January 2026 HBAWCO Governmental Affairs Update

Prepared by Diane Schwenke, HBA Governmental Affairs Consultant

Housing Affordability Task Force.  The task force has begun to forward recommendations for changes to process and the code to City Council.  There are two recommendations slated for second reading and public hearing on January 21st that will help speed up the process and reduce requirements.  They refer to the application outreach meetings and accessible parking along with eliminating the need for pre-application meetings and general meetings with community development staff.  Such meetings would now be optional.

Why This Matters:  In the past few years, the City has enacted code changes and process requirements that have slowed down applications and added unneeded cost and complexity.  This task force will forward recommendations to City Council to mitigate those costs and speed up the application process.

Parks Impact Fee.  The Grand Junction City Council at its December 15th workshop instructed staff to bring forward an amendment lowering the Parks Impact Fee based on a different data set that eliminated some of the property costs used to calculate the fee.  Initially the amendment was slated for first reading on January 7th but it was pulled from the agenda as the data continues to be modified, which will impact the fee calculation.  While the headline is a bit misleading as official action has not yet been taken to learn more, go to City Council adopts adjusted parks impact fees – The Business Times .

Why This Matters:  From the beginning of the study to raise impact fees last year HBA leadership has argued that the cost per acre used to calculate the new parks fee was too high.  What Council agreed to on December 15th will lower the fee on most new homes by $200 to $400.

Joint Grand Junction/Mesa County Housing Needs Assessment.   The City of Grand Junction and Mesa County are now commissioning a new housing needs assessment for early in the year and will be doing outreach as they craft a new housing strategy that ultimately be adopted by the City and the County as required to be eligible for Proposition 123 housing grant funding.  AMGD, GJARA and HBA have already been asked to participate in the process.

Why This Matters:  The Housing Needs Assessment and new Housing Strategy can either help developers create more housing (by incentives, etc.) or harm (adding inclusionary zoning as a strategy for example).  It is important that the industry have a seat at the table to steer these documents from the beginning to insure a favorable outcome for homebuilders and homebuyers. 

Fruita Housing Needs Assessment.  The City of Fruita has also been completing a housing needs assessment which should be completed by the end of the year.  They are using a “ladder” approach that looks at the housing needs at all income levels.  It is anticipated that a new housing strategy will be completed in the first quarter as well.  It is important to note that communities seeking Proposition 123 funding are required to complete housing needs assessments and develop housing strategies.  Fruita is set to adopt their housing strategy on January 20th.

Why This Matters: With industry representatives serving on the working group for this effort the final draft reflects an approach that addresses all housing price points and seeks to work with developers and homebuilders to create market rate housing.

2026 Housing Summit.  Registration is now open for the 2026 Housing Summit slated for February 5th, 7:30 AM to 12:30 PM at CMU.  The event will feature an economist from National Association of Homebuilders, a panel presentation featuring members of the Housing Affordability Task Force, a panel discussing the Careers in Construction Initiative (Grand Junction, Fruita and Palisade High Schools all participate), a panel of private developers talking about the opportunities and challenges for building market rate affordable housing units and more.  To sign up go to https://www.eventbrite.com/e/2026-housing-summit-tickets-1967757600955?fbclid=IwY2xjawOkF6pleHRuA2FlbQIxMABicmlkETFpd0Y2a1o5UFRMcFNRQVA1c3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHmOxkJBxaq4V_BCLivoKzoSsA90eWXX_1rPc_lxmXegX0SYJ7_49MpJ6H-S6_aem_EbsGFo5Ek8OUWLZt9KYjvw

Why This Matters:  This event elevates to the voice of the private sector housing community and looks at issues that add to the cost of housing and ways to address those issues.  It adds a level of legitimacy to the industry’s efforts to create a more favorable environment for homebuilders.

Housing Bills to be Introduced When Colorado General Convenes.  The Legislature convenes on January 14th and there are two bills already teed up for introduction.  One of the bills, called the HOME Act, would make it easier for public schools and universities, local public housing authorities and certain nonprofit organizations to build residential units on their land. The nonprofits would have to have a proven history of building new housing in order to qualify.  A similar effort in 2025 failed.  That bill included religious institutions but did not include housing authorities and other nonprofits.  The second bill would make it easier for homeowners to sell off a portion of their property.  The proposal builds on legislation passed in 2024 that made it easier for Coloradans to build accessory-dwelling units, also known as granny flats, on their properties. It would apply to high-density areas of the state.Why This Matters:  Policy makers at the state can help facilitate the construction of affordable and workforce housing or they can impede such homes being built.  Involvement and engagement by local communities is critically important when it comes to legislation related to housing.

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