In this edition: - Commerce City Reduces Development Fees to Support Housing Affordability
- Erie Adopts Water Allocation Policy Amid Supply Constraints
- Housing Roundtable Brings Industry Leaders Together with U.S. Senator Michael Bennet
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Commerce City Reduces Development Fees to Support Housing Affordability |
In a significant step toward improving housing affordability and strengthening its competitiveness in the regional housing market, the Commerce City Council approved a package of development fee reductions on May 18, 2026, effective immediately. The changes include a roughly 40 percent reduction in most development review fees, simplification of the fee structure by eliminating acreage-based calculations, and reductions to drainage, park facilities, general government facilities, and public works impact fees to 60 percent of the maximum levels supported by independent nexus studies. The fee reductions are the result of more than a year of advocacy by the Home Builders Association (HBA) and come at a time when builders continue to face rising construction costs and softened consumer demand driven by affordability challenges. Collectively, the approved changes are expected to reduce the cost of building a new home in Commerce City by more than $6,500 per home. City officials are also expected to consider additional reductions to transportation-related impact fees later this summer, creating further opportunities to lower housing costs. The HBA expressed appreciation to Commerce City Council and staff for their willingness to work with the industry and support policies that encourage housing affordability and economic growth. |
Erie Adopts Water Allocation Policy Amid Supply Constraints |
The Town of Erie has adopted a new Water Allocation Policy designed to manage its limited potable water supplies while awaiting additional water from major regional projects that are not expected to come online until approximately 2032. The policy establishes a framework for distributing the town's remaining water resources among public projects, economic development initiatives, residential development, affordable housing, and contingency needs. Town officials say the policy will provide greater certainty for planning and development while helping ensure long-term water sustainability. As part of the new approach, Erie will also increase its water impact fee from approximately $31,000 to $52,000 per residential unit. Town leaders have indicated that the higher fee reflects the increasing cost and scarcity of securing reliable water supplies for future growth. The policy and fee adjustments are intended to balance continued development with responsible stewardship of the community's limited water resources until new regional water supplies become available. The new policy was adopted by the Town Council with limited input from the residential development community and is expected to have a significant impact on homebuilding activity in Erie for the foreseeable future. The HBA of Metro Denver will continue to monitor implementation of the policy and keep members informed of any developments or potential impacts on residential construction. |
Housing Roundtable Brings Industry Leaders Together with U.S. Senator Michael Bennet
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Industry leaders convened for a housing roundtable discussion with U.S. Senator,  and 2026 gubernatorial candidate, Michael Bennet to discuss Colorado’s ongoing housing challenges, including affordability, production constraints, and the rising cost of living. The conversation focused on the critical role of housing supply - particularly market-rate development - in meeting current and future demand across the state.
Participants highlighted barriers impacting new housing construction, including construction litigation concerns, utility capacity constraints, and regulatory challenges related to energy policy and the Public Utilities Commission. Industry representatives emphasized that these issues are increasingly affecting project feasibility, particularly for condominiums and townhomes, which are key components of attainable housing supply. 
The discussion also explored broader policy considerations, including the balance between state and local land-use authority, impact fees, and workforce constraints in the construction sector. The roundtable concluded with an open forum and a shared interest in continuing dialogue on solutions to improve housing production and affordability in Colorado. The HBA of Metro Denver sincerely appreciates the time that Senator Bennet took out of his busy schedule to meet with our members and make housing policy a priority in his campaign. We look forward to continuing this important conversation and our continued relationship going forward. |
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. |
Thank you to HBA's 2026 Organizational Partners: |
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