROM THE FEDERAL HOUSING FINANCE19-AGENCY AND THE U.S. BUREAU OF ECONOMIC ANALYSIS, HOUSING COSTS20-IN COLORADO HAVE RISEN AT A RATE THAT OUTPACES INCOME GROWTH,21-SUCH THAT IN 2023, HOME PRICES WERE APPROXIMATELY TWO HUNDRED22-TWENTY-THREE PERCENT ABOVE THEIR 2000 VALUES , WHILE MEDIAN23-INCOMES INCREASED BY ONLY ONE HUNDRED FORTY -FOUR PERCENT24-DURING THE SAME PERIOD;25-(d) A BSENT FROM SUSTAINED STRATEGIC ACTION TO INCREASE26-HOUSING PRODUCTION AND ADDRESS SUPPLY BARRIERS, THE GAP BETWEEN27-1308-3--HOUSING SUPPLY AND DEMAND WILL CONTINUE TO WIDEN , ADVERSELY1-AFFECTING AFFORDABILITY , ECONOMIC STABILITY , WORKFORCE2-RETENTION, AND COMMUNITY WELL-BEING THROUGHOUT THE STATE;3-(e) ENTRY-LEVEL STARTER HOMES SERVE AN ESSENTIAL FUNCTION4-IN THE HOUSING MARKET. STARTER HOMES, TYPICALLY UNDERSTOOD AS5-HOMES WITH LESS THAN ONE THOUSAND FOUR HUNDRED SQUARE FEET ,6-ENABLE HOMEOWNERS TO BUILD EQUITY , ESTABLISH LONG -TERM7-STABILITY, AND SHELTER HOMEOWNERS FROM SOME INFLATIONARY8-PRESSURES, THEREBY CONTRIBUTING TO COMMUNITY RESILIENCE;9-(f) THERE IS A CRITICAL NEED TO INCREASE THE PRODUCTION AND10-AVAILABILITY OF STARTER HOMES. AS REPORTED BY THE PEW RESEARCH11-CENTER, NATIONAL TRENDS INDICATE THAT THE REDUCTION IN NEW12-HOUSING DEVELOPMENT HAS BEEN MOST PRONOUNCED AMONG STARTER13-HOMES. ACCORDING TO THE FEDERAL HOME LOAN MORTGAGE14-CORPORATION IN A RESEARCH BRIEF TITLED "HOUSING SUPPLY: A15-GROWING DEFICIT," THE SHARE OF ENTRY -LEVEL HOMES IN OVERALL16-RESIDENTIAL CONSTRUCTION HAS DECLINED FROM APPROXIMATELY FORTY17-PERCENT IN THE EARLY 1980S TO APPROXIMATELY SEVEN PERCENT IN18-2019;19-(g) ACCESS TO AFFORDABLE HOMEOWNERSHIP GENERALLY YIELDS20-BENEFITS BEYOND PROVIDING SHELTER . ACCORDING TO HABITAT FOR21-HUMANITY, CHILDREN IN FAMILIES THAT OWN THEIR HOMES ARE MORE22-LIKELY TO COMPLETE HIGH SCHOOL AND PURSUE POST -SECONDARY23-EDUCATION COMPARED TO THEIR PEERS IN FAMILIES THAT RENT HOMES .24-ADDITIONALLY, HOMEOWNERSHIP CORRELATES WITH GREATER CIVIC AND25-SOCIAL ENGAGEMENT, INCLUDING INCREASED LIKELIHOOD OF VOTING IN26-LOCAL ELECTIONS AND PARTICIPATING IN NEIGHBORHOOD AND27-1308-4--COMMUNITY ASSOCIATIONS; AND1-(h) LAND COSTS ARE AN IMPORTANT CONTRIBUTOR TO OVERALL2-HOUSING COSTS, AND ENABLING LARGER LOTS TO BE SUBDIVIDED AND3-SHARED BETWEEN MULTIPLE HOMES SUPPORTS THE CREATION OF STARTER4-HOMES AND LOWER-COST HOUSING.5-(2) THEREFORE, THE GENERAL ASSEMBLY FINDS, DETERMINES, AND6-DECLARES THAT:7-(a) THE AVAILABILITY OF AFFORDABLE HOUSING IS A MATTER OF8-MIXED STATEWIDE AND LOCAL CONCERN;9-(b) COLORADO HAS A LEGITIMATE STATE INTEREST IN MANAGING10-POPULATION AND DEVELOPMENT GROWTH AND ENSURING A STABLE11-QUALITY AND QUANTITY OF HOUSING FOR ALL COLORADANS, AS THIS IS12-AMONG THE MOST PRESSING PROBLEMS CURRENTLY FACING COMMUNITIES13-THROUGHOUT THE STATE; AND14-(c) LOCAL GOVERNMENT POLICIES THAT LIMIT THE CONSTRUCTION15-OF A DIVERSE RANGE OF HOUSING IN AREAS SERVED BY INFRASTRUCTURE16-EFFECTIVELY CREATE HOUSING SUPPLY SHORTFALLS AND UNSUSTAINABLE17-DEVELOPMENT PATTERNS , AND THEREFORE REQUIRE A STATEWIDE18-SOLUTION.19-29-35-502. Definitions.20-AS USED IN THIS PART 5, UNLESS THE CONTEXT OTHERWISE21-REQUIRES:22-(1) "EVIDENCE OF DEBT" HAS THE MEANING SET FORTH IN SECTION23-38-38-100.3 (8).24-(2) "EXEMPT LOT" MEANS A LOT THAT IS:25-(a) NOT SERVED BY A DOMESTIC WATER AND SEWAGE TREATMENT26-SYSTEM, AS DEFINED IN SECTION 24-65.1-104 (5);27-1308-5--(b) S ERVED BY A WELL THAT IS NOT CONNECTED TO A WATER1-DISTRIBUTION SYSTEM, AS DEFINED IN SECTION 25-9-102 (6);2-(c) SERVED BY A SEPTIC TANK, AS DEFINED IN SECTION 25-10-1033-(18);4-(d) LOCATED WITHIN AN AIRPORT INFLUENCE AREA, AS DEFINED IN5-SECTION 29-35-103; OR6-(e) A HISTORIC PROPERTY THAT IS LOCATED OUTSIDE OF A7-HISTORIC DISTRICT.8-(3) "LIENHOLDER" MEANS THE HOLDER OF AN EVIDENCE OF DEBT.9-(4) "LOT SPLIT" MEANS THE PROCESS OF SUBDIVIDING AN ORIGINAL10-LOT INTO TWO NEW LOTS.11-(5) "SUBJECT JURISDICTION" MEANS A MUNICIPALITY THAT:12-(a) HAS A POPULATION OF ONE THOUSAND OR MORE, AS REPORTED13-BY THE STATE DEMOGRAPHY OFFICE; AND14-(b) IS WITHIN A METROPOLITAN PLANNING ORGANIZATION.15-29-35-503. Lot splitting approval by subject jurisdictions.16-(1) E XCEPT AS PROVIDED IN SECTION 29-35-504, ON OR AFTER17-DECEMBER 31, 2027, SUBJECT TO AN ADMINISTRATIVE APPROVAL PROCESS18-AND IN ACCORDANCE WITH THIS PART 5, A SUBJECT JURISDICTION SHALL19-APPROVE A LOT SPLIT OF AN ORIGINAL LOT INTO TWO NEW LOTS IF THE20-FOLLOWING CONDITIONS ARE MET:21-(a) THE LOT SPLIT DOES NOT CREATE A NEW LOT THAT IS SMALLER22-THAN ONE THOUSAND TWO HUNDRED SQUARE FEET IN AREA;23-(b) IF THE TWO NEW LOTS ARE NOT EQUAL IN AREA, THE AREA OF24-THE SMALLER OF THE TWO NEW LOTS IS EQUAL TO OR GREATER THAN25-THIRTY PERCENT OF THE AREA OF THE ORIGINAL LOT;26-(c) THE ORIGINAL LOT WAS NEVER SUBJECT TO ANOTHER LOT SPLIT27-1308-6--APPROVED THROUGH AN ADMINISTRATIVE APPROVAL PROCESS IN1-ACCORDANCE WITH THIS SECTION;2-(d) RESIDENTIAL USE IS ALLOWED ON THE ORIGINAL LOT;3-(e) IT IS FEASIBLE FOR:4-(I) BOTH OF THE NEW LOTS TO BE ACCESSED DUE TO ABUTMENT TO5-A PUBLIC OR PRIVATE STREET OR BY USE OF AN ACCESS EASEMENT, WHICH6-MAY INCLUDE SHARED COMMON ACCESS;7-(II) UTILITY EASEMENTS TO SERVE BOTH NEW LOTS; AND8-(III) BOTH NEW LOTS TO MEET THE REQUIREMENTS OF ARTICLES9-50, 51, 52, AND 53 OF TITLE 38;10-(f) THE ORIGINAL LOT IS NOT AN EXEMPT LOT; AND11-(g) T HE ORIGINAL LOT IS NOT LOCATED WITHIN A COMMON12-INTEREST COMMUNITY, AS DEFINED IN SECTION 38-33.3-103 (8), THAT WAS13-CREATED ON OR BEFORE DECEMBER 31, 2027.14-(2) I N ACCORDANCE WITH SUBSECTION (1) OF THIS SECTION, A15-SUBJECT JURISDICTION MAY ESTABLISH PROCEDURES TO REVIEW AND16-ACCEPT INFORMATION RELATED TO A PROPOSED LOT SPLIT, INCLUDING LOT17-INFORMATION RELATED TO:18-(a) PROPERTY OWNERSHIP;19-(b) PHYSICAL CHARACTERISTICS OF THE LOT, INCLUDING GEOLOGY20-AND SOILS;21-(c) PROPOSED NEW LOT LINES AND NEW LOT AREAS;22-(d) ADEQUACY OF WATER SUPPLY, SEWER SERVICE, AND DRAINAGE23-SYSTEMS TO SERVE THE NEW LOTS;24-(e) ADEQUACY OF ELECTRIC POWER AND NATURAL GAS SERVICE25-TO SERVE THE NEW LOTS;26-(f) D EDICATION FOR SCHOOLS , PARKS, STREETS, AND OTHER27-1308-7--PUBLIC AREAS, OR PAYMENT OF MONEY IN LIEU OF SUCH DEDICATION; AND1-(g) GUARANTEES OF NECESSARY PUBLIC IMPROVEMENTS.2-(3) NOTHING IN THIS SECTION PREVENTS A SUBJECT JURISDICTION3-FROM:4-(a) A PPLYING AND ENFORCING A LOCAL INFRASTRUCTURE5-STANDARD , INCLUDING A STANDARD RELATED TO UTILITIES ,6-TRANSPORTATION, OR PUBLIC WORKS CODES;7-(b) A PPLYING AND ENFORCING A LOCAL LIFE SAFETY CODE ,8-INCLUDING A BUILDING, FIRE, UTILITY, OR STORMWATER CODE;9-(c) APPLYING AND ENFORCING A REGULATION RELATED TO HUMAN10-AND ENVIRONMENTAL HEALTH AND SAFETY , INCLUDING OIL AND GAS11-SETBACKS, FLOODPLAIN REGULATIONS, AND AIRPORT INFLUENCE AREAS;12-(d) APPLYING AND ENFORCING A LOCAL REGULATION RELATED TO13-DEVELOPMENT, INCLUDING STORMWATER , IMPERVIOUS SURFACE AREA ,14-AND BUILDING COVERAGE STANDARDS;15-(e) ADOPTING GENERALLY APPLICABLE REQUIREMENTS FOR THE16-PAYMENT OF IMPACT FEES OR OTHER SIMILAR DEVELOPMENT CHARGES, IN17-ACCORDANCE WITH SECTION 29-20-104.5, OR FOR THE MITIGATION OF18-IMPACTS IN ACCORDANCE WITH PART 2 OF ARTICLE 20 OF THIS TITLE 29;19-(f) R EQUIRING A STATEMENT BY A WATER OR WASTEWATER20-SERVICE PROVIDER REGARDING THE PROVIDER'S CAPACITY TO SERVICE A21-PARCEL;22-(g) E NACTING OR APPLYING A LOCAL LAW CONCERNING A23-SHORT-TERM RENTAL, AS DEFINED IN SECTION 29-35-402 (19); OR24-(h) A PPLYING THE DESIGN STANDARDS AND PROCEDURES OF A25-HISTORIC DISTRICT TO A PARCEL LOCATED WITHIN A HISTORIC DISTRICT.26-(4) A SUBJECT JURISDICTION:27-1308-8--(a) S HALL NOT APPLY A SETBACK STANDARD THAT REQUIRES A1-SETBACK FROM THE LOT LINE ADJOINING TWO NEW LOTS CREATED2-THROUGH A LOT SPLIT IN ACCORDANCE WITH THIS SECTION IF NO3-STRUCTURE EXISTED ON THE ORIGINAL LOT IMMEDIATELY PRECEDING THE4-LOT SPLIT; AND5-(b) MAY APPLY A SETBACK STANDARD THAT REQUIRES A SETBACK6-FROM THE LOT LINE ADJOINING TWO NEW LOTS CREATED THROUGH A LOT7-SPLIT IN ACCORDANCE WITH THIS SECTION IF A STRUCTURE EXISTED ON8-THE ORIGINAL LOT IMMEDIATELY PRECEDING THE LOT SPLIT AND IF THE9-SETBACK IS EQUAL TO OR LESS THAN FIVE FEET.10-(5) NOTHING IN THIS PART 5 SHALL BE CONSTRUED TO SUPERSEDE,11-INVALIDATE, OR LIMIT THE ENFORCEABILITY OF PRIVATE COVENANTS ,12-CONDITIONS, OR RESTRICTIONS RECORDED AGAINST THE ORIGINAL LOT ,13-EXCEPT AS EXPRESSLY PROVIDED BY LAW.14-29-35-504. Consent of lienholder required prior to lot split.15-(1) I F AN ORIGINAL LOT OR ANY STRUCTURE BUILT ON THE16-ORIGINAL LOT IS SUBJECT TO AN EVIDENCE OF DEBT, THEN PRIOR TO17-APPROVING A LOT SPLIT IN ACCORDANCE WITH SECTION 29-35-503 (1), A18-SUBJECT JURISDICTION SHALL VERIFY THAT THE LIENHOLDER HAS19-RECEIVED NOTICE OF THE PROPOSED LOT SPLIT AND HAS CONSENTED TO20-THE LOT SPLIT IN WRITING. THE LIENHOLDER MAY CONDITION CONSENT TO21-THE LOT SPLIT ON THE SATISFACTION OF CONDITIONS SPECIFIED BY THE22-LIENHOLDER.23-(2) T HE WRITTEN CONSENT OF THE LIENHOLDER MUST BE24-EXECUTED IN A FORM THAT IS ELIGIBLE FOR RECORDING IN THE REAL25-PROPERTY RECORDS OF THE COUNTY IN WHICH THE ORIGINAL LOT IS26-LOCATED AND MUST INCLUDE THE FOLLOWING:27-1308-9--(a) THE NOTARIZED SIGNATURE OF THE LIENHOLDER OR THE AGENT1-OF THE LIENHOLDER;2-(b) THE NAME OF THE RECORD OWNER OR GROUND LESSEE OF THE3-ORIGINAL LOT;4-(c) THE LEGAL DESCRIPTION OF THE ORIGINAL LOT; 5-(d) T HE IDENTITIES OF ALL PARTIES WITH AN INTEREST IN THE6-ORIGINAL LOT AS REFLECTED IN THE REAL PROPERTY RECORDS, INCLUDING7-ANY EASEMENTS AND ENCUMBRANCES.8-(3) T HE WRITTEN CONSENT OF THE LIENHOLDER MUST BE9-RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF THE C OUNTY IN10-WHICH THE ORIGINAL LOT IS LOCATED.11-(4) IF THE LIENHOLDER DOES NOT PROVIDE WRITTEN CONSENT TO12-THE LOT SPLIT IN ACCORDANCE WITH THIS SECTION , THE SUBJECT13-JURISDICTION SHALL NOT APPROVE THE LOT SPLIT . A LOT SPLIT THAT IS14-APPROVED BEFORE THE WRITTEN CONSENT OF THE LIENHOLDER HAS BEEN15-OBTAINED AND RECORDED IS VOID.16-SECTION 2. Safety clause. The general assembly finds,17-determines, and declares that this act is necessary for the immediate18-preservation of the public peace, health, or safety or for appropriations for19-the support and maintenance of the departments of the state and state20-institutions.21-1308-10-+HB1308_L.010 Amendment No. ___________+HB26-1308+HOUSE FLOOR AMENDMENT+Second Reading BY REPRESENTATIVE Richardson+1 Amend the Transportation, Housing and Local Government Committee+2 Report, dated March 17, 2026, page 1, strike line 7 and substitute:+3 "Page 6, lines 19 and 20, strike "SHALL APPROVE" and substitute "SHALL+4 CONSIDER APPROVING".".+** *** ** *** **+LLS: Caroline Martin x5902
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