Gov. Jared Polis is putting local governments on notice: Either they comply with state housing laws, or they risk losing at least $100 million a year in state funding.

The governor signed an executive order that takes the battle over local control to a new level. Over the last two years, he's signed bills regarding residential occupancy limits and accessory dwelling units, transit-oriented communities and manufactured homes, and even limits on staircases and parking spots.

But not everyone is on board with the new laws. Some local governments have flat out refused to comply. So the governor is upping the ante.

"What we are doing now is making sure we are putting our money where our mouth is," Gov. Polis told CBS Colorado. 

Polis signed an executive order that requires the Colorado Division of Local Government to track which cities and counties are implementing the new laws and which aren't. Those that are would receive priority when it comes to dozens of discretionary grants related to economic development, transportation and energy efficiency.

"We need all our communities to step up and be part of the housing solution," Polis said.

Westminster Mayor Nancy McNally says many of the new laws are unworkable in her city, where she says only 2% of the land is undeveloped, and water is scarce. What's more, she says, the Colorado Constitution gives home rule cities like Westminster control over land use.

"We don't need the state telling us what to do when, in the [state] Constitution, it states that is our job," McNally told CBS Colorado. "And we take that seriously." 

So seriously that Westminster City Council directed staff not to comply with certain laws, even if it means the city loses state funding. Over the last five years, Westminster has received $6 million in grants for 44 different projects.

Some cities were already contemplating legal action. The executive action could be the final straw.

"This comes down to local control," McNally said.  

The governor disagrees.

"I hope this leads them to think twice about it because housing is a statewide issue," Polis said. 

The executive order is not only drawing fire from some local governments but Colorado House Republicans.

State Rep. Chris Richardson, the ranking Republican on the Transportation Housing and Local Government Committee, called the order, "government overreach masquerading as housing reform."

Richardson says Polis's strategy of threatening to withhold funds to force compliance mirrors President Donald Trump's, which the governor has criticized.

In a statement, the governor's office said, Trump is, "ripping the rug out from states by removing federal funding that was allocated and mandated by Congress in law. Governor Polis uses executive orders to implement the law not undermine or change it." 

The governor's office notes the housing laws were also passed by a majority of the legislature.

State agencies will begin posting the grants impacted by the executive order in the next couple months. Those related to public health, safety or disaster relief are excluded