Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0811.01 Bob Lackner x4350
HOUSE BILL 22-1304
House Committees Senate Committees
Transportation & Local Government Local Government
Appropriations 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
SENATE
Amended 2nd Reading
May 4, 2022
HOUSE
3rd Reading Unamended
April 20, 2022
HOUSE
Amended 2nd Reading
April 14, 2022
HOUSE SPONSORSHIP
Roberts and Bradfield, Jodeh, Woodrow, Amabile, Bacon, Bernett, Bird, Boesenecker,
Cutter, Daugherty, Esgar, Exum, Froelich, Garnett, Gonzales-Gutierrez, Gray, Herod, Hooton,
Kennedy, Kipp, Lindsay, Lontine, McCluskie, McCormick, McLachlan, Michaelson Jenet,
Mullica, Ortiz, Ricks, Sirota, Snyder, Sullivan, Tipper, Titone, Valdez A., Valdez D.,
Weissman, Young
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", AS THOSE TERMS ARE USED IN THIS SECTION , BASED UPON18
DEFINITIONS OF THE TERMS AS SPECIFIED IN THE FINAL REPORT OF THE19
COLORADO STRATEGIC HOUSING WORKING GROUP FINAL REPORT DATED20
JULY 6, 2021. THE DIVISION SHALL REGULARLY UPDATE AND PUBLISH21
MODIFICATION OF THE INITIAL CLASSIFICATION OF A PARTICULAR COUNTY22
AS IT RECEIVES INFORMATION DOCUMENTING CHANGES IN LOCAL23
ECONOMIC CIRCUMSTANCES AND HOUSING COST FACTORS MATERIALLY24
AFFECTING SUCH CLASSIFICATIONS.25
(III) NOTWITHSTANDING SUBSECTION (3)(c)(I) OR (3)(c)(II) OF26
THIS SECTION, ANY COUNTY OR MUNICIPALITY MAY REQUEST FROM THE27
1304
-14- DIVISION:1
(A) A DETERMINATION THAT A DIFFERENT INCOME RESTRICTION2
SHOULD APPLY TO THAT COUNTY OR MUNICIPALITY FROM THE ONE MADE3
APPLICABLE TO THE COUNTY OR MUNICIPALITY IN ACCORDANCE WITH4
SUBSECTION (3)(c)(I) OF THIS SECTION BASED UPON THE UNIQUE5
ECONOMIC AND HOUSING COST FACTORS PRESENT IN THE COUNTY OR6
MUNICIPALITY. NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION SHALL7
PUBLISH ANY SUCH MODIFIED INCOME RESTRICTIONS AND THE BASIS FOR8
ANY MODIFICATION APPROVED .9
(B) AT ANY TIME, A RECLASSIFICATION OF THE COUNTY OR10
MUNICIPALITY FROM THE CATEGORY IN WHICH THE COUNTY OR11
MUNICIPALITY IS INITIALLY CLASSIFIED PURSUANT TO SUBSECTION12
(3)(c)(II) BASED UPON THE UNIQUE ECONOMIC AND HOUSING COST13
FACTORS PRESENT IN THE COUNTY OR MUNICIPALITY .14
(d) THE DIVISION SHALL EITHER CREATE OR UTILIZE AN EXISTING15
PROCESS THAT ENSURES THAT GRANTS ARE ONLY CONSIDERED AND16
AWARDED AFTER A FAIR AND RIGOROUS OPEN COMPETITION AMONG17
ELIGIBLE GRANT RECIPIENTS.18
(e) IN DETERMINING GRANT AMOUNTS , THE DIVISION SHALL SEEK19
TO INCREASE INVESTMENTS IN FOR-SALE HOUSING STOCK. THE OBJECTIVE20
DESCRIBED IN THIS SUBSECTION (3)(e) MAY BE ACHIEVED BY PROVIDING21
GRANTS UNDER THE GRANT PROGRAM THAT ARE LAYERED WITH AWARDS22
UNDER EXISTING STATE GRANT PROGRAMS TO INCREASE SUBSIDIES ON A23
PER-UNIT BASIS.24
(f) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION :25
(I) THROUGH DECEMBER 31, 2023, THE DIVISION SHALL MAKE NOT26
MORE THAN FIFTY PERCENT OF THE MONEY AVAILABLE UNDER THE GRANT27
1304
-15- PROGRAM FOR GRANT APPLICATIONS , DEVELOPMENTS, OR PROGRAMS THAT1
ARE PROPOSED FOR RURAL OR RURAL RESORT COUNTIES ACROSS THE2
STATE AND SHALL MAKE NOT MORE THAN FIFTY PERCENT OF THE FUNDS3
AVAILABLE UNDER THE GRANT PROGRAM FOR GRANT APPLICATIONS,4
DEVELOPMENTS, OR PROGRAMS THAT ARE PROPOSED FOR URBAN COUNTIES5
ACROSS THE STATE.6
(II) AFTER DECEMBER 31, 2023, ALL UNENCUMBERED MONEY7
AVAILABLE UNDER THE GRANT PROGRAM MAY BE EXPENDED IN8
ACCORDANCE WITH THIS SECTION IN ANY AREA OF THE STATE WITHOUT9
REGARD TO THE RESTRICTIONS SPECIFIED IN SUBSECTION (3)(f)(I) OF THIS10
SECTION.11
(III) NOT LATER THAN JULY 15, 2023, THE DIVISION SHALL SUBMIT12
A REPORT TO THE GENERAL ASSEMBLY SPECIFYING THE STATE OF13
ENCUMBERED MONEY UNDER THE GRANT PROGRAM AS OF JUNE 30, 2023,14
AND A LIST OF PROJECTS THAT HAVE BEEN APPROVED BUT THAT ARE15
AWAITING FUNDING AS OF JUNE 30, 2023.16
(g) IN LIGHT OF DIFFERING NEEDS FOR PER HOUSING UNIT17
SUBSIDIES ACROSS DIFFERENT AREAS OF THE STATE, THE DIVISION MAY18
WAIVE PER UNIT SUBSIDY AMOUNTS THAT HAVE BEEN INITIALLY SET FOR19
PARTICULAR PROJECTS OR PROGRAMS TO ADJUST FOR MARKET FACTORS IF20
THE PURPOSE OF THE PROJECT HAS BEEN ACCOMPLISHED OR TO SATISFY21
THE INTENT OF THE GRANT AWARD .22
(h) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION ,23
THE AMOUNT OF ANY GRANT AWARD UNDER THE GRANT PROGRAM AND24
ANY RESTRICTIONS OR CONDITIONS PLACED UPON THE USE OF GRANT25
MONEY AWARDED IS WITHIN THE DISCRETION OF THE DIVISION IN26
ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION .27
1304
-16- (4) Fund. (a) T HE LOCAL INVESTMENTS IN TRANSFORMATIONAL1
AFFORDABLE HOUSING FUND IS CREATED IN THE STATE TREASURY . THE2
FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND PURSUANT TO3
SUBSECTION (4)(c) OF THIS SECTION; MONEY APPROPRIATED TO THE FUND4
BY THE GENERAL ASSEMBLY ; AND ANY GIFTS, GRANTS, OR DONATIONS5
FROM ANY PUBLIC OR PRIVATE SOURCES , INCLUDING GOVERNMENTAL6
ENTITIES, THAT THE DIVISION IS AUTHORIZED TO SEEK AND ACCEPT .7
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND8
INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEY IN THE9
FUND TO THE FUND . EXCEPT AS OTHERWISE REQUIRED BY THIS10
SUBSECTION (4)(b), ALL MONEY NOT EXPENDED OR ENCUMBERED , AND11
ALL INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEY IN THE12
FUND, MUST REMAIN IN THE FUND AND SHALL NOT REVERT TO THE13
GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR .14
T
HE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE15
DIVISION FOR THE PURPOSES OF THIS SECTION. ANY MONEY IN THE FUND16
THAT IS NOT EXPENDED OR OBLIGATED
BY DECEMBER 30, 2024, REVERTS17
TO THE "AMERICAN RESCUE PLAN ACT OF 2021" CASH FUND CREATED IN18
SECTION 24-75-226 (2) IN ACCORDANCE WITH SECTION 24-75-226 (4)(d).19
(c) O
N THE EFFECTIVE DATE OF THIS SECTION , OR AS SOON AS20
PRACTICABLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER ONE21
HUNDRED
THIRTY-EIGHT MILLION DOLLARS FROM THE AFFORDABLE22
HOUSING AND HOME OWNERSHIP CASH FUND CREATED IN SECTION23
24-75-229 (3)(a)
THAT ORIGINATES FROM MONEY THE STATE RECEIVED24
FROM THE FEDERAL CORONAVIRUS STATE FISCAL RECOVERY FUND TO THE25
FUND. THE MONEY TRANSFERRED PURSUANT TO THIS SUBSECTION (4)26
MUST ONLY BE USED FOR:27
1304
-17- (I) MAKING GRANTS TO ELIGIBLE RECIPIENTS PURSUANT TO THE1
GRANT PROGRAM; AND2
(II) T
HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY3
BE INCURRED BY THE DIVISION. THE DEPARTMENT MAY EXPEND UP TO
SIX4
PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE FUND TO5
PAY FOR ITS DIRECT AND INDIRECT COSTS IN ADMINISTERING THE GRANT6
PROGRAM. ALL SUCH ADMINISTRATIVE COSTS MUST BE PAID OUT OF THE7
MONEY TRANSFERRED TO THE FUND PURSUANT TO THIS SUBSECTION (4)(c).8
(5) Reporting. (a) IN CONNECTION WITH THE PUBLIC REPORT THE9
DIVISION PREPARED IN ACCORDANCE WITH SECTION 24-32-705.5 (1), FOR10
THE REPORT PREPARED IN 2023 AND 2024, THE DIVISION SHALL INCLUDE11
IN THE REPORT INFORMATION SUMMARIZING THE USE OF ALL OF THE12
MONEY THAT WAS AWARDED AS GR ANTS FROM THE GRANT PROGRAM IN13
THE PRECEDING STATE FISCAL YEAR. AT A MINIMUM, THE INFORMATION14
INCLUDED IN THE REPORT PERTAINING TO THE GRANT PROGRAM MUST15
SPECIFY THE NUMBER OF LOCAL GOVERNMENTS OR COMMUNITY PARTNERS16
THAT APPLIED FOR A GRANT AWARD , INCLUDING THE NUMBER OF LOCAL17
GOVERNMENTS OR COMMUNITY PARTNERS THAT WERE NOT AWARDED A18
GRANT; THE AMOUNT OF GRANT MONEY DISTRIBUTED TO EACH GRANT19
RECIPIENT; A DESCRIPTION OF EACH GRANT RECIPIENT'S USE OF THE GRANT20
MONEY; AND HOW THE USE OF THE GRANT AWARDED FURTHERED THE21
VISION OF TRANSFORMATIONAL AFFORDABLE HOUSING DESCRIBED IN THE22
FINAL REPORT OF THE TASK FORCE ESTABLISHED IN SECTION 24-75-22923
(6)(a). T
HE DIVISION SHALL ALSO INCLUDE IN THE REPORT ITS24
RECOMMENDATIONS CONCERNING FUTURE ADMINISTRATION OF THE25
GRANT PROGRAM.26 (b) THE DIVISION AND ANY PERSON THAT RECEIVES MONEY FROM27
1304
-18- THE DIVISION PURSUANT TO THE GRANT PROGRAM SHALL COMPLY WITH1
THE COMPLIANCE, REPORTING, RECORD-KEEPING, AND PROGRAM2
EVALUATION REQUIREMENTS ESTABLISHED BY THE OFFICE OF STATE3
PLANNING AND BUDGETING AND THE STATE CONTROLLER IN ACCORDANCE4
WITH SECTION 24-75-226 (5).5
(6) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,6
2026.7
SECTION 3. In Colorado Revised Statutes, 24-32-705, amend8
(7) as follows:9
24-32-705. Functions of division. (7) The division shall10
administer the:11
(a) Affordable housing guided toolkit and local officials guide12
program in accordance with section 24-32-721.5;
AND13
(b) L
OCAL INVESTMENTS IN THE TRANSFORMATIONAL AFFORDABLE14
HOUSING GRANT PROGRAM CREATED IN SECTION 24-32-726 (2)(a).15
SECTION 4. In Colorado Revised Statutes, 24-32-705.5, add16
(3.5) as follows:17
24-32-705.5. Annual public report on funding of affordable18
housing preservation and production - definition. (3.5) (a) F
OR THE19
PUBLIC REPORT REQUIRED BY SUBSECTION (1) OF THIS SECTION THAT THE20
DIVISION IS REQUIRED TO PREPARE IN 2023 AND 2024, THE DIVISION SHALL21
INCLUDE IN THE REPORT FOR EACH YEAR THE INFORMATION REQUIRED TO22
BE INCLUDED IN THE REPORT IN ACCORDANCE WITH SECTION 23-32-72623
(5).24
(b) T
HIS SUBSECTION (3.5) IS REPEALED, EFFECTIVE JULY 1, 2026.25
SECTION 5. In Colorado Revised Statutes, add 24-32-132 as26
follows:27
1304
-19- 24-32-132. Infrastructure and strong communities grant1
program - creation - fund - reporting - definitions - repeal.2
(1) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT3
OTHERWISE REQUIRES:4
(a) "A
FFORDABLE HOUSING" MEANS:5
(I) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS ,6
ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED7
FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT8
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED ;
9
(II) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A HOME10
OWNERSHIP BASIS, ANNUAL INCOME OF THE HOUSEHOLD AT OR BELOW ONE11
HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS12
OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS
LOCATED; OR13
(III) FOR A HOUSEHOLD RESIDING IN HOUSING ON A HOME14
OWNERSHIP BASIS IN RURAL RESORT COUNTIES , ANNUAL INCOME OF THE15
HOUSEHOLD IS AT OR BELOW ONE HUNDRED SIXTY PERCENT OF THE AREA16
MEDIAN INCOME OF HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN WHICH17
THE HOUSING IS LOCATED.18
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .19
(c) "E
LIGIBLE EXPENSES" INCLUDE PLANNING,
ENGINEERING,20
INFRASTRUCTURE, AND LOCAL CAPACITY.21
(d) "E
LIGIBLE LOCAL GOVERNMENT " MEANS A MUNICIPALITY OR22 A COUNTY.23
(e) "F
UND" MEANS THE INFRASTRUCTURE AND STRONG24
COMMUNITIES GRANT PROGRAM FUND CREATED IN SUBSECTION (5) OF THIS25
SECTION.26
(f) "G
RANT PROGRAM" MEANS THE INFRASTRUCTURE AND STRONG27
1304
-20- COMMUNITIES GRANT PROGRAM CREATED IN SUBSECTION (3)(a) OF THIS1
SECTION.2
(g) "I
NFILL DEVELOPMENT" MEANS THE DEVELOPMENT OF UNUSED3
AND UNDERUTILIZED LAND WITHIN EXISTING DEVELOPMENT PATTERNS ,4
TYPICALLY BUT NOT EXCLUSIVELY IN URBAN AREAS .5
(h) "L
OCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, OR6
A CITY AND COUNTY.7
(i) "M
ULTI-AGENCY GROUP" MEANS THE DIVISION, THE COLORADO8
ENERGY OFFICE CREATED IN SECTION 24-38.5-101 (1), AND THE9
DEPARTMENT OF TRANSPORTATION CREATED IN SECTION 43-1-103 (1).10
(j) "S
USTAINABLE DEVELOPMENT PATTERN " MEANS A11
DEVELOPMENT PATTERN THAT MAY BE EXTENDED IN A COST -EFFECTIVE12
WAY THAT MITIGATES HARM AND MINIMIZES THE NEED FOR ADDITIONAL13
RESOURCES TO MAINTAIN THE DEVELOPMENT OVER TIME .14
(k) "T
RANSIT-ORIENTED DEVELOPMENT " MEANS A DEVELOPMENT15
THAT IS WITHIN WALKING DISTANCE OF A TRANSIT OR OTHER ALTERNATIVE16
TRANSPORTATION FACILITY.17
(2) Multi-agency group - best practices. (a) T
HE MULTI-AGENCY18
GROUP SHALL ENCOURAGE THE INVOLVEMENT OF LOCAL GOVERNMENTS19
ACROSS THE STATE IN THE GRANT PROGRAM . THE MULTI-AGENCY GROUP,20
WITH THE ASSISTANCE OF STAKEHOLDERS , SHALL DEVELOP A LIST OF21
SUSTAINABLE LAND USE BEST PRACTICES THAT WILL ACCOMPLISH THE22
GOALS OF THE GRANT PROGRAM AND IMPROVE A LOCAL GOVERNMENT 'S23
VIABILITY IN BEING CONSIDERED FOR A GRANT AWARD .24
(b) T
HE SUSTAINABLE LAND USE BEST PRACTICES REFERENCED IN25
SUBSECTION (2)(a) OF THIS SECTION WILL ADDRESS ONE OR MORE OF THE26
FOLLOWING, WITHOUT LIMITATION:27
1304
-21- (I) ENABLING ACCESSORY DEVELOPMENT UNITS OR THE USE OF1
MULTIPLEXES BY RIGHT IN RESIDENTIAL ZONES ;2
(II) Z
ONING FOR MIXED-USE HIGHER DENSITY DEVELOPMENT IN3
DOWNTOWN AREAS OF MUNICIPALITIES AND AROUND TRANSIT STATIONS ;4
(III) A
NNEXATION POLICIES;5
(IV) I
NTERGOVERNMENTAL AGREEMENTS THAT COORDINATE6
FUTURE DEVELOPMENT ;7
(V) R
EDUCED PARKING REQUIREMENTS ;8
(VI) R
ELAXED OCCUPANCY RULES ;9
(VII) B
UDGETING POLICIES;10
(VIII) W
ATER RATE STRUCTURES;11
(IX) R
OAD STANDARDS;12
(X) H
AZARD RISK REDUCTION AND MITIGATION STANDARDS ;13
(XI) E
NERGY EFFICIENT BUILDING CODES;
14
(XII) Z
ONING FOR INNOVATIVE HOUSING OPTIONS , INCLUDING BUT15
NOT LIMITED TO MODULAR , MANUFACTURED , AND PREFABRICATED16 HOMES;17
(XIII) THE USE OF VACANT PUBLICLY OWNED REAL PROPERTY18
WITHIN THE LOCAL GOVERNMENT FOR THE DEVELOPMENT OF AFFORDABLE19
HOUSING;20
(XIV) PLANNED UNIT DEVELOPMENTS WITH INTEGRATED21
AFFORDABLE HOUSING UNITS;22
(XV) THE DEVELOPMENT OF SMALL SQUARE FOOTAGE23
RESIDENTIAL UNIT SIZES; OR24
(XVI) ANY OTHER PRACTICE THAT IS DEEMED INNOVATIVE BY A25
LOCAL GOVERNMENT AND APPROVED BY THE MULTI -AGENCY WORKING26
GROUP.27
1304
-22- (c) THE MULTI-AGENCY GROUP SHALL DISTRIBUTE THE1
SUSTAINABLE LAND USE PRACTICES DEVELOPED PURSUANT TO SUBSECTION2
(2)(b)
OF THIS SECTION TO LOCAL GOVERNMENTS SO THAT LOCAL3
GOVERNMENTS MAY ANALYZE WHICH , IF ANY, OF THESE PRACTICES MIGHT4
HAVE A POSITIVE IMPACT IN THEIR COMMUNITIES , AND THEN DETERMINE5
HOW TO CUSTOMIZE THESE BEST PRACTICES AND ADOPT THEM IN THEIR6
COMMUNITIES AS APPROPRIATE .7
(3) Grant program - criteria for awarding grants. (a) T
HE8
INFRASTRUCTURE AND STRONG COMMUNITIES GRANT PROGRAM IS HEREBY9
CREATED WITHIN THE DIVISION TO PROVIDE GRANTS TO ELIGIBLE LOCAL10
GOVERNMENTS TO ENABLE LOCAL GOVERNMENTS TO INVEST IN INFILL11
INFRASTRUCTURE PROJECTS THAT SUPPORT AFFORDABLE HOUSING .12
(b) T
HE DIVISION SHALL ADMINISTER THE GRANT
PROGRAM, IN13
CONSULTATION WITH THE COLORADO ENERGY OFFICE, CREATED IN14
SECTION 24-38.5-101 (1), AND THE DEPARTMENT OF TRANSPORTATION,15
CREATED IN SECTION 43-1-103 (1), AND, SUBJECT TO AVAILABLE16
APPROPRIATIONS, AWARD GRANTS IN ACCORDANCE WITH THE17
REQUIREMENTS OF THIS SECTION . SUBJECT TO AVAILABLE18
APPROPRIATIONS, GRANTS MUST BE PAID OUT OF THE FUND CREATED IN19
SUBSECTION (5) OF THIS SECTION.20
(c) T
HE DIVISION SHALL DEVELOP POLICIES, PROCEDURES, AND21
GUIDELINES THAT ESTABLISH THE CRITERIA THAT THE DIVISION MUST22
CONSIDER IN AWARDING GRANTS PURSUANT TO THIS SECTION . AT A23
MINIMUM, THE CRITERIA MUST INCLUDE THE CONSIDERATION OF :24
(I) T
HE POTENTIAL IMPACT OF A PROJECT THAT A LOCAL25
GOVERNMENT WOULD FUND WITH A GRANT AWARD IN LIGHT OF THE GOALS26
OF THE GRANT PROGRAM; AND27
1304
-23- (II) THE SUSTAINABLE LAND USE PRACTICES THAT THE LOCAL1
GOVERNMENT HAS ADOPTED TO SUPPORT GREATER INFILL HOUSING2
SUPPLY, MORE AFFORDABLE HOUSING , AND SUSTAINABLE DEVELOPMENT3
PATTERNS.4
(4) Policies, procedures, and guidelines governing use of grant5
funds. (a) T
HE DIVISION SHALL DEVELOP POLICIES AND PROCEDURES TO6
DETERMINE HOW GRANTS FUNDED BY THE GRANT PROGRAM MAY BE USED .7
(b) A
T A MINIMUM, THE POLICIES, PROCEDURES, AND GUIDELINES8
DEVELOPED PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION MUST9
REQUIRE THAT A GRANT AWARD BE USED, AT LEAST IN PART, TO FUND10
INFRASTRUCTURE PROJECTS THAT INCREASE THE SUPPLY OF AFFORDABLE11
HOUSING AND THAT ARE WITHIN OR ADJACENT TO A DOWNTOWN AREA, A12
CORE BUSINESS DISTRICT OF A MUNICIPALITY, A TRANSIT-ORIENTED13
DEVELOPMENT, OR THAT INCLUDE ONSITE EARLY CHILDHOOD CARE AND14
EDUCATION SERVICES.15
(c) THE DIVISION SHALL ENSURE FLEXIBILITY IS AFFORDED RURAL16
COUNTIES TO BE ABLE TO SEEK GRANT FUNDING THAT ADDRESSES LOCAL17
OBJECTIVES THAT ARE COMPATIBLE WITH THE GOALS UNDERLYING THE18
GRANT PROGRAM.19
(d) A PORTION OF ANY GRANT AWARD MAY BE USED FOR PROJECT20
DELIVERY, PLANNING, AND COMMUNITY ENGAGEMENT .21
(e) THE GENERAL ASSEMBLY HEREBY ENCOURAGES GRANT22
RECIPIENTS TO EXPEND A PORTION OF ANY GRANT AWARD , WHENEVER23
POSSIBLE, FOR FUNDING ACCESSIBILITY IMPROVEMENTS OR AMENITIES24
THAT MAKE THE SITE OF THE PROJECT AGE-FRIENDLY AND ACCESSIBLE FOR25
PERSONS WITH DISABILITIES.26
(f) (I) NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF27
1304
-24- HOUSING, CREATED IN SECTION 24-32-704 (1), SHALL CLASSIFY EACH1
COUNTY IN THE STATE AS "URBAN", "RURAL", OR "RURAL RESORT", AS2
THOSE TERMS ARE USED IN THIS SECTION, BASED UPON THE DEFINITIONS3
OF THE TERMS AS SPECIFIED IN THE FINAL REPORT OF THE COLORADO4
STRATEGIC HOUSING WORKING GROUP FINAL REPORT , DATED JULY 6, 2021.5
THE DIVISION OF HOUSING SHALL REGULARLY UPDATE AND PUBLISH6
MODIFICATIONS OF THE INITIAL CLASSIFICATION OF A PARTICULAR COUNTY7
AS IT RECEIVES OR PRODUCES INFORMATION DOCUMENTING CHANGES IN8
LOCAL ECONOMIC CIRCUMSTANCES AND HOUSING COST FACTORS9
MATERIALLY AFFECTING SUCH CLASSIFICATIONS .10
(II) NOTWITHSTANDING SUBSECTION (4)(f)(I) OF THIS SECTION,11
ANY COUNTY OR MUNICIPALITY MAY REQUEST FROM THE DIVISION OF12
HOUSING:13
(A) A DETERMINATION THAT A DIFFERENT INCOME RESTRICTION14
SHOULD APPLY TO THAT COUNTY OR MUNICIPALITY FROM THE ONE MADE15
APPLICABLE TO THE COUNTY OR MUNICIPALITY IN ACCORDANCE WITH16
SUBSECTION (4)(f)(I) OF THIS SECTION BASED UPON THE UNIQUE17
ECONOMIC AND HOUSING COST FACTORS PRESENT IN THE COUNTY OR18
MUNICIPALITY. NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF19
HOUSING SHALL PUBLISH ANY SUCH MODIFIED INCOME RESTRICTIONS AND20
THE BASIS FOR ANY MODIFICATION APPROVED .21
(B) AT ANY TIME, A RECLASSIFICATION OF THE COUNTY OR22
MUNICIPALITY FROM THE CATEGORY IN WHICH THE COUNTY IS INITIALLY23
CLASSIFIED PURSUANT TO SUBSECTION (4)(f)(I) OF THIS SECTION BASED24
UPON THE UNIQUE ECONOMIC AND HOUSING COST FACTORS PRESENT IN25
THE COUNTY OR MUNICIPALITY.26
(5) Fund - administrative costs - permitted uses - gifts, grants,27
1304
-25- and donations. (a) T HE INFRASTRUCTURE AND STRONG COMMUNITIES1
GRANT PROGRAM FUND IS HEREBY CREATED IN THE STATE TREASURY . THE2
FUND CONSISTS OF ANY MONEY TRANSFERRED TO THE FUND , ANY MONEY3
THAT THE GENERAL ASSEMBLY MAY APPROPRIATE TO THE FUND , AND ANY4
GIFTS, GRANTS, OR DONATIONS THAT THE DIVISION RECEIVES FOR THE5
GRANT PROGRAM PURSUANT TO SUBSECTION (5)(f) OF THIS SECTION. 6
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND7
INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OF MONEY IN THE8
FUND TO THE FUND. ALL MONEY IN THE FUND THAT IS NOT EXPENDED OR9
ENCUMBERED, AND ALL INTEREST EARNED ON THE INVESTMENT OR10
DEPOSIT OF MONEY IN THE FUND, REMAINS IN THE FUND AND SHALL NOT11
BE CREDITED, TRANSFERRED, OR REVERTED TO THE GENERAL FUND OR ANY12
OTHER FUND AT THE END OF ANY FISCAL YEAR . THE MONEY IN THE FUND13
IS CONTINUOUSLY APPROPRIATED TO THE DIVISION FOR THE PURPOSES OF14
THIS SECTION.15
(c) T
HE DIVISION MAY ONLY USE THE MONEY IN THE FUND FOR ONE16
OR MORE OF THE FOLLOWING USES :17
(I) T
HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY18
BE INCURRED BY THE DIVISION. THE DEPARTMENT MAY EXPEND UP TO
SIX19
PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE FUND TO20
PAY FOR ITS DIRECT AND INDIRECT COSTS IN CONNECTION WITH21
ADMINISTERING THE USES OF GRANT FUNDING DESCRIBED IN SUBSECTION22
(5)(c)(II)
OF THIS SECTION.23
(II) M
AKING GRANTS TO ELIGIBLE LOCAL GOVERNMENTS24
PURSUANT TO THE GRANT PROGRAM TO ASSIST SUCH LOCAL25
GOVERNMENTS IN:26
(A) I
DENTIFYING SUSTAINABLE LAND USE BEST PRACTICES AND27
1304
-26- SUPPORTING SUSTAINABLE DEVELOPMENT PATTERNS ; 1
(B) D
ETERMINING WHERE AND HOW BEST TO UPGRADE LOCAL2
GOVERNMENT INFRASTRUCTURE TO SUPPORT MORE EFFICIENT ,3
SUSTAINABLE DEVELOPMENT PATTERNS THAT ENABLE GREATER4
AFFORDABLE INFILL HOUSING
DEVELOPMENT; AND5
(C) FINANCING INFRASTRUCTURE IMPROVEMENTS .6
(d) T
HE COLORADO ENERGY OFFICE , CREATED IN SECTION7
24-38.5-101
(1), MAY USE MONEY IN THE FUND FOR THE DIRECT AND8
INDIRECT COSTS OF EDUCATIONAL PROGRAMMING AND TECHNICAL9
ASSISTANCE FOR LOCAL GOVERNMENTS THAT THE COLORADO ENERGY10
OFFICE PROVIDES PURSUANT TO SECTION 24-32-132 (2).11
(e) T
HE DEPARTMENT OF
TRANSPORTATION, CREATED IN SECTION12
43-1-103 (1), MAY USE MONEY IN THE FUND FOR THE DIRECT AND13
INDIRECT COSTS OF EDUCATIONAL PROGRAMMING AND TECHNICAL14
ASSISTANCE FOR LOCAL GOVERNMENTS THAT THE DEPARTMENT OF15
TRANSPORTATION PROVIDES PURSUANT TO SECTION 24-32-132 (2).16
(f) T
HE DIVISION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,17
OR DONATIONS FROM ANY PUBLIC OR PRIVATE RESOURCE FOR THE18
PURPOSES OF THIS SECTION. THE DIVISION SHALL TRANSMIT ALL MONEY19
RECEIVED FROM GIFTS, GRANTS, OR DONATIONS TO THE STATE TREASURER20
WHO SHALL CREDIT THE MONEY TO THE FUND .21
(6) Transfer of money to fund. O
N THE EFFECTIVE DATE OF THIS22
SECTION, OR AS SOON AS PRACTICABLE THEREAFTER , THE STATE23
TREASURER SHALL TRANSFER TO THE FUND FORTY MILLION DOLLARS FROM
24
THE AFFORDABLE HOUSING AND HOME OWNERSHIP CASH FUND CREATED25
IN SECTION 24-75-229 (3)(a) THAT ORIGINATES FROM MONEY THE STATE26
RECEIVED FROM THE FEDERAL CORONAVIRUS STATE FISCAL RECOVERY27
1304
-27- FUND.1
(7) Reporting. (a) O
N OR BEFORE OCTOBER 1, 2023, AND ON OR2
BEFORE OCTOBER 1 OF EACH YEAR THEREAFTER FOR THE DURATION OF3
THE GRANT PROGRAM, THE DEPARTMENT SHALL SUBMIT A SUMMARIZED4
REPORT ON THE GRANT PROGRAM TO THE SENATE LOCAL GOVERNMENT5
COMMITTEE AND THE HOUSE OF REPRESENTATIVES LOCAL GOVERNMENT6
COMMITTEE, OR ANY SUCCESSOR COMMITTEES . AT A MINIMUM, THE7
REPORT MUST INCLUDE:8
(I) T
HE NUMBER OF ADDITIONAL AFFORDABLE HOUSING UNITS AND9
OVERALL HOUSING UNITS PROJECTED TO BE CREATED AS A RESULT OF THE10
GRANT PROGRAM;11
(II) T
HE PROJECTED OR ESTIMATED REDUCTION IN GREENHOUSE12
GAS EMISSIONS AS A RESULT OF THE GRANT PROGRAM ;13
(III) T
HE ESTIMATED REDUCTION IN VEHICLE MILES TRAVELED AND14
HOUSEHOLD TRANSPORTATION SAVINGS AS RESULT OF THE GRANT15
PROGRAM; AND16
(IV) T
HE NUMBER AND TYPE OF BEST PRACTICES ADOPTED BY17
ELIGIBLE LOCAL GOVERNMENTS THAT HAVE RECEIVED GRANT AWARDS .18
(b) N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE19
REPORTING REQUIREMENT SPECIFIED IN SUBSECTION (7)(a) OF THIS20
SECTION CONTINUES UNTIL THE GRANT PROGRAM IS REPEALED IN21
ACCORDANCE WITH SUBSECTION (8) OF THIS SECTION.22
(c) THE DIVISION AND ANY PERSON THAT RECEIVES MONEY FROM23
THE DIVISION PURSUANT TO THE GRANT PROGRAM SHALL COMPLY WITH24
THE COMPLIANCE, REPORTING, RECORD-KEEPING, AND PROGRAM25
EVALUATION REQUIREMENTS ESTABLISHED BY THE OFFICE OF STATE26
PLANNING AND BUDGETING AND THE STATE CONTROLLER IN ACCORDANCE27
1304
-28- WITH SECTION 24-75-226 (5).1
(8) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,2
2026.3
SECTION 6. In Colorado Revised Statutes, 24-32-104, add (8)4
as follows:5
24-32-104. Functions of the division - interconnectivity grant6
program - interconnectivity grant program fund - reporting -7
definition. (8) T
HE DIVISION SHALL ADMINISTER THE INFRASTRUCTURE8
AND STRONG COMMUNITIES GRANT PROGRAM CREATED IN SECTION9
24-32-132.
IN CONNECTION WITH THE ADMINISTRATION OF THE GRANT10
PROGRAM, THE DIVISION SHALL CONSULT WITH THE COLORADO ENERGY11
OFFICE CREATED IN SECTION 24-38.5-101 (1) AND THE DEPARTMENT OF12
TRANSPORTATION CREATED IN SECTION 43-1-103 (1).13
SECTION 7. Appropriation. (1) For the 2022-23 state fiscal14
year, $431,985 is appropriated to the office of the governor. This15
appropriation consists of $319,450 from reappropriated funds received16
from the department of local affairs from the local investments in17
transformational affordable housing fund created in section 24-32-72618
(4)(a), C.R.S., that originate from money the state received from the19
federal coronavirus state fiscal recovery fund and $112,535 from20
reappropriated funds received from the department of local affairs from21
the strong communities grant program fund created in section 24-32-13222
(5), C.R.S. To implement this act, the office may use this appropriation23
as follows:24
(a) $379,081, which consists of $319,450 from reappropriated25
funds received from the department of local affairs from the local26
investments in transformational affordable housing fund and $59,63127
1304
-29- from reappropriated funds received from the department of local affairs1
from the strong communities grant program fund, for use by the office2
of information technology to provide information technology services for3
the department of local affairs, which amount is based on an assumption4
that the office will require an additional 4.3 FTE to implement this act;5
and6
(b) $52,904 from reappropriated funds received from the7
department of local affairs from the strong communities grant program8
fund created in section 24-32-132 (5), C.R.S., for use by the Colorado9
energy office for program administration, which amount is based on an10
assumption that the office will require an additional 0.5 FTE to11
implement this act.12
SECTION 8. Safety clause. The general assembly hereby finds,13
determines, and declares that this act is necessary for the immediate14
preservation of the public peace, health, or safety.15
1304
-30-