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HOUSE BILL 26-1360
BY REPRESENTATIVE(S) Brown and Taggart, Sirota;
also SENATOR(S) Bridges and Kirkmeyer, Amabile.
CONCERNING THE AFFORDABLE HOUSING FINANCING FUND.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 29-32-103, amend (2)
and (3) as follows:
29-32-103. Transfers of money - permitted uses of the fund -
continuous appropriation - repeal.
(2) (a) The affordable housing financing fund is hereby created in
the state treasury. The financing fund shall consist of money deposited into
it under subsection (3) of this section. The office shall administer the
financing fund and expend the money in the financing fund only for the
purposes set forth in section 29-32-104 (1) and for the offiee's
administrative expenses related to the prngrnms ereated in that seetion
PERMITTED PURSUANT TO SUBSECTION (2)(b )(II) OF THIS SECTION. All money
not expended or encumbered, and all interest earned on the investment or
deposit of money in the financing fund, shall remain in the financing fund
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
and shall not revert to the general fund or any other fund at the end of any
fiscal year. All inoncy tiansf-encd to the MONEY IN THE financing fund
pursuant to subsection (3) ofthis section is continuously appropriated to the
office for the purposes set forth in section 29-32-104 (1) and this section.
(b) (I) (A) FOR THE STATE FISCAL YEAR THAT BEGINS ON JULY 1,
2026, THE ADMINISTRATOR AND THE OFFICE COMBINED MAY EXPEND AN
AMOUNT TO PAY FOR THE COSTS OF ADMINISTERING THE PROGRAMS
DESCRIBED IN SECTION 29-32-104 (1) THAT IS EQUAL TO TWO PERCENT OR
LESS OF THE AMOUNT THAT THE STATE TREASURER WOULD TRANSFER FROM
THE FUND TO THE FINANCING FUND FOR THE STATE FISCAL YEAR, IF NOT FOR
THE DIVERSION REQUIRED PURSUANT TO SECTION 29-32-103 (3)(b).
(B) THIS SUBSECTION (2)(b)(I) IS REPEALED, EFFECTIVE JULY 1,
2027.
(11) FOR STATE FISCAL YEARS THAT BEGIN ON OR BEFORE JULY 1,
2025,ANDONORAFTERJULY 1,2027, THEADMINISTRATORANDTHEOFFICE
COMBINED SHALL EXPEND NO MORE THAN TWO PERCENT OF THE FUNDS THAT
THE STATE TREASURER TRANSFERS FROM THE FUND TO THE FINANCING FUND
FOR THE ST A TE FISCAL YEAR TO PAY FOR THE COSTS OF ADMINISTERING THE
PROGRAMS DESCRIBED IN SECTION 29-32-104 ( 1 ).
(3) (a) On July 1, 2023, or as soon as practicable thereafter, and on
July 1 of each state fiscal year thereafter, EXCEPT FOR JULY 1, 2026, the state
treasurer shall transfer forty percent of the balance of the fund on the date
of the transfer to the support fund and sixty percent of the balance of the
fund on the date of the transfer to the financing fund.
(b) (I) NOTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION, ON
JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER ONE HUNDRED
THIRTY MILLION DOLLARS FROM THE FUND TO THE GENERAL FUND.
(II) PURSUANT TO SECTIONS 29-32-102 (1) AND 29-32-104 (5), THE
MONEY TRANSFERRED BY THE STATE TREASURER PURSUANT TO SUBSECTION
(3)(b)(I) OF THIS SECTION IS NOT SUBJECT TO THE LIMITATION ON FISCAL
YEAR SPENDING SPECIFIED IN SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION.
(III) ON JULY 1, 2026, OR AS SOON AS PRACTICABLE THEREAFTER,
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THE STATE TREASURER SHALL TRANSFER AN AMOUNT EQUAL TO FORTY
PERCENT OF THE BALANCE OF THE FUND IMMEDIATELY BEFO RE THE
TRANSFER DESCRIBED IN SUBSECTION (3 )(b )(I) OF THIS SECTION TO THE
SUPPORT FUND AND SHALL TRANSFER THE REMAINING BALANCE OF THE FUND
TO THE FINANCING FUND.
(IV) THIS SUBSECTION (3)(b) IS REPEALED, EFFECTIVE JULY 1, 2027.
SECTION 2. In Colorado Revised Statutes, 29-32-104, amend (1)
introductory portion, (l)(a), (l)(b), (l)(c)(V)(B), (2), and (5) as follows:
29-32-104. Permissible expenditures - affordable housing
programs -report -definitions - repeal.
(1) The office shall contract with the administrator. The office may
select an administrator without a competitive procurement process but shall
announce the contract opening publicly and select the administrator in a
meeting that is open to the public, no less than seventy-two hours after
notice of such meeting is publicly available. N o single contract may exceed
five years in duration. Upon the expiration of any contract term, the office
may renew the contract with the same administrator or may select another
administrator. The administrator selected by the office shall expend the
money transfened to FROM the financing fund in section 29-32-103 (2) that
the administrator receives from the office to support the following programs
only:
(a) A land banking program to be administered by the administrator.
The program shall provide grants to local governments and tribal
governments and loans to non-profit organizations with a demonstrated
history of providing affordable housing to acquire and preserve land for the
development of affordable housing. For purposes of this subsection (l)(a),
"affordable housing" means rental housing that has a designated imputed
income limit by household size not to exceed sixty percent of the area
median income as established by the United States Department of Housing
and Urban Development and published by the department or a statewide
political subdivision or authority on housing, and regulated units in the
project must have a gross rent limit that does not exceed thirty percent of
the imputed income limitation applicable to the units and for-sale housing
that could be purchased by a household with an annual income of at or
below one hundred percent of the area median income. Mixed use
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development is an allowable use ofland purchased under this program if the
predominant use of the land is affordable housing. Loans made by the
program shall be forgiven if land acquired with the assistance of the
program is properly zoned with an active plan for the development of
affordable housing within 5 years of date the loan is made and if the
development is permitted and funded within 10 years. The lender and
borrower may establish additional terms if needed. lfland acquired with the
assistance of the program is not developed within the time line above, the
loan must be repaid, with interest, as soon as practical, but not more than six
months after expiration of said timeline, unless the office agrees to extend
all or a portion of the timeline in its reasonable discretion. Land acquired
with the assistance of the program that is not developed within the timeline
above may be used by the owner for any purpose upon payment of the loan
with interest or, in exchange for a waiver of interest, conveyed to a state
agency or other entity for the development of affordable housing with the
approval of the administrator. All principal and interest payments on loans
made under this paragraph (a) SUBSECTION (l)(a) shall be paid to the
administrator and used by the administrator for the purposes set forth in this
subsection ( 1 ). As determined by the administrator, a minimum of 15% and
a maximum of 25% of monies MONEY transferred to the financing fund
annually may be used for the program. The administrator ma, utilize the
funds it I eceiv es ft om the office fut the program to pa, fut the costs of
adrninisteting the program, except that the total combined annual
administrative expenditures of nroney ftorn the financing fund by the
administrator and the office shall uot, exceed two percent of the funds the
admin.istrator recei'1es ftonr the office fut the program fur the state fiscal
year;
(b) An affordable housing equity program to be administered by the
administrator. The program shall make equity investments in low- and
middle-income multi-family rental developments. The program shall also
make equity investments in existing projects which include multi-family
rental units for the purpose of ensuring that said projects remain affordable.
The average designated imputed income by household size for projects
funded by the program must not exceed 90% of the area median income as
established by the United States Department of Housing and Urban
Development and published by the department or a statewide political
subdivision or authority on housing, and regulated units in the project must
have a gross rent limit that does not exceed thirty percent of the imputed
income limitation applicable to the units. The program shall include a tenant
PAGE 4-HOUSE BILL 26-1360
equity vehicle, meaning, in projects funded by the program, tenants who
reside in the project for at least one year shall be entitled to a share of the
equity growth in the project, if any, in the form of funding from the program
for a down-payment on housing or related purposes, which may also include
ongoing opportunities for tenants to build up their savings, in an amount
determined by the administrator. Equity investments made by the program
shall be made with the expectation of returns that are below the prevailing
market returns. Returns on program investments up to the amount of the
program's initial investment shall be retained in the program and reinvested.
Returns on program investments greater than the program's initial
investment shall be retained in the program to fund the tenant equity
vehicle. In selecting investments under this program, the administrator shall
prioritize high-density housing, mixed-income housing, and projects
consistent with the goal of environmental sustainability. As determined by
the administrator, a minimum of 40% of monies and a maximum of 70% of
monies MONEY transferred to the financing fund annually may be used for
the program. The administrator may utilize the funds it receives ftom the
office fut the program to pay fut the costs of administering the prngratn,
except that, the total combined annual administt ati v e expenditm es of money
ft om the financing fund by the administratot and the office shall not exceed
two peteent of the funds the administratot teceives frnm the office fut the
prngr am fut the state fiscal y eat.
( c) A concessionary debt program to be administered by the
administrator. The program shall:
(V) Include the following features:
(B) As determined by the administrator, a minimum of 15% of
monies and a maximum of 35% of monies MONEY transferred to the
financing fund annually may be used for the program. The administrator
may utilize the funds it t eceiv cs frotn the office fut the prngram to pay fut
the costs of administering the progt am, except that, the total combined
annual administrative expenditm es of money ft om the financing fund by the
administr atot and the office shall not exceed two pet cent of the funds the
adtninistt at01 receives ft otn the office fut the pt ogt am fut the state fiscal
year-:
(2) (a) In selecting investments to be made by the programs of
subsection (1) of this section, the administrator shall prioritize projects that
PAGE 5-HOUSE BILL 26-1360
achieve high-density housing, mixed-income housing, and projects
consistent with the goal of environmental sustainability, as appropriate.
(b) (I) NOTWITHSTANDING THE FUNDING PERCENT AGES EST AB LI SHED
IN SUBSECTION (1) OF THIS SECTION, FOR THE STATE FISCAL YEAR THAT
BEGINS ON JULY 1, 2026, THE OFFICE AND ADMINISTRATOR SHALL, WITH THE
GOAL OF FUNDING ALL THREE PROGRAMS DESCRIBED IN SUBSECTION ( 1) OF
THIS SECTION, DETERMINE THE FUNDING PERCENTAGES FOR THE PROGRAMS
DESCRIBED IN SUBSECTION ( 1) OF THIS SECTION BASED ON THE FOLLOWING
PRIORITY ORDER: CONCESSIONARY DEBT, AFFORDABLE HOUSING EQUITY,
AND LAND BANKING.
(II) THIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE JULY 1, 2027.
(5) (a) If the Legislative Council Staffs March Economic and
Revenue Forecast in any given year projects revenue for the next state fiscal
year will fall below the revenue limit imposed under section 20 of article X
of the state constitution, the general assembly may reduce the funding
allocated to the office required by this section for the next state fiscal year
in order to balance the state budget for said state fiscal year.
(b) (I) LEGISLATIVE COUNCIL STAFF ECONOMIC AND REVENUE
FORECASTS PROJECT THAT REVENUE FOR THE 2025-26 STATE FISCAL YEAR
WILL FALL BELOW THE REVENUE LIMIT IMPOSED UNDER SECTION 20 OF
ARTICLE X OF THE STATE CONSTITUTION, AND THE GENERAL ASSEMBLY
SHALL REDUCE THE FUNDING OTHERWISE ALLOCATED TO THE OFFICE
REQUIRED BY THIS SECTION FOR THE 2025-26 STATE FISCAL YEAR AS
DESCRIBED IN SECTION 29-32-103 (3 )(b) IN ORDER TO BALANCE THE STATE
BUDGET FOR THE 2025-26 STATE FISCAL YEAR.
(II) THIS SUBSECTION ( 5)(b) IS REPEALED, EFFECTIVE JULY 1, 2027.
SECTION 3. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 6-HOUSE BILL 26-1360
the support and maintenance of the departments of the state and state
institutions.
Ju~
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
v~~
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
ames Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED CIA, ::th ~rt Y\()t;I Yr~ U>2=<e J I 2..; 00(;>~
( ate and ime) I
FCOLORADO
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