DENVER — Colorado Governor Jared Polis has issued a stern warning to local governments: comply with state housing regulations or face the loss of at least $100 million annually in state funding. This directive comes amid ongoing efforts to address the state’s housing crisis, which has seen Polis take significant legislative strides in recent years.
In his latest executive order, signed recently, Polis is elevating the confrontation between state mandates and local control. Over the past two years, he has enacted a series of laws focused on issues such as residential occupancy limits, accessory dwelling units, and transit-oriented development. Despite these initiatives, some municipalities have resisted adherence to these new regulations, prompting the governor to take a firmer stance.
During an interview, Polis expressed his intent clearly: “What we are doing now is making sure we are putting our money where our mouth is.” His executive order entrusts the Colorado Division of Local Government with monitoring compliance among cities and counties. Those that comply will receive priority access to discretionary grants for economic development, transportation, and energy efficiency programs.
Polis emphasized the importance of collective efforts in tackling housing challenges, stating, “We need all our communities to step up and be part of the housing solution.” However, not all local leaders share this sentiment. Westminster Mayor Nancy McNally has raised concerns about the practicality of some new laws, noting her city has only 2% undeveloped land and limited water resources. She argues that the Colorado Constitution grants home rule cities like Westminster authority over land use decisions.
McNally explained that the city council has instructed staff to refrain from complying with certain laws, even if it harms their eligibility for state funds, which had previously contributed $6 million for various projects over the past five years. Some cities are reportedly considering legal action against the state, with McNally asserting that this dispute centers on local governance.
Polis, however, disagrees with such interpretations. He asserts that housing is a statewide issue that requires unified action. The executive order is not only facing backlash from local governments but also criticism from Colorado House Republicans. State Rep. Chris Richardson denounced the order as an example of government overreach disguised as housing reform.
Richardson’s criticism highlighted a perceived irony in Polis’s approach, recalling past comments the governor made against similar tactics used by former President Donald Trump. In response, Polis’s office clarified that his administration’s actions are aimed at implementing, rather than undermining, existing laws, which were supported by a majority in the legislature.
Moving forward, state agencies will begin detailing which grants will be influenced by the new order in the coming months. Notably, any funding related to public health and safety or disaster relief will be exempt from the impending changes.
This ongoing clash over housing regulations underscores the broader tension between state authority and local governance in addressing Colorado’s pressing housing needs.
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