Committee approves statewide, targeted administrative lot split process to expand starter homes

Sponsors called HB 13‑08 a measured step to create additional homeownership opportunities by allowing one administrative lot split (one lot into two) where residential use is already permitted and municipalities meet population thresholds. "This bill creates a common sense straightforward administrative process for homeowners to divide qualifying residential lots into two parcels," Representative Basenecker said.

Housing advocates, builders and realtors said lot splits unlock infill opportunities, preserve existing homes and lower the land portion of a home's cost. Samuel Hooper of the Institute for Justice called the bill a restoration of property rights and noted similar reforms in other jurisdictions produced additional small homes without large subsidies. Developers and policy groups pointed to data showing lot‑split and missing‑middle reforms yield substantial new housing when paired with ADU rules.

Municipal governments and small towns raised concerns about removing discretionary public hearings and the loss of context‑sensitive planning. Bev Stables of the Colorado Municipal League argued the bill "undermines a fundamental principle that local development decisions are made locally" and warned of infrastructure and neighborhood compatibility issues.

The committee adopted five sponsor and stakeholder amendments (L001–L005) that add lender‑notice and consent mechanics, define lot‑split terms, require utility/access verification, confirm subject jurisdiction review authority and clarify setback rules and protections for recorded deed restrictions. After amendment, the committee advanced the bill to the Committee of the Whole (vote 8‑4).