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 ...
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