Agenda Date: 02/03/2026
Subject:
Title
Resolution 08-2026: Supporting House Bill 26-1065 “Transit and Housing Investment Zones”
Body
|
From: |
James L. Becklenberg, City Manager |
|
Prepared by: |
Reid Betzing, City Attorney |
|
Presentations: |
Reid Betzing, City Attorney |
PURPOSE:
Council consideration of a resolution in support of House Bill 26-1065 Transit and Housing Investment Zones.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
House Bill 26-1065, Transit and Housing Investment Zones is a bill that is being advanced through the state legislature that that seeks to address housing challenges in Colorado by providing a new financing mechanism utilizing tax increment financing (“TIF”) to encourage local government efforts to improve infrastructure near transit and rail stations that will promote placement and spur housing development supported by tax credits.
The bill would allow for the creation of “transit investment areas” and for the utilization of TIF from the state’s sales tax. In Colorado, tax increment financing (TIF) is a tax incentive mechanism utilized by cities and towns for redevelopment projects within an urban renewal area (URA) or a downtown development authority (DDA). TIF is used to promote capital development by dedicating growth in property or sales tax revenue to finance projects within the boundaries of the authority. This allows developers to use a portion of the revenues to pay expenses or debt with the expectation that revitalization of the surrounding area will improve the local economy and increase tax revenue for local governments. The portion used for redevelopment is the tax increment, or the difference between the actual amount of revenue collected after the TIF is established and the base year tax revenue, with adjustments.
Under the current iteration of the bill a local government or a local government in conjunction with a transit agency could submit an application for a transportation investment project which would establish a transit investment area or zone to the State’s Office of Economic Development (“OED”). The OED would review the application and apply the proposed project to the various criteria for the establishment of a transit investment area. If approved, state sales tax increment would be remitted to the authority established by the transit investment project to utilize that increment towards the project.
Some of the eligible expenses for a transit investment project are:
(a) ROADS;
(b) STREETS;
(c) STATE HIGHWAYS;
(d) RIGHTS-OF-WAY;
(e) LIGHTING;
(f) DIRECTION AND LOCATION SIGNAGE AND SIMILAR SIGNAGE;
(g) LAND ACQUISITION;
(h) SURVEYING, ENGINEERING, SOILS TESTING, SITE PLANNING, GRADING, AND SIMILAR ACTIVITIES NECESSARY OR CONVENIENT FOR SITE PREPARATION AND DEVELOPMENT;
(i) TRAILS AND PATHS;
(j) PUBLIC SAFETY FACILITIES;
(k) LANDSCAPING;
(k) TRANSPORTATION FACILITIES;
(m) BICYCLE AND PEDESTRIAN INFRASTRUCTURE;
(l) SURFACE AND STRUCTURED PARKING FACILITIES; AND
(o) ANY OTHER FACILITIES OR IMPROVEMENTS NECESSARY ORCONVENIENT FOR THE COMPLETION OF AN APPROVED PROJECT.
The bill would also allow for tax credits to be awarded for the construction of low income and affordable housing within the transit investment project area.
FISCAL IMPACTS:
N/A
STAFF RECOMMENDATION:
Staff recommends the approval of Resolution 08-2026 in support of HB 26-1065 Transit and Housing Investment Zones as it is another tool that could, in the right conditions, be used to help support development in the city near a designated transit area.
ALTERNATIVES:
Council could postpone consideration of this resolution or vote to be in support of the bill.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 08-2026 supporting House Bill 26-1065 Transit and Housing Investment Zones.