Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 22-0811.01 Bob Lackner x4350
HOUSE BILL 22-1304
House Committees Senate Committees
Transportation & Local Government
Appropriations
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, AND MAKING AN107
APPROPRIATION.108
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
HOUSE
Amended 2nd Reading
April 14, 2022
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. http://leg.colorado.gov/.)
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
1304-2- the housing crisis that Colorado faces is not new. For decades, the lack of1
affordable housing has upended the lives of thousands who face2
homelessness in the Denver metropolitan area and across the state,3
shuttered Colorado businesses, hindered working-class employment4
because of a lack of workforce housing, and exacerbated inequities for5
communities of color.6
(b) Currently, Colorado has a shortage of nearly 121,0007
affordable rental units, and the Colorado housing and finance authority8
reports that nearly half of all Colorado renters are considered cost9
burdened, with an additional 24% being severely cost burdened. The10
average home price in the state increased 130% from 2011 to 2021.11
Statewide, the median price increased an additional 7% from January to12
February 2022 and the median price is now $555,540, a 90% increase13
over March 2021. The town home and condominium market also reached14
a new pricing level in February 2022 and now stands at $402,390, which15
is an increase of 17% from February 2021. Six out of ten Colorado16
households are unable to afford the average priced home. As used in this17
section, "cost-burdened" means that more than 30% percent of a18
household's monthly income is expended on housing and "severely19
cost-burdened means" that more than 50% of a household's monthly20
income is expended on housing.21
(c) On March 11, 2021, the federal government enacted the22
"American Rescue Plan Act of 2021", Pub.L. 117-2, referred to in this23
section as "ARPA", pursuant to which Colorado has received24
$3,828,761,790 from the federal coronavirus state fiscal recovery fund,25
referred to in this section as the "SFRF", to be used for certain specified26
purposes;27
1304
-3- (d) These specified purposes include providing programs,1
services, or other assistance for populations disproportionately impacted2
by the COVID-19 pandemic;3
(e) More specifically, federal regulations and guidance construing4
dictating allocation of the SFRF promulgated by the United States5
treasury identify a nonexclusive list of uses that address the6
disproportionate negative economic effects of the COVID-19 pandemic,7
including building stronger communities through investments in housing8
and neighborhoods. Services in this category alleviate the immediate9
economic impact of the COVID-19 pandemic on housing insecurity while10
addressing conditions that contributed to poor public health and economic11
outcomes during the pandemic, namely concentrated areas with limited12
economic opportunity and inadequate or poor quality housing.13
(f) Under these regulations, SFRF money may be used for14
programs or services that address housing insecurity, lack of affordable15
and workforce housing, or homelessness, including:16
(I) Supportive housing or other programs or services to improve17
access to stable, affordable housing among unhoused individuals;18
(II) The development of affordable housing to increase the supply19
of affordable housing units that are livable, vibrant, and driven by20
community benefits; and21
(III) Housing vouchers and assistance to allow individuals to22
relocate in neighborhoods with high levels of economic opportunity and23
to reduce concentrated areas of low economic opportunity;24
(g) In addition to enumerated uses, the SFRF regulations allow for25
funds categorized as revenue replacement to be used for government26
services;27
1304
-4- (h) In House Bill 21-1329, enacted in 2021, the general assembly1
created the affordable housing task force, referred to in this section as the2
"task force", to develop recommendations to take advantage of this3
once-in-a-lifetime spending opportunity presented by ARPA to bring4
transformative policies to Colorado's housing sector that will provide5
immediate, sweeping, and long-lasting change. ARPA provided the6
impetus to bring together the legislative and executive branches of state7
government, as well as a diverse group of stakeholders made up of8
affordable housing practitioners and experts, to tackle the affordable9
housing crisis and determine which investments would make the biggest10
impact. The 16-member task force was made up of a bipartisan group of11
ten members of the general assembly and six agency directors. A12
15-member subpanel of diverse affordable housing experts was also13
appointed to advise the task force. The task force and subpanel undertook14
a deliberative, iterative, and transparent process. Ultimately, the task force15
came to near unanimous consensus on its funding recommendations and16
allocations, as well as broad agreement on several policy concepts.17
(i) The recommendations of the task force are intended to take18
advantage of this once-in-a-lifetime funding opportunity, specifically, a19
one-time investment of $400 million, to institute transformational housing20
policies and programs that will allow the state to better meet the challenge21
of providing affordable housing, from addressing homelessness to22
supporting housing for Colorado's workforce; and23
(j) The recommendations made by the task force will not solve24
Colorado's affordable housing crisis completely but will be a25
transformational step forward in achieving that objective. Once26
implemented at the local level across the state, these policies will make27
1304
-5- significant strides in increasing access to flexible capital sources,1
fostering innovation, strengthening the social safety net, enhancing2
market stability, and ultimately promoting more broad and equitable3
ownership and rental housing for Coloradans in every corner of the state.4
These investments will result in more affordable housing being built5
across the state and will help to maintain existing housing stock that is at6
risk of becoming unsafe or unaffordable. The recommendations will help7
reduce disparities and address homelessness and will assist many8
Coloradans in purchasing homes that were previously out of financial9
reach, which will help build intergenerational wealth across the state.10
(2) The general assembly further finds, determines, and declares11
that the programs and services funded by the transfers in this act are12
appropriate uses of the money transferred to Colorado under the SFRF13
and subsequently transferred into the affordable housing and home14
ownership cash fund created in section 24-75-229 (3)(a), C.R.S. This15
money will be put to expeditious and efficient use in building stronger16
communities across the state by making grants to community partners and17
local governments across the state to assist these entities in making18
investments in housing for populations, households, or geographic areas19
disproportionately affected by the COVID-19 pandemic.20
(3) By this act, the general assembly is focusing a portion of the21
SFRF money that it has received from the federal government to begin to22
ameliorate the affordable housing crisis in Colorado by creating and23
administering a program to provide direct, flexible, and timely grant24
funding to community-based nonprofit organizations and local25
governments that have or are pursuing measures to facilitate affordable26
housing development or the purchase of land or buildings for and the27
1304
-6- development of supportive, rental, transitional, and for-sale housing1
targeted at populations and communities disproportionately impacted by2
the COVID-19 pandemic.3
(4) The general assembly intends that the grants made under this4
act will be made to community-based and nonprofit organizations for5
housing navigation and rehousing support, timely deployment of6
assistance, and technical and legal assistance. The general assembly7
intends that funds should be made available to local and regional groups8
and governments to be used for a variety of needs as specified in this act.9
(5) The general assembly additionally intends that the grant10
program ensure flexibility of funding that will allow for operating grants11
to be made to community-based nonprofit organizations and qualified12
local governments, particularly in small, rural, and mountain resort13
communities that can best meet their own development needs.14
(6) The potential uses of SFRF money directed by this act are in15
alignment with the priority articulated by the governor and legislators16
representing both major political parties of investing in strong17
communities. Such potential uses include funding for local infill18
infrastructure needs to help support and catalyze affordable housing19
development and further Colorado's sustainable development patterns,20
provide community benefits, ensure multimodal connectivity, reduce21
greenhouse gas emissions, strengthen social and environmental equity,22
and improve quality of life and community resilience.23
(7) The general assembly further intends that the structure of24
funding criteria for the grant program created by this act encourage the25
use of public policies that allow for the development of affordable26
housing on a local basis congruent with local needs and conditions. To27
1304
-7- achieve the greatest transformation possible, funding criteria should also1
aim to support and promote the leveraging of local funding resources.2
When appropriate, such funds should be aligned with loan funds from3
other public and private sources and priority should be given to projects4
that significantly leverage other funding sources. As part of the assistance5
provided by this act, the general assembly intends that additional funds be6
directed to eviction legal defense, given the ongoing challenges of7
evictions caused by the COVID-19 pandemic.8
(8) The general assembly further declares that the programs and9
services described in this act are important government services.10
SECTION 2. In Colorado Revised Statutes, add 24-32-726 as11
follows:12
24-32-726. Transformational affordable housing through local13
investments - grant program - investments eligible for funding -14
report - definitions - repeal. (1) Definitions. A
S USED IN THIS SECTION,15
UNLESS THE CONTEXT OTHERWISE REQUIRES :16
17
(a) "COMMUNITY PARTNER" MEANS A NONPROFIT ORGANIZATION18
THAT UNDERTAKES ANY OF THE ACTIVITIES OR SERVICES DESCRIBED IN19
SUBSECTION (2)(b) OF THIS SECTION.20
(b) "DEPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .21
(c) "ELIGIBLE RECIPIENT" MEANS A LOCAL GOVERNMENT OR A22
COMMUNITY PARTNER THAT APPLIES FOR A GRANT THROUGH THE GRANT23
PROGRAM.24
(d) "FUND" MEANS THE LOCAL INVESTMENTS IN25
TRANSFORMATIONAL AFFORDABLE HOUSING FUND CREATED IN26
SUBSECTION (4)(a) OF THIS SECTION.27
1304
-8- (e) "GRANT PROGRAM" MEANS THE LOCAL INVESTMENTS IN1
TRANSFORMATIONAL AFFORDABLE HOUSING GRANT PROGRAM CREATED2
IN SUBSECTION (2)(a) OF THIS SECTION.3
(f) "LOCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, CITY4
AND COUNTY , TRIBAL GOVERNMENT, SPECIAL DISTRICT ORGANIZED UNDER5
TITLE 32, SCHOOL DISTRICT, DISTRICT, HOUSING AUTHORITY, COUNCIL OF6
GOVERNMENTS, A REGIONAL PLANNING COMMISSION ORGANIZED UNDER7
TITLE 30, OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE .8
(g) "MATCH" MEANS MONETARY AND NONMONETARY9
CONTRIBUTIONS TO A PROJECT.10
11
(2) Creation of the grant program - projects or programs12
eligible for funding. (a) T
HERE IS CREATED IN THE DIVISION THE LOCAL13
INVESTMENTS IN TRANSFORMATIONAL AFFORDABLE HOUSING GRANT14
PROGRAM TO PROVIDE GRANTS TO ELIGIBLE RECIPIENTS TO ENABLE SUCH15
ENTITIES TO MAKE INVESTMENTS IN THEIR COMMUNITIES OR REGIONS OF16
THE STATE IN TRANSFORMATIONAL AFFORDABLE HOUSING AND HOUSING17
RELATED MATTERS IN ACCORDANCE WITH THE REQUIREMENTS OF THIS18
SECTION. THE DIVISION SHALL ADMINISTER THE GRANT PROGRAM .19
(b) T
HE DIVISION MAY AWARD GRANTS UNDER THE GRANT20
PROGRAM TO SUPPORT INVESTMENTS BY ELIGIBLE RECIPIENTS IN PROJECTS21
OR PROGRAMS THAT:22
(I) D
EVELOP AND INTEGRATE INFRASTRUCTURE TIED TO AN23
AFFORDABLE HOUSING DEVELOPMENT , INCLUDING FUNDING FOR CAPITAL24
CONSTRUCTION AND THE COST OF INFRASTRUCTURE DESIGN ;25
(II) P
ROVIDE GAP FINANCING FOR HOUSING DEVELOPMENT26
PROJECTS INCLUDING BUT NOT LIMITED TO TRANSACTIONS UNDER THE27
1304
-9- FEDERAL LOW-INCOME HOUSING TAX CREDIT AND THE AFFORDABLE1
HOUSING TAX CREDIT CREATED IN SECTION 39-22-2102 (1) AND FOR THE2
PURCHASE OR CONVERSION OF EXISTING AFFORDABLE HOUSING AND3
MULTI-FAMILY DEVELOPMENTS, LAND, AND BUILDINGS, PARTICULARLY IN4
COMMUNITIES WHERE EFFORTS HAVE BEEN MADE TO ENCOURAGE5
AFFORDABLE HOUSING DEVELOPMENT OR IN COMMUNITIES IN WHICH LOW6
CONCENTRATIONS OF AFFORDABLE HOUSING EXIST ;7
(III) INCREASE NEW AFFORDABLE FOR-SALE HOUSING STOCK BY8
PROVIDING FUNDING TO ASSIST WITH THE COSTS OF CONSTRUCTION ,9
INCLUDING BUT NOT LIMITED TO CONSTRUCTION COSTS , LAND10
ACQUISITION COSTS, TAP FEES, BUILDING PERMITS, AND IMPACT FEES;11
(IV) MAINTAIN EXISTING AFFORDABLE HOUSING THROUGH12
FUNDING FOR PRESERVATION, RESTORATION THROUGH REHABILITATION ,13
RETROFITTING, RENOVATION, CAPITAL IMPROVEMENTS, THE REPAIR OF14
CURRENT AFFORDABLE HOUSING STOCK , INCLUDING HOUSING MADE15
AVAILABLE UNDER 42 U.S.C. SEC. 1437f, AND PUBLIC HOUSING FOR16
POPULATIONS AND HOUSEHOLDS DISPROPORTIONATELY IMPACTED BY THE17
COVID-19
PANDEMIC WITH COMMITMENTS FOR LONG -TERM18
AFFORDABILITY. THESE INVESTMENTS MAY INCLUDE BUT ARE NOT LIMITED19
TO:20
(A) S
ENIOR HOUSING;21
(B) R
EMEDIATION OF LOW-QUALITY AND CONDEMNED PROPERTIES ;22
(C) H
OUSING
UNITS THAT ARE INTEGRATED INTO NONSEGREGATED23
HOUSING UNITS THAT ARE SPECIFICALLY DESIGNED FOR PEOPLE LIVING24
WITH DISABILITIES;25
(D) T
HE PURCHASE AND TRANSITION OF CURRENT HOUSING STOCK ,26
INCLUDING PROPERTIES CURRENTLY IN USE ON A SHORT -TERM RENTAL27
1304
-10- BASIS, INTO AFFORDABLE HOUSING ON A LONG -TERM BASIS; AND1
(E) T
HE PROVISION OF TIME-LIMITED RENTAL ASSISTANCE FOR2
HOUSEHOLDS DISPROPORTIONATELY IMPACTED BY THE COVID-193
PANDEMIC AND AT-RISK OF LOSING THEIR HOME OR IN NEED OF RAPID4
RE-HOUSING, INCLUDING FUNDING FOR OUTREACH, HOUSING NAVIGATION5
ASSISTANCE, AND LEGAL
SERVICES.6
(V) FINANCE ENERGY IMPROVEMENTS IN SINGLE -FAMILY AND7
MULTI-FAMILY AFFORDABLE HOUSING THAT WILL PROVIDE FUNDING FOR8
INCREMENTAL, UP-FRONT COSTS FOR EFFICIENT, ELECTRIC MEASURES AND9
RENEWABLE ENERGY SYSTEMS FOR BOTH EXISTING HOMES AND RENTAL10
UNITS AND NEW HOUSING CONSTRUCTION .11
(VI) PROVIDE OR MAINTAIN PROPERTY CONVERSION FOR12
TRANSITIONAL OR LONG-TERM HOUSING;13
(VII) PROVIDE OR MAINTAIN PERMANENT SUPPORTIVE HOUSING14
AND SUPPORTIVE SERVICES;15
(VIII) PROVIDE OR MAINTAIN LAND BANKING AND LAND TRUST16
STRATEGIES FOR LONG-TERM AFFORDABLE HOUSING PLANNING AND17
DEVELOPMENT; AND18
(IX) PROVIDE OR MAINTAIN FUNDING FOR EVICTION LEGAL19
DEFENSE.20
(3) Policies, procedures, and guidelines. (a) O
N OR BEFORE21
S
EPTEMBER 1, 2022, THE DIVISION SHALL ADOPT POLICIES, PROCEDURES,22
AND GUIDELINES FOR THE GRANT PROGRAM THAT INCLUDE , WITHOUT23
LIMITATION:24
(I) T
HE PROCESS BY WHICH A LOCAL GOVERNMENT OR COMMUNITY25
PARTNER APPLIES FOR A GRANT AWARD AND THE CRITERIA USED TO26
DETERMINE ELIGIBILITY FOR A GRANT AWARD ;27
1304
-11- (II) PROCEDURES AND TIME LINES BY WHICH AN ELIGIBLE1
RECIPIENT MAY APPLY FOR A GRANT;2
(III) P
ERFORMANCE CRITERIA FOR GRANT RECIPIENTS ' PROJECTS;3
(IV) R
EPORTING REQUIREMENTS FOR GRANT RECIPIENTS ; AND4
(V) R
EQUIREMENTS FOR GRANT RECIPIENTS TO OFFER A MATCH IN5
RESOURCES.6
(b) I
N AWARDING GRANTS , THE DIVISION SHALL
PRIORITIZE7
PROJECTS OR PROGRAMS THAT , TO THE GREATEST EXTENT PRACTICABLE ,8
PROMOTE ONE OR MORE OF THE FOLLOWING GOALS AND OBJECTIVES :9
(I) INCREASE THE SUPPLY OF HOUSING IN URBAN, RURAL, AND10
RURAL RESORT COMMUNITIES ACROSS THE STATE THAT IS PROPORTIONAL11
TO EACH COMMUNITY'S DEMONSTRATED NEED THROUGH :12
(A) A PREFERENCE FOR MIXED-INCOME PROJECTS IN WHICH A13
PERCENTAGE OF UNITS, PROPORTIONAL TO THE DEMONSTRATED HOUSING14
NEEDS OF THE LOCAL COMMUNITY, WITHIN A PARTICULAR DEVELOPMENT15
HAVE RESTRICTED AVAILABILITY TO HOUSEHOLDS AT AND BELOW THE16
INCOME LEVELS SPECIFIED IN SUBSECTION (3)(c) OF THIS SECTION. THE17
PERCENTAGE OF RESTRICTED UNITS AND AFFORDABILITY LEVELS MUST18
COMPLY WITH LAWS ENACTED BY LOCAL GOVERNMENTS PROMOTING THE19
DEVELOPMENT OF NEW AFFORDABLE HOUSING UNITS PURSUANT TO20
SECTION 29-20-104 (1);21
(B) DEVELOPMENTS IN WHICH HOUSING UNITS ARE RESTRICTED AT22
INCOME LEVELS DEMONSTRATED BY LOCAL COMMUNITY NEEDS AS23
SPECIFIED IN SUBSECTION (3)(c)(I) OF THIS SECTION;24
(C) TRANSIT ORIENTED DEVELOPMENT ;25
(D) THE INCLUSION OF HOUSING UNITS THAT ARE RESTRICTED FOR26
RENTAL USAGE TO PERSONS WITH DISABILITIES OR THAT INCLUDE27
1304
-12- UNIVERSAL DESIGN FEATURES THAT ALLOW INDIVIDUALS TO CONTINUE TO1
RESIDE IN THEIR DWELLING UNITS AS THEY AGE; OR2
(E) HOUSING THAT IS RESTRICTED TO THE VICTIMS OF DOMESTIC3
VIOLENCE OR SEXUAL ASSAULT ;4
(II) L
EVERAGE CAPITAL AND OPERATING SUBSIDIES FROM VARIOUS5
PUBLIC AND PRIVATE SOURCES;6 (III) CREATE OPPORTUNITIES TO BUILD INTERGENERATIONAL7
WEALTH FOR FAMILIES;8
(IV) PROMOTE THE LONG-TERM AFFORDABILITY OF ANY9
DEVELOPMENTS OR PROJECTS THAT ARE FUNDED BY THE GRANT PROGRAM ;10
(V) INVOLVE THE PURCHASE OF REAL PROPERTY NECESSARY TO11
SECURE LAND AREAS NEEDED FOR FUTURE DEVELOPMENT ; OR12
(VI) REPRESENT A ONE-TIME FUNDING PROPOSAL TO THE STATE13
WITH MINIMAL OR NO MULTI -YEAR FINANCIAL OBLIGATIONS AND14
CONTRIBUTE TO THE OVERALL WELL-BEING AND PROFESSIONAL AND15
RECREATIONAL NEEDS OF THE LOCAL WORKFORCE AND POPULATION .16
(c) THE RENTAL AND HOME OWNERSHIP TARGETS APPLICABLE TO17
LOCAL COMMUNITIES ACROSS THE STATE AS REQUIRED BY SUBSECTION18
(3)(b)(I) OF THIS SECTION ARE SPECIFIED IN SUBSECTION (3)(c)(I) OF THIS19
SECTION IN ACCORDANCE WITH THE FOLLOWING :20
(I) (A) FOR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL21
BASIS IN URBAN COUNTIES, HOUSING MUST BE TARGETED TO HOUSEHOLDS22
WITH AN ANNUAL INCOME THAT IS AT OR BELOW EIGHTY PERCENT OF THE23
AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN24
WHICH THE HOUSING IS LOCATED.25
(B) FOR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS26
IN RURAL COUNTIES, HOUSING MUST BE TARGETED TO HOUSEHOLDS WITH27
1304
-13- AN ANNUAL INCOME THAT IS AT OR BELOW ONE HUNDRED FORTY PERCENT1
OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT SIZE IN THE2
COUNTY IN WHICH THE HOUSING IS LOCATED .3
(C) FOR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS4
IN RURAL RESORT COUNTIES, HOUSING MUST BE TARGETED TO5
HOUSEHOLDS WITH AN ANNUAL INCOME THAT IS AT OR BELOW ONE6
HUNDRED SEVENTY PERCENT OF THE AREA MEDIAN INCOME OF7
HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS8
LOCATED.9
(D) FOR A HOUSEHOLD RESIDING IN HOUSING ON A HOME10
OWNERSHIP BASIS IN ANY AREA OF THE STATE , HOUSING MUST BE11
TARGETED TO HOUSEHOLDS WITH AN ANNUAL INCOME THAT IS AT OR12
BELOW ONE HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME OF13
HOUSEHOLDS OF THAT SIZE IN THE C OUNTY IN WHICH THE HOUSING IS14
LOCATED.15
(II) NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION SHALL16
CLASSIFY EACH COUNTY IN THE STATE AS "URBAN", "RURAL", OR "RURAL17
RESORT" BASED UPON DEFINITIONS OF THE TERMS AS SPECIFIED IN THE18
FINAL REPORT OF THE COLORADO STRATEGIC HOUSING WORKING GROUP19
FINAL REPORT DATED JULY 6, 2021. THE DIVISION SHALL REGULARLY20
UPDATE AND PUBLISH MODIFICATION OF THE INITIAL CLASSIFICATION OF21
A PARTICULAR COUNTY AS IT RECEIVES INFORMATION DOCUMENTING22
CHANGES IN LOCAL ECONOMIC CIRCUMSTANCES AND HOUSING COST23
FACTORS MATERIALLY AFFECTING SUCH CLASSIFICATIONS .24
(III) NOTWITHSTANDING SUBSECTION (3)(c)(I) OF THIS SECTION,25
ANY COUNTY OR MUNICIPALITY MAY REQUEST FROM THE DIVISION :26
(A) A DETERMINATION THAT A DIFFERENT INCOME RESTRICTION27
1304
-14- SHOULD APPLY TO THAT COUNTY OR MUNICIPALITY FROM THE ONE MADE1
APPLICABLE TO THE COUNTY OR MUNICIPALITY IN ACCORDANCE WITH2
SUBSECTION (3)(c)(I) OF THIS SECTION BASED UPON THE UNIQUE3
ECONOMIC AND HOUSING COST FACTORS PRESENT IN THE COUNTY OR4
MUNICIPALITY. NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION SHALL5
PUBLISH ANY SUCH MODIFIED INCOME RESTRICTIONS AND THE BASIS FOR6
ANY MODIFICATION APPROVED .7
(B) AT ANY TIME, A RECLASSIFICATION OF THE COUNTY OR8
MUNICIPALITY FROM THE CATEGORY IN WHICH THE COUNTY OR9
MUNICIPALITY IS INITIALLY CLASSIFIED PURSUANT TO SUBSECTION10
(3)(c)(II) BASED UPON THE UNIQUE ECONOMIC AND HOUSING COST11
FACTORS PRESENT IN THE COUNTY OR MUNICIPALITY .12
(d) THE DIVISION SHALL EITHER CREATE OR UTILIZE AN EXISTING13
PROCESS THAT ENSURES THAT GRANTS ARE ONLY CONSIDERED AND14
AWARDED AFTER A FAIR AND RIGOROUS OPEN COMPETITION AMONG15
ELIGIBLE GRANT RECIPIENTS.16
(e) IN DETERMINING GRANT AMOUNTS , THE DIVISION SHALL SEEK17
TO INCREASE INVESTMENTS IN FOR-SALE HOUSING STOCK. THE OBJECTIVE18
DESCRIBED IN THIS SUBSECTION (3)(e) MAY BE ACHIEVED BY PROVIDING19
GRANTS UNDER THE GRANT PROGRAM THAT ARE LAYERED WITH AWARDS20
UNDER EXISTING STATE GRANT PROGRAMS TO INCREASE SUBSIDIES ON A21
PER-UNIT BASIS.22
(f) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION :23
(I) THROUGH DECEMBER 31, 2023, THE DIVISION SHALL MAKE NOT24
MORE THAN FIFTY PERCENT OF THE MONEY AVAILABLE UNDER THE GRANT25
PROGRAM FOR GRANT APPLICATIONS , DEVELOPMENTS, OR PROGRAMS THAT26
ARE PROPOSED FOR RURAL OR RURAL RESORT COUNTIES ACROSS THE27
1304
-15- STATE AND SHALL MAKE NOT MORE THAN FIFTY PERCENT OF THE FUNDS1
AVAILABLE UNDER THE GRANT PROGRAM FOR GRANT APPLICATIONS,2
DEVELOPMENTS, OR PROGRAMS THAT ARE PROPOSED FOR URBAN COUNTIES3
ACROSS THE STATE.4
(II) AFTER DECEMBER 31, 2023, ALL UNENCUMBERED MONEY5
AVAILABLE UNDER THE GRANT PROGRAM MAY BE EXPENDED IN6
ACCORDANCE WITH THIS SECTION IN ANY AREA OF THE STATE WITHOUT7
REGARD TO THE RESTRICTIONS SPECIFIED IN THIS SUBSECTION (3)(e).8
(III) NOT LATER THAN JULY 15, 2023, THE DIVISION SHALL SUBMIT9
A REPORT TO THE GENERAL ASSEMBLY SPECIFYING THE STATE OF10
ENCUMBERED MONEY UNDER THE GRANT PROGRAM AS OF JUNE 30, 2023,11
AND A LIST OF PROJECTS THAT HAVE BEEN APPROVED BUT THAT ARE12
AWAITING FUNDING AS OF JUNE 30, 2023.13
(g) IN LIGHT OF DIFFERING NEEDS FOR PER HOUSING UNIT14
SUBSIDIES ACROSS DIFFERENT AREAS OF THE STATE, THE DIVISION MAY15
WAIVE PER UNIT SUBSIDY AMOUNTS THAT HAVE BEEN INITIALLY SET FOR16
PARTICULAR PROJECTS OR PROGRAMS TO ADJUST FOR MARKET FACTORS IF17
THE PURPOSE OF THE PROJECT HAS BEEN ACCOMPLISHED OR TO SATISFY18
THE INTENT OF THE GRANT AWARD .19
(h) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION ,20
THE AMOUNT OF ANY GRANT AWARD UNDER THE GRANT PROGRAM AND21
ANY RESTRICTIONS OR CONDITIONS PLACED UPON THE USE OF GRANT22
MONEY AWARDED IS WITHIN THE DISCRETION OF THE DIVISION IN23
ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION .24
(4) Fund. (a) T
HE LOCAL INVESTMENTS IN TRANSFORMATIONAL25
AFFORDABLE HOUSING FUND IS CREATED IN THE STATE TREASURY . THE26
FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND PURSUANT TO27
1304
-16- SUBSECTION (4)(c) OF THIS SECTION; MONEY APPROPRIATED TO THE FUND1
BY THE GENERAL ASSEMBLY ; AND ANY GIFTS, GRANTS, OR DONATIONS2
FROM ANY PUBLIC OR PRIVATE SOURCES , INCLUDING GOVERNMENTAL3
ENTITIES, THAT THE DIVISION IS AUTHORIZED TO SEEK AND ACCEPT .4
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND5
INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEY IN THE6
FUND TO THE FUND . EXCEPT AS OTHERWISE REQUIRED BY THIS7
SUBSECTION (4)(b), ALL MONEY NOT EXPENDED OR ENCUMBERED , AND8
ALL INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEY IN THE9
FUND, MUST REMAIN IN THE FUND AND SHALL NOT REVERT TO THE10
GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR .11
T
HE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE12
DIVISION FOR THE PURPOSES OF THIS SECTION. ANY MONEY IN THE FUND13
THAT IS NOT EXPENDED OR ENCUMBERED BY DECEMBER 31, 2024,14
REVERTS TO THE "AMERICAN RESCUE PLAN ACT OF 2021" CASH FUND15
CREATED IN SECTION 24-75-226 (2) IN ACCORDANCE WITH SECTION16
24-75-226 (4)(d). ANY MONEY TRANSFERRED INTO THE FUND IN17
ACCORDANCE WITH THIS SUBSECTION (4) THAT IS NOT EXPENDED OR18
ENCUMBERED FROM ANY APPROPRIATION AT THE END OF ANY FISCAL YEAR19
IS AVAILABLE FOR EXPENDITURE BY JULY 1, 2024, WITHOUT FURTHER20
APPROPRIATION.21
(c) O
N THE EFFECTIVE DATE OF THIS SECTION , OR AS SOON AS22
PRACTICABLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER ONE23
HUNDRED
THIRTY-EIGHT MILLION DOLLARS FROM THE AFFORDABLE24
HOUSING AND HOME OWNERSHIP CASH FUND CREATED IN SECTION25
24-75-229 (3)(a)
THAT ORIGINATES FROM MONEY THE STATE RECEIVED26
FROM THE FEDERAL CORONAVIRUS STATE FISCAL RECOVERY FUND TO THE27
1304
-17- FUND. THE MONEY TRANSFERRED PURSUANT TO THIS SUBSECTION (4)1
MUST ONLY BE USED FOR:2
(I) M
AKING GRANTS TO ELIGIBLE RECIPIENTS PURSUANT TO THE3
GRANT PROGRAM; AND4
(II) T
HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY5
BE INCURRED BY THE DIVISION. THE DEPARTMENT MAY EXPEND UP TO
SIX6
PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE FUND TO7
PAY FOR ITS DIRECT AND INDIRECT COSTS IN ADMINISTERING THE GRANT8
PROGRAM. ALL SUCH ADMINISTRATIVE COSTS MUST BE PAID OUT OF THE9
MONEY TRANSFERRED TO THE FUND PURSUANT TO THIS SUBSECTION (4)(c).10
(5) Reporting. (a) IN CONNECTION WITH THE PUBLIC REPORT THE11
DIVISION PREPARED IN ACCORDANCE WITH SECTION 24-32-705.5 (1), FOR12
THE REPORT PREPARED IN 2023 AND 2024, THE DIVISION SHALL INCLUDE13
IN THE REPORT INFORMATION SUMMARIZING THE USE OF ALL OF THE14
MONEY THAT WAS AWARDED AS GR ANTS FROM THE GRANT PROGRAM IN15
THE PRECEDING STATE FISCAL YEAR. AT A MINIMUM, THE INFORMATION16
INCLUDED IN THE REPORT PERTAINING TO THE GRANT PROGRAM MUST17
SPECIFY THE NUMBER OF LOCAL GOVERNMENTS OR COMMUNITY PARTNERS18
THAT APPLIED FOR A GRANT AWARD , INCLUDING THE NUMBER OF LOCAL19
GOVERNMENTS OR COMMUNITY PARTNERS THAT WERE NOT AWARDED A20
GRANT; THE AMOUNT OF GRANT MONEY DISTRIBUTED TO EACH GRANT21
RECIPIENT; A DESCRIPTION OF EACH GRANT RECIPIENT'S USE OF THE GRANT22
MONEY; AND HOW THE USE OF THE GRANT AWARDED FURTHERED THE23
VISION OF TRANSFORMATIONAL AFFORDABLE HOUSING DESCRIBED IN THE24
FINAL REPORT OF THE TASK FORCE ESTABLISHED IN SECTION 24-75-22925
(6)(a). T
HE DIVISION SHALL ALSO INCLUDE IN THE REPORT ITS26
RECOMMENDATIONS CONCERNING FUTURE ADMINISTRATION OF THE27
1304
-18- GRANT PROGRAM.1
(b) THE DIVISION AND ANY PERSON THAT RECEIVES MONEY FROM2
THE DIVISION PURSUANT TO THE GRANT PROGRAM SHALL COMPLY WITH3
THE COMPLIANCE, REPORTING, RECORD-KEEPING, AND PROGRAM4
EVALUATION REQUIREMENTS ESTABLISHED BY THE OFFICE OF STATE5
PLANNING AND BUDGETING AND THE STATE CONTROLLER IN ACCORDANCE6
WITH SECTION 24-75-226 (5).7
(6) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,8
2026.9
SECTION 3. In Colorado Revised Statutes, 24-32-705, amend10
(7) as follows:11
24-32-705. Functions of division. (7) The division shall12
administer the:13
(a) Affordable housing guided toolkit and local officials guide14
program in accordance with section 24-32-721.5;
AND15
(b) L
OCAL INVESTMENTS IN THE TRANSFORMATIONAL AFFORDABLE16
HOUSING GRANT PROGRAM CREATED IN SECTION 24-32-726 (2)(a).17
SECTION 4. In Colorado Revised Statutes, 24-32-705.5, add18
(3.5) as follows:19
24-32-705.5. Annual public report on funding of affordable20
housing preservation and production - definition. (3.5) (a) F
OR THE21
PUBLIC REPORT REQUIRED BY SUBSECTION (1) OF THIS SECTION THAT THE22
DIVISION IS REQUIRED TO PREPARE IN 2023 AND 2024, THE DIVISION SHALL23
INCLUDE IN THE REPORT FOR EACH YEAR THE INFORMATION REQUIRED TO24
BE INCLUDED IN THE REPORT IN ACCORDANCE WITH SECTION 23-32-72625
(5).26
(b) T
HIS SUBSECTION (3.5) IS REPEALED, EFFECTIVE JULY 1, 2026.27
1304
-19- SECTION 5. In Colorado Revised Statutes, add 24-32-132 as1
follows:2
24-32-132. Infrastructure and strong communities grant3
program - creation - fund - reporting - definitions - repeal.4
(1) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT5
OTHERWISE REQUIRES:6
(a) "A
FFORDABLE HOUSING" MEANS:7
(I) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS ,8
ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED9
FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT10
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED ;
11
(II) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A HOME12
OWNERSHIP BASIS, ANNUAL INCOME OF THE HOUSEHOLD AT OR BELOW ONE13
HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS14
OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS
LOCATED; OR15
(III) FOR A HOUSEHOLD RESIDING IN HOUSING ON A HOME16
OWNERSHIP BASIS IN RURAL RESORT COUNTIES, ANNUAL INCOME OF THE17
HOUSEHOLD IS AT OR BELOW ONE HUNDRED SIXTY PERCENT OF THE AREA18
MEDIAN INCOME OF HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN WHICH19
THE HOUSING IS LOCATED.20
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .21
(c) "E
LIGIBLE EXPENSES" INCLUDE PLANNING,
ENGINEERING,22
INFRASTRUCTURE, AND LOCAL CAPACITY.23
(d) "E
LIGIBLE LOCAL GOVERNMENT " MEANS A MUNICIPALITY OR24 A COUNTY.25
(e) "F
UND" MEANS THE INFRASTRUCTURE AND STRONG26
COMMUNITIES GRANT PROGRAM FUND CREATED IN SUBSECTION (5) OF THIS27
1304
-20- SECTION.1
(f) "G
RANT PROGRAM" MEANS THE INFRASTRUCTURE AND STRONG2
COMMUNITIES GRANT PROGRAM CREATED IN SUBSECTION (3)(a) OF THIS3
SECTION.4
(g) "I
NFILL DEVELOPMENT" MEANS THE DEVELOPMENT OF UNUSED5
AND UNDERUTILIZED LAND WITHIN EXISTING DEVELOPMENT PATTERNS ,6
TYPICALLY BUT NOT EXCLUSIVELY IN URBAN AREAS .7
(h) "L
OCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, OR8
A CITY AND COUNTY.9
(i) "M
ULTI-AGENCY GROUP" MEANS THE DIVISION, THE COLORADO10
ENERGY OFFICE CREATED IN SECTION 24-38.5-101 (1), AND THE11
DEPARTMENT OF TRANSPORTATION CREATED IN SECTION 43-1-103 (1).12
(j) "S
USTAINABLE DEVELOPMENT PATTERN " MEANS A13
DEVELOPMENT PATTERN THAT MAY BE EXTENDED IN A COST -EFFECTIVE14
WAY THAT MITIGATES HARM AND MINIMIZES THE NEED FOR ADDITIONAL15
RESOURCES TO MAINTAIN THE DEVELOPMENT OVER TIME .16
(k) "T
RANSIT-ORIENTED DEVELOPMENT " MEANS A DEVELOPMENT17
THAT IS WITHIN WALKING DISTANCE OF A TRANSIT OR OTHER ALTERNATIVE18
TRANSPORTATION FACILITY.19
(2) Multi-agency group - best practices. (a) T
HE MULTI-AGENCY20
GROUP SHALL ENCOURAGE THE INVOLVEMENT OF LOCAL GOVERNMENTS21
ACROSS THE STATE IN THE GRANT PROGRAM . THE MULTI-AGENCY GROUP,22
WITH THE ASSISTANCE OF STAKEHOLDERS , SHALL DEVELOP A LIST OF23
SUSTAINABLE LAND USE BEST PRACTICES THAT WILL ACCOMPLISH THE24
GOALS OF THE GRANT PROGRAM AND IMPROVE A LOCAL GOVERNMENT 'S25
VIABILITY IN BEING CONSIDERED FOR A GRANT AWARD .26
(b) T
HE SUSTAINABLE LAND USE BEST PRACTICES REFERENCED IN27
1304
-21- SUBSECTION (2)(a) OF THIS SECTION WILL ADDRESS ONE OR MORE OF THE1
FOLLOWING, WITHOUT LIMITATION:2
(I) E
NABLING ACCESSORY DEVELOPMENT UNITS OR THE USE OF3
MULTIPLEXES BY RIGHT IN RESIDENTIAL ZONES ;4
(II) Z
ONING FOR MIXED-USE HIGHER DENSITY DEVELOPMENT IN5
DOWNTOWN AREAS OF MUNICIPALITIES AND AROUND TRANSIT STATIONS ;6
(III) A
NNEXATION POLICIES;7
(IV) I
NTERGOVERNMENTAL AGREEMENTS THAT COORDINATE8
FUTURE DEVELOPMENT ;9
(V) R
EDUCED PARKING REQUIREMENTS ;10
(VI) R
ELAXED OCCUPANCY RULES ;11
(VII) B
UDGETING POLICIES;12
(VIII) W
ATER RATE STRUCTURES;13
(IX) R
OAD STANDARDS;14
(X) H
AZARD RISK REDUCTION AND MITIGATION STANDARDS ;15
(XI) E
NERGY EFFICIENT BUILDING CODES;
16
(XII) Z
ONING FOR INNOVATIVE HOUSING OPTIONS , INCLUDING BUT17
NOT LIMITED TO MODULAR , MANUFACTURED , AND PREFABRICATED18 HOMES;19
(XIII) THE USE OF VACANT PUBLICLY OWNED REAL PROPERTY20
WITHIN THE LOCAL GOVERNMENT FOR THE DEVELOPMENT OF AFFORDABLE21
HOUSING;22
(XIV) PLANNED UNIT DEVELOPMENTS WITH INTEGRATED23
AFFORDABLE HOUSING UNITS;24
(XV) THE DEVELOPMENT OF SMALL SQUARE FOOTAGE25
RESIDENTIAL UNIT SIZES; OR26
(XVI) ANY OTHER PRACTICE THAT IS DEEMED INNOVATIVE BY A27
1304
-22- LOCAL GOVERNMENT AND APPROVED BY THE MULTI -AGENCY WORKING1
GROUP.2
(c) T
HE MULTI-AGENCY GROUP SHALL DISTRIBUTE THE3
SUSTAINABLE LAND USE PRACTICES DEVELOPED PURSUANT TO SUBSECTION4
(2)(b)
OF THIS SECTION TO LOCAL GOVERNMENTS SO THAT LOCAL5
GOVERNMENTS MAY ANALYZE WHICH , IF ANY, OF THESE PRACTICES MIGHT6
HAVE A POSITIVE IMPACT IN THEIR COMMUNITIES , AND THEN DETERMINE7
HOW TO CUSTOMIZE THESE BEST PRACTICES AND ADOPT THEM IN THEIR8
COMMUNITIES AS APPROPRIATE .9
(3) Grant program - criteria for awarding grants. (a) T
HE10
INFRASTRUCTURE AND STRONG COMMUNITIES GRANT PROGRAM IS HEREBY11
CREATED WITHIN THE DIVISION TO PROVIDE GRANTS TO ELIGIBLE LOCAL12
GOVERNMENTS TO ENABLE LOCAL GOVERNMENTS TO INVEST IN INFILL13
INFRASTRUCTURE PROJECTS THAT SUPPORT AFFORDABLE HOUSING .14
(b) T
HE DIVISION SHALL ADMINISTER THE GRANT
PROGRAM, IN15
CONSULTATION WITH THE COLORADO ENERGY OFFICE , CREATED IN16
SECTION 24-38.5-101 (1), AND THE DEPARTMENT OF TRANSPORTATION ,17
CREATED IN SECTION 43-1-103 (1), AND, SUBJECT TO AVAILABLE18
APPROPRIATIONS, AWARD GRANTS IN ACCORDANCE WITH THE19
REQUIREMENTS OF THIS SECTION . SUBJECT TO AVAILABLE20
APPROPRIATIONS, GRANTS MUST BE PAID OUT OF THE FUND CREATED IN21
SUBSECTION (5) OF THIS SECTION.22
(c) T
HE DIVISION SHALL DEVELOP POLICIES, PROCEDURES, AND23
GUIDELINES THAT ESTABLISH THE CRITERIA THAT THE DIVISION MUST24
CONSIDER IN AWARDING GRANTS PURSUANT TO THIS SECTION . AT A25
MINIMUM, THE CRITERIA MUST INCLUDE THE CONSIDERATION OF :26
(I) T
HE POTENTIAL IMPACT OF A PROJECT THAT A LOCAL27
1304
-23- GOVERNMENT WOULD F UND WITH A GRANT AWARD IN LIGHT OF THE GOALS1
OF THE GRANT PROGRAM; AND2
(II) T
HE SUSTAINABLE LAND USE PRACTICES THAT THE LOCAL3
GOVERNMENT HAS ADOPTED TO SUPPORT GREATER INFILL HOUSING4
SUPPLY, MORE AFFORDABLE HOUSING , AND SUSTAINABLE DEVELOPMENT5
PATTERNS.6
(4) Policies, procedures, and guidelines governing use of grant7
funds. (a) T
HE DIVISION SHALL DEVELOP POLICIES AND PROCEDURES TO8
DETERMINE HOW GRANTS FUNDED BY THE GRANT PROGRAM MAY BE USED .9
(b) A
T A MINIMUM, THE POLICIES, PROCEDURES, AND GUIDELINES10
DEVELOPED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION MUST11
REQUIRE THAT A GRANT AWARD BE USED, AT LEAST IN PART, TO FUND12
INFRASTRUCTURE PROJECTS THAT INCREASE THE SUPPLY OF AFFORDABLE13
HOUSING AND THAT ARE WITHIN OR ADJACENT TO A DOWNTOWN AREA, A14
CORE BUSINESS DISTRICT OF A MUNICIPALITY, A TRANSIT-ORIENTED15
DEVELOPMENT, OR THAT INCLUDE ONSITE EARLY CHILDHOOD CARE AND16
EDUCATION SERVICES.17
(c) THE DIVISION SHALL ENSURE FLEXIBILITY IS AFFORDED RURAL18
COUNTIES TO BE ABLE TO SEEK GRANT FUNDING THAT ADDRESSES LOCAL19
OBJECTIVES THAT ARE COMPATIBLE WITH THE GOALS UNDERLYING THE20
GRANT PROGRAM.21
(d) A PORTION OF ANY GRANT AWARD MAY BE USED FOR PROJECT22
DELIVERY, PLANNING, AND COMMUNITY ENGAGEMENT .23
(e) THE GENERAL ASSEMBLY HEREBY ENCOURAGES GRANT24
RECIPIENTS TO EXPEND A PORTION OF ANY GRANT AWARD , WHENEVER25
POSSIBLE, FOR FUNDING ACCESSIBILITY IMPROVEMENTS OR AMENITIES26
THAT MAKE THE SITE OF THE PROJECT AGE-FRIENDLY AND ACCESSIBLE FOR27
1304
-24- PERSONS WITH DISABILITIES.1
(f) (I) NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF2
HOUSING, CREATED IN SECTION 24-32-704 (1), SHALL CLASSIFY EACH3
COUNTY IN THE STATE AS "URBAN", "RURAL", OR "RURAL RESORT" AS4
USED IN SUBSECTION (1)(a) OF THIS SECTION BASED UPON THE DEFINITIONS5
OF THE TERMS AS SPECIFIED IN THE FINAL REPORT OF THE COLORADO6
STRATEGIC HOUSING WORKING GROUP FINAL REPORT , DATED JULY 6, 2021.7
THE DIVISION OF HOUSING SHALL REGULARLY UPDATE AND PUBLISH8
MODIFICATIONS OF THE INITIAL CLASSIFICATION OF A PARTICULAR COUNTY9
AS IT RECEIVES OR PRODUCES INFORMATION DOCUMENTING CHANGES IN10
LOCAL ECONOMIC CIRCUMSTANCES AND HOUSING COST FACTORS11
MATERIALLY AFFECTING SUCH CLASSIFICATIONS .12
(II) NOTWITHSTANDING SUBSECTION (4)(e)(I) OF THIS SECTION,13
ANY COUNTY OR MUNICIPALITY MAY REQUEST FROM THE DIVISION OF14
HOUSING:15
(A) A DETERMINATION THAT A DIFFERENT INCOME RESTRICTION16
SHOULD APPLY TO THAT COUNTY OR MUNICIPALITY FROM THE ONE MADE17
APPLICABLE TO THE COUNTY OR MUNICIPALITY IN ACCORDANCE WITH18
SUBSECTION (4)(e)(I) OF THIS SECTION BASED UPON THE UNIQUE19
ECONOMIC AND HOUSING COST FACTORS PRESENT IN THE COUNTY OR20
MUNICIPALITY. NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF21
HOUSING SHALL PUBLISH ANY SUCH MODIFIED INCOME RESTRICTIONS AND22
THE BASIS FOR ANY MODIFICATION APPROVED .23
(B) AT ANY TIME, A RECLASSIFICATION OF THE COUNTY OR24
MUNICIPALITY FROM THE CATEGORY IN WHICH THE COUNTY IS INITIALLY25
CLASSIFIED PURSUANT TO SUBSECTION (4)(e)(I) OF THIS SECTION BASED26
UPON THE UNIQUE ECONOMIC AND HOUSING COST FACTORS PRESENT IN27
1304
-25- THE COUNTY OR MUNICIPALITY.1
(5) Fund - administrative costs - permitted uses - gifts, grants,2
and donations. (a) T
HE INFRASTRUCTURE AND STRONG COMMUNITIES3
GRANT PROGRAM FUND IS HEREBY CREATED IN THE STATE TREASURY . THE4
FUND CONSISTS OF ANY MONEY TRANSFERRED TO THE FUND , ANY MONEY5
THAT THE GENERAL ASSEMBLY MAY APPROPRIATE TO THE FUND , AND ANY6
GIFTS, GRANTS, OR DONATIONS THAT THE DIVISION RECEIVES FOR THE7
GRANT PROGRAM PURSUANT TO SUBSECTION (5)(f) OF THIS SECTION.
8
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND9
INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEY IN THE10
FUND TO THE FUND. ALL MONEY IN THE FUND THAT IS NOT EXPENDED OR11
ENCUMBERED, AND ALL INTEREST EARNED ON THE INVESTMENT OR12
DEPOSIT OF MONEY IN THE FUND, REMAINS IN THE FUND AND SHALL NOT13
BE CREDITED, TRANSFERRED, OR REVERTED TO THE GENERAL FUND OR ANY14
OTHER FUND AT THE END OF ANY FISCAL YEAR . THE MONEY IN THE FUND15
IS CONTINUOUSLY APPROPRIATED TO THE DIVISION FOR THE PURPOSES OF16
THIS SECTION.17
(c) T
HE DIVISION MAY ONLY USE THE MONEY IN THE FUND FOR ONE18
OR MORE OF THE FOLLOWING USES :19
(I) T
HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY20
BE INCURRED BY THE DIVISION. THE DEPARTMENT MAY EXPEND UP TO
SIX21
PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE FUND TO22
PAY FOR ITS DIRECT AND INDIRECT COSTS IN CONNECTION WITH23
ADMINISTERING THE USES OF GRANT FUNDING DESCRIBED IN SUBSECTION24
(5)(c)(II)
OF THIS SECTION.25
(II) M
AKING GRANTS TO ELIGIBLE LOCAL GOVERNMENTS26
PURSUANT TO THE GRANT PROGRAM TO ASSIST SUCH LOCAL27
1304
-26- GOVERNMENTS IN:1
(A) I
DENTIFYING SUSTAINABLE LAND USE BEST PRACTICES AND2
SUPPORTING SUSTAINABLE DEVELOPMENT PATTERNS ;
3
(B) D
ETERMINING WHERE AND HOW BEST TO UPGRADE LOCAL4
GOVERNMENT INFRASTRUCTURE TO SUPPORT MORE EFFICIENT ,5
SUSTAINABLE DEVELOPMENT PATTERNS THAT ENABLE GREATER6
AFFORDABLE INFILL HOUSING
DEVELOPMENT; AND7
(C) FINANCING INFRASTRUCTURE IMPROVEMENTS .8
(d) T
HE COLORADO ENERGY OFFICE , CREATED IN SECTION9
24-38.5-101
(1), MAY USE MONEY IN THE FUND FOR THE DIRECT AND10
INDIRECT COSTS OF EDUCATIONAL PROGRAMMING AND TECHNICAL11
ASSISTANCE FOR LOCAL GOVERNMENTS THAT THE COLORADO ENERGY12
OFFICE PROVIDES PURSUANT TO SECTION 24-32-132 (2).13
(e) T
HE DEPARTMENT OF
TRANSPORTATION, CREATED IN SECTION14
43-1-103 (1), MAY USE MONEY IN THE FUND FOR THE DIRECT AND15
INDIRECT COSTS OF EDUCATIONAL PROGRAMMING AND TECHNICAL16
ASSISTANCE FOR LOCAL GOVERNMENTS THAT THE DEPARTMENT OF17
TRANSPORTATION PROVIDES PURSUANT TO SECTION 24-32-132 (2).18
(f) T
HE DIVISION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,19
OR DONATIONS FROM ANY PUBLIC OR PRIVATE RESOURCE FOR THE20
PURPOSES OF THIS SECTION. THE DIVISION SHALL TRANSMIT ALL MONEY21
RECEIVED FROM GIFTS, GRANTS, OR DONATIONS TO THE STATE TREASURER22
WHO SHALL CREDIT THE MONEY TO THE FUND .23
(6) Transfer of money to fund. O
N THE EFFECTIVE DATE OF THIS24
SECTION, OR AS SOON AS PRACTICABLE THEREAFTER , THE STATE25
TREASURER SHALL TRANSFER TO THE FUND TWENTY-EIGHT MILLION26
DOLLARS FROM THE GENERAL FUND AND TWELVE MILLION DOLLARS FROM27
1304
-27- THE AFFORDABLE HOUSING AND HOME OWNERSHIP CASH FUND CREATED1
IN SECTION 24-75-229 (3)(a) THAT ORIGINATES FROM MONEY THE STATE2
RECEIVED FROM THE FEDERAL CORONARIUS STATE FISCAL RECOVERY3
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
(c) THE DIVISION AND ANY PERSON THAT RECEIVES MONEY FROM26
THE DIVISION PURSUANT TO THE GRANT PROGRAM SHALL COMPLY WITH27
1304
-28- THE COMPLIANCE, REPORTING, RECORD-KEEPING, AND PROGRAM1
EVALUATION REQUIREMENTS ESTABLISHED BY THE OFFICE OF STATE2
PLANNING AND BUDGETING AND THE STATE CONTROLLER IN ACCORDANCE3
WITH SECTION 24-75-226 (5).4
(8) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,5
2026.6
SECTION 6. In Colorado Revised Statutes, 24-32-104, add (8)7
as follows:8
24-32-104. Functions of the division - interconnectivity grant9
program - interconnectivity grant program fund - reporting -10
definition. (8) T
HE DIVISION SHALL ADMINISTER THE INFRASTRUCTURE11
AND STRONG COMMUNITIES GRANT PROGRAM CREATED IN SECTION12
24-32-132.
IN CONNECTION WITH THE ADMINISTRATION OF THE GRANT13
PROGRAM, THE DIVISION SHALL CONSULT WITH THE COLORADO ENERGY14
OFFICE CREATED IN SECTION 24-38.5-101 (1) AND THE DEPARTMENT OF15
TRANSPORTATION CREATED IN SECTION 43-1-103 (1).16
SECTION 7. Appropriation. (1) For the 2022-23 state fiscal17
year, $431,985 is appropriated to the office of the governor. This18
appropriation consists of $319,450 from reappropriated funds received19
from the department of local affairs from the local investments in20
transformational affordable housing fund created in section 24-32-72621
(4)(a), C.R.S., that originate from money the state received from the22
federal coronavirus state fiscal recovery fund and $112,535 from23
reappropriated funds received from the department of local affairs from24
the strong communities grant program fund created in section 24-32-13225
(5), C.R.S. To implement this act, the office may use this appropriation26
as follows:27
1304
-29- (a) $379,081, which consists of $319,450 from reappropriated1
funds received from the department of local affairs from the local2
investments in transformational affordable housing fund created in3
section 24-32-726 (4)(a), C.R.S., that originate from money the state4
received from the federal coronavirus state fiscal recovery fund and5
$59,631 from reappropriated funds received from the department of local6
affairs from the strong communities grant program fund created in section7
24-32-132 (5), C.R.S., for use by the office of information technology to8
provide information technology services for the department of local9
affairs; and10
(b) $52,904 from reappropriated funds received from the11
department of local affairs from the strong communities grant program12
fund created in section 24-32-132 (5), C.R.S., for use by the Colorado13
energy office for program administration, which amount is based on an14
assumption that the office will require an addition 0.5 FTE to implement15
this act.16
SECTION 8. Safety clause. The general assembly hereby finds,17
determines, and declares that this act is necessary for the immediate18
preservation of the public peace, health, or safety.19
1304
-30-