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March 28, 2022 HB 22-1304
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0811
Rep. Roberts; Bradfield
Sen. Coleman; Gonzales
Date:
Bill Status:
Fiscal Analyst:
March 28, 2022
House Trans. & Local Govt.
Matt Bishop | 303-866-4796
Matt.Bishop@state.co.us
Bill Topic: STATE GRANTS INVESTMENTS LOCAL AFFORDABLE HOUS ING
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates two grant programs to support affordable housing. It may increase
state revenue, increases state expenditures, and increases local revenue and
expenditures beginning in FY 2022-23.
Appropriation
Summary:
The fiscal note may require an appropriation to DOLA of $8.9 million for FY 2022-23.
It also requires reappropriations to other agencies totaling $431,985.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 22-1304
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures Cash Fund $45.5 million $44.7 million
Centrally Appropriated $0.6 million $0.6 million
Total Expenditures $46.1 million $45.4 million
Total FTE 20.4 FTE 19.9 FTE
Transfers Affordable Housing & Home Ownership CF ($150.0 million) -
Local Invest. in Affordable Housing Fund $150.0 million -
General Fund ($28.0 million) -
Infrastructure & Strong Communities Prog. Fund $28.0 million -
Net Transfer $0 -
Other Budget Impacts - -
* Totals may not sum due to rounding. Page 2
March 28, 2022 HB 22-1304
Summary of Legislation
The bill creates two housing-related grant programs in the Department of Local Affairs (DOLA).
Local Investments in Transformational Affordable Housing Grant Program. This program provides
grants to certain governmental entities or nonprofit organizations for affordable housing initiatives,
including developing housing infrastructure, providing gap financing, maintaining existing
affordable housing stock, and land banking. DOLA must establish policies and procedures for the
program by September 1, 2022. The bill specifies preferences for grant recipients and requires DOLA
to annually report on the program.
The bill transfers $150.0 million of federal coronavirus recovery money from the Affordable Housing
and Home Ownership Cash Fund to the newly created Local Investments in Transformational
Affordable Housing Fund, continuously appropriates money in the fund to DOLA until July 1, 2024,
and authorizes the department to use up to five percent of the money for administrative purposes.
Any remaining money in the fund reverts to the General Fund on December 31, 2024.
Infrastructure and Strong Communities Grant Program. The bill requires that the Division of
Housing in DOLA, the Colorado Energy Office, and the Department of Transportation (CDOT)
develop a list of sustainable land use best practices, and creates a grant program to provide grants to
local governments for investments in infill infrastructure projects that support affordable housing.
DOLA must report on the program to the legislature by October 1 of each year, beginning in 2023.
The bill transfers $28.0 million from the General Fund to the newly created Infrastructure and Strong
Communities Grant Program Fund, continuously appropriates the money in the fund to DOLA (see
Technical Note below), and authorizes DOLA to use money in the fund for administrative purposes,
education, or technical assistance.
For both grant programs, DOLA is authorized to seek and spend gifts, grants, and donations.
State Revenue
The bill potentially increases state revenue to the Local Investments in Transformational Affordable
Housing Fund and the Infrastructure and Strong Communities Grant Program Fund from gifts,
grants, or donations; however, no sources have been identified at this time. Gifts, grants, and
donations are exempt from TABOR revenue limits.
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March 28, 2022 HB 22-1304
State Transfers
The bill directs the State Treasurer to make two transfers on the bill’s effective date, or as soon as
practicable thereafter. The fiscal not assumes these transfers will occur in FY 2022-23. The transfers
are:
$150.0 million from the Affordable Housing and Home Ownership Cash Fund to the Local
Investments in Transformational Affordable Housing Fund; and
$28.0 million from the General Fund to the Infrastructure and Strong Communities Grant Program
Fund.
State Expenditures
The bill increases state expenditures in various department, primarily DOLA, by $46.1 million in
FY 2022-23 and $45.4 million in FY 2023-24 from the Investments in Transformational Affordable
Housing Fund and the Infrastructure and Strong Communities Grant Program Fund. Expenditures
are shown in Table 2 and detailed below. The fiscal note assumes the funds transferred for the
program will be spent over multiple years.
Table 2
Expenditures Under HB 22-1304
Cost Components FY 2022-23 FY 2023-24
Department of Local Affairs
Personal Services $1,038,625 $1,275,176
Operating Expenses $51,583 $37,096
Capital Outlay Costs $132,054 -
Grants $43,000,000 $43,000,000
Consultants $516,666 $241,666
Software Licenses $318,267 $141,204
Centrally Appropriated Costs
1
$516,489 $638,222
FTE – Personal Services 15.6 FTE 19.4 FTE
DOLA Subtotal $45,573,684 $45,333,364
Office of Information Technology
Personal Services $348,476 -
Operating Expenses $5,805 -
Capital Outlay Costs $24,800 -
Centrally Appropriated Costs
1
$74,346 -
FTE – Personal Services 4.3 FTE -
OIT Subtotal $453,427 - Page 4
March 28, 2022 HB 22-1304
Table 2
Expenditures Under HB 22-1304 (Cont.)
Cost Components FY 2022-23 FY 2023-24
Colorado Energy Office
Personal Services $46,029 $46,029
Operating Expenses $675 $675
Capital Outlay Costs $6,200 -
Centrally Appropriated Costs
1
$9,140 $9,140
FTE – Personal Services 0.5 FTE 0.5 FTE
CEO Subtotal $62,044 $55,844
Total $46,089,155 $45,389,208
Total FTE 20.4 FTE 19.9 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Local Affairs. Costs will increase in the Division of Housing and the Division of Local
Government to establish the new grant programs, including setting program policies, reviewing
applications, monitoring grants, and reporting on the programs.
Administrative costs. Administrative costs are estimated at $1.9 million and 17.1 FTE for the Local
Investments in Transformational Affordable Housing Grant Program and $0.7 million and 2.5 FTE
for the Infrastructure and Strong Communities Grant Program. Personal services costs have been
prorated for various start dates as the programs are implemented. Operating and capital outlay
costs include standard costs for the new staff, vehicle mileage, and specialized software licenses
for grants management. DOLA requires consultants to provide technical assistance with federal
requirements. Administrative expenses are assumed to continue into future years.
Grants. The fiscal note assumes that the grants will be spent over multiple years. Table 2 assumes
$43.0 million per year will be distributed as grants, of which $35 million will be distributed to the
affordable housing grant program and $8.0 million will be distributed for the infrastructure grant
program. This is for illustrative purposes only; the amount of money awarded in each fiscal year
will depend on the size and number of grants awarded, as determined by DOLA.
Office of Information Technology. The office requires 4.3 FTE to modify existing systems to support
the grant programs. Costs have been estimated assuming that the same system enhancements will
also support the programs created by Senate Bill 22-159 and Senate Bill 22-160, resulting in some cost
savings. The costs shown in Table 2 reflect one-third of the required costs for all three bills; should
either of those bills not pass, IT development costs for this bill may increase. Standard operating and
capital outlay costs are included. Costs are paid from the cash funds via a reappropriation from
DOLA.
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March 28, 2022 HB 22-1304
Colorado Energy Office. The office requires 0.5 FTE to participate in the multi-agency group, conduct
educational programming, and provide technical assistance to local governments. Standard operating
and capital outlay costs are included. Costs are paid from the Infrastructure and Strong Communities
Grant Program Fund via a reappropriation from DOLA.
Department of Transportation. Workload will increase to participate in the multi-agency group, to
conduct educational programming, and to provide technical assistance to local governments. This
work can be accomplished within existing appropriations. If additional resources are required, the
department will seek them through the annual budget process.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
Local Government
Revenue and expenditures may increase in local governments to the extent that they adopt land use
best practices, apply for grants, receive grant awards, and leverage existing resources as part of a grant
project.
Technical Note
The introduced bill specifies that the Infrastructure and Strong Communities Grant Program Fund is
both subject to annual appropriation to DOLA and that it is continuously appropriated to DOLA. The
fiscal note assumes that the funds are intended to be used via a continuous appropriation, but shows
the annual appropriations required in the State Appropriations section below if the General Assembly
intends to appropriate money annually. The fiscal note will be adjusted if this technical issue is
resolved by an amendment.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
If the General Assembly decides to annually appropriate money to the Infrastructure and Strong
Communities Grant Program, for FY 2022-23, the bill requires an appropriation of $8,570,254 from the
Infrastructure and Strong Communities Grant Program Fund to the Department of Local Affairs, and
2.5 FTE. If continuously appropriated, no appropriation to DOLA is required
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March 28, 2022 HB 22-1304
For FY 2022-23, the bill requires the following reappropriations from the Department of Local Affairs:
$319,450 from the Investments in Transformational Affordable Housing Fund to the Office of
Information Technology, and 4.3 FTE;
$59,631 from the Infrastructure and Strong Communities Grant Program Fund to the Office of
Information Technology; and
$52,904 from the Infrastructure and Strong Communities Grant Program Fund to the Colorado
Energy Office, and 0.5 FTE.
Money transferred to the Investments in Transformational Affordable Housing Fund is continuously
appropriated to DOLA, so no further appropriation is required.
State and Local Government Contacts
Colorado Energy Office Counties Information Technology
Legislative Council Staff Local Affairs Municipalities
Personnel Revenue Transportation Treasury
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.