3-2-1 Capitol Connection – March 17, 2026
3 Things to Know
Lot Splitting to Increase Starter Home Supply. The legislature recently introduced “Lot Splitting Approval by Subject Jurisdictions” (House Bill 1308), which would allow qualifying residential lots to be divided into two parcels through an administrative approval process beginning in 2027. The bill codifies a practice already permitted in several Colorado communities by establishing clear parameters for when a split may occur, including minimum lot-size requirements, mortgage-holder consent, and eligibility criteria for the property. At the same time, the legislation preserves local governments’ ability to enforce critical infrastructure, building, safety, and environmental standards. By reinforcing private property rights while creating new opportunities for starter homes in markets where they are increasingly scarce, REALTORS® have taken a Support position on the bill. House Bill 1308 is scheduled for its first committee hearing today, Tuesday, March 17th.
Protecting Fair Property Tax Valuation. The Colorado Association of REALTORS® (CAR) is working to amend “Property Tax Modifications” (Senate Bill 116) to address changes to how lodging properties are valued for property tax purposes. As introduced, the bill would shift from Colorado’s traditional property tax valuation approach to a mandatory income-based method that requires assessors to include “net rental income” and “resort fee income” when determining the taxable value of lodging properties. CAR has raised concerns that this change could significantly increase assessed values and property tax burdens for lodging properties, including hotels and similar housing-related properties. CAR is advocating for amendments to ensure the valuation method remains fair, transparent, and consistent with Colorado’s broader property tax framework.
HOME Act Clears the Legislature. Last week, the legislature approved “Housing Developments on Qualifying Properties” (House Bill 1001), a policy designed to help bring more housing to the market by making it easier to build on underutilized land. The bill creates a clear administrative pathway for residential development on land already owned by entities such as nonprofits, schools, and institutions of higher education. By creating a more predictable pathway for development—while still allowing local governments to apply critical infrastructure, safety, and environmental requirements—the legislation aims to remove barriers that can slow projects and keep much-needed homes from being built. For REALTORS®, both the measure and our support position on it represent a meaningful step toward expanding housing supply by opening the door for more homes to be developed on properties that might otherwise sit idle. The bill has now passed both chambers of the legislature and will soon head to the Governor’s desk.
2 Things to Share
Dream and Bid Big at the RPAC Live Auction at Colorado Connections. Get ready to raise your paddle—the RPAC Live Auction is back at Colorado Connections as part of the RPAC Reception on Tuesday, April 28. From must-have home gadgets that elevate your entertainment setup to unique finds for golf enthusiasts and home chefs alike, the auction will feature a mix of fun, functional, and conversation-starting items. And for those dreaming a little bigger, keep an eye on the bidding for the evening’s most exciting offerings: luxury travel experiences that could have you packing your bags before the year is out. Join the energy, the friendly competition, and the opportunity to support RPAC while taking home something unforgettable. Be sure to register for Colorado Connections, including the RPAC Reception, today so you don’t miss the action!
The Land Tax Bill is April 6th. The bill that would radically increase the cost of housing by shifting away from a market-based valuation, to a land-based valuation, “Authority for Different Mill Levy Rates” (House Bill 1119) is now scheduled for April 6th in the House Finance Committee at 1:30 pm. CAR strongly opposes this bill because it could penalize single-family homeowners who do not maximize the “highest and best use” of their property based on the footprint of their home on their property lot. If you are interested in testifying, please contact govaffairs@coloradorealtors.com.
1 Thing to Do
Division of Real Estate Sunset Hearing. “Sunset Division of Real Estate” (House Bill 1287), legislation that will continue the Colorado Division of Real Estate and the Real Estate Commission is scheduled to be heard today, March 17th, in the House Transportation, Housing and Local Government Committee. The bill addresses the required sunset review of the agency that licenses and regulates real estate professionals in Colorado and contains a harmful provision to REALTORS® – Commission-directed restitution. An administratively imposed order of restitution would also suspend a licensee from practicing or working until they paid the order, which could be a significant out-of-pocket cost not covered by E&O insurance. CAR is advocating the removal of this provision, as it leaves professionals and consumers in a financial predicament in which the licensee is overburdened and the consumer is left without a court-ordered remedy. Civil court is the current and best forum for adjudicating claims.
The hearing will determine whether any amendments are adopted as part of the Division’s continuation process.
NAR
NAR Applauds Senate Passage of the 21st Century ROAD to Housing Act
“It has been nearly two decades since Congress last enacted a sweeping, bipartisan housing law.”
A Bipartisan Breakthrough on Housing: How NAR Helped Lay the Groundwork
In a special episode recorded live at the President’s Circle conference in Las Vegas, Shannon and Patrick explore what the bill actually does and whether it marks the beginning of a broader bet on housing in Washington.
NAR Pushes Forward for Solution in HOA Master Insurance Delays
To sell properties in homeowners’ association communities, mortgage lenders often require documentation showing adequate insurance coverage for common areas. When lenders encounter delays in obtaining this information, real estate professionals are frequently asked to step in. Here’s how the National Association of REALTORS® is working to address the issue.