Bill would allow state trust land leases for single‑family ‘‘attainable’’ workforce housing; committee hears questions about precedent

Representative Curtis Schomer, sponsor: "House bill 9 31 is a constituent bill. What this bill will do is it will allow for DNRC state lands to be leased." (sponsor opening)

House Bill 931 drew extended committee discussion about school trust land policy, constitutional limits and whether the proposed leases would create a precedent for commercial development of state trust lands. The sponsor said the bill targets underused parcels near schools and growing towns and would use long leases structured to keep dwellings owner‑occupied and affordable by removing the land cost.

Context and content: The bill would permit the Department of Natural Resources and Conservation (DNRC) to lease selected school trust lands for single‑family and multifamily attainable workforce housing, with leases structured to retain the land in state ownership while the improvements (houses) may be owned by occupants. Representative Schomer said lease terms (for example, 75 years) and owner‑occupancy covenants would be written into agreements to prevent large investors from converting houses to rental stock.

Statutory background cited: During the hearing staff attorney Jameson Walker cited the state lands policy in Section 77‑1‑601 (policy statement in Title 77) establishing that state lands should be put to their highest and best use to generate revenue for common schools and other institutions. Representative Springer and others noted existing code allows commercial leases under certain conditions; the bill's sponsor said the current proposal was deliberately crafted to avoid selling school trust land while enabling attainable housing on sites that are not producing revenue today.

Questions and concerns: Committee members pressed sponsors on whether the proposal creates a precedent for selling or repurposing more valuable, revenue‑generating trust lands and whether the houses would remain affordable (sponsor: affordability comes from leasing land rather than buying it and from community partnerships and volunteer labor). Officials explained that some school trust parcels are currently undeveloped, low‑value and costly to maintain and that using those parcels for housing could yield public benefit while preserving land ownership.

Formal action: The committee heard the bill and, in executive action later the same day, voted to advance House Bill 931 to the House floor (do pass). Tally recorded in committee: yes 12, no 4, abstain/other 8 (members present/absent varied during roll call). Outcome: advanced to House floor.

Next steps: If enacted DNRC will work with local school trusts, counties and developers to identify eligible parcels and to craft lease and deed restrictions that preserve owner occupancy and restrict speculative resale. Board and legislative staff said the trust's constitutional duty to seek highest‑and‑best use remains a guiding constraint and leases would be subject to appraisals and board review.

Ending: Sponsors characterized the bill as a practical way to use underproductive trust lands for workforce housing without transferring land ownership; opponents sought firmer guardrails to ensure trust principals and the schools' financial interests remain protected.