Polis threatens to withhold $280M from cities defying housing laws in new executive order

By Brandon Richard | Denver7

In a new executive order, Gov. Jared Polis identified more than 30 funding sources the state could withhold from cities.

DENVER — Colorado Gov. Jared Polis is turning up the heat on cities that aren’t following new state housing laws.

He issued a new executive order on Wednesday that identifies $280 million in funding that could be withheld from them.

It’s the latest development in a dispute between the governor and leaders of several cities over state housing laws, including laws to increase housing density near transit and another to ban certain cities from enacting or enforcing minimum parking requirements.

“I hope that communities across the state do more on housing, but there’s got to be some state minimum that you can’t actively be part of the problem that makes housing less affordable in our state,” Polis told Denver7 ahead of his announcement. “You need to join the work we’re doing to make living in our state more affordable.”

Funding that could be withheld includes grants, contracts, loans, and tax credits used to support cities in areas such as housing development, land use, transportation, infrastructure, historic preservation, mixed-use incentives, conservation, energy, and climate projects.

Polis said priority for the funding will be given to cities that are complying with state housing laws.

“We’re going to focus the resources we give to local communities around where we can make the biggest difference and who our partners are for housing,” Polis said.

Matt Frommer, the transportation and land use policy manager with the Southwest Energy Efficiency Project (SWEEP), which recently launched the initiative Housing Forward Colorado, said it’s the right move by the governor.

“This executive order is really leveraging some of the state’s competitive grant programs to reward the cities and the counties that are meeting the state land use and housing laws, which have proven to lower housing costs, build more affordable housing and reduce things like climate pollution, energy and water use, and some of that development we’ve seen on Colorado’s natural lands and open space,” Frommer said. “It makes good sense for the state to reward those cities and counties for being proactive about it and helping to solve this regional issue we have on housing.”

Aurora Mayor Mike Coffman said he understands the governor wants to expand affordable housing.

“I fully understand what the governor is trying to do, and I appreciate that he’s trying to expand affordable housing in the state of Colorado, and we share that,” Coffman said. “But there’s a lot of complexities at the local level that have to be taken into account.”

Aurora was one of six cities that sued Polis in May, accusing him of overstepping his authority and violating their right to home rule.

“In my view, it’s clearly unconstitutional,” Coffman said. “Article 20, Section 6 of the state’s constitution really speaks to what local control is, and issues of planning and zoning are clearly local control that the state’s encroaching on.”

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