Colorado’s notoriously expensive ski towns could soon have an easier way to address their affordable housing shortages, thanks to a new federal rule that makes it simpler to develop housing on certain U.S. Forest Service properties.
The Forest Service finalized changes to its Administrative Site Leasing Program on November 2, removing regulatory barriers that have made it difficult for mountain communities to finance housing projects on federal land. The new rules take effect December 2 and could help communities like Steamboat Springs, Aspen and Summit County move forward with projects intended to house local workers and families.
The change is particularly significant in Colorado’s mountain communities, where much of the surrounding land is federally owned, private property is expensive and ski resorts frequently struggle to provide enough affordable housing for employees.
“By removing outdated regulatory barriers, we can manage the Administrative Site Leasing Program more efficiently, reduce unnecessary burdens and make better use of existing authorities.This is also an important step toward making eligible administrative sites available for potential housing developments for employees and community members.” –Forest Service Chief Tom Schultz
“Unlocking underutilized federal administrative sites gives USDA a vital tool to expand affordable housing options across rural communities. By modernizing these leasing practices, Rural Development can support the Forest Service in partnering to address critical housing shortages for local workforces and families.” –Rural Housing Service Administrator George Kelly
Federal Government Makes It Easier to Build on Forest Service Land
The new rule published in the Federal Register changes how the Forest Service handles leases involving underused administrative properties, including former ranger stations, offices, warehouses and associated land.
Federal law has allowed the Forest Service to lease certain administrative sites for housing and other purposes since 2018, but the agency historically treated those arrangements much like special-use permits. That created problems for developers seeking traditional financing because the leases were difficult to use as loan collateral, could not easily be transferred and were subject to termination provisions that made lenders hesitant to participate.
Under the new rules, administrative site leases will be treated more like conventional real estate agreements. The change is intended to give the Forest Service greater flexibility to partner with local governments and private developers, potentially making projects that were previously difficult to finance more practical.
The announcement builds on the Forest Service Flexible Housing Partnerships Act, bipartisan legislation approved by Congress in December 2024 and signed into law in January 2025. That legislation expanded existing leasing authority, including allowing agreements lasting up to 100 years.
Colorado Ski Towns Are Already Exploring the Idea
Summit County, home to Breckenridge, Keystone, Copper Mountain and Arapahoe Basin, has already taken advantage of the federal leasing program.
In 2023, Summit County entered into a long-term agreement with the Forest Service involving approximately 11 acres near Dillon. The planned development includes 162 affordable rental units, with housing intended for Forest Service employees and qualifying local residents.
Steamboat Springs has also been pursuing a partnership involving an underused Forest Service administrative property. The community has spent years working through the complicated leasing and development process, and the new federal rules could help address some of the financing obstacles associated with that effort.
The potential benefits extend beyond ski resort employees. Teachers, nurses, firefighters, hospitality workers and other year-round residents are also struggling with the cost of living in mountain communities where available housing has failed to keep pace with demand.
As previous housing developments in Steamboat Springs have demonstrated, finding affordable places for local workers to live has required increasingly creative solutions, including private investment, nonprofit housing programs and partnerships between employers and local governments.
Federal land presents another possible opportunity, particularly in communities with limited room for additional development.
Does This Mean National Forest Land Will Be Sold for Housing?
The prospect of building homes on federal land has also raised concerns about protecting public property and maintaining public oversight.
During the rulemaking process, the Forest Service received 25 public comments, with eight supporting the changes and 17 opposing them. Some opponents warned that making federal leases more attractive to private developers could weaken public protections or eventually contribute to the privatization of national forest property.
The Forest Service rejected the suggestion that its new rule authorizes land sales or changes existing federal land-disposal laws. The agency also emphasized that projects remain subject to applicable environmental reviews, historic preservation requirements, public notification and other legal protections.
Importantly, the program does not open national forests generally to residential development. It applies to eligible administrative sites and certain qualifying parcels, with protected areas such as designated wilderness and national monuments excluded under the underlying leasing law.
Individual housing developments will still require appropriate approvals, financing and agreements with the Forest Service. The new rule does not automatically authorize construction or guarantee that any proposed project will move forward.
A Potential Breakthrough for Mountain Housing
Affordable housing has become one of the defining challenges facing Colorado’s ski communities. The new federal rules will not solve those problems overnight, but they could remove a substantial financial obstacle for communities already working with the Forest Service on workforce housing.
With the changes scheduled to take effect December 2, attention will turn to how quickly local governments and developers can take advantage of the new leasing framework. For mountain towns where land availability is one of the biggest obstacles to building affordable homes, making better use of existing federal administrative properties could become an important part of the solution.
