Committee rejects bill that would let health districts opt into affordable housing without local approval

Senator Kipp introduced House Bill 26‑1300 as a measure to let health service districts add affordable housing services to their service plans by a vote of their own boards, saying the change would give districts “one more tool to address root causes, not just symptoms.”

Supporters, including former mayor and representative Jenny Arndt, the Colorado Coalition for the Homeless and Enterprise Community Partners, told the committee the bill would allow health entities to coordinate housing supports—such as short‑term recuperative care and rental assistance—that can reduce emergency‑room visits and improve health outcomes. Kathy Alderman of the Colorado Coalition for the Homeless said the house amendments require districts to “coordinate with their local governments and their local housing agencies.”

Opponents, led by Bev Staples of the Culverde Municipal League and Megan Wagner of the Special District Association, argued the bill undermines local control and voter intent. Staples said health‑district revenues are raised for a clearly stated health purpose and allowing boards to reallocate funds for housing without local‑government or voter approval would “erode public trust.” Wagner said the bill “grants broad authority with little accountability” and lacks guardrails or a definition of what housing projects would be allowed.

Committee members pressed the bill’s drafter, Michael Valdez, and the sponsor about statutory process and checks. Valdez explained current law requires districts to seek approval from the municipality or county that approved the original service plan for a material modification; this bill would remove that step and let the district board make the determination, though it includes coordination requirements.

After debate, Vice Chair Snyder moved HB26‑1300 to the Committee of the Whole. The motion failed on a roll call vote of 1 aye to 6 noes. The chair then designated the bill postponed indefinitely (PI).