Last month, I shared some thoughts with this group about the growing pushback against overregulation in assisted living. Well, just a few days after that conversation, something big happened.
The Governor of Colorado signed House Bill 25-1213 into law—a major legislative win for residential assisted living providers across the state. And I’m excited to share what it means for all of us.
What Changed?
At the heart of this new law is Section 2, which creates a crucial exemption from the Facility Guidelines Institute (FGI) standards for assisted living residences—unless you’re building from the ground up or doing major structural renovations.
FGI guidelines are design standards originally created for hospitals and large healthcare buildings—not residential homes. Yet Colorado was one of only two states applying these standards to small assisted living homes, many of which are converted single-family houses.
Thanks to this new law, if you’re not doing major construction, you’re no longer required to comply with FGI. That means:
• You can repurpose rooms or upgrade systems without triggering expensive design compliance.
• You can add beds—so long as there’s no structural work or floor plan change.
• You still have to follow fire codes and local building rules—but not unnecessary hospital-style design specs.
Who Helped Make This Happen?
This victory didn’t happen on its own. Michelle Pinkowski from our law firm—whom many of you know—testified alongside a member of the Colorado Assisted Living Association, helping lawmakers understand how these burdensome requirements were stalling growth, especially for homes serving Medicaid and PACE clients.
Their testimony, rooted in real-world examples from our members, made a clear case: Overregulation isn’t protecting residents—it’s preventing access to care.
Why It Matters
This change allows providers to:
• Increase capacity without red tape
• Save money on architectural reviews
• Move more quickly to accommodate new residents
• Make better use of existing space
And most importantly, it helps Colorado’s older adults—especially those on Medicaid—gain access to affordable care in a home-like setting.
Between November and April, Colorado lost over 200 Medicaid-supported assisted living beds. That’s heartbreaking. Many small providers are cutting back or closing entirely—not because of poor care, but because of low reimbursements, wage mandates, and outdated rules like FGI.
In fact, one provider in Colorado Springs could have housed three more Medicaid residents—without building anything new—just by converting single rooms into doubles. But they were blocked by FGI rules meant for hospitals. Another was forced through a months-long architectural review process to add one resident—again, no construction involved.
These are not safety issues. Providers already follow strict building and fire codes. These are access issues—and with Colorado’s aging population, the stakes are only growing.
A Broader Shift
What we’re seeing in Colorado may be the beginning of something bigger: a national movement toward smarter, more balanced oversight.
Rules should support care—not block it.
Let’s keep the momentum going. Let’s keep pushing for practical reforms. And let’s keep working together to make residential assisted living accessible, affordable, and sustainable—for everyone who needs it.
The information provided above is intended for educational purposes and serves as a general guide. It is not tailored legal advice for specific circumstances. For detailed guidance on this topic, please consult with a qualified legal professional or reach out to our firm.
We welcome your feedback and topic suggestions! If there’s a particular issue related to assisted living or group housing that you’d like to see addressed, please feel free to email me at [email protected].
