C.R.S. § 29-35-503: Residential developments on qualifying properties.

(1) Residential developments on qualifying properties. Except as provided in subsection (5) of this section, on or after December 31, 2027, subject to an administrative approval process and in accordance with this part 5, a subject jurisdiction shall allow a residential development to be constructed on a qualifying property if the qualifying property does not contain an exempt parcel; except that, if on December 31, 2027, a subject jurisdiction is actively in the process of updating the subject jurisdiction's zoning or development code to comply with the requirements of this part 5, the subject jurisdiction shall complete the updates and shall comply with all requirements of this part 5 by June 30, 2028.

(2) Verification of nonprofit status. A subject jurisdiction may request, as part of an initial development application, that a nonprofit organization with a demonstrated history of providing affordable housing provide documentation that it meets any one of the criteria listed in section 29-35-502 (6). The nonprofit organization shall provide the requested documentation but is not required to provide documentation of more than one of the criteria listed in section 29-35-502 (6) to be verified by the subject jurisdiction.

(3) Subject jurisdiction administrative practices. Nothing in this section prevents a subject jurisdiction from:

(a) Applying and enforcing infrastructure standards in local law during the administrative approval process, including standards related to utilities, transportation, or public works codes;

(b) Applying and enforcing a locally adopted life safety code, including a building, fire, wildfire resiliency, utility, or stormwater code;

(c) Applying and enforcing regulations related to human and environmental health and safety, including oil and gas setbacks, floodplain regulations, and airport influence areas;

(d) Adopting generally applicable requirements for the payment of impact fees or other similar development charges in accordance with section 29-20-104.5, or the mitigation of impacts in accordance with part 2 of article 20 of this title 29;

(e) Requiring a statement by a water or wastewater service provider regarding the provider's capacity to service the property as a condition of allowing a residential development;

(f) Applying and enforcing inclusionary zoning ordinances, deed restrictions, community benefit agreements, development agreements, or other affordable housing policies or standards in accordance with section 29-20-104;

(g) Applying site design standards to allow a residential development to be constructed on a qualifying property when such residential development could be disallowed based on the standards described in section 29-35-504 (1), or otherwise offering affordable housing incentives to developers;

(h) Enacting or applying a local law concerning a short-term rental, as that term is defined in section 29-35-402 (19), of a dwelling unit on a qualifying property;

(i) Enacting or applying a local law that requires notifying the public regarding a development application or soliciting and collecting feedback from residents of the subject jurisdiction;

(j) Applying laws and policies to a qualifying property pursuant to accepted housing needs assessments and accepted housing action plans that encourage the development of a range of housing types in accordance with part 37 of article 32 of title 24;

(k) Offering funding, financing incentives, or development incentives that may require approval in a public hearing to a developer of a residential development, if the funding or incentives would lead to the development of a greater amount of affordable housing units than the amount of affordable housing units that would be developed in the absence of the funding or incentives and the developer of the residential development is not required to accept the funding or incentives;

(l) Requiring common law or statutory dedications of interest in land associated with a residential development on a qualifying property to be accepted by the legislative body of a local government;

(m) Applying and enforcing subdivision regulations;

(n) Exercising the subject jurisdiction's right of first refusal in accordance with section 29-4-1202; or

(o) Applying the design standards and procedures of a historic district to a qualifying property that is located in a historic district, including a standard or procedure related to demolition.

(4) School district administrative practices. Nothing in this section prevents a school district from constructing, purchasing, or remodeling a teacherage pursuant to section 22-32-110 (1)(d), or from using any of the processes described in section 22-32-124 regarding buildings and structures.

(5) Transferable development rights program. A subject jurisdiction is not required to allow a residential development on a qualifying property in accordance with subsection (1) of this section if the subject jurisdiction implements a transferable development rights program on the qualifying property, and the transferable development rights program includes a policy for affordable resident housing that is restricted in ownership and occupancy in perpetuity by a deed restriction, covenant, or a mechanism provided in section 29-35-103 (16)(b).