The Advocate Newsletter | September 2, 2025

September 2, 2025

In this edition:

Town of Erie to Consider Revisions to Fire Sprinkler Requirements  

The Town of Erie will be considering a potential repeal of its fire sprinkler requirements at its September 23 Council Meeting. This hearing follows a May 20 Council Study Session that included presentations from the Home Builders Association of Metro Denver and Mountain View Fire Rescue.

As housing affordability has become a serious issue in Erie and across the Front Range over the past several years, local governments have begun to reconsider locally imposed mandates as a way to help alleviate costs on aspiring homeowners.

The cost to install fire sprinklers in residential units is significant. The total direct cost to a builder to install a sprinkler system is approximately $13,500, depending on the size of the home. When total overhead and profit are taken into consideration, new homeowners pay approximately $16,000 for the system.

The town has significantly increased impact fees in recent years, which has added to the cost of housing in Erie. Last December, Erie Town Council approved a revised ordinance that increased the Tap Fee and Raw Water Dedication Fees for a ¾” line from $37,153 to $57,550 for a total increase of $20,397.

With the average price of a home in Erie approaching $800,000, some members of the Erie Council have expressed interest in revisiting the fire sprinkler mandate as a way to help offset the additional costs associated with the new tap fee and help improve housing affordability.

According to NAHB, for every $1,000 increase in price, an additional 1,699 households are priced out of the market in Colorado. The Town of Erie has seen a 45% decrease in the total number of assessed residential building permits in 2025 compared to this time last year, and the increased costs related to new fees and mandates are likely a significant factor.

Elbert County Considers ‘Strategic Pause’ on New Development Applications  

Over the past couple of months, there have been persistent rumors that the Elbert County Board of County Commissioners was considering a growth moratorium. The HBA had been monitoring the situation closely, working with active builders and developers in the county as well as one commissioner who was strongly opposed. However, most discussions took place privately in executive session, leaving little transparency.

On August 7, we learned that a moratorium would be brought before the BOCC for a vote at the August 13 meeting (less than a week away), without any public details on what it would include. It wasn’t until August 12 that the final agenda and proposed resolution were posted online, just 24 hours before the meeting, leaving no time for meaningful public review or stakeholder input. The resolution would temporarily suspend all new and current Planned Unit Development zoning applications involving 50 or more residential units, as well as all zoning applications in the Residential One (R-1) and Residential Two (R-2) districts. County staff would then be directed to bring any changes to these regulations back through the public process within six months for a final decision by the Board.

In response, we quickly mobilized and worked closely with impacted builders and developers to prepare a coordinated message; submitted a formal letter outlining our legal, economic, and procedural concerns; and organized a strong turnout for public testimony.

Industry representatives and the HBA spoke directly to the Board about the resolution’s broad impacts on housing, small businesses, tax revenues and the local economy. One of our major points was that the resolution, as drafted, would have applied not only to new applications but also to existing applications, potentially infringing on vested rights and exposing the County to legal challenges.

Alternative language drafted by one developer’s attorneys was proposed, which clarified the moratorium would only apply to new applications, leaving previously approved projects unaffected. The Board indicated they would review this proposed language with its counsel and bring the matter back at a future date, giving us time to continue working with stakeholders to protect responsible growth and Elbert County’s long-term economic health.

HBA to Submit Xcel Complaint Letter to Colorado Public Utilities Commission

The HBA of Metro Denver is in the process of submitting a formal complaint to the Colorado Public Utilities Commission (PUC) regarding systemic and persistent service delays by Xcel Energy that are significantly hindering residential development, driving up costs, and worsening Colorado’s housing affordability crisis.

The information in the letter was gathered through an HBA-created survey completed by 10 respondents, a mix of builders and developers, who provided detailed accounts of their experiences. It documents specific examples of missed deadlines, procurement errors, switching procedure failures, and contractor-caused damage, detailing the direct financial and operational impacts on our members. Reported costs from affected projects range from hundreds of thousands to millions of dollars, including delays affecting more than 1,300 residential units and 430 lots.

Our intent is to demonstrate to Xcel, the PUC, and the governor’s office that Xcel’s service shortcomings are a key contributor to housing affordability challenges, and that prompt action needs to be taken by Xcel to improve their service to builders and developers across their territory. By presenting these member-verified impacts directly to the PUC, we aim to encourage meaningful change and accountability from Xcel Energy while positioning the HBA as a collaborative partner in identifying and implementing solutions.   

HBA of Metro Denver Issue Tracker

Questions on what is happening in a specific city or county? The HBA is regularly monitoring the council and board activities in every political subdivision in the metro Denver area. Our Issue Tracker offers a great resource to learn about the issues being deliberated with links to agendas, packets and ordinances. The HBA of Metro Denver HBA Issue Tracker is available  to all members here.