Environmental
Colorado's 'Drought Response Plan' affects real estate by:
AA. Requiring all new homes to install water recycling systems
BB. Potentially restricting water use, affecting irrigation, landscaping requirements, and water availability for new development — impacting property values and development feasibility✓ Correct
CC. Only affecting agricultural properties
DD. Only applying to properties in drought-declared counties
Explanation
Colorado is a water-scarce state, and drought conditions can restrict outdoor water use, affect landscaping, and impact the viability of new development that depends on adequate water supply. Water supply adequacy is a significant consideration in Colorado real estate development, and some developments have been delayed or modified due to water availability concerns.
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