Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-1001.01 Chelsea Princell x4335 HOUSE BILL 22-1377 House Committees Senate Committees Transportation & Local Government A BILL FOR AN ACT C ONCERNING THE CREATION OF THE CONNECTING COLORADANS101 EXPERIENCING HOMELESSNESS WITH SERVICES , TREATMENT,102 AND HOUSING SUPPORTS GRANT PROGRAM .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) The bill creates the connecting Coloradans experiencing homelessness with services, treatment, and housing supports grant program (grant program), administered by the division of housing (division) in the department of local affairs (department). HOUSE SPONSORSHIP Woodrow and Exum, SENATE SPONSORSHIP Kolker and Gonzales, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. The grant program provides grants to local governments and nonprofit organizations to enable those entities to make investments and improvements in their communities or regions of the state to address and respond to the needs of people experiencing homelessness. The bill requires the division to develop policies, procedures, and guidelines governing the administration of the grant program. The bill specifies how grant funding is to be awarded and the eligible uses of grant money awarded under the grant program. The bill specifies requirements for grant recipients. The bill creates the connecting Coloradans experiencing homelessness with services, treatment, and housing supports fund (fund) in the department. The bill specifies requirements pertaining to the administration of the fund. The bill requires a transfer of $105 million from the economic recovery and relief cash fund to the fund to administer the grant program. The bill sets forth specified reporting requirements pertaining to the grant program. The bill requires the department, in conjunction with the department of health care policy and financing, to report to the house of representatives public and behavioral health and human services committee and the senate health and human services committee, and to its committee of reference during its "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearing, any results, recommendations, and federal implications concerning any supportive housing pilot program currently being administered by the department in conjunction with the department of health care policy and financing. The bill requires the division to report on the activities of the grant program as part of the regular annual public report prepared by the division on affordable and emergency housing spending. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds, determines, and declares that:3 (a) The state of Colorado is focused on supporting communities4 to create proven responses to homelessness that are designed to connect5 people without stable housing to services, care, and housing to help6 ensure that when homelessness occurs, it is rare and brief, and that no one7 gets left behind;8 HB22-1377-2- (b) The COVID-19 pandemic has exacerbated Colorado's1 homelessness and behavioral health crisis. Many communities do not2 have sufficient responses to address housing and behavioral health needs3 for their community members.4 (c) People experiencing homelessness with chronic behavioral5 health issues face many challenges in accessing long-term treatment and6 are far more likely to receive care in hospital emergency departments.7 Without trained and dedicated providers or advocates, people8 experiencing homelessness often end up in a cycle of expensive treatment9 with little or no follow-up.10 (d) Housing and support services are crucial for the safety, health,11 and well-being of Coloradans. Extensive research shows that housing is12 an essential social determinant of health. Stable housing improves health13 outcomes and decreases health-care costs.14 (2) Therefore, it is the intent of the general assembly to facilitate15 investments in local communities across the state of Colorado to quickly16 connect people experiencing homelessness with services, treatment, and17 temporary and permanent housing to put them on a path to economic18 self-sufficiency.19 (3) The general assembly further finds and declares that the grant20 program described in this act is an important government service.21 SECTION 2. In Colorado Revised Statutes, add 24-32-726 as22 follows:23 24-32-726. Connecting Coloradans experiencing homelessness24 with services, treatment, and housing supports grant program -25 funding - report - definitions - repeal. (1) Definitions. A S USED IN THIS26 SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :27 HB22-1377 -3- (a) "COMMUNITY PARTNER" MEANS A NONPROFIT ORGANIZATION1 THAT UNDERTAKES ANY OF THE ACTIVITIES OR SERVICES DESCRIBED IN2 SUBSECTION (2)(c) OF THIS SECTION.3 (b) "D EPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .4 (c) "E LIGIBLE RECIPIENT" MEANS A LOCAL GOVERNMENT OR A5 COMMUNITY PARTNER THAT APPLIES FOR A GRANT THROUGH THE GRANT6 PROGRAM.7 (d) "F UND" MEANS THE CONNECTING COLORADANS EXPERIENCING8 HOMELESSNESS WITH SERVICES , TREATMENT, AND HOUSING SUPPORTS9 FUND CREATED IN SUBSECTION (5)(a) OF THIS SECTION.10 (e) "G RANT PROGRAM" MEANS THE CONNECTING COLORADANS11 EXPERIENCING HOMELESSNESS WITH SERVICES , TREATMENT, AND HOUSING12 SUPPORTS GRANT PROGRAM CREATED IN SUBSECTION (2)(a) OF THIS13 SECTION.14 (f) "L OCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, CITY15 AND COUNTY, TRIBAL GOVERNMENT , SPECIAL DISTRICT ORGANIZED16 PURSUANT TO TITLE 32, SCHOOL DISTRICT, DISTRICT, HOUSING AUTHORITY,17 COUNCIL OF GOVERNMENTS , REGIONAL PLANNING COMMISSION18 ORGANIZED PURSUANT TO TITLE 30, OR ANY OTHER POLITICAL19 SUBDIVISION OF THE STATE.20 (g) "M ATCH" MEANS MONETARY AND NONMONETARY21 CONTRIBUTIONS TO A PROJECT.22 (2) Creation of the grant program - projects or programs23 eligible for funding. (a) T HERE IS CREATED IN THE DIVISION THE24 CONNECTING COLORADANS EXPERIENCING HOMELESSNESS WITH25 SERVICES, TREATMENT, AND HOUSING SUPPORTS GRANT PROGRAM TO26 PROVIDE GRANTS TO ELIGIBLE RECIPIENTS TO ENABLE THEM TO MAKE27 HB22-1377 -4- INVESTMENTS OR IMPROVEMENTS IN THEIR COMMUNITIES OR REGIONS OF1 THE STATE TO:2 (I) QUICKLY CONNECT PEOPLE EXPERIENCING HOMELESSNESS TO3 SERVICES, TREATMENT, AND TEMPORARY AND PERMANENT HOUSING IN4 ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION ; AND5 (II) ENSURE COLORADO HAS A COMMUNITY -BASED CONTINUUM OF6 RESPONSES FOR PEOPLE EXPERIENCING HOMELESSNESS , INCLUDING7 EMERGENCY SHELTERS , TRANSITIONAL HOUSING, RECOVERY CARE AND8 RELATED RESIDENTIAL PROGRAMS , AND PERMANENT HOUSING WITH9 WRAPAROUND SERVICES .10 (b) T HE DIVISION SHALL ADMINISTER THE GRANT PROGRAM .11 (c) T HE DIVISION MAY AWARD GRANTS UNDER THE GRANT12 PROGRAM TO SUPPORT ELIGIBLE RECI PIENTS IN PROJECTS OR PROGRAMS13 THAT:14 (I) P ROVIDE GAP FINANCING FOR THE PURCHASE OR CONVERSION15 OF UNDERUTILIZED PROPERTIES IN COMMUNITIES WHERE EFFORTS HAVE16 BEEN MADE TO ENCOURAGE CONVERSION OF UNDERUTILIZED PROPERTIES17 INTO TRANSITIONAL OR SUPPORTIVE HOUSING THAT PROVIDES18 WRAPAROUND SERVICES ;19 (II) P ROVIDE SUPPORTIVE SERVICES SO LONG AS THE SUPPORTIVE20 SERVICES MEET THE GRANT PROGRAM GOALS OUTLINED IN SUBSECTION (4)21 OF THIS SECTION. SUCH SUPPORTIVE SERVICES INCLUDE THOSE DESCRIBED22 IN 42 CFR 578.53 AND THOSE DETERMINED BY THE DIVISION. FUNDS MAY23 BE USED TO PROVIDE SUPPORTIVE SERVICES IN CONJUNCTION WITH24 CAPITAL IMPROVEMENTS AND HOUSING DEVELOPMENT PROJECTS OR AS25 STANDALONE SERVICES THAT ARE PROVIDED TO AN INDIVIDUAL THROUGH26 A SERVICE PROVIDER.27 HB22-1377 -5- (III) INVEST IN DATA COLLECTION, MANAGEMENT, AND ANALYSIS1 PROCESSES AND EXPAND OUTREACH AND ENGAGEMENT EFFORTS TO2 PEOPLE EXPERIENCING HOMELESSNESS , PARTICULARLY UNSHELTERED3 HOMELESSNESS, TO UNDERSTAND THE SCALE OF THE NEED THROUGHOUT4 THE STATE AND WHETHER THE ACTIVITIES AND INVESTMENTS THROUGH5 THIS GRANT PROGRAM ARE EFFECTIVE AT REDUCING THE NUMBER OF6 PEOPLE EXPERIENCING HOMELESSNESS ;7 (IV) S UPPORT COORDINATION SYSTEMS TO HELP CONNECT PEOPLE8 EXPERIENCING HOMELESSNESS WITH SERVICES AND PROGRAMS THAT BEST9 FIT THEIR INDIVIDUAL NEEDS; AND10 (V) F UND HOUSING DEVELOPMENT PROJECTS AND HOMELESS11 RESPONSE PROGRAMS THAT INCLUDE BUT ARE NOT LIMITED TO :12 (A) E MERGENCY HOMELESS SHELTERS ;13 (B) T RANSITIONAL AND BRIDGE HOUSING ;14 (C) L ONG-TERM HOUSING;15 (D) P ERMANENT SUPPORTIVE HOUSING WITH SUPPORTIVE16 SERVICES; AND17 (E) R ECOVERY CARE AND RELATED RESIDENTIAL PROGRAMS .18 (d) I N ORDER TO RECEIVE A GRANT, AN ELIGIBLE RECIPIENT MUST19 PROVIDE A MATCH.20 (3) Policies, procedures, and guidelines. (a) T HE DIVISION21 SHALL DEVELOP POLICIES, PROCEDURES, AND GUIDELINES FOR THE GRANT22 PROGRAM THAT, WITHOUT LIMITATION:23 (I) DETERMINE HOW GRANTS F UNDED BY THE GRANT PROGRAM24 MUST BE USED;25 (II) E STABLISH CRITERIA THAT THE DIVISION MUST CONSIDER IN26 AWARDING GRANTS PURSUANT TO THIS SECTION . AT A MINIMUM, THE27 HB22-1377 -6- CRITERIA MUST INCLUDE THE CONSIDERATION OF :1 (A) T HE POTENTIAL IMPACT OF A PROJECT THAT AN ELIGIBLE2 RECIPIENT FUNDS WITH A GRANT AWARD AND HOW THE PROJECT MEETS3 THE GOALS OF THE GRANT PROGRAM ; AND4 (B) B EST PRACTICES, DATA, AND REGIONAL AND LOCAL5 COLLABORATION.6 (III) E STABLISH THE PROCEDURES AND TIMELINES BY WHICH AN7 ELIGIBLE RECIPIENT MAY APPLY FOR A GRANT ;8 (IV) R EQUIRE GRANT RECIPIENTS TO OFFER A MATCH ;9 (V) R EQUIRE ELIGIBLE RECIPIENTS TO DEMONSTRATE HOW THE10 GRANT FUNDS WILL BE USED TO INCREASE HOUSING AND ECONOMIC11 SECURITY FOR INDIVIDUALS BEING SERVED THROUGH THE GRANT12 PROGRAM ACTIVITIES AND EFFORTS ;13 (VI) E STABLISH REPORTING REQUIREMENTS FOR GRANT14 RECIPIENTS;15 (VII) E STABLISH PERFORMANCE CRITERIA FOR GRANT RECIPIENTS '16 PROJECTS;17 (VIII) P ROVIDE ANY ADDITIONAL REQUIREMENTS THAT THE18 DIVISION DEEMS NECESSARY TO ADMINISTER THE GRANT PROGRAM ; AND19 (IX) D EMONSTRATE THE ABILITY TO LEVERAGE PRIVATE CAPITAL ,20 WHEN POSSIBLE.21 (b) N OTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION ,22 THE AMOUNT OF ANY GRANT AWARDED UNDER THE GRANT PROGRAM AND23 ANY RESTRICTIONS OR CONDITIONS PLACED UPON THE USE OF GRANT24 MONEY AWARDED IS WITHIN THE DISCRETION OF THE DIVISION IN25 ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION .26 (4) Grant program goals. T HE GRANT PROGRAM MUST BE27 HB22-1377 -7- ADMINISTERED WITH THE GOAL OF REDUCING THE RATE OF HOMELESSNESS1 BY SUPPORTING COMMUNITIES TO DEVELOP AND IMPLEMENT ADEQUATE2 SUPPORT SYSTEMS TO EFFECTIVELY RESPOND TO THE STRUGGLES PEOPLE3 EXPERIENCING HOMELESSNESS FACE .4 (5) Connecting Coloradans experiencing homelessness with5 services, treatment, and housing supports fund - transfer of money6 to the fund - appropriation. (a) T HE CONNECTING COLORADANS7 EXPERIENCING HOMELESSNESS WITH SERVICES , TREATMENT, AND HOUSING8 SUPPORTS FUND IS CREATED IN THE DEPARTMENT . THE FUND CONSISTS OF9 MONEY TRANSFERRED TO THE FUND IN ACCORDANCE WITH SUBSECTION10 (5)(c) OF THIS SECTION; MONEY APPROPRIATED TO THE FUND BY THE11 GENERAL ASSEMBLY; AND ANY GIFTS, GRANTS, OR DONATIONS FROM ANY12 PUBLIC OR PRIVATE SOURCES, INCLUDING GOVERNMENTAL ENTITIES, THAT13 THE DIVISION IS AUTHORIZED TO SEEK AND ACCEPT .14 (b) T HE DEPARTMENT SHALL CREDIT ALL INTEREST AND INCOME15 DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO16 THE FUND. ALL MONEY NOT EXPENDED OR ENCUMBERED , AND ALL17 INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEY IN THE18 FUND, REMAINS IN THE FUND AND DOES NOT REVERT TO THE GENERAL19 FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR . THE MONEY20 IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE DEPARTMENT FOR21 THE PURPOSES SPECIFIED IN THIS SECTION.22 (c) T HE DIVISION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,23 OR DONATIONS FROM ANY PUBLIC OR PRIVATE RESOURCE FOR THE24 PURPOSES OF THIS SECTION. THE DIVISION SHALL TRANSMIT ALL MONEY25 RECEIVED FROM GIFTS, GRANTS, OR DONATIONS TO THE DEPARTMENT, AND26 THE DEPARTMENT SHALL CREDIT THE MONEY TO THE FUND .27 HB22-1377 -8- (d) ON THE EFFECTIVE DATE OF THIS SECTION , OR AS SOON AS1 PRACTICABLE THEREAFTER, THE GENERAL ASSEMBLY SHALL APPROPRIATE2 TO THE DEPARTMENT FOR THE PURPOSES OF IMPLEMENTING THIS SECTION3 ONE HUNDRED FIVE MILLION DOLLARS FROM THE ECONOMIC RELIEF AND4 RECOVERY CASH FUND CREATED IN SECTION 24-75-228 TO THE FUND. THE5 MONEY APPROPRIATED PURSUANT TO THIS SUBSECTION (5)(d) MUST ONLY6 BE USED FOR:7 (I) M AKING GRANTS TO ELIGIBLE RECIPIENTS PURSUANT TO THE8 GRANT PROGRAM; AND9 (II) T HE COSTS OF ADMINISTERING THE GRANT PROGRAM AS MAY10 BE INCURRED BY THE DIVISION. THE DIVISION MAY EXPEND UP TO SEVEN11 PERCENT OF THE MONEY APPROPRIATED OR TRANSFERRED TO THE FUND TO12 PAY FOR THE DIRECT AND INDIRECT COSTS IN ADMINISTERING THE GRANT13 PROGRAM. ALL ADMINISTRATIVE COSTS MUST BE PAID OUT OF THE MONEY14 TRANSFERRED TO THE FUND PURSUANT TO THIS SUBSECTION (5)(d)(II).15 (e) M ONEY SPENT PURSUANT TO THIS SUBSECTION (5)(e) MUST16 CONFORM WITH THE ALLOWABLE PURPOSES SET FORTH IN THE FEDERAL17 "A MERICAN RESCUE PLAN ACT OF 2021", PUB.L. 117-2, AS AMENDED.18 T HE DIVISION SHALL SPEND OR OBLIGATE SUCH APPROPRIATION PRIOR TO19 D ECEMBER 30, 2024, AND EXPEND THE APPROPRIATION ON OR BEFORE20 D ECEMBER 31, 2026.21 (f) T HE EXPENDITURES MADE PURSUANT TO THIS SECTION22 CONSTITUTE GOVERNMENT SERVICES .23 (g) T HIS SUBSECTION (5) IS REPEALED, EFFECTIVE DECEMBER 31,24 2026.25 (6) Reporting. (a) T HE DIVISION SHALL INCLUDE IN THE PUBLIC26 REPORT THE DIVISION PREPARES IN ACCORDANCE WITH SECTION27 HB22-1377 -9- 24-32-705.5 (1) INFORMATION SUMMARIZING THE USE OF ALL THE MONEY1 THAT WAS AWARDED AS GRANTS FR OM THE GRANT PROGRAM IN THE2 PRECEDING STATE FISCAL YEAR. AT A MINIMUM, THE INFORMATION MUST3 SPECIFY:4 (I) T HE NUMBER OF LOCAL GOVERNMENTS OR COMMUNITY5 PARTNERS THAT APPLIED FOR A GRANT, INCLUDING THE NUMBER OF LOCAL6 GOVERNMENTS OR COMMUNITY PARTNERS THAT WERE NOT AWARDED A7 GRANT;8 (II) T HE AMOUNT OF THE GRANT MONEY DISTRIBUTED TO EACH9 GRANT RECIPIENT;10 (III) A DESCRIPTION OF EACH GRANT RECIPIENT 'S USE OF THE11 GRANT MONEY;12 (IV) H OW THE USE OF THE GRANT AWARDED FURTHERED THE13 GOALS OF THE GRANT PROGRAM DESCRIBED IN SUBSECTION (4) OF THIS14 SECTION; AND15 (V) R ECOMMENDATIONS CONCERNING FURTHER ADMINISTRATION16 OF THE GRANT PROGRAM.17 (b) T HE DIVISION AND ANY ENTITY THAT RECEIVES MONEY FROM18 THE DIVISION SHALL COMPLY WITH THE COMPLIANCE , REPORTING,19 RECORD-KEEPING, AND PROGRAM EVALUATION REQUIREMENTS20 ESTABLISHED BY THE OFFICE OF STATE PLANNING AND BUDGETING AND21 THE STATE CONTROLLER IN ACCORDANCE WITH SECTION 24-75-226 (5).22 (c) I N THE 2023 LEGISLATIVE SESSION, THE DEPARTMENT, IN23 CONJUNCTION WITH THE DEPARTMENT OF HEALTH CARE POLICY AND24 FINANCING, SHALL SHARE ANY RESULTS , RECOMMENDATIONS , AND25 FEDERAL IMPLICATIONS CONCERNING ANY CURRENT SUPPORTIVE HOUSING26 PILOT PROGRAMS BEING ADMINISTERED BY THE DEPARTMENT AND27 HB22-1377 -10- DIVISION AND THE DEPARTMENT OF HEALTH CARE POLICY AND FINANCING1 AS PART OF ITS "STATE MEASUREMENT FOR ACCOUNTABLE, RESPONSIVE,2 AND TRANSPARENT (SMART) GOVERNMENT ACT" HEARING PURSUANT3 TO SECTION 2-7-203. IN THE 2023 LEGISLATIVE SESSION, THE DEPARTMENT4 AND THE DEPARTMENT OF HEALTH CARE POLICY AND FINANCING SHALL5 SUBMIT A REPORT DETAILING ANY SUCH RESULTS , RECOMMENDATIONS,6 AND FEDERAL IMPLICATIONS CONCERNING ANY CURRENT SUPPORTIVE7 HOUSING PILOT PROGRAMS BEING OPERATED BY THE DEPARTMENT AND8 DIVISION AND THE DEPARTMENT OF HEALTH CARE POLICY AND FINANCING9 TO THE HOUSE OF REPRESENTATIVES PUBLIC AND BEHAVIORAL HEALTH10 AND HUMAN SERVICES COMMITTEE AND THE SENATE HEALTH AND HUMAN11 SERVICES COMMITTEE, OR ANY SUCCESSOR COMMITTEES .12 (7) Repeal. T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.13 SECTION 3. In Colorado Revised Statutes, 24-32-705, amend14 (7) as follows:15 24-32-705. Functions of division. (7) The division shall16 administer:17 (a) The affordable housing guided toolkit and local officials guide18 program in accordance with section 24-32-721.5 SECTION 24-32-721.7;19 AND20 (b) T HE CONNECTING COLORADANS EXPERIENCING HOMELESSNESS21 WITH SERVICES, TREATMENT, AND HOUSING SUPPORTS GRANT PROGRAM22 CREATED IN SECTION 24-32-726.23 SECTION 4. In Colorado Revised Statutes, 24-32-705.5, add24 (3.5) as follows:25 24-32-705.5. Annual public report on funding of affordable26 housing preservation and production - definition. (3.5) F OR THE27 HB22-1377 -11- PUBLIC REPORT REQUIRED BY SUBSECTION (1) OF THIS SECTION, THE1 DIVISION SHALL INCLUDE IN THE REPORT FOR EACH YEAR OF THE2 CONNECTING COLORADANS EXPERIENCING HOMELESSNESS WITH3 SERVICES, TREATMENT, AND HOUSING SUPPORTS GRANT PROGRAM 'S4 OPERATION, THE INFORMATION REQUIRED PURSUANT TO SECTION5 24-32-726.6 SECTION 5. Safety clause. The general assembly hereby finds,7 determines, and declares that this act is necessary for the immediate8 preservation of the public peace, health, or safety.9 HB22-1377 -12-