CO SB086

Clarifies that Colorado's 1981 rent control statute prohibiting local governments from controlling rent on private residential housing does not prohibit inclusionary housing or inclusionary zoning programs.

Defines "inclusionary housing" or "inclusionary zoning" as legislatively enacted programs requiring developers to provide affordable residential units as a condition of project approval, with household income limits established in the ordinance or resolution.

Authorizes inclusionary housing programs to include: setting aside a percentage of units with affordable rents, offering developer incentives, providing multiple compliance options (such as cash-in-lieu payments or land dedication), targeting specific income ranges, and specifying affordability time periods.

References the 2000 Colorado Supreme Court decision in Town of Telluride v. Lot Thirty-Four Venture LLC, which held that inclusionary housing was prohibited under the rent control statute but invited the legislature to amend the statute to permit such programs.

Takes effect July 1, 2017, and applies to ordinances or resolutions enacted by counties or municipalities on or after that date.