Congress just passed a housing law that rewards states for reform — here’s why Colorado has a head start

Congress passed the 21st Century ROAD to Housing Act in July 2026, offering competitive grants and technical assistance to states that ease zoning and permitting rules, while authorizing little new direct spending. Colorado, where a full-time minimum-wage worker would need 96 hours a week to afford a two-bedroom rental, has already eliminated parking mandates near transit, legalized accessory dwelling units statewide, and permitted single-stair apartment buildings.

The law also raises the cap on how much bank capital can flow into low-income housing tax credits from 15% to 20%, a change Colorado's housing finance authority lobbied for directly.

Colorado's experience is offered as both model and warning: six home-rule cities have sued the state over its 2024 zoning laws and Governor Polis's threat to withhold grant funding from noncompliant cities, and follow-up bills on lot sizes died in the state Senate this year.

The full dispatch is available from the source below.