HB26-1206 • 2026

Improved Funding to Support Development

The bill gives city and county housing authorities (housing authority) the power to provide for the levy of a sales tax, sales and use tax, or property tax within the jurisdiction of the authority, th

Elections Housing Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. J. Joseph, Sen. W. Lindstedt
Last action: 2026-03-23
Official status: House Committee on Finance Refer Amended to Appropriations
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details about how revenue will be used beyond funding housing projects.

Improved Funding for Housing Authorities

This bill allows city and county housing authorities to collect sales or property taxes within their areas, with voter approval, to fund affordable housing projects.

What This Bill Does

Gives housing authorities the power to levy a sales tax, use tax, or property tax if approved by voters in a ballot question.
Requires that any proposed tax be fair and not place an undue burden on specific groups of people.
Limits the rate of sales or use taxes to 1% and ad valorem property taxes to 5 mills per dollar of valuation.
Allows housing authorities to issue bonds for funding projects, using their revenue as collateral.

Who It Names or Affects

City and county housing authorities
Voters who will decide on ballot questions about new taxes
Residents and businesses within the jurisdiction of housing authorities

Terms To Know

Sales tax: A tax charged by a state or local government on the sale of goods and services.
Ad valorem property tax: A type of property tax based on the value of the property, usually expressed as a percentage of its assessed value.

Limits and Unknowns

The bill requires voter approval through ballot questions for any new taxes.
It does not specify how much revenue will be generated or how it will be used beyond funding housing projects.
Details on the implementation and collection processes are left to local authorities.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Finance

Passed [*]

Plain English: The amendment adds a requirement for housing authorities to notify local officials before levying property taxes.

Housing authorities must now give official notice, including legal descriptions and maps of the taxed area, to assessors and county commissioners by July 1st each year if they plan to levy property tax.

The amendment text does not specify penalties for non-compliance with these notification requirements.

L.002

HOU Finance

Passed [*]

Plain English: The amendment changes specific words in the bill to make sure that housing authorities can use certain taxes within their jurisdiction.

Changes 'CITY' to 'AUTHORITY' on page 5, line 23.
Removes lines 17 and 18 of page 8 and replaces them with a specific condition from another section of the law.
Replaces 'BOARD' with 'AUTHORITY' on page 8, line 23.

The amendment text does not explain how these changes will affect housing authorities or what taxes they can use. More details about the practical effects are needed to fully understand the impact of this change.

L.004

HOU Finance

Passed [*]

Plain English: The amendment adds new rules for agreements between property taxpayers and governing bodies or authorities regarding the repayment of bonds, notes, or other financial obligations related to urban renewal projects.

Defines a 'property taxpayer' as someone who pays taxes on property involved in an agreement with a governing body or authority.
Specifies that certain agreements do not pledge the credit or taxing power of the government if they secure repayment of bonds, notes, or other financial obligations for urban renewal projects.
Establishes that liens created by these agreements are treated as property taxes and have priority over most other claims on real estate.

The amendment uses complex legal language which may be hard to understand without additional context.

L.006

HOU Finance

Passed [*]

Plain English: The amendment allows housing authorities to collect sales tax from people and businesses for specific housing projects.

Adds the ability of housing councils and boards to levy a sales, use, or property tax on people and businesses within their jurisdiction.
Limits the authority's use of monthly tax collections exclusively towards planning, financing, acquiring, constructing, reconstructing, repairing, maintaining, managing, or operating housing projects for low or moderate-income households.

The amendment text does not specify how much tax can be levied or what specific conditions must be met to impose these taxes.
It is unclear if there are any restrictions on the types of sales and use taxes that housing authorities can collect from businesses.

L.007

HOU Finance

Lost

Plain English: The amendment removes specific lines from the bill related to housing authority tax powers.

Removes lines 22 through 24 on page 6 of the printed bill, which likely contain details about the types of taxes a housing authority can levy.
Removes lines 23 and 24 on page 9 of the printed bill, which also relate to the tax powers of housing authorities.

The exact content removed from the bill is not provided in the amendment text, so it's unclear what specific details were deleted.
Without knowing the context and full text of the lines being struck, it’s hard to explain the precise impact of these changes.

Bill History

2026-03-23 House
House Committee on Finance Refer Amended to Appropriations
2026-02-12 House
Introduced In House - Assigned to Finance

Official Summary Text

The bill gives city and county housing authorities (housing authority) the power to provide for the levy of a sales tax, sales and use tax, or property tax within the jurisdiction of the authority, the resulting revenue of which will be directed to the housing authority, subject to the following conditions:
The city or county has adopted a resolution determining that the levying of the tax will fairly distribute the costs of the housing authority's activities among the beneficiaries of the housing authority's activities and will not impose an undue burden on any particular group of people; and
A ballot question has been submitted to a vote of the registered electors of the city or county and subsequently approved by a majority of such registered electors, and the ballot question describes the purposes for which the tax will be used by the housing authority and complies with section 20 of article X of the state constitution.
If a sales or sales and use tax is approved by the voters of a housing authority:
The rate of the sales or sales and use tax must not exceed 1% on any transaction taxable by the state;
The authority shall designate a liaison to coordinate with the department of revenue to implement the collection of the tax and to identify people eligible to collect the sales and use tax; and
The tax revenue must be directed to a fund of the authority.
If an ad valorem property tax is approved by the voters of a housing authority:
The rate of the ad valorem property tax must not exceed 5 mills on each dollar of valuation for assessment of the taxable property within the authority's jurisdiction;
The board of county commissioners of the county in which the housing authority is located shall levy the ad valorem property tax upon the valuation for assessment of all taxable property within the authority's jurisdiction;
The officials charged with collecting ad valorem property taxes for the county in which the housing authority is located shall collect the taxes at the time and in the form and manner and with like interest and penalties as other property taxes collected within the county;
The property tax revenue must be directed to a fund of the authority; and
All property tax revenue, together with interest thereon and penalties for default in payment thereof, and all costs of collecting the same shall constitute, until paid, a perpetual lien on and against the property taxed, and such lien shall be on a parity with the tax lien of other general taxes.
The bill gives county housing authorities the power to issue revenue or general obligation bonds and to pledge the authority's revenues and revenue-raising powers for the payment of such bonds.
The bill allows an urban renewal authority to enter into a shortfall guaranty contract with an urban renewal project developer (developer) specifying that, if the tax increment revenue is insufficient to pay the indebtedness incurred by the authority that is due, the developer is obligated to make a direct payment covering the full amount of the insufficiency. A shortfall guaranty contract:
Constitutes a lien on the urban renewal project property the same as, and equal in priority to, a tax lien;
Has priority over any mortgage, lien that is not a tax lien, or other encumbrance;
Constitutes a covenant running with the land for the term of the contract; and
May be recorded against the real property upon which the urban renewal project is developed.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0482.02 Caroline Martin x5902 HOUSE BILL 26-1206
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING IMPROVED FUNDING TO SUPPORT DEVELOPMENT.101
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.)
The bill gives city and county housing authorities (housing
authority) the power to provide for the levy of a sales tax, sales and use
tax, or property tax within the jurisdiction of the authority, the resulting
revenue of which will be directed to the housing authority, subject to the
following conditions:
! The city or county has adopted a resolution determining
that the levying of the tax will fairly distribute the costs of
the housing authority's activities among the beneficiaries of
HOUSE SPONSORSHIP
Joseph,
SENATE SPONSORSHIP
Lindstedt,
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 housing authority's activities and will not impose an
undue burden on any particular group of people; and
! A ballot question has been submitted to a vote of the
registered electors of the city or county and subsequently
approved by a majority of such registered electors, and the
ballot question describes the purposes for which the tax
will be used by the housing authority and complies with
section 20 of article X of the state constitution.
If a sales or sales and use tax is approved by the voters of a
housing authority:
! The rate of the sales or sales and use tax must not exceed
1% on any transaction taxable by the state;
! The authority shall designate a liaison to coordinate with
the department of revenue to implement the collection of
the tax and to identify people eligible to collect the sales
and use tax; and
! The tax revenue must be directed to a fund of the authority.
If an ad valorem property tax is approved by the voters of a
housing authority:
! The rate of the ad valorem property tax must not exceed 5
mills on each dollar of valuation for assessment of the
taxable property within the authority's jurisdiction;
! The board of county commissioners of the county in which
the housing authority is located shall levy the ad valorem
property tax upon the valuation for assessment of all
taxable property within the authority's jurisdiction;
! The officials charged with collecting ad valorem property
taxes for the county in which the housing authority is
located shall collect the taxes at the time and in the form
and manner and with like interest and penalties as other
property taxes collected within the county;
! The property tax revenue must be directed to a fund of the
authority; and
! All property tax revenue, together with interest thereon and
penalties for default in payment thereof, and all costs of
collecting the same shall constitute, until paid, a perpetual
lien on and against the property taxed, and such lien shall
be on a parity with the tax lien of other general taxes.
The bill gives county housing authorities the power to issue
revenue or general obligation bonds and to pledge the authority's revenues
and revenue-raising powers for the payment of such bonds.
The bill allows an urban renewal authority to enter into a shortfall
guaranty contract with an urban renewal project developer (developer)
specifying that, if the tax increment revenue is insufficient to pay the
indebtedness incurred by the authority that is due, the developer is
HB26-1206-2-
obligated to make a direct payment covering the full amount of the
insufficiency. A shortfall guaranty contract:
! Constitutes a lien on the urban renewal project property the
same as, and equal in priority to, a tax lien;
! Has priority over any mortgage, lien that is not a tax lien,
or other encumbrance;
! Constitutes a covenant running with the land for the term
of the contract; and
! May be recorded against the real property upon which the
urban renewal project is developed.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) Access to safe, stable, and affordable housing is essential for4
all Coloradans. Access to housing supports individual well-being, family5
stability, workforce participation, and long-term economic growth for the6
state.7
(b) There is a severe housing supply shortfall in Colorado, which8
represents the gap between the number of homes needed and those9
available, estimated at approximately 106,000 units;10
(c) Based on current population projections, to prevent further11
growth of the housing supply shortfall, developers would need to12
construct approximately 34,100 new homes annually in Colorado over the13
next decade;14
(d) The housing supply shortfall is particularly acute for renters15
who earn an extremely low income (those who earn at or below 30% of16
Area Median Income), since Colorado has a deficit of roughly 134,00017
rental homes that are affordable for such households;18
(e) Many households are cost-burdened, with 46.8% of renters and19
21.5% of homeowners spending over 30% of their income on housing.20
HB26-1206-3-
Only 11% of renters could afford to purchase a typical home in Colorado1
as of 2025.2
(f) The affordability gap is not solely due to low supply; housing3
prices and rents have increased faster than incomes, deepening the4
challenge of obtaining stable, affordable homes, particularly for working5
families, seniors, and other vulnerable populations;6
(g) The work of public housing authorities and developers is7
essential to expanding the stock of deeply affordable housing. However,8
current financing tools and incentive structures do not sufficiently9
prioritize or support these entities.10
(h) Allowing housing authorities to collect tax revenue within11
their jurisdictions will help these mission-driven entities more quickly12
expand the supply of deeply affordable housing;13
(i) Providing statutory authorization for shortfall guaranty14
contracts in urban renewal areas that use tax increment financing protects15
public entities from financial risk, ensuring those entities can continue to16
support housing-focused projects effectively; and17
(j) The measures proposed in this act will enhance Colorado's18
capacity to finance, build, preserve, and sustain affordable housing and19
equitable community development projects in a manner that maximizes20
public return, addresses urgent housing needs, and ensures access to21
housing for all Coloradans.22
(2) Therefore, the general assembly finds and declares that23
expanding and modernizing affordable housing funding tools:24
(a) Is a matter of mixed statewide and local concern; and25
(b) Will increase housing availability, affordability, and stability,26
promote equitable development, and strengthen the public benefit of27
HB26-1206-4-
development investments in Colorado communities.1
SECTION 2. In Colorado Revised Statutes, 29-4-209, amend2
(1)(x) and (1)(y); and add (1)(z), (4), and (5) as follows:3
29-4-209. Powers of authority - definition.4
(1) An authority shall constitute a body both corporate and politic,5
exercising public powers a nd having all the powers necessary or6
convenient to carry out and effectuate the purposes and provisions of this7
part 2, including the following powers in addition to others granted in this8
section:9
(x) To make available to such agencies, boards, or commissions10
as are charged with the duty of abating nuisances or demolishing unsafe11
structures within its territorial limits its findings and recommendations12
with regard to any building or property where conditions exist which are13
dangerous to the public health, morals, safety, or welfare; and14
(y) To do all things necessary or convenient to carry out the15
powers given in this part 2; AND16
(z) T O PROVIDE FOR THE LEVY OF A SALES TAX , SALES AND USE17
TAX, OR PROPERTY TAX IN ACCORDANCE WITH SUBSECTION (4) OF THIS18
SECTION.19
(4) AN AUTHORITY MAY PROVIDE FOR THE LEVY OF A SALES TAX,20
SALES AND USE TAX, OR PROPERTY TAX, THE REVENUE OF WHICH WILL BE21
DIRECTED TO THE AUTHORITY, SUBJECT TO THE FOLLOWING CONDITIONS:22
(a) THE CITY HAS ADOPTED A RESOLUTION DETERMINING THAT THE23
LEVYING OF A SALES TAX , SALES AND USE TAX , OR PROPERTY TAX WILL24
FAIRLY DISTRIBUTE THE COSTS OF THE AUTHORITY 'S ACTIVITIES AMONG25
THE BENEFICIARIES OF THE AUTHORITY'S ACTIVITIES AND WILL NOT IMPOSE26
AN UNDUE BURDEN ON ANY PARTICULAR GROUP OF PEOPLE;27
HB26-1206-5-
(b) A BALLOT QUESTION HAS BEEN SUBMITTED TO A VOTE OF THE1
REGISTERED ELECTORS OF THE CITY IN WHICH THE HOUSING AUTHORITY2
IS LOCATED AND SUBSEQUENTLY APPROVED BY A MAJORITY OF SUCH3
REGISTERED ELECTORS VOTING THEREON, AND THE BALLOT QUESTION:4
(I) DESCRIBES THE PURPOSES FOR WHICH THE TAX WILL BE USED5
BY THE AUTHORITY; AND6
(II) C OMPLIES WITH SECTION 20 OF ARTICLE X OF THE STATE7
CONSTITUTION;8
(c) IF A SALES OR SALES AND USE TAX IS APPROVED BY VOTERS9
PURSUANT TO THIS SECTION:10
(I) T HE RATE OF THE SALES OR SALES AND USE TAX MUST NOT11
EXCEED ONE PERCENT ON ANY TRANSACTION TAXABLE BY THE STATE;12
(II) THE AUTHORITY SHALL DESIGNATE A LIAISON TO COORDINATE13
WITH THE DEPARTMENT OF REVENUE TO IMPLEMENT THE COLLECTION OF14
THE SALES OR SALES AND USE TAX PURSUANT TO PART 2 OF ARTICLE 2 OF15
THIS TITLE 29 AND TO IDENTIFY PEOPLE ELIGIBLE TO COLLECT THE SALES16
AND USE TAX; AND17
(III) T HE TAX REVENUE COLLECTED PURSUANT TO THIS18
SUBSECTION (4)(c) MUST BE DIRECTED TO THE AUTHORITY;19
(d) IF AN AD VALOREM PROPERTY TAX IS APPROVED BY VOTERS20
PURSUANT TO THIS SECTION:21
(I) T HE RATE OF THE AD VALOREM PROPERTY TAX MUST NOT22
EXCEED FIVE MILLS ON EACH DOLLAR OF VALUATION FOR ASSESSMENT OF23
THE TAXABLE PROPERTY;24
(II) THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY IN25
WHICH THE AUTHORITY IS LOCATED SHALL LEVY THE AD VALOREM26
PROPERTY TAX UPON THE VALUATION FOR ASSESSMENT OF ALL TAXABLE27
HB26-1206-6-
PROPERTY LOCATED WITHIN THE JURISDICTION OF THE AUTHORITY;1
(III) T HE OFFICIALS CHARGED WITH COLLECTING AD VALOREM2
PROPERTY TAXES FOR THE COUNTY IN WHICH THE AUTHORITY IS LOCATED3
SHALL COLLECT THE TAXES AT THE TIME AND IN THE FORM AND MANNER4
AND WITH LIKE INTEREST AND PENALTIES AS OTHER PROPERTY TAXES5
COLLECTED WITHIN THE COUNTY;6
(IV) T HE TAX REVENUE COLLECTED PURSUANT TO THIS7
SUBSECTION (4)(d) MUST BE DIRECTED TO THE AUTHORITY; AND8
(V) ALL TAX REVENUE COLLECTED PURSUANT TO THIS SUBSECTION9
(4)(d), TOGETHER WITH INTEREST THEREON AND PENALTIES FOR DEFAULT10
IN PAYMENT THEREOF, AND ALL COSTS OF COLLECTING THE SAME SHALL11
CONSTITUTE, UNTIL PAID , A PERPETUAL LIEN ON AND AGAINST THE12
PROPERTY TAXED, AND SUCH LIEN SHALL BE ON A PARITY WITH THE TAX13
LIEN OF OTHER GENERAL TAXES.14
(5) (a) FOR THE PURPOSE OF DETERMINING AN AUTHORITY'S FISCAL15
YEAR SPENDING LIMIT UNDER SECTION 20 (7)(b) OF ARTICLE X OF THE16
STATE CONSTITUTION, THE INITIAL SPENDING BASE OF THE AUTHORITY IS17
THE AMOUNT OF REVENUES COLLECTED BY THE AUTHORITY FROM18
SOURCES NOT EXCLUDED FROM FISCAL YEAR SPENDING PURSUANT TO19
SECTION 20 (2)(e) OF ARTICLE X OF THE STATE CONSTITUTION DURING THE20
FIRST FULL FISCAL YEAR FOR WHICH THE AUTHORITY COLLECTED21
REVENUES.22
(b) AS USED IN THIS SUBSECTION (5), "FISCAL YEAR" MEANS ANY23
YEAR-LONG PERIOD USED BY AN AUTHORITY FOR FISCAL ACCOUNTING24
PURPOSES.25
SECTION 3. In Colorado Revised Statutes, 29-4-505, amend (1)26
introductory portion and (1)(g); and add (1)(h), (1)(i), (2), and (3) as27
HB26-1206-7-
follows:1
29-4-505. Powers of authority - definition.2
(1) A housing authority shall constitute a public body, corporate3
and politic, exercise public and essential governmental functions, and4
have all the powers necessary and convenient to carry out and effectuate5
the purposes and provisions of this part 5, (but not the power to levy and6
collect taxes or special assessments) including the following powers:7
(g) To do all acts and things necessary or convenient to carry out8
the powers given AND THE PURPOSES DESCRIBED in this part 5; or the9
purposes hereof.10
(h) TO PROVIDE FOR THE LEVY OF A SALES TAX , SALES AND USE11
TAX, OR PROPERTY TAX IN ACCORDANCE WITH SUBSECTION (2) OF THIS12
SECTION; AND13
(i) TO ISSUE REVENUE OR GENERAL OBLIGATION BONDS AND TO14
PLEDGE THE AUTHORITY'S REVENUES AND REVENUE-RAISING POWERS FOR15
THE PAYMENT OF SUCH BONDS . SUCH BONDS MUST BE ISSUED ON THE16
SAME TERMS AND SUBJECT TO THE SAME CONDITIONS AS SET FORTH FOR17
REGIONAL TRANSPORTATION AUTHORITY BONDS IN SECTION 43-4-609.18
(2) A HOUSING AUTHORITY MAY PROVIDE FOR THE LEVY OF A19
SALES TAX , SALES AND USE TAX , OR PROPERTY TAX , THE REVENUE OF20
WHICH WILL BE DIRECTED TO THE AUTHORITY , SUBJECT TO THE21
FOLLOWING CONDITIONS:22
(a) THE BOARD HAS ADOPTED A RESOLUTION DETERMINING THAT23
THE LEVYING OF A SALES TAX , SALES AND USE TAX , OR PROPERTY TAX24
WILL FAIRLY DISTRIBUTE THE COSTS OF THE AUTHORITY 'S ACTIVITIES25
AMONG THE BENEFICIARIES OF THE AUTHORITY 'S ACTIVITIES AND WILL26
NOT IMPOSE AN UNDUE BURDEN ON ANY PARTICULAR GROUP OF PEOPLE;27
HB26-1206-8-
(b) A BALLOT QUESTION HAS BEEN SUBMITTED TO A VOTE OF THE1
REGISTERED ELECTORS OF THE COUNTY IN WHICH THE HOUSING2
AUTHORITY IS LOCATED AND SUBSEQUENTLY APPROVED BY A MAJORITY3
OF THE REGISTERED ELECTORS VOTING THEREON , AND THE BALLOT4
QUESTION: 5
(I) DESCRIBES THE PURPOSES FOR WHICH THE TAX WILL BE USED6
BY THE AUTHORITY; AND7
(II) C OMPLIES WITH SECTION 20 OF ARTICLE X OF THE STATE8
CONSTITUTION;9
(c) IF A SALES OR SALES AND USE TAX IS APPROVED BY VOTERS10
PURSUANT TO THIS SECTION:11
(I) T HE RATE OF THE SALES OR SALES AND USE TAX MUST NOT12
EXCEED ONE PERCENT ON ANY TRANSACTION TAXABLE BY THE STATE; AND13
(II) THE AUTHORITY SHALL DESIGNATE A LIAISON TO COORDINATE14
WITH THE DEPARTMENT OF REVENUE TO IMPLEMENT THE COLLECTION OF15
A SALES OR SALES AND USE TAX PURSUANT TO PART 2 OF ARTICLE 2 OF16
THIS TITLE 29 AND TO IDENTIFY PEOPLE ELIGIBLE TO COLLECT THE SALES17
AND USE TAX; AND18
(III) T HE TAX REVENUE COLLECTED PURSUANT TO THIS19
SUBSECTION (2)(c) MUST BE DIRECTED TO THE AUTHORITY;20
(d) IF AN AD VALOREM PROPERTY TAX IS APPROVED BY VOTERS21
PURSUANT TO THIS SECTION:22
(I) T HE RATE OF THE AD VALOREM PROPERTY TAX MUST NOT23
EXCEED FIVE MILLS ON EACH DOLLAR OF VALUATION FOR ASSESSMENT;24
(II) T HE BOARD SHALL LEVY THE AD VALOREM PROPERTY TAX25
UPON THE VALUATION FOR ASSESSMENT OF ALL TAXABLE PROPERTY26
LOCATED WITHIN THE JURISDICTION OF THE AUTHORITY;27
HB26-1206-9-
(III) T HE OFFICIALS CHARGED WITH COLLECTING AD VALOREM1
PROPERTY TAXES FOR THE COUNTY SHALL COLLECT THE TAXES AT THE2
TIME AND IN THE FORM AND MANNER AND WITH LIKE INTEREST AND3
PENALTIES AS OTHER PROPERTY TAXES COLLECTED WITHIN THE COUNTY; 4
(IV) T HE TAX REVENUE COLLECTED PURSUANT TO THIS5
SUBSECTION (2)(d) MUST BE DIRECTED TO THE AUTHORITY; AND6
(V) ALL TAX REVENUE COLLECTED PURSUANT TO THIS SUBSECTION7
(2)(d), TOGETHER WITH INTEREST THEREON AND PENALTIES FOR DEFAULT8
IN PAYMENT THEREOF, AND ALL COSTS OF COLLECTING THE SAME SHALL9
CONSTITUTE, UNTIL PAID , A PERPETUAL LIEN ON AND AGAINST THE10
PROPERTY TAXED, AND SUCH LIEN SHALL BE ON A PARITY WITH THE TAX11
LIEN OF OTHER GENERAL TAXES.12
(3) (a) FOR THE PURPOSE OF DETERMINING AN AUTHORITY'S FISCAL13
YEAR SPENDING LIMIT UNDER SECTION 20 (7)(b) OF ARTICLE X OF THE14
STATE CONSTITUTION, THE INITIAL SPENDING BASE OF THE AUTHORITY IS15
THE AMOUNT OF REVENUES COLLECTED BY THE AUTHORITY FROM16
SOURCES NOT EXCLUDED FROM FISCAL YEAR SPENDING PURSUANT TO17
SECTION 20 (2)(e) OF ARTICLE X OF THE STATE CONSTITUTION DURING THE18
FIRST FULL FISCAL YEAR FOR WHICH THE AUTHORITY COLLECTED19
REVENUES.20
(b) AS USED IN THIS SUBSECTION (3), "FISCAL YEAR" MEANS ANY21
YEAR-LONG PERIOD USED BY AN AUTHORITY FOR FISCAL ACCOUNTING22
PURPOSES.23
SECTION 4. In Colorado Revised Statutes, 31-25-107, add24
(11.5) as follows:25
31-25-107. Approval of urban renewal plans by local26
governing body - definitions.27
HB26-1206-10-
(11.5) (a) F OR PURPOSES OF THIS SUBSECTION (11.5),1
"INDEBTEDNESS INCURRED BY THE AUTHORITY" MEANS THE PRINCIPAL OF,2
THE INTEREST ON , AND ANY PREMIUMS DUE IN CONNECTION WITH THE3
BONDS OF, LOANS OR ADVANCES TO , OR INDEBTEDNESS INCURRED BY ,4
WHETHER FUNDED, REFUNDED, ASSUMED, OR OTHERWISE, THE AUTHORITY5
FOR FINANCING OR REFINANCING , IN WHOLE OR IN PART , AN URBAN6
RENEWAL PROJECT , OR TO MAKE PAYMENTS UNDER AN AGREEMENT7
EXECUTED PURSUANT TO THIS SECTION.8
(b) AFTER A GOVERNING BODY OR AN AUTHORITY HAS ENTERED9
INTO A CONTRACT WITH A DEVELOPER FOR THE DEVELOPER TO WORK ON10
AN URBAN RENEWAL PROJECT, THE GOVERNING BODY OR AUTHORITY MAY11
ENTER INTO A SHORTFALL GUARANTY CONTRACT WITH THE DEVELOPER12
SPECIFYING THAT, IF, AT THE TIME THAT INDEBTEDNESS INCURRED BY THE13
AUTHORITY OR ANY PORTION THEREOF COMES DUE , TAX INCREMENT14
REVENUE THAT HAS BEEN ALLOCATED PURSUANT TO SUBSECTION (9)(a) OF15
THIS SECTION IS INSUFFICIENT TO PAY THE INDEBTEDNESS THAT IS DUE ,16
THE DEVELOPER IS OBLIGATED TO MAKE A DIRECT PAYMENT COVERING17
THE FULL AMOUNT OF THE INSUFFICIENCY . A SHORTFALL GUARANTY18
CONTRACT ENTERED INTO PURSUANT TO THIS SUBSECTION (11.5):19
(I) C ONSTITUTES A LIEN ON THE URBAN RENEWAL PROJECT20
PROPERTY THE SAME AS, AND EQUAL IN PRIORITY TO, A TAX LIEN;21
(II) HAS PRIORITY OVER ANY MORTGAGE, LIEN THAT IS NOT A TAX22
LIEN, OR OTHER ENCUMBRANCE;23
(III) CONSTITUTES A COVENANT RUNNING WITH THE LAND FOR THE24
TERM OF THE CONTRACT; AND25
(IV) M AY BE RECORDED AGAINST THE REAL PROPERTY UPON26
WHICH THE URBAN RENEWAL PROJECT IS DEVELOPED.27
HB26-1206-11-
SECTION 5. Effective date. This act takes effect January 1,1
2027.2
SECTION 6. Safety clause. The general assembly finds,3
determines, and declares that this act is necessary for the immediate4
preservation of the public peace, health, or safety or for appropriations for5
the support and maintenance of the departments of the state and state6
institutions.7
HB26-1206-12-