Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0811.01 Bob Lackner x4350
HOUSE BILL 22-1304
House Committees Senate Committees
Transportation & Local Government
A BILL FOR AN ACT
C
ONCERNING STATE GRANTS FOR INVESTMENTS IN AFFORDABLE101
HOUSING AT THE LOCAL LEVEL , AND, IN CONNECTION102
THEREWITH, CREATING THE LOCAL INVESTMENTS IN103
TRANSFORMATIONAL AFFORDABLE HOUSING GRANT PROGRAM104
AND THE INFRASTRUCTURE AND ST RONG COMMUNITIES GRANT105
PROGRAM TO INVEST IN INFILL INFRASTRUCTURE PROJECTS106
THAT SUPPORT AFFORDABLE HOUSING .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
Roberts and Bradfield, Jodeh, Woodrow
SENATE SPONSORSHIP
Coleman and Gonzales,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. The bill creates 2 state grant programs:
! The local investments in transformational affordable
housing grant program (affordable housing grant program),
administered by the division of housing (DOH) in the
department of local affairs (department); and
! The infrastructure and strong communities grant program
(strong communities grant program), administered by the
division of local government (DLG) in the department.
The affordable housing grant program provides grants to local
governments and nonprofit organizations to enable such entities to make
investments in their communities or regions of the state in
transformational affordable housing and housing related matters. The
strong communities grant program provides grants to eligible local
governments to enable local governments to invest in infill infrastructure
projects that support affordable housing.
The strong communities grant program portion of the bill requires
a multi-agency group, comprised of DLG, the state energy office, and the
department of transportation, with the assistance of stakeholders, to
develop a list of sustainable land use best practices that will accomplish
the goals of the grant program and improve a local government's viability
in being considered for a grant award.
The bill requires both DOH and DLG to develop policies,
procedures, and guidelines governing the administration of the respective
grant programs. The bill specifies how grant funding is to be prioritized
and eligible uses of grant money awarded under the grant programs.
The bill creates 2 funds in the state treasury: The local investments
in transformational affordable housing fund and the infrastructure and
strong communities grant program fund. The bill specifies requirements
pertaining to the administration of these funds.
Both funds are initially supported with a transfer of a specified
amount of money from different funds.
Both grant programs are subject to reporting requirements
specified in the bill, and both grant programs are repealed by a date
specified in the bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration - intent - definitions.2
(1) The general assembly hereby finds, determines, and declares that:3
(a) Though it has been exacerbated by the COVID-19 pandemic,4
the housing crisis that Colorado faces is not new. For decades, the lack of5
HB22-1304-2- affordable housing has upended the lives of thousands who face1
homelessness in the Denver metropolitan area and across the state,2
shuttered Colorado businesses, hindered working-class employment3
because of a lack of workforce housing, and exacerbated inequities for4
communities of color.5
(b) Currently, Colorado has a shortage of nearly 121,0006
affordable rental units, and the Colorado housing and finance authority7
reports that nearly half of all Colorado renters are considered cost8
burdened, with an additional 24% being severely cost burdened. The9
average home price in the state increased 130% from 2011 to 2021.10
Statewide, the median price increased an additional 7% from January to11
February 2022 and the median price is now $555,540, a 90% increase12
over March 2021. The town home and condominium market also reached13
a new pricing level in February 2022 and now stands at $402,390, which14
is an increase of 17% from February 2021. Six out of ten Colorado15
households are unable to afford the average priced home. As used in this16
section, "cost-burdened" means that more than 30% percent of a17
household's monthly income is expended on housing and "severely18
cost-burdened means" that more than 50% of a household's monthly19
income is expended on housing.20
(c) On March 11, 2021, the federal government enacted the21
"American Rescue Plan Act of 2021", Pub.L. 117-2, referred to in this22
section as "ARPA", pursuant to which Colorado has received23
$3,828,761,790 from the federal coronavirus state fiscal recovery fund,24
referred to in this section as the "SFRF", to be used for certain specified25
purposes;26
(d) These specified purposes include providing programs,27
HB22-1304
-3- services, or other assistance for populations disproportionately impacted1
by the COVID-19 pandemic;2
(e) More specifically, federal regulations and guidance construing3
dictating allocation of the SFRF promulgated by the United States4
treasury identify a nonexclusive list of uses that address the5
disproportionate negative economic effects of the COVID-19 pandemic,6
including building stronger communities through investments in housing7
and neighborhoods. Services in this category alleviate the immediate8
economic impact of the COVID-19 pandemic on housing insecurity while9
addressing conditions that contributed to poor public health and economic10
outcomes during the pandemic, namely concentrated areas with limited11
economic opportunity and inadequate or poor quality housing.12
(f) Under these regulations, SFRF money may be used for13
programs or services that address housing insecurity, lack of affordable14
and workforce housing, or homelessness, including:15
(I) Supportive housing or other programs or services to improve16
access to stable, affordable housing among unhoused individuals;17
(II) The development of affordable housing to increase the supply18
of affordable housing units that are livable, vibrant, and driven by19
community benefits; and20
(III) Housing vouchers and assistance to allow individuals to21
relocate in neighborhoods with high levels of economic opportunity and22
to reduce concentrated areas of low economic opportunity;23
(g) In House Bill 21-1329, enacted in 2021, the general assembly24
created the affordable housing task force, referred to in this section as the25
"task force", to develop recommendations to take advantage of this26
once-in-a-lifetime spending opportunity presented by ARPA to bring27
HB22-1304
-4- transformative policies to Colorado's housing sector that will provide1
immediate, sweeping, and long-lasting change. ARPA provided the2
impetus to bring together the legislative and executive branches of state3
government, as well as a diverse group of stakeholders made up of4
affordable housing practitioners and experts, to tackle the affordable5
housing crisis and determine which investments would make the biggest6
impact. The 16-member task force was made up of a bipartisan group of7
ten members of the general assembly and six agency directors. A8
15-member subpanel of diverse affordable housing experts was also9
appointed to advise the task force. The task force and subpanel undertook10
a deliberative, iterative, and transparent process. Ultimately, the task force11
came to near unanimous consensus on its funding recommendations and12
allocations, as well as broad agreement on several policy concepts.13
(h) The recommendations of the task force are intended to take14
advantage of this once-in-a-lifetime funding opportunity, specifically, a15
one-time investment of $400 million, to institute transformational housing16
policies and programs that will allow the state to better meet the challenge17
of providing affordable housing, from addressing homelessness to18
supporting housing for Colorado's workforce; and19
(i) The recommendations made by the task force will not solve20
Colorado's affordable housing crisis completely but will be a21
transformational step forward in achieving that objective. Once22
implemented at the local level across the state, these policies will make23
significant strides in increasing access to flexible capital sources,24
fostering innovation, strengthening the social safety net, enhancing25
market stability, and ultimately promoting more broad and equitable26
ownership and rental housing for Coloradans in every corner of the state.27
HB22-1304
-5- These investments will result in more affordable housing being built1
across the state and will help to maintain existing housing stock that is at2
risk of becoming unsafe or unaffordable. The recommendations will help3
reduce disparities and address homelessness and will assist many4
Coloradans in purchasing homes that were previously out of financial5
reach, which will help build intergenerational wealth across the state.6
(2) The general assembly further finds, determines, and declares7
that the programs and services funded by the transfers in this act are8
appropriate uses of the money transferred to Colorado under the SFRF9
and subsequently transferred into the affordable housing and home10
ownership cash fund created in section 24-75-229 (3)(a), C.R.S. This11
money will be put to expeditious and efficient use in building stronger12
communities across the state by making grants to community partners and13
local governments across the state to assist these entities in making14
investments in housing for populations, households, or geographic areas15
disproportionately affected by the COVID-19 pandemic.16
(3) By this act, the general assembly is focusing a portion of the17
SFRF money that it has received from the federal government to begin to18
ameliorate the affordable housing crisis in Colorado by creating and19
administering a program to provide direct, flexible, and timely grant20
funding to community-based nonprofit organizations and local21
governments that have or are pursuing measures to facilitate affordable22
housing development or the purchase of land or buildings for and the23
development of supportive, rental, transitional, and for-sale housing24
targeted at populations and communities disproportionately impacted by25
the COVID-19 pandemic.26
(4) The general assembly intends that the grants made under this27
HB22-1304
-6- act will be made to community-based and nonprofit organizations for1
housing navigation and rehousing support, timely deployment of2
assistance, and technical and legal assistance. The general assembly3
intends that funds should be made available to local and regional groups4
and governments to be used for a variety of needs as specified in this act.5
(5) The general assembly additionally intends that the grant6
program ensure flexibility of funding that will allow for operating grants7
to be made to community-based nonprofit organizations and qualified8
local governments, particularly in small, rural, and mountain resort9
communities that can best meet their own development needs.10
(6) The potential uses of SFRF money directed by this act are in11
alignment with the priority articulated by the governor and legislators12
representing both major political parties of investing in strong13
communities. Such potential uses include funding for local infill14
infrastructure needs to help support and catalyze affordable housing15
development and further Colorado's sustainable development patterns,16
provide community benefits, ensure multimodal connectivity, reduce17
greenhouse gas emissions, strengthen social and environmental equity,18
and improve quality of life and community resilience.19
(7) The general assembly further intends that the structure of20
funding criteria for the grant program created by this act encourage the21
use of public policies that allow for the development of affordable22
housing on a local basis congruent with local needs and conditions. To23
achieve the greatest transformation possible, funding criteria should also24
aim to support and promote the leveraging of local funding resources.25
When appropriate, such funds should be aligned with loan funds from26
other public and private sources and priority should be given to projects27
HB22-1304
-7- that significantly leverage other funding sources. As part of the assistance1
provided by this act, the general assembly intends that additional funds be2
directed to eviction legal defense, given the ongoing challenges of3
evictions caused by the COVID-19 pandemic.4
SECTION 2. In Colorado Revised Statutes, add 24-32-726 as5
follows:6
24-32-726. Transformational affordable housing through local7
investments - grant program - investments eligible for funding -8
report - definitions - repeal. (1) Definitions. A
S USED IN THIS SECTION,9
UNLESS THE CONTEXT OTHERWISE REQUIRES :10
(a) "A
FFORDABLE HOUSING" MEANS:11
(I) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS ,12
ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED13
FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT14
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED ;15
(II) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A HOME16
OWNERSHIP BASIS, ANNUAL INCOME OF THE HOUSEHOLD AT OR BELOW ONE17
HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS18
OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED ; OR19
(III) H
OUSING THAT INCORPORATES MIXED -INCOME20
DEVELOPMENT.21
(b) "C
OMMUNITY PARTNER" MEANS A NONPROFIT ORGANIZATION22
THAT UNDERTAKES ANY OF THE ACTIVITIES OR SERVICES DESCRIBED IN23
SUBSECTION (2)(b) OF THIS SECTION.24
(c) "D
EPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .25
(d) "E
LIGIBLE RECIPIENT" MEANS A LOCAL GOVERNMENT OR A26
COMMUNITY PARTNER THAT APPLIES FOR A GRANT THROUGH THE GRANT27
HB22-1304
-8- PROGRAM.1
(e) "F
UND" MEANS THE LOCAL INVESTMENTS IN2
TRANSFORMATIONAL AFFORDABLE HOUSING F UND CREATED IN3
SUBSECTION (4)(a) OF THIS SECTION.4
(f) "G
RANT PROGRAM" MEANS THE LOCAL INVESTMENTS IN5
TRANSFORMATIONAL AFFORDABLE HOUSING GRANT PROGRAM CREATED6
IN SUBSECTION (2)(a) OF THIS SECTION.7
(g) "L
OCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, CITY8
AND COUNTY, TRIBAL GOVERNMENT, SPECIAL DISTRICT ORGANIZED UNDER9
TITLE 32, SCHOOL DISTRICT, DISTRICT, HOUSING AUTHORITY, OR ANY10
OTHER POLITICAL SUBDIVISION OF THE STATE.11
(h) "M
ATCH" MEANS MONETARY AND NONMONETARY12
CONTRIBUTIONS TO A PROJECT.13
(i) "M
IXED-INCOME DEVELOPMENT " MEANS HOUSING THAT14
INCORPORATES MIXED-INCOME DEVELOPMENT IN THAT SOME , BUT NOT15
ALL, HOUSING UNITS WITHIN A PARTICULAR DEVELOPMENT HAVE16
RESTRICTED AVAILABILITY TO HOUSEHOLDS AT OR BELOW THE INCOME17
LEVELS SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION IN ADDITION TO18
SOME UNITS THAT ARE ABOVE SUCH INCOME LEVELS WITH OR WITHOUT19
SUCH RESTRICTED AVAILABILITY.20
(2) Creation of the grant program - projects or programs21
eligible for funding. (a) T
HERE IS CREATED IN THE DIVISION THE LOCAL22
INVESTMENTS IN TRANSFORMATIONAL AFFORDABLE HOUSING GRANT23
PROGRAM TO PROVIDE GRANTS TO ELIGIBLE RECIPIENTS TO ENABLE SUCH24
ENTITIES TO MAKE INVESTMENTS IN THEIR COMMUNITIES OR REGIONS OF25
THE STATE IN TRANSFORMATIONAL AFFORDABLE HOUSING AND HOUSING26
RELATED MATTERS IN ACCORDANCE WITH THE REQUIREMENTS OF THIS27
HB22-1304
-9- SECTION. THE DIVISION SHALL ADMINISTER THE GRANT PROGRAM .1
(b) T
HE DIVISION MAY AWARD GRANTS UNDER THE GRANT2
PROGRAM TO SUPPORT INVESTMENTS BY ELIGIBLE RECIPIENTS IN PROJECTS3
OR PROGRAMS THAT:4
(I) D
EVELOP AND INTEGRATE INFRASTRUCTURE TIED TO AN5
AFFORDABLE HOUSING DEVELOPMENT , INCLUDING FUNDING FOR CAPITAL6
CONSTRUCTION AND THE COST OF INFRASTRUCTURE DESIGN ;7
(II) P
ROVIDE GAP FINANCING FOR HOUSING DEVELOPMENT8
PROJECTS INCLUDING BUT NOT LIMITED TO TRANSACTIONS UNDER THE9
FEDERAL LOW-INCOME HOUSING TAX CREDIT AND THE AFFORDABLE10
HOUSING TAX CREDIT CREATED IN SECTION 39-22-2102 (1) AND FOR THE11
PURCHASE OR CONVERSION OF EXISTING AFFORDABLE HOUSING AND12
MULTI-FAMILY DEVELOPMENTS, LAND, AND BUILDINGS, PARTICULARLY IN13
COMMUNITIES WHERE EFFORTS HAVE BEEN MADE TO ENCOURAGE14
AFFORDABLE HOUSING DEVELOPMENT OR IN COMMUNITIES IN WHICH LOW15
CONCENTRATIONS OF AFFORDABLE HOUSING EXIST ;16
(III) M
AINTAIN EXISTING AFFORDABLE HOUSING THROUGH17
FUNDING FOR PRESERVATION, RESTORATION THROUGH REHABILITATION ,18
RETROFITTING, RENOVATION, CAPITAL IMPROVEMENTS, THE REPAIR OF19
CURRENT AFFORDABLE HOUSING STOCK , INCLUDING HOUSING MADE20
AVAILABLE UNDER 42 U.S.C. SEC. 1437f, AND PUBLIC HOUSING FOR21
POPULATIONS AND HOUSEHOLDS DISPROPORTI ONATELY IMPACTED BY THE22
COVID-19
PANDEMIC WITH COMMITMENTS FOR LONG -TERM23
AFFORDABILITY. THESE INVESTMENTS MAY INCLUDE BUT ARE NOT LIMITED24
TO:25
(A) S
ENIOR HOUSING;26
(B) R
EMEDIATION OF LOW-QUALITY AND CONDEMNED PROPERTIES ;27
HB22-1304
-10- (C) HOUSING SPECIFICALLY DESIGNED FOR PEOPLE LIVING WITH1
DISABILITIES;2
(D) T
HE PURCHASE AND TRANSITION OF CURRENT HOUSING STOCK ,3
INCLUDING PROPERTIES CURRENTLY IN USE ON A SHORT -TERM RENTAL4
BASIS, INTO AFFORDABLE HOUSING ON A LONG -TERM BASIS;5
(E) T
HE PROVISION OF TIME-LIMITED RENTAL ASSISTANCE FOR6
HOUSEHOLDS DISPROPORTIONATELY IMPACTED BY THE COVID-197
PANDEMIC AND AT-RISK OF LOSING THEIR HOME OR IN NEED OF RAPID8
RE-HOUSING, INCLUDING FUNDING FOR OUTREACH, HOUSING NAVIGATION9
ASSISTANCE, AND LEGAL SERVICES; AND10
(F) F
INANCING ENERGY IMPROVEMENTS IN SINGLE -FAMILY AND11
MULTI-FAMILY AFFORDABLE HOUSING THAT WILL PROVIDE FUNDING FOR12
INCREMENTAL, UP-FRONT COSTS FOR EFFICIENT, ELECTRIC MEASURES AND13
RENEWABLE ENERGY SYSTEMS FOR BOTH EXISTING HOMES AND RENTAL14
UNITS AND NEW HOUSING CONSTRUCTION .15
(IV) P
ROPERTY CONVERSION FOR TRANSITIONAL OR LONG -TERM16
HOUSING;17
(V) P
ERMANENT SUPPORTIVE HOUSING AND SUPPORTIVE SERVICES ;18
(VI) L
AND BANKING AND LAND TRUST STRATEGIES FOR19
LONG-TERM AFFORDABLE HOUSING PLANNING AND DEVELOPMENT ; AND20
(VII) F
UNDING FOR EVICTION LEGAL DEFENSE .21
(3) Policies, procedures, and guidelines. (a) O
N OR BEFORE22
S
EPTEMBER 1, 2022, THE DIVISION SHALL ADOPT POLICIES, PROCEDURES,23
AND GUIDELINES FOR THE GRANT PROGRAM THAT INCLUDE , WITHOUT24
LIMITATION:25
(I) T
HE PROCESS BY WHICH A LOCAL GOVERNMENT OR COMMUNITY26
PARTNER APPLIES FOR A GRANT AWARD AND THE CRITERIA USED TO27
HB22-1304
-11- DETERMINE ELIGIBILITY FOR A GRANT AWARD ;1
(II) P
ROCEDURES AND TIME LINES BY WHICH AN ELIGIBLE2
RECIPIENT MAY APPLY FOR A GRANT;3
(III) P
ERFORMANCE CRITERIA FOR GRANT RECIPIENTS ' PROJECTS;4
(IV) R
EPORTING REQUIREMENTS FOR GRANT RECIPIENTS ; AND5
(V) R
EQUIREMENTS FOR GRANT RECIPIENTS TO OFFER A MATCH IN6
RESOURCES.7
(b) I
N AWARDING GRANTS, THE DIVISION SHALL GIVE PREFERENCE8
TO PROJECTS OR PROGRAMS THAT , TO THE GREATEST EXTENT9
PRACTICABLE, PROMOTE ONE OR MORE OF THE FOLLOWING GOALS AND10
OBJECTIVES:11
(I) I
NCREASE THE SUPPLY OF HOUSING THAT IS :12
(A) R
ESTRICTED AT INCOME LEVELS DEMANDED BY THE LOCAL13
WORKFORCE;14
(B) T
RANSIT-ORIENTED; OR15
(C) R
ESTRICTED TO PERSONS WITH DISABILITIES;16
(II) L
EVERAGE CAPITAL AND OPERATING SUBSIDIES FROM VARIOUS17
PUBLIC AND PRIVATE SOURCES;18
(III) I
NVOLVE THE PURCHASE OF REAL PROPERTY NECESSARY TO19
SECURE LAND AREAS NEEDED FOR FUTURE DEVELOPMENT ; OR20
(IV) R
EPRESENT A ONE-TIME FUNDING PROPOSAL TO THE STATE21
WITH MINIMAL OR NO MULTI-YEAR FINANCIAL OBLIGATIONS.22
(c) T
HE DIVISION SHALL EITHER CREATE OR UTILIZE AN EXISTING23
PROCESS THAT ENSURES THAT GRANTS ARE ONLY CONSIDERED AND24
AWARDED AFTER A FAIR AND RIGOROUS OPEN COMPETITION AMONG25
ELIGIBLE GRANT RECIPIENTS.26
(d) N
OTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION ,27
HB22-1304
-12- THE AMOUNT OF ANY GRANT AWARD UNDER THE GRANT PROGRAM AND1
ANY RESTRICTIONS OR CONDITIONS PLACED UPON THE USE OF GRANT2
MONEY AWARDED IS WITHIN THE DISCRETION OF THE DIVISION IN3
ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION .4
(4) Fund. (a) T
HE LOCAL INVESTMENTS IN TRANSFORMATIONAL5
AFFORDABLE HOUSING FUND IS CREATED IN THE STATE TREASURY . THE6
FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND PURSUANT TO7
SUBSECTION (4)(c) OF THIS SECTION; MONEY APPROPRIATED TO THE FUND8
BY THE GENERAL ASSEMBLY ; AND ANY GIFTS, GRANTS, OR DONATIONS9
FROM ANY PUBLIC OR PRIVATE SOURCES , INCLUDING GOVERNMENTAL10
ENTITIES, THAT THE DIVISION IS AUTHORIZED TO SEEK AND ACCEPT .11
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND12
INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEY IN THE13
FUND TO THE FUND . EXCEPT AS OTHERWISE REQUIRED BY THIS14
SUBSECTION (4)(b), ALL MONEY NOT EXPENDED OR ENCUMBERED , AND15
ALL INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEY IN THE16
FUND, MUST REMAIN IN THE FUND AND SHALL NOT REVERT TO THE17
GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR .18
T
HE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE19
DIVISION FOR THE PURPOSES OF THIS SECTION. ANY MONEY IN THE FUND20
THAT IS NOT EXPENDED OR ENCUMBERED BY DECEMBER 31, 2024,21
REVERTS TO THE GENERAL FUND . ANY MONEY TRANSFERRED INTO THE22
FUND IN ACCORDANCE WITH THIS SUBSECTION (4) THAT IS NOT EXPENDED23
OR ENCUMBERED FROM ANY APPROPRIATION AT THE END OF ANY FISCAL24
YEAR IS AVAILABLE FOR EXPENDITURE BY JULY 1, 2024, WITHOUT25
FURTHER APPROPRIATION.26
(c) O
N THE EFFECTIVE DATE OF THIS SECTION , OR AS SOON AS27
HB22-1304
-13- PRACTICABLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER ONE1
HUNDRED FIFTY MILLION DOLLARS FROM THE AFFORDABLE HOUSING AND2
HOME OWNERSHIP CASH FUND CREATED IN SECTION 24-75-229 (3)(a) THAT3
ORIGINATES FROM MONEY THE STATE RECEIVED FROM THE FEDERAL4
CORONAVIRUS STATE FISCAL RECOVERY FUND TO THE FUND . THE MONEY5
TRANSFERRED PURSUANT TO THIS SUBSECTION (4) MUST ONLY BE USED6
FOR:7
(I) M
AKING GRANTS TO ELIGIBLE RECIPIENTS PURSUANT TO THE8
GRANT PROGRAM; AND9
(II) T
HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY10
BE INCURRED BY THE DIVISION. THE DEPARTMENT MAY EXPEND UP TO FIVE11
PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE FUND TO12
PAY FOR ITS DIRECT AND INDIRECT COSTS IN ADMINISTERING THE GRANT13
PROGRAM. ALL SUCH ADMINISTRATIVE COSTS MUST BE PAID OUT OF THE14
MONEY TRANSFERRED TO THE FUND PURSUANT TO THIS SUBSECTION (4)(c).15
(5) Reporting. I
N CONNECTION WITH THE PUBLIC REPORT THE16
DIVISION PREPARED IN ACCORDANCE WITH SECTION 24-32-705.5 (1), FOR17
THE REPORT PREPARED IN 2023 AND 2024, THE DIVISION SHALL INCLUDE18
IN THE REPORT INFORMATION SUMMARIZING THE USE OF ALL OF THE19
MONEY THAT WAS AWARDED AS GR ANTS FROM THE GRANT PROGRAM IN20
THE PRECEDING STATE FISCAL YEAR. AT A MINIMUM, THE INFORMATION21
INCLUDED IN THE REPORT PERTAINING TO THE GRANT PROGRAM MUST22
SPECIFY THE NUMBER OF LOCAL GOVERNMENTS OR COMMUNITY PARTNERS23
THAT APPLIED FOR A GRANT AWARD , INCLUDING THE NUMBER OF LOCAL24
GOVERNMENTS OR COMMUNITY PARTNERS THAT WERE NOT AWARDED A25
GRANT; THE AMOUNT OF GRANT MONEY DISTRIBUTED TO EACH GRANT26
RECIPIENT; A DESCRIPTION OF EACH GRANT RECIPIENT'S USE OF THE GRANT27
HB22-1304
-14- MONEY; AND HOW THE USE OF THE GRANT AWARDED FURTHERED THE1
VISION OF TRANSFORMATIONAL AFFORDABLE HOUSING DESCRIBED IN THE2
FINAL REPORT OF THE TASK FORCE ESTABLISHED IN SECTION 24-75-2293
(6)(a). T
HE DIVISION SHALL ALSO INCLUDE IN THE REPORT ITS4
RECOMMENDATIONS CONCERNING FUTURE ADMINISTRATION OF THE5
GRANT PROGRAM.6
(6) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,7
2026.8
SECTION 3. In Colorado Revised Statutes, 24-32-705, amend9
(7) as follows:10
24-32-705. Functions of division. (7) The division shall11
administer the:12
(a) Affordable housing guided toolkit and local officials guide13
program in accordance with section 24-32-721.5;
AND14
(b) L
OCAL INVESTMENTS IN THE TRANSFORMATIONAL AFFORDABLE15
HOUSING GRANT PROGRAM CREATED IN SECTION 24-32-726 (2)(a).16
SECTION 4. In Colorado Revised Statutes, 24-32-705.5, add17
(3.5) as follows:18
24-32-705.5. Annual public report on funding of affordable19
housing preservation and production - definition. (3.5) (a) F
OR THE20
PUBLIC REPORT REQUIRED BY SUBSECTION (1) OF THIS SECTION THAT THE21
DIVISION IS REQUIRED TO PREPARE IN 2023 AND 2024, THE DIVISION SHALL22
INCLUDE IN THE REPORT FOR EACH YEAR THE INFORMATION REQUIRED TO23
BE INCLUDED IN THE REPORT IN ACCORDANCE WITH SECTION 23-32-72624
(5).25
(b) T
HIS SUBSECTION (3.5) IS REPEALED, EFFECTIVE JULY 1, 2026.26
SECTION 5. In Colorado Revised Statutes, add 24-32-132 as27
HB22-1304
-15- follows:1
24-32-132. Infrastructure and strong communities grant2
program - creation - fund - reporting - definitions - repeal.3
(1) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT4
OTHERWISE REQUIRES:5
(a) "A
FFORDABLE HOUSING" MEANS:6
(I) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS ,7
ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED8
FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT9
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED ; OR10
(II) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A HOME11
OWNERSHIP BASIS, ANNUAL INCOME OF THE HOUSEHOLD AT OR BELOW ONE12
HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS13
OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED .14
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .15
(c) "E
LIGIBLE EXPENSES" INCLUDE PLANNING, INFRASTRUCTURE,16
AND LOCAL CAPACITY.17
(d) "E
LIGIBLE LOCAL GOVERNMENT " MEANS A MUNICIPALITY OR18
A COUNTY THAT HAS PARTNERED WITH A MUNICIPALITY .19
(e) "F
UND" MEANS THE INFRASTRUCTURE AND STRONG20
COMMUNITIES GRANT PROGRAM FUND CREATED IN SUBSECTION (5) OF THIS21
SECTION.22
(f) "G
RANT PROGRAM" MEANS THE INFRASTRUCTURE AND STRONG23
COMMUNITIES GRANT PROGRAM CREATED IN SUBSECTION (3)(a) OF THIS24
SECTION.25
(g) "I
NFILL DEVELOPMENT" MEANS THE DEVELOPMENT OF UNUSED26
AND UNDERUTILIZED LAND WITHIN EXISTING DEVELOPMENT PATTERNS ,27
HB22-1304
-16- TYPICALLY BUT NOT EXCLUSIVELY IN URBAN AREAS .1
(h) "L
OCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, OR2
A CITY AND COUNTY.3
(i) "M
ULTI-AGENCY GROUP" MEANS THE DIVISION, THE COLORADO4
ENERGY OFFICE CREATED IN SECTION 24-38.5-101 (1), AND THE5
DEPARTMENT OF TRANSPORTATION CREATED IN SECTION 43-1-103 (1).6
(j) "S
USTAINABLE DEVELOPMENT PATTERN " MEANS A7
DEVELOPMENT PATTERN THAT MAY BE EXTENDED IN A COST -EFFECTIVE8
WAY THAT MITIGATES HARM AND MINIMIZES THE NEED FOR ADDITIONAL9
RESOURCES TO MAINTAIN THE DEVELOPMENT OVER TIME .10
(k) "T
RANSIT-ORIENTED DEVELOPMENT " MEANS A DEVELOPMENT11
THAT IS WITHIN WALKING DISTANCE OF A TRANSIT OR OTHER ALTERNATIVE12
TRANSPORTATION FACILITY.13
(2) Multi-agency group - best practices. (a) T
HE MULTI-AGENCY14
GROUP SHALL ENCOURAGE THE INVOLVEMENT OF LOCAL GOVERNMENTS15
ACROSS THE STATE IN THE GRANT PROGRAM . THE MULTI-AGENCY GROUP,16
WITH THE ASSISTANCE OF STAKEHOLDERS , SHALL DEVELOP A LIST OF17
SUSTAINABLE LAND USE BEST PRACTICES THAT WILL ACCOMPLISH THE18
GOALS OF THE GRANT PROGRAM AND IMPROVE A LOCAL GOVERNMENT 'S19
VIABILITY IN BEING CONSIDERED FOR A GRANT AWARD .20
(b) T
HE SUSTAINABLE LAND USE BEST PRACTICES REFERENCED IN21
SUBSECTION (2)(a) OF THIS SECTION WILL ADDRESS ONE OR MORE OF THE22
FOLLOWING, WITHOUT LIMITATION:23
(I) E
NABLING ACCESSORY DEVELOPMENT UNITS OR THE USE OF24
MULTIPLEXES BY RIGHT IN RESIDENTIAL ZONES ;25
(II) Z
ONING FOR MIXED-USE HIGHER DENSITY DEVELOPMENT IN26
DOWNTOWN AREAS OF MUNICIPALITIES AND AROUND TRANSIT STATIONS ;27
HB22-1304
-17- (III) ANNEXATION POLICIES;1
(IV) I
NTERGOVERNMENTAL AGREEMENTS THAT COORDINATE2
FUTURE DEVELOPMENT ;3
(V) R
EDUCED PARKING REQUIREMENTS ;4
(VI) R
ELAXED OCCUPANCY RULES ;5
(VII) B
UDGETING POLICIES;6
(VIII) W
ATER RATE STRUCTURES;7
(IX) R
OAD STANDARDS;8
(X) H
AZARD RISK REDUCTION AND MITIGATION STANDARDS ;9
(XI) E
NERGY EFFICIENT BUILDING CODES; AND10
(XII) Z
ONING FOR INNOVATIVE HOUSING OPTIONS , INCLUDING BUT11
NOT LIMITED TO MODULAR, MANUFACTURED, AND PREFABRICATED HOMES.12
(c) T
HE MULTI-AGENCY GROUP SHALL DISTRIBUTE THE13
SUSTAINABLE LAND USE PRACTICES DEVELOPED PURSUANT TO SUBSECTION14
(2)(b)
OF THIS SECTION TO LOCAL GOVERNMENTS SO THAT LOCAL15
GOVERNMENTS MAY ANALYZE WHICH , IF ANY, OF THESE PRACTICES MIGHT16
HAVE A POSITIVE IMPACT IN THEIR COMMUNITIES , AND THEN DETERMINE17
HOW TO CUSTOMIZE THESE BEST PRACTICES AND ADOPT THEM IN THEIR18
COMMUNITIES AS APPROPRIATE .19
(3) Grant program - criteria for awarding grants. (a) T
HE20
INFRASTRUCTURE AND STRONG COMMUNITIES GRANT PROGRAM IS HEREBY21
CREATED WITHIN THE DIVISION TO PROVIDE GRANTS TO ELIGIBLE LOCAL22
GOVERNMENTS TO ENABLE LOCAL GOVERNMENTS TO INVEST IN INFILL23
INFRASTRUCTURE PROJECTS THAT SUPPORT AFFORDABLE HOUSING .24
(b) T
HE DIVISION SHALL ADMINISTER THE GRANT PROGRAM AND ,25
SUBJECT TO AVAILABLE APPROPRIATIONS , AWARD GRANTS IN26
ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION . SUBJECT TO27
HB22-1304
-18- AVAILABLE APPROPRIATIONS, GRANTS MUST BE PAID OUT OF THE FUND1
CREATED IN SUBSECTION (5) OF THIS SECTION.2
(c) T
HE DIVISION SHALL DEVELOP POLICIES, PROCEDURES, AND3
GUIDELINES THAT ESTABLISH THE CRITERIA THAT THE DIVISION MUST4
CONSIDER IN AWARDING GRANTS PURSUANT TO THIS SECTION . AT A5
MINIMUM, THE CRITERIA MUST INCLUDE THE CONSIDERATION OF :6
(I) T
HE POTENTIAL IMPACT OF A PROJECT THAT A LOCAL7
GOVERNMENT WOULD FUND WITH A GRANT AWARD IN LIGHT OF THE GOALS8
OF THE GRANT PROGRAM; AND9
(II) T
HE SUSTAINABLE LAND USE PRACTICES THAT THE LOCAL10
GOVERNMENT HAS ADOPTED TO SUPPORT GREATER INFILL HOUSING11
SUPPLY, MORE AFFORDABLE HOUSING , AND SUSTAINABLE DEVELOPMENT12
PATTERNS.13
(4) Policies, procedures, and guidelines governing use of grant14
funds. (a) T
HE DIVISION SHALL DEVELOP POLICIES AND PROCEDURES TO15
DETERMINE HOW GRANTS FUNDED BY THE GRANT PROGRAM MAY BE USED .16
(b) A
T A MINIMUM, THE POLICIES, PROCEDURES, AND GUIDELINES17
DEVELOPED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION MUST18
REQUIRE THAT A GRANT AWARD BE USED , AT LEAST IN PART, TO FUND19
INFRASTRUCTURE PROJECTS THAT :20
(I) A
RE WITHIN OR ADJACENT TO A DOWNTOWN , CORE BUSINESS21
DISTRICT, OR TRANSIT-ORIENTED DEVELOPMENT ; OR22
(II) A
SSIST IN INCREASING THE SUPPLY OF AFFORDABLE HOUSING .23
(c) A
PORTION OF ANY GRANT AWARD MAY BE USED FOR PROJECT24
DELIVERY, PLANNING, AND COMMUNITY ENGAGEMENT .25
(d) T
HE GENERAL ASSEMBLY HEREBY ENCOURAGES GRANT26
RECIPIENTS TO EXPEND A PORTION OF ANY GRANT AWARD , WHENEVER27
HB22-1304
-19- POSSIBLE, FOR FUNDING ACCESSIBILITY IMPROVEMENTS OR AMENITIES1
THAT MAKE THE SITE OF THE PROJECT AGE-FRIENDLY AND ACCESSIBLE FOR2
PERSONS WITH DISABILITIES.3
(5) Fund - administrative costs - permitted uses - gifts, grants,4
and donations. (a) T
HE INFRASTRUCTURE AND STRONG COMMUNITIES5
GRANT PROGRAM FUND IS HEREBY CREATED IN THE STATE TREASURY . THE6
FUND CONSISTS OF ANY MONEY TRANSFERRED TO THE FUND , ANY MONEY7
THAT THE GENERAL ASSEMBLY MAY APPROPRIATE TO THE FUND , AND ANY8
GIFTS, GRANTS, OR DONATIONS THAT THE DIVISION RECEIVES FOR THE9
GRANT PROGRAM PURSUANT TO SUBSECTION (5)(f) OF THIS SECTION.10
M
ONEY IN THE FUND IS SUBJECT TO ANNUAL APPROPRIATION BY THE11
GENERAL ASSEMBLY FOR THE PURPOSES DESCRIBED IN SUBSECTION (5)(c)12
OF THIS SECTION.13
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND14
INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEY IN THE15
FUND TO THE FUND. ALL MONEY IN THE FUND THAT IS NOT EXPENDED OR16
ENCUMBERED, AND ALL INTEREST EARNED ON THE INVESTMENT OR17
DEPOSIT OF MONEY IN THE FUND, REMAINS IN THE FUND AND SHALL NOT18
BE CREDITED, TRANSFERRED, OR REVERTED TO THE GENERAL FUND OR ANY19
OTHER FUND AT THE END OF ANY FISCAL YEAR . THE MONEY IN THE FUND20
IS CONTINUOUSLY APPROPRIATED TO THE DIVISION FOR THE PURPOSES OF21
THIS SECTION.22
(c) T
HE DIVISION MAY ONLY USE THE MONEY IN THE FUND FOR ONE23
OR MORE OF THE FOLLOWING USES :24
(I) T
HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY25
BE INCURRED BY THE DIVISION. THE DEPARTMENT MAY EXPEND UP TO26
FOUR PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE27
HB22-1304
-20- FUND TO PAY FOR ITS DIRECT AND INDIRECT COSTS IN CONNECTION WITH1
ADMINISTERING THE USES OF GRANT FUNDING DESCRIBED IN SUBSECTION2
(5)(c)(II)
OF THIS SECTION.3
(II) M
AKING GRANTS TO ELIGIBLE LOCAL GOVERNMENTS4
PURSUANT TO THE GRANT PROGRAM TO ASSIST SUCH LOCAL5
GOVERNMENTS IN:6
(A) I
DENTIFYING SUSTAINABLE LAND USE BEST PRACTICES AND7
SUPPORTING SUSTAINABLE DEVELOPMENT PATTERNS ; AND8
(B) D
ETERMINING WHERE AND HOW BEST TO UPGRADE LOCAL9
GOVERNMENT INFRASTRUCTURE TO SUPPORT MORE EFFICIENT ,10
SUSTAINABLE DEVELOPMENT PATTERNS THAT ENABLE GREATER11
AFFORDABLE INFILL HOUSING DEVELOPMENT .12
(d) T
HE COLORADO ENERGY OFFICE , CREATED IN SECTION13
24-38.5-101
(1), MAY USE MONEY IN THE FUND FOR THE DIRECT AND14
INDIRECT COSTS OF EDUCATIONAL PROGRAMMING AND TECHNICAL15
ASSISTANCE FOR LOCAL GOVERNMENTS THAT THE COLORADO ENERGY16
OFFICE PROVIDES PURSUANT TO SECTION 24-32-132 (2).17
(e) T
HE DEPARTMENT OF TRANSPORTATION MAY USE MONEY IN18
THE FUND FOR THE DIRECT AND INDIRECT COSTS OF EDUCATIONAL19
PROGRAMMING AND TECHNICAL ASSISTANCE FOR LOCAL GOVERNMENTS20
THAT THE DEPARTMENT OF TRANSPORTATION PROVIDES PURSUANT TO21
SECTION 24-32-132 (2).22
(f) T
HE DIVISION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,23
OR DONATIONS FROM ANY PUBLIC OR PRIVATE RESOURCE FOR THE24
PURPOSES OF THIS SECTION. THE DIVISION SHALL TRANSMIT ALL MONEY25
RECEIVED FROM GIFTS, GRANTS, OR DONATIONS TO THE STATE TREASURER26
WHO SHALL CREDIT THE MONEY TO THE FUND .27
HB22-1304
-21- (6) Transfer of money to fund. O N THE EFFECTIVE DATE OF THIS1
SECTION, OR AS SOON AS PRACTICABLE THEREAFTER , THE STATE2
TREASURER SHALL TRANSFER TWENTY -EIGHT MILLION DOLLARS FROM THE3
GENERAL FUND TO THE FUND.4
(7) Reporting. (a) O
N OR BEFORE OCTOBER 1, 2023, AND ON OR5
BEFORE OCTOBER 1 OF EACH YEAR THEREAFTER FOR THE DURATION OF6
THE GRANT PROGRAM, THE DEPARTMENT SHALL SUBMIT A SUMMARIZED7
REPORT ON THE GRANT PROGRAM TO THE SENATE LOCAL GOVERNMENT8
COMMITTEE AND THE HOUSE OF REPRESENTATIVES LOCAL GOVERNMENT9
COMMITTEE, OR ANY SUCCESSOR COMMITTEES . AT A MINIMUM, THE10
REPORT MUST INCLUDE:11
(I) T
HE NUMBER OF ADDITIONAL AFFORDABLE HOUSING UNITS AND12
OVERALL HOUSING UNITS PROJECTED TO BE CREATED AS A RESULT OF THE13
GRANT PROGRAM;14
(II) T
HE PROJECTED OR ESTIMATED REDUCTION IN GREENHOUSE15
GAS EMISSIONS AS A RESULT OF THE GRANT PROGRAM ;16
(III) T
HE ESTIMATED REDUCTION IN VEHICLE MILES TRAVELED AND17
HOUSEHOLD TRANSPORTATION SAVINGS AS RESULT OF THE GRANT18
PROGRAM; AND19
(IV) T
HE NUMBER AND TYPE OF BEST PRACTICES ADOPTED BY20
ELIGIBLE LOCAL GOVERNMENTS THAT HAVE RECEIVED GRANT AWARDS .21
(b) N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE22
REPORTING REQUIREMENT SPECIFIED IN SUBSECTION (7)(a) OF THIS23
SECTION CONTINUES UNTIL THE GRANT PROGRAM IS REPEALED IN24
ACCORDANCE WITH SUBSECTION (8) OF THIS SECTION.25
(8) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,26
2026.27
HB22-1304
-22- SECTION 6. In Colorado Revised Statutes, 24-32-104, add (8)1
as follows:2
24-32-104. Functions of the division - interconnectivity grant3
program - interconnectivity grant program fund - reporting -4
definition. (8) T
HE DIVISION SHALL ADMINISTER THE INFRASTRUCTURE5
AND STRONG COMMUNITIES GRANT PROGRAM CREATED IN SECTION6
24-32-132.
IN CONNECTION WITH THE ADMINISTRATION OF THE GRANT7
PROGRAM, THE DIVISION SHALL CONSULT WITH THE COLORADO ENERGY8
OFFICE CREATED IN SECTION 24-38.5-101 (1) AND THE DEPARTMENT OF9
TRANSPORTATION CREATED IN SECTION 43-1-103 (1).10
SECTION 7. Safety clause. The general assembly hereby finds,11
determines, and declares that this act is necessary for the immediate12
preservation of the public peace, health, or safety.13
HB22-1304
-23-