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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0846.02 Pierce Lively x2059 HOUSE BILL 26-1360
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
CONCERNING THE AFFORDABLE HOUSING FINANCING FUND.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/.)
Joint Budget Committee. The bill directs the state treasurer to
transfer $130 million from the state affordable housing fund (fund) to the
general fund on June 30, 2026, and makes 3 corresponding adjustments
to the affordable housing financing fund (financing fund). First, the bill
adjusts the July 1, 2026, transfer from the fund to the financing fund to
be reduced by the amount of the June 30, 2026, transfer from the state
affordable housing fund. Second, for the 2026-27 state fiscal year only,
the bill adjusts the prioritization of programs funded by the financing
HOUSE
3rd Reading Unamended
April 11, 2026
HOUSE
2nd Reading Unamended
April 9, 2026
HOUSE SPONSORSHIP
Brown and Taggart, Sirota,
SENATE SPONSORSHIP
Bridges and Kirkmeyer, Amabile
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.
fund, so that the programs are funded in the following order: The
concessionary debt program, the affordable housing equity program, and
the land banking program. Third, the bill ensures that this transfer does
not reduce the amount that may be spent on administrative expenses for
implementing programs funded by the financing fund in the 2026-27 state
fiscal year and pools the costs of administering these programs for fiscal
years beginning with the 2026-27 state fiscal year.
The bill clarifies that interest and investment income earned on the
financing fund may be expended for projects funded by the fund.
Under current law, if legislative council staff's March economic
and revenue forecast projects that state revenue will not exceed the state
fiscal year spending limit, the general assembly reduces the funding
allocated to the financing fund. The bill allows for the general assembly
to so reduce the funding allocated to the financing fund for the 2025 state
fiscal year as a result of revenue forecasts projecting that state revenue
will not exceed the state fiscal year spending limit.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 29-32-103, amend2
(2) and (3) as follows:3
29-32-103. Transfers of money - permitted uses of the fund -4
continuous appropriation - repeal.5
(2) (a) The affordable housing financing fund is hereby created in6
the state treasury. The financing fund shall consist of money deposited7
into it under subsection (3) of this section. The office shall administer the8
financing fund and expend the money in the financing fund only for the9
purposes set forth in section 29-32-104 (1) and for the office's10
administrative expenses related to the programs created in that section11
PERMITTED PURSUANT TO SUBSECTION (2)(b)(II) OF THIS SECTION . All12
money not expended or encumbered, and all interest earned on the13
investment or deposit of money in the financing fund, shall remain in the14
financing fund and shall not revert to the general fund or any other fund15
at the end of any fiscal year. All money transferred to the MONEY IN THE16
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financing fund pursuant to subsection (3) of this section is continuously1
appropriated to the office for the purposes set forth in section 29-32-1042
(1) and this section.3
(b) (I) (A) FOR THE STATE FISCAL YEAR THAT BEGINS ON JULY 1,4
2026, THE ADMINISTRATOR AND THE OFFICE COMBINED MAY EXPEND AN5
AMOUNT TO PAY FOR THE COSTS OF ADMINISTERING THE PROGRAMS6
DESCRIBED IN SECTION 29-32-104 (1) THAT IS EQUAL TO TWO PERCENT OR7
LESS OF THE AMOUNT THAT THE STATE TREASURER WOULD TRANSFER8
FROM THE FUND TO THE FINANCING FUND FOR THE STATE FISCAL YEAR, IF9
NOT FOR THE DIVERSION REQUIRED PURSUANT TO SECTION 29-32-10310
(3)(b).11
(B) THIS SUBSECTION (2)(b)(I) IS REPEALED, EFFECTIVE JULY 1,12
2027.13
(II) FOR STATE FISCAL YEARS THAT BEGIN ON OR BEFORE JULY 1,14
2025, AND ON OR AFTER JULY 1, 2027, THE ADMINISTRATOR AND THE15
OFFICE COMBINED SHALL EXPEND NO MORE THAN TWO PERCENT OF THE16
FUNDS THAT THE STATE TREASURER TRANSFERS FROM THE FUND TO THE17
FINANCING FUND FOR THE STATE FISCAL YEAR TO PAY FOR THE COSTS OF18
ADMINISTERING THE PROGRAMS DESCRIBED IN SECTION 29-32-104 (1). 19
(3) (a) On July 1, 2023, or as soon as practicable thereafter, and20
on July 1 of each state fiscal year thereafter, EXCEPT FOR JULY 1, 2026, the21
state treasurer shall transfer forty percent of the balance of the fund on the22
date of the transfer to the support fund and sixty percent of the balance of23
the fund on the date of the transfer to the financing fund.24
(b) (I) NOTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION, ON25
JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER ONE HUNDRED26
THIRTY MILLION DOLLARS FROM THE FUND TO THE GENERAL FUND.27
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(II) PURSUANT TO SECTIONS 29-32-102 (1) AND 29-32-104 (5), THE1
MONEY TRANSFERRED BY THE STATE TREASURER PURSUANT TO2
SUBSECTION (3)(b)(I) OF THIS SECTION IS NOT SUBJECT TO THE LIMITATION3
ON FISCAL YEAR SPENDING SPECIFIED IN SECTION 20 OF ARTICLE X OF THE4
STATE CONSTITUTION.5
(III) ON JULY 1, 2026, OR AS SOON AS PRACTICABLE THEREAFTER,6
THE STATE TREASURER SHALL TRANSFER AN AMOUNT EQUAL TO FORTY7
PERCENT OF THE BALANCE OF THE FUND IMMEDIATELY BEFORE THE8
TRANSFER DESCRIBED IN SUBSECTION (3)(b)(I) OF THIS SECTION TO THE9
SUPPORT FUND AND SHALL TRANSFER THE REMAINING BALANCE OF THE10
FUND TO THE FINANCING FUND.11
(IV) T HIS SUBSECTION (3)(b) IS REPEALED , EFFECTIVE JULY 1,12
2027.13
SECTION 2. In Colorado Revised Statutes, 29-32-104, amend14
(1) introductory portion, (1)(a), (1)(b), (1)(c)(V)(B), (2), and (5) as15
follows:16
29-32-104. Permissible expenditures - affordable housing17
programs - report - definitions - repeal. 18
(1) The office shall contract with the administrator. The office19
may select an administrator without a competitive procurement process20
but shall announce the contract opening publicly and select the21
administrator in a meeting that is open to the public, no less than22
seventy-two hours after notice of such meeting is publicly available. No23
single contract may exceed five years in duration. Upon the expiration of24
any contract term, the office may renew the contract with the same25
administrator or may select another administrator. The administrator26
selected by the office shall expend the money transferred to FROM the27
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financing fund in section 29-32-103 (2) that the administrator receives1
from the office to support the following programs only:2
(a) A land banking program to be administered by the3
administrator. The program shall provide grants to local governments and4
tribal governments and loans to non-profit organizations with a5
demonstrated history of providing affordable housing to acquire and6
preserve land for the development of affordable housing. For purposes of7
this subsection (1)(a), "affordable housing" means rental housing that has8
a designated imputed income limit by household size not to exceed sixty9
percent of the area median income as established by the United States10
Department of Housing and Urban Development and published by the11
department or a statewide political subdivision or authority on housing,12
and regulated units in the project must have a gross rent limit that does13
not exceed thirty percent of the imputed income limitation applicable to14
the units and for-sale housing that could be purchased by a household15
with an annual income of at or below one hundred percent of the area16
median income. Mixed use development is an allowable use of land17
purchased under this program if the predominant use of the land is18
affordable housing. Loans made by the program shall be forgiven if land19
acquired with the assistance of the program is properly zoned with an20
active plan for the development of affordable housing within 5 years of21
date the loan is made and if the development is permitted and funded22
within 10 years. The lender and borrower may establish additional terms23
if needed. If land acquired with the assistance of the program is not24
developed within the timeline above, the loan must be repaid, with25
interest, as soon as practical, but not more than six months after26
expiration of said timeline, unless the office agrees to extend all or a27
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portion of the timeline in its reasonable discretion. Land acquired with the1
assistance of the program that is not developed within the timeline above2
may be used by the owner for any purpose upon payment of the loan with3
interest or, in exchange for a waiver of interest, conveyed to a state4
agency or other entity for the development of affordable housing with the5
approval of the administrator. All principal and interest payments on6
loans made under this paragraph (a) SUBSECTION (1)(a) shall be paid to7
the administrator and used by the administrator for the purposes set forth8
in this subsection (1). As determined by the administrator, a minimum of9
15% and a maximum of 25% of monies MONEY transferred to the10
financing fund annually may be used for the program. The administrator11
may utilize the funds it receives from the office for the program to pay for12
the costs of administering the program; except that the total combined13
annual administrative expenditures of money from the financing fund by14
the administrator and the office shall not, exceed two percent of the funds15
the administrator receives from the office for the program for the state16
fiscal year.17
(b) An affordable housing equity program to be administered by18
the administrator. The program shall make equity investments in low- and19
middle-income multi-family rental developments. The program shall also20
make equity investments in existing projects which include multi-family21
rental units for the purpose of ensuring that said projects remain22
affordable. The average designated imputed income by household size for23
projects funded by the program must not exceed 90% of the area median24
income as established by the United States Department of Housing and25
Urban Development and published by the department or a statewide26
political subdivision or authority on housing, and regulated units in the27
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project must have a gross rent limit that does not exceed thirty percent of1
the imputed income limitation applicable to the units. The program shall2
include a tenant equity vehicle, meaning, in projects funded by the3
program, tenants who reside in the project for at least one year shall be4
entitled to a share of the equity growth in the project, if any, in the form5
of funding from the program for a down-payment on housing or related6
purposes, which may also include ongoing opportunities for tenants to7
build up their savings, in an amount determined by the administrator.8
Equity investments made by the program shall be made with the9
expectation of returns that are below the prevailing market returns.10
Returns on program investments up to the amount of the program's initial11
investment shall be retained in the program and reinvested. Returns on12
program investments greater than the program's initial investment shall13
be retained in the program to fund the tenant equity vehicle. In selecting14
investments under this program, the administrator shall prioritize15
high-density housing, mixed-income housing, and projects consistent with16
the goal of environmental sustainability. As determined by the17
administrator, a minimum of 40% of monies and a maximum of 70% of18
monies MONEY transferred to the financing fund annually may be used for19
the program. The administrator may utilize the funds it receives from the20
office for the program to pay for the costs of administering the program;21
except that, the total combined annual administrative expenditures of22
money from the financing fund by the administrator and the office shall23
not exceed two percent of the funds the administrator receives from the24
office for the program for the state fiscal year.25
(c) A concessionary debt program to be administered by the26
administrator. The program shall:27
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(V) Include the following features:1
(B) As determined by the administrator, a minimum of 15% of2
monies and a maximum of 35% of monies MONEY transferred to the3
financing fund annually may be used for the program. The administrator4
may utilize the funds it receives from the office for the program to pay for5
the costs of administering the program; except that, the total combined6
annual administrative expenditures of money from the financing fund by7
the administrator and the office shall not exceed two percent of the funds8
the administrator receives from the office for the program for the state9
fiscal year.10
(2) (a) In selecting investments to be made by the programs of11
subsection (1) of this section, the administrator shall prioritize projects12
that achieve high-density housing, mixed-income housing, and projects13
consistent with the goal of environmental sustainability, as appropriate.14
(b) (I) N OTWITHSTANDING THE FUNDING PERCENTAGES15
ESTABLISHED IN SUBSECTION (1) OF THIS SECTION, FOR THE STATE FISCAL16
YEAR THAT BEGINS ON JULY 1, 2026, THE OFFICE AND ADMINISTRATOR17
SHALL, WITH THE GOAL OF FUNDING ALL THREE PROGRAMS DESCRIBED IN18
SUBSECTION (1) OF THIS SECTION, DETERMINE THE FUNDING PERCENTAGES19
FOR THE PROGRAMS DESCRIBED IN SUBSECTION (1) OF THIS SECTION BASED20
ON THE FOLLOWING PRIORITY ORDER : CONCESSIONARY DEBT ,21
AFFORDABLE HOUSING EQUITY, AND LAND BANKING.22
(II) THIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE JULY 1, 2027.23
(5) (a) If the Legislative Council Staff's March Economic and24
Revenue Forecast in any given year projects revenue for the next state25
fiscal year will fall below the revenue limit imposed under section 20 of26
article X of the state constitution, the general assembly may reduce the27
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funding allocated to the office required by this section for the next state1
fiscal year in order to balance the state budget for said state fiscal year.2
(b) (I) L EGISLATIVE COUNCIL STAFF EC ONOMIC AND REVENUE3
FORECASTS PROJECT THAT REVENUE FOR THE 2025-26 STATE FISCAL YEAR4
WILL FALL BELOW THE REVENUE LIMIT IMPOSED UNDER SECTION 20 OF5
ARTICLE X OF THE STATE CONSTITUTION , AND THE GENERAL ASSEMBLY6
SHALL REDUCE THE FUNDING OTHERWISE ALLOCATED TO THE OFFICE7
REQUIRED BY THIS SECTION FOR THE 2025-26 STATE FISCAL YEAR AS8
DESCRIBED IN SECTION 29-32-103 (3)(b) IN ORDER TO BALANCE THE STATE9
BUDGET FOR THE 2025-26 STATE FISCAL YEAR.10
(II) THIS SUBSECTION (5)(b) IS REPEALED, EFFECTIVE JULY 1, 2027.11
SECTION 3. Safety clause. The general assembly finds,12
determines, and declares that this act is necessary for the immediate13
preservation of the public peace, health, or safety or for appropriations for14
the support and maintenance of the departments of the state and state15
institutions.16
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