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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0581.01 Alison Killen x4350 HOUSE BILL 26-1061
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING FUNDING FOR COMMUNITY INTEGRATION HOUSING, AND,101
IN CONNECTION THEREWITH , REQUIRING TEN PERCENT OF102
FEDERAL LOW-INCOME HOUSING TAX CREDITS BE SET ASIDE AND103
PRIORITY FOR STATE AFFORDABLE HOUSING TAX CREDITS BE104
GIVEN TO DEVELOPMENTS TH AT QUALIFY AS COMMUNITY105
INTEGRATION HOUSING FOR PERSONS WITH INTELLECTUAL AND106
DEVELOPMENTAL DISABILITIES.107
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
HOUSE SPONSORSHIP
Brooks,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
The bill creates a targeted allocation priority within Colorado's
administration of federal and state affordable housing tax credits to
support development of integrated, community-based housing for persons
with intellectual and developmental disabilities. The bill requires a set
aside of at least 10% of the state's annual allocation of competitive federal
low-income housing tax credits (federal tax credits) for "community
integration housing". To qualify, a development must comply with federal
tax credit requirements, meet federal home- and community-based
services settings standards, reserve at least 20% of its units for persons
with intellectual and developmental disabilities, and partner with a
community-centered board or certified case-management agency. The bill
authorizes the Colorado housing and finance authority (authority) to
reallocate unused credits from the set aside at the end of a calendar year
for allocation to any eligible project.
The bill amends the state affordable housing tax credit (state tax
credit) to require the authority to provide priority scoring or preference to
qualified developments that have received a federal tax credit as a
qualified community integration housing development and that continue
to meet all requirements for community integra tion housing. The
requirement for priority scoring or preference does not waive or otherwise
limit the authority's ability to enforce all applicable eligibility
requirements or to determine the amount of the state tax credit to be
allocated to any qualified development.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-22-572 as2
follows:3
39-22-572. Federal low-income housing tax credit ceiling set4
aside for community integration housing - legislative declaration -5
definitions.6
(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:7
(a) T HERE IS A SIGNIFICANT UNMET NEED IN COLORADO FOR8
INTEGRATED, AFFORDABLE HOUSING FOR PERSONS WITH INTELLECTUAL9
AND DEVELOPMENTAL DISABILITIES;10
(b) T HE DEVELOPMENT OF COMMUNITY -BASED HOUSING THAT11
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COMPLIES WITH FEDERAL HOME - AND COMMUNITY -BASED SERVICES1
SETTINGS REQUIREMENTS (COMMUNITY INTEGRATION HOUSING) IS VITAL2
TO MEETING THIS NEED AS WELL AS THE STATE 'S OBLIGATIONS UNDER3
FEDERAL LAW; AND4
(c) E STABLISHING AN ALLOCATION PRIORITY FOR COMMUNITY5
INTEGRATION HOUSING TO RECEIVE FEDERAL LOW-INCOME HOUSING TAX6
CREDITS THROUGH A QUALIFIED ALLOCATION PLAN WILL ENCOURAGE AND7
SUPPORT DEVELOPMENTS TO ADDRESS THIS SPECIFIC HOUSING NEED.8
(2) AS USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE9
REQUIRES:10
(a) "AUTHORITY" MEANS THE COLORADO HOUSING AND FINANCE11
AUTHORITY CREATED IN SECTION 29-4-704.12
(b) "CASE MANAGEMENT AGENCY" HAS THE MEANING SET FORTH13
IN SECTION 25.5-6-1702 (2).14
(c) "C OMMUNITY-CENTERED BOARD " HAS THE MEANING SET15
FORTH IN SECTION 25.5-6-1702 (5).16
(d) "D EPARTMENT" MEANS THE DEPARTMENT OF HEALTH CARE17
POLICY AND FINANCING.18
(e) "F EDERAL TAX CREDIT " MEANS THE FEDERAL LOW -INCOME19
HOUSING TAX CREDIT PROVIDED BY SECTION 42 OF THE INTERNAL20
REVENUE CODE THAT IS ALLOCATED BY THE AUTHORITY PURSUANT TO A21
COMPETITIVE PROCESS ESTABLISHED IN THE QUALIFIED ALLOCATION PLAN.22
(f) "F EDERAL TAX CREDIT CEILING " MEANS THE AGGREGATE23
DOLLAR AMOUNT OF FEDERAL TAX CREDITS THAT THE AUTHORITY MAY24
ALLOCATE FOR ANY CALENDAR YEAR IN ACCORDANCE WITH SECTION 4225
(h)(3)(C) OF THE INTERNAL REVENUE CODE.26
(g) "HCBS SETTINGS RULE " MEANS THE FEDERAL REGULATORY27
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REQUIREMENTS FOR ANY HOME - AND COMMUNITY -BASED SERVICES1
SETTING SET FORTH IN 42 CFR 441.301(c)(4).2
(h) "HCBS WAIVER SERVICES " MEANS THE HOME - AND3
COMMUNITY-BASED SERVICES FOR PERSONS WITH INTELLECTUAL AND4
DEVELOPMENTAL DISABILITIES ALLOWED TO BE FURNISHED IN5
NON-INSTITUTIONAL, COMMUNITY SETTINGS AS AN ALTERNATIVE TO6
INSTITUTIONAL CARE PURSUANT TO 42 U.S.C. SEC. 1396n(c).7
(i) "P ERSON WITH AN INTELLECTUAL AND DEVELOPMENTAL8
DISABILITY" HAS THE MEANING SET FORTH IN SECTION 25.5-10-202 (26).9
(j) "Q UALIFIED ALLOCATION PLAN " MEANS THE QUALIFIED10
ALLOCATION PLAN ADOPTED BY THE AUTHORITY PURSUANT TO SECTION11
42 (m) OF THE INTERNAL REVENUE CODE.12
(k) "Q UALIFIED COMMUNITY INTEGRATION HOUSING13
DEVELOPMENT" MEANS A "QUALIFIED LOW-INCOME HOUSING PROJECT", AS14
THAT TERM IS DEFINED IN SECTION 42 OF THE INTERNAL REVENUE CODE,15
THAT IS:16
(I) LOCATED IN COLORADO; AND17
(II) DETERMINED BY THE AUTHORITY TO MEET THE REQUIREMENTS18
FOR COMMUNITY INTEGRATION HOUSING SET FORTH IN SUBSECTION (4)(b)19
OF THIS SECTION.20
(3) THE AUTHORITY SHALL SET ASIDE NOT LESS THAN TEN PERCENT21
OF THE ANNUAL FEDERAL TAX CREDIT CEILING FOR ALLOCATION TO22
QUALIFIED COMMUNITY INTEGRATION HOUSING DEVELOPMENTS , AS23
DEFINED IN SUBSECTION (2)(k) OF THIS SECTION ; EXCEPT THAT , ANY24
AMOUNT OF CREDIT SET ASIDE FOR QUALIFIED COMMUNITY INTEGRATION25
HOUSING DEVELOPMENTS REMAINING AFTER THE RANKING OF PROJECTS26
BUT PRIOR TO THE FINAL ALLOCATION CYCLE OF ANY CALENDAR YEAR27
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SHALL BE AVAILABLE FOR ALLOCATION TO ANY ELIGIBLE PROJECT.1
(4) (a) E XCEPT AS PROVIDED IN SUBSECTION (4)(b) OF THIS2
SECTION, THE AUTHORITY SHALL DETERMINE ELIGIBILITY FOR A CREDIT3
AND ALLOCATE CREDITS SET ASIDE PURSUANT TO SUBSECTION (3) OF THIS4
SECTION IN ACCORDANCE WITH THE QUALIFIED ALLOCATION PLAN.5
(b) T HE AUTHORITY SHALL ALLOCATE A CREDIT SET ASIDE6
PURSUANT TO THIS SECTION ONLY TO PROPOSED DEVELOPMENTS7
DETERMINED BY THE AUTHORITY , IN CONSULTATION WITH THE8
DEPARTMENT, TO HAVE MET THE FOLLOWING REQUIREMENTS FOR9
COMMUNITY INTEGRATION HOUSING:10
(I) DESIGN, DEVELOPMENT, AND OPERATION IN COMPLIANCE WITH11
THE HCBS SETTINGS RULE, AND ANY SUCCESSOR PROVISIONS, AS WELL AS12
ANY RELATED STATE STATUTES OR REGULATIONS;13
(II) R ESERVATION OF AT LEAST TWENTY PERCENT OF THE14
RESIDENTIAL DWELLING UNITS FOR OCCUPANCY BY PERSONS WITH15
INTELLECTUAL AND DEVELOPMENTAL DISABILITIES , WITH TENANT16
SELECTION POLICIES FOR SUCH RESERVED UNITS THAT PROVIDE PRIORITY,17
TO THE EXTENT PERMITTED BY FEDERAL LAW , TO PERSONS WITH18
INTELLECTUAL AND DEVELOPMENTAL DISABILITIES WHO ARE ELIGIBLE FOR19
HCBS WAIVER SERVICES ADMINISTERED BY THE DEPARTMENT; AND20
(III) F ORMAL PARTNERSHIP , EVIDENCED BY A WRITTEN21
AGREEMENT, WITH A COMMUNITY -CENTERED BOARD OR A CASE22
MANAGEMENT AGENCY CERTIFIED BY THE DEPARTMENT.23
(5) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO:24
(a) R EQUIRE THE ALLOCATION OF A FEDERAL TAX CREDIT TO A25
DEVELOPMENT THAT DOES NOT COMPLY WITH SECTION 42 OF THE26
INTERNAL REVENUE CODE OR THE ELIGIBILITY REQUIREMENTS IN THE27
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QUALIFIED ALLOCATION PLAN; OR1
(b) PROHIBIT A COMMUNITY INTEGRATION HOUSING DEVELOPMENT2
FROM COMPETING FOR FEDERAL TAX CREDITS OUTSIDE THE SET ASIDE3
ESTABLISHED BY SUBSECTION (3) OF THIS SECTION.4
SECTION 2. In Colorado Revised Statutes, 39-22-2102, add5
(8.5) as follows:6
39-22-2102. Credit against tax - affordable housing7
developments - legislative declaration.8
(8.5) (a) IN ADMINISTERING THE CREDIT ALLOWED BY SUBSECTION9
(1) OF THIS SECTION, THE AUTHORITY SHALL PROVIDE PRIORITY SCORING10
OR PREFERENCE IN THE COMPETITIVE EVALUATION OF APPLICATIONS FOR11
THE CREDIT TO A QUALIFIED DEVELOPMENT THAT:12
(I) H AS BEEN ALLOCATED A FEDERAL TAX CREDIT SET ASIDE13
PURSUANT TO SECTION 39-22-572 AS A QUALIFIED COMMUNITY14
INTEGRATION HOUSING DEVELOPMENT; AND15
(II) C ONTINUES TO MEET THE REQUIREMENTS FOR COMMUNITY16
INTEGRATION HOUSING SET FORTH IN SECTION 39-22-572 (4)(b).17
(b) T HE PRIORITY SCORING OR PREFERENCE REQUIRED BY18
SUBSECTION (8.5)(a) OF THIS SECTION MUST BE IMPLEMENTED THROUGH19
THE AUTHORITY 'S APPLICATION SCORING CRITERIA OR SELECTION20
PRIORITIES AND DOES NOT REQUIRE THE ALLOCATION OF A CREDIT TO A21
QUALIFIED DEVELOPMENT THAT FAILS TO MEET ALL OTHER ELIGIBILITY ,22
UNDERWRITING, OR FEASIBILITY REQUIREMENTS.23
(c) NOTHING IN THIS SUBSECTION (8.5) LIMITS THE AUTHORITY OF24
THE AUTHORITY TO DETERMINE THE AMOUNT OF THE CREDIT ALLOCATED25
TO ANY OWNER OF QUALIFIED DEVELOPMENT OR TO ENSURE COMPLIANCE26
WITH APPLICABLE STATE AND FEDERAL LAWS.27
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SECTION 3. Act subject to petition - effective date -1
applicability. (1) This act takes effect at 12:01 a.m. on the day following2
the expiration of the ninety-day period after final adjournment of the3
general assembly (August 12, 2026, if adjournment sine die is on May 13,4
2026); except that, if a referendum petition is filed pursuant to section 15
(3) of article V of the state constitution against this act or an item, section,6
or part of this act within such period, then the act, item, section, or part7
will not take effect unless approved by the people at the general election8
to be held in November 2026 and, in such case, will take effect on the9
date of the official declaration of the vote thereon by the governor.10
(2) This act applies to any qualified application plan for federal11
tax credits adopted by the authority on or after the applicable effective12
date of this act.13
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