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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 26-0482.02 Caroline Martin x5902 HOUSE BILL 26-1206
House Committees Senate Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
CONCERNING IMPROVED FUNDING TO SUPPORT AFFORDABLE HOUSING101
DEVELOPMENT.102
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
SENATE
3rd Reading Unamended
May 11, 2026
SENATE
Amended 2nd Reading
May 7, 2026
HOUSE
3rd Reading Unamended
April 28, 2026
HOUSE
Amended 2nd Reading
April 27, 2026
HOUSE SPONSORSHIP
Joseph and Gonzalez R., Boesenecker, Duran, English
SENATE SPONSORSHIP
Lindstedt and Benavidez, Amabile, Ball, Bridges, Coleman, Cutter, Danielson,
Daugherty, Exum, Gonzales J., Jodeh, Kipp, Marchman, Roberts, Sullivan, Wallace
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.
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)
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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.
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
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21.5% of homeowners spending over 30% of their income on housing.1
Only 11% of renters could afford to purchase a typical home in Colorado2
as of 2025.3
(f) The affordability gap is not solely due to low supply; housing4
prices and rents have increased faster than incomes, deepening the5
challenge of obtaining stable, affordable homes, particularly for working6
families, seniors, and other vulnerable populations;7
(g) The work of public housing authorities and developers is8
essential to expanding the stock of deeply affordable housing. However,9
current financing tools and incentive structures do not sufficiently10
prioritize or support these entities.11
(h) Allowing housing authorities to collect tax revenue within12
their jurisdictions will help these mission-driven entities more quickly13
expand the supply of deeply affordable housing.14
(2) Therefore, the general assembly finds and declares that15
expanding and modernizing affordable housing funding tools:16
(a) Is a matter of mixed statewide and local concern; and17
(b) Will increase housing availability, affordability, and stability,18
promote equitable development, and strengthen the public benefit of19
development investments in Colorado communities.20
SECTION 2. In Colorado Revised Statutes, add 29-4-233 as21
follows:22
29-4-233. Intergovernmental agreement for housing revenue.23
(1) A N AUTHORITY AND A CITY MAY ENTER INTO AN24
INTERGOVERNMENTAL AGREEMENT TO PROVIDE FOR THE IMPOSITION OF25
A GENERAL SALES TAX , SALES AND USE TAX , OR BOTH , PURSUANT TO26
SECTION 29-2-102, BY THE CITY UPON EVERY TRANSACTION OR OTHER27
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INCIDENT WITH RESPECT TO WHICH A SALES OR USE TAX IS IMPOSED BY THE1
CITY. THE AUTHORITY SHALL USE THE REVENUE RAISED BY THIS TAX TO2
EFFECT THE PLANNING , FINANCING , ACQUISITION , CONSTRUCTION ,3
RECONSTRUCTION, OR REPAIR , MAINTENANCE , MANAGEMENT , AND4
OPERATION OF HOUSING PROJECTS OR PROGRAMS PURSUANT TO THIS PART5
2.6
(2) A N INTERGOVERNMENTAL AGREEMENT ENTERED INTO7
PURSUANT TO THIS SECTION MUST ADDRESS:8
(a) THE TYPE OF TAX TO BE IMPOSED PURSUANT TO THIS SECTION9
AND THE RATE OF THAT TAX;10
(b) THE DURATION OF A TAX IMPOSED PURSUANT TO THIS SECTION11
AND OF THE AGREEMENT , BOTH OF WHICH MAY BE CONTINUED FOR A12
DEFINITE TERM OR UNTIL RESCINDED OR TERMINATED, AND THE METHOD,13
IF ANY, BY WHICH EITHER MAY BE RESCINDED OR TERMINATED ; EXCEPT14
THAT NEITHER MAY BE RESCINDED OR TERMINATED SO LONG AS THE15
AUTHORITY HAS BONDS, NOTES, OR OTHER OBLIGATIONS OUTSTANDING TO16
WHICH THE AUTHORITY HAS PLEDGED REVENUE RAISED FROM THE TAX ,17
UNLESS PROVISION FOR FULL PAYMENT OF THESE OBLIGATIONS , BY18
ESCROW OR OTHERWISE, HAS BEEN MADE PURSUANT TO THE TERMS OF THE19
OBLIGATIONS;20
(c) THE DISTRIBUTION OF ALL OR PART OF THE REVENUE RAISED BY21
A TAX IMPOSED PURSUANT TO THIS SECTION TO THE AUTHORITY;22
(d) T HE IRREVOCABLE PLEDGE TO THE AUTHORITY OF ALL NEW23
TAX REVENUES RAISED BY A TAX IMPOSED PURSUANT TO THIS SECTION FOR24
THE PURPOSES SET FORTH IN THE APPROVED BALLOT QUESTION, EXCEPTING25
ANY COSTS OF ELECTIONS RELATED TO THE TAX OR THE ADMINISTRATION26
OR COLLECTION OF THE TAX;27
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(e) COMPLIANCE WITH SECTION 20 OF ARTICLE X OF THE STATE1
CONSTITUTION;2
(f) THE PAYMENT OF ANY COSTS OF ANY ELECTION RELATED TO A3
TAX IMPOSED PURSUANT TO THIS SECTION;4
(g) THE RETENTION BY THE CITY OF AN AMOUNT OF THE REVENUE5
RAISED BY A TAX IMPOSED PURSUANT TO THIS SECTION NOT TO EXCEED6
THE COST OF THE COLLECTION, ADMINISTRATION, AND ENFORCEMENT OF7
THAT TAX; AND8
(h) A NY OTHER PROVISIONS DEEMED NECESSARY BY THE9
AUTHORITY AND THE CITY.10
(3) (a) AN ACTION BY A CITY TO IMPOSE OR INCREASE ANY TAX OR11
TO PLEDGE REVENUES PURSUANT TO THIS SECTION DOES NOT TAKE EFFECT12
UNLESS FIRST SUBMITTED TO A VOTE OF THE REGISTERED ELECTORS OF13
THE CITY TO THE EXTENT REQUIRED BY SECTION 20 OF ARTICLE X OF THE14
STATE CONSTITUTION OR OTHER APPLICABLE LAW.15
(b) A BALLOT QUESTION SUBMITTED TO A CITY 'S REGISTERED16
ELECTORS PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST BE17
SUBMITTED AT A GENERAL ELECTION OR ANY ELECTION TO BE HELD ON18
THE FIRST TUESDAY IN NOVEMBER OF AN ODD-NUMBERED YEAR AND IS19
ONLY APPROVED IF A MAJORITY OF THE REGISTERED ELECTORS VOTING ON20
THE BALLOT QUESTION AT THE ELECTION VOTE IN FAVOR OF THE BALLOT21
QUESTION.22
(4) (a) T HE AUTHORITY GRANTED PURSUANT TO THIS SECTION23
DOES NOT LIMIT THE POWERS OF GOVERNMENTS TO ENTER INTO24
INTERGOVERNMENTAL COOPERATION OR CONTRACTS , TO ESTABLISH25
SEPARATE LEGAL ENTITIES PURSUANT TO SECTION 29-1-203 OR ANY26
OTHER APPLICABLE LAW, OR TO OTHERWISE CARRY OUT THEIR INDIVIDUAL27
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POWERS UNDER APPLICABLE STATUTORY OR CHARTER PROVISIONS.1
(b) THE AUTHORITY GRANTED PURSUANT TO THIS SECTION DOES2
NOT LIMIT THE POWERS RESERVED TO CITIES AND TOWNS BY SECTION 2 OF3
ARTICLE XI OF THE STATE CONSTITUTION OR ARTICLE XX OF THE STATE4
CONSTITUTION.5
SECTION 3. In Colorado Revised Statutes, 29-4-505, amend (1)6
introductory portion and (1)(g); and add (1)(h) as follows:7
29-4-505. Powers of authority.8
(1) A housing authority shall constitute CONSTITUTES a public9
body, corporate and politic, SHALL exercise public and essential10
governmental functions, and have HAS all the powers necessary and11
convenient to carry out and effectuate the purposes and provisions of this12
part 5; (but not EXCEPT FOR the power to levy and collect taxes or special13
assessments), including the following powers:14
(g) To do all acts and things necessary or convenient to carry out15
the powers given AND THE PURPOSES DESCRIBED in this part 5 or the16
purposes hereof OF THIS PART 5; AND17
(h) TO ISSUE REVENUE OR GENERAL OBLIGATION BONDS AND TO18
PLEDGE THE HOUSING AUTHORITY 'S REVENUES AND REVENUE -RAISING19
POWERS FOR THE PAYMENT OF THESE BONDS . WHEN ISSUING BONDS20
PURSUANT TO THIS SUBSECTION (1)(h), THE AUTHORITY SHALL ISSUE THE21
BONDS ACCORDING TO THE TERMS AND SUBJECT TO THE CONDITIONS22
DESCRIBED IN SECTION 43-4-609.23
SECTION 4. In Colorado Revised Statutes, add 29-4-510 as24
follows:25
29-4-510. Intergovernmental agreement for housing revenue. 26
(1) A N AUTHORITY AND A COUNTY MAY ENTER INTO AN27
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INTERGOVERNMENTAL AGREEMENT TO PROVIDE FOR THE IMPOSITION OF1
A GENERAL SALES TAX , SALES AND USE TAX , OR BOTH , PURSUANT TO2
SECTION 29-2-103, BY THE COUNTY UPON EVERY TRANSACTION OR OTHER3
INCIDENT WITH RESPECT TO WHICH A SALES OR USE TAX IS IMPOSED BY THE4
COUNTY. THE AUTHORITY SHALL USE THE REVENUE RAISED BY THIS TAX5
TO EFFECT THE PLANNING , FINANCING , ACQUISITION , CONSTRUCTION ,6
RECONSTRUCTION, OR REPAIR , MAINTENANCE , MANAGEMENT , AND7
OPERATION OF HOUSING PROJECTS OR PROGRAMS PURSUANT TO THIS PART8
5.9
(2) A N INTERGOVERNMENTAL AGREEMENT ENTERED INTO10
PURSUANT TO THIS SECTION SHALL ADDRESS:11
(a) THE TYPE OF TAX TO BE LEVIED PURSUANT TO THIS SECTION12
AND THE RATE OF THAT TAX;13
(b) THE DURATION OF A TAX IMPOSED PURSUANT TO THIS SECTION14
AND OF THE AGREEMENT , BOTH OF WHICH MAY BE CONTINUED FOR A15
DEFINITE TERM OR UNTIL RESCINDED OR TERMINATED, AND THE METHOD,16
IF ANY, BY WHICH EITHER MAY BE RESCINDED OR TERMINATED ; EXCEPT17
THAT NEITHER MAY BE RESCINDED OR TERMINATED SO LONG AS THE18
AUTHORITY HAS BONDS, NOTES, OR OTHER OBLIGATIONS OUTSTANDING TO19
WHICH THE AUTHORITY HAS PLEDGED REVENUE RAISED FROM THE TAX ,20
UNLESS PROVISION FOR FULL PAYMENT OF THESE OBLIGATIONS , BY21
ESCROW OR OTHERWISE, HAS BEEN MADE PURSUANT TO THE TERMS OF THE22
OBLIGATIONS;23
(c) THE DISTRIBUTION OF ALL OR PART OF THE REVENUE RAISED BY24
A TAX IMPOSED PURSUANT TO THIS SECTION TO THE AUTHORITY;25
(d) T HE IRREVOCABLE PLEDGE TO THE AUTHORITY OF ALL NEW26
TAX REVENUES RAISED BY A TAX IMPOSED PURSUANT TO THIS SECTION FOR27
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THE PURPOSES SET FORTH IN THE APPROVED BALLOT QUESTION, EXCEPTING1
ANY COSTS OF ELECTIONS RELATED TO THE TAX OR THE ADMINISTRATION2
OR COLLECTION OF THE TAX;3
(e) COMPLIANCE WITH SECTION 20 OF ARTICLE X OF THE STATE4
CONSTITUTION;5
(f) THE PAYMENT OF ANY COSTS OF ANY ELECTION RELATED TO A6
TAX IMPOSED PURSUANT TO THIS SECTION;7
(g) T HE RETENTION BY THE COUNTY OR THE DEPARTMENT OF8
REVENUE FOR TAXES COLLECTED BY THE DEPARTMENT OF REVENUE, OF AN9
AMOUNT OF THE REVENUE RAISED BY A TAX IMPOSED PURSUANT TO THIS10
SECTION NOT TO EXCEED THE COST OF THE COLLECTION, ADMINISTRATION,11
AND ENFORCEMENT OF THAT TAX; AND12
(h) A NY OTHER PROVISIONS DEEMED NECESSARY BY THE13
AUTHORITY AND THE COUNTY.14
(3) (a) AN ACTION BY A COUNTY TO IMPOSE OR INCREASE ANY TAX15
OR TO PLEDGE REVENUES PURSUANT TO THIS SECTION DOES NOT TAKE16
EFFECT UNLESS FIRST SUBMITTED TO A VOTE OF THE REGISTERED17
ELECTORS OF THE COUNTY TO THE EXTENT REQUIRED BY SECTION 20 OF18
ARTICLE X OF THE STATE CONSTITUTION OR OTHER APPLICABLE LAW.19
(b) A BALLOT QUESTION SUBMITTED TO A COUNTY'S REGISTERED20
ELECTORS PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION MUST BE21
SUBMITTED AT A GENERAL ELECTION OR ANY ELECTION TO BE HELD ON22
THE FIRST TUESDAY IN NOVEMBER OF AN ODD-NUMBERED YEAR AND IS23
ONLY APPROVED IF A MAJORITY OF THE REGISTERED ELECTORS VOTING ON24
THE BALLOT QUESTION AT THE ELECTION VOTE IN FAVOR OF THE BALLOT25
QUESTION.26
(4) A COUNTY THAT ENTERS INTO AN INTERGOVERNMENTAL27
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AGREEMENT PURSUANT TO THIS SECTION SHALL , BEFORE IMPOSING OR1
INCREASING ANY TAX OR PLEDGING ANY REVENUES FROM A TAX IMPOSED2
OR INCREASED PURSUANT TO THIS SECTION, ENTER INTO A MEMORANDUM3
OF UNDERSTANDING CONCERNING THE PLEDGING OF ANY REVENUE RAISED4
FROM A TAX IMPOSED OR INCREASED PURSUANT TO THIS SECTION WITH5
THE AUTHORITY AND ANY CITY WITHIN THE AUTHORITY'S BOUNDARIES.6
(5) THE AUTHORITY GRANTED PURSUANT TO THIS SECTION DOES7
NOT LIMIT THE POWERS OF GOVERNMENTS TO ENTER INTO8
INTERGOVERNMENTAL COOPERATION OR CONTRACTS , TO ESTABLISH9
SEPARATE LEGAL ENTITIES PURSUANT TO SECTION 29-1-203 OR ANY10
OTHER APPLICABLE LAW, OR TO OTHERWISE CARRY OUT THEIR INDIVIDUAL11
POWERS UNDER APPLICABLE STATUTORY OR CHARTER PROVISIONS.12
13
SECTION 5. Safety clause. The general assembly finds,14
determines, and declares that this act is necessary for the immediate15
preservation of the public peace, health, or safety or for appropriations for16
the support and maintenance of the departments of the state and state17
institutions.18
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