Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 22-0808.01 Bob Lackner x4350
SENATE BILL 22-159
Senate Committees House Committees
Local Government Finance
Finance Appropriations
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF A RE VOLVING LOAN FUND WITHIN THE101
DIVISION OF HOUSING IN THE DEPARTMENT OF LOCAL AFFAIRS102
TO MAKE INVESTMENTS IN TRANSFORMATIONAL AFFORDABLE103
HOUSING, AND, IN CONNECTION THEREWITH , MAKING AN
104
APPROPRIATION.105
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 transformational affordable housing revolving
loan fund program (loan program) in the division of housing (division) in
HOUSE
3rd Reading Unamended
May 9, 2022
HOUSE
Amended 2nd Reading
May 3, 2022
SENATE
3rd Reading Unamended
April 25, 2022
SENATE
Amended 2nd Reading
April 22, 2022
SENATE SPONSORSHIP
Bridges and Zenzinger, Buckner, Coleman, Fenberg, Fields, Ginal, Gonzales, Hansen,
Hisey, Holbert, Jaquez Lewis, Kolker, Lee, Moreno, Pettersen, Rankin, Rodriguez, Scott,
Simpson, Winter, Woodward
HOUSE SPONSORSHIP
Ortiz and Will, Amabile, Bacon, Benavidez, Bernett, Bird, Boesenecker, Caraveo, Cutter,
Duran, Esgar, Exum, Froelich, Garnett, Gonzales-Gutierrez, Herod, Hooton, Jodeh, Kipp,
Lindsay, McCluskie, McCormick, McLachlan, Michaelson Jenet, Ricks, Sirota, Snyder,
Titone, Valdez A., Valdez D., Weissman, Young
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 department of local affairs (department) as a revolving loan program
in accordance with the requirements of the bill and the policies
established by the division. The loan program provides flexible,
low-interest, and below-market rate loan funding to assist eligible
recipients in completing the eligible loan projects identified in the bill.
The division may administer the loan program or, if it determines
that it would be more efficient and effective to contract out full or partial
administration of the program, the division may enter into a contract with
a third-party entity to administer the loan program.
The division is required to establish and publicize policies for the
loan program. The bill specifies factors the division is encouraged to
consider in evaluating loan applications.
The transformational affordable housing revolving loan fund
(fund) is created in the state treasury and the bill specifies requirements
pertaining to the administration of the fund.
The bill requires a transfer of a specified sum of money to the
fund.
The division is required to report on the activities of the loan
program as part of the regular annual public report prepared by the
division on affordable housing spending undertaken by the state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
hereby finds and declares that:3
(a) Though it has been exacerbated by the COVID-19 pandemic,4
the housing crisis that Colorado faces is not new. For decades, the lack of5
affordable housing has upended the lives of thousands who face6
homelessness in the Denver metropolitan area and across the state,7
shuttered Colorado businesses, hindered working-class employment8
because of a lack of workforce housing, and exacerbated inequities,
9
including for communities of color, immigrant or mixed-status10
households, low-wage earners, older adults, people with disabilities, and11
others living on fixed incomes.12
(b) Currently, Colorado requires approximately 225,00013
affordable for-sale and rental homes to address the state's housing crisis,14
159-2- and the Colorado housing and finance authority reports that nearly half of1
all Colorado renters pay at least thirty percent of their income on housing,2
with an additional twenty-four percent paying fifty percent or more of3
their income on housing;4
(c) The average home price in the state increased 130% from 20115
to 2021. Statewide, the median home price increased an additional 7%6
from January to February 2022, and the median price is now $555,540,7
a 90% increase over March 2021. The townhome and condominium8
market also reached a new pricing level in February 2022, and the median9
price of such units now stands at $402,390, which is an increase of 17%10
from February 2021. Six out of 10 Colorado households are unable to11
afford the average priced home.12
(d) In House Bill 21-1329, enacted in 2021, the general assembly13
created the affordable housing transformational task force, referred to in14
this section as the "task force", to recommend transformational policies15
to Colorado's housing sector that will produce immediate, sweeping, and16
long-lasting change. The impetus of the task force brought together the17
legislative and executive branches of state government, as well as a18
diverse group of stakeholders made up of affordable housing practitioners19
and experts, to tackle the affordable housing crisis and determine which20
investments would make the biggest impact. The sixteen-member task21
force was made up of a bipartisan group of ten members of the general22
assembly, five agency directors, and the executive director of the23
Colorado housing and finance authority. A fifteen-member subpanel of24
diverse affordable housing experts was also appointed to advise the task25
force. The task force and subpanel undertook a deliberative, iterative, and26
transparent process. Ultimately the task force came to a near unanimous27
159
-3- consensus on its funding recommendations and allocations, as well as a1
broad agreement on several policy concepts.2
(e) The recommendations made by the task force will not solve3
Colorado's affordable housing crisis completely but will be a4
transformational step forward in achieving that objective. Once5
implemented at the local level across the state, these policies will make6
significant strides in increasing access to flexible capital sources,7
fostering innovation, strengthening the social safety net, enhancing8
market stability, and ultimately promoting more broad and equitable9
home ownership and rental housing opportunities for Coloradans in every10
corner of the state. These investments will result in more affordable11
housing being built across the state and will maintain existing affordable12
housing stock that is at risk of becoming unsafe or unaffordable. The13
recommendations made by the task force will help reduce disparities and14
address homelessness. They will help many Coloradans purchase homes15
that were previously out of financial reach, which will help build16
intergenerational wealth across the state.17
(f) The task force also identified an equitable funding distribution18
to effectively address the disproportionate impacts from COVID-19;19
(g) The revolving loan program created by this act will provide20
individuals and households across the state critical financial support with21
more flexible loan criteria not regularly offered by traditional financial22
institutions, thereby assisting Coloradans in obtaining necessary access23
to capital;24
(h) A revolving loan fund ensures that these funds are evergreen25
and recycled many times across multiple generations, thereby assisting the26
provision of affordable housing for all Coloradans far into the future; and27
159
-4- (i) By providing eligible recipients who face barriers in1
establishing borrower relationships with traditional lenders access to2
capital, and by engaging in concerted outreach and education concerning3
the availability of this program, a revolving loan program can provide4
financial support to unserved or underserved populations.5
(2) The general assembly intends to address the affordable6
housing crisis in Colorado, in part, by creating a revolving loan fund to7
provide flexible, low-interest, and below-market rate funding that will8
support increases in new housing developments, the preservation and9
rehabilitation of existing home stock, property conversions, and10
nontraditional housing capacity in diverse geographic communities where11
the economic impact of COVID-19 has significantly affected housing12
affordability and availability. The funds provided by the revolving loan13
fund are intended to support the development of new affordable housing14
units and the purchase of existing affordable housing units, either rental15
housing or for-sale homes, including mixed-income developments, and16
the purchase of land or buildings for future development within a defined17
timeline. In addition, funding to maintain existing affordable housing18
through projects that incorporate permanent supportive housing is19
intended to compliment tangential legislative efforts and aims to support20
individuals experiencing homelessness, victims of domestic violence or21
sexual assault, and individuals living with disabilities. Supporting the22
recommendations of the task force, the general assembly intends that23
interest rates on loans made available under this section be below-market24
rates and not exceed those necessary to meaningfully advance affordable25
housing development or the preservation of existing affordable housing26
stock in local communities across the state. Further, money should be27
159
-5- made available to local and regional groups, governments, and1
community partners to be used for a variety of more specific affordable2
housing needs across the state as specified in this section.3
SECTION 2. In Colorado Revised Statutes, add 24-32-726 as4
follows:5
24-32-726. Revolving loan fund - eligible projects - report -6
definitions - legislative declaration. (1) Definitions. A
S USED IN THIS7
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :8
(a) "A
DMINISTRATOR" MEANS A THIRD-PARTY ENTITY OR ENTITIES9
THAT THE DIVISION CONTRACTS WITH TO ADMINISTER ALL OR ANY PART OF10
THE LOAN PROGRAM PURSUANT TO SUBSECTION (2)(b) OF THIS SECTION.11
12
(b) "COMMUNITY PARTNER" MEANS A NONPROFIT ORGANIZATION13
THAT UNDERTAKES ANY OF THE ACTIVITIES OR SERVICES DESCRIBED IN14
SUBSECTION (3) OF THIS SECTION.15
(c) "DEPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .16
(d) "ELIGIBLE RECIPIENT" MEANS A LOCAL GOVERNMENT , A17
FOR-PROFIT DEVELOPER, A COMMUNITY PARTNER , OR A POLITICAL18
SUBDIVISION OF THE STATE THAT APPLIES FOR A LOAN THROUGH THE LOAN19
PROGRAM.20
(e) "FUND" MEANS THE TRANSFORMATIONAL AFFORDABLE21
HOUSING REVOLVING LOAN FUND CREATED IN SUBSECTION (9)(a) OF THIS22
SECTION.23
(f) "LOAN PROGRAM " MEANS THE TRANSFORMATIONAL24
AFFORDABLE HOUSING REVOLVING LOAN FUND PROGRAM CREATED IN25
SUBSECTION (2)(a) OF THIS SECTION.26
(g) "LOCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, CITY27
159
-6- AND COUNTY , TRIBAL GOVERNMENT, SPECIAL DISTRICT ORGANIZED UNDER1
TITLE 32, SCHOOL DISTRICT, DISTRICT, OR A HOUSING AUTHORITY CREATED2
UNDER PART 2 OF ARTICLE 4 OF TITLE 29.3
4
(2) Creation of loan program - administration. (a) T
HE5
TRANSFORMATIONAL AFFORDABLE HOUSING REVOLVING LOAN FUND6
PROGRAM IS HEREBY CREATED IN THE DIVISION AS A REVOLVING LOAN7
PROGRAM IN ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION AND8
THE POLICIES ESTABLISHED BY THE DIVISION PURSUANT TO SUBSECTION (5)9
OF THIS SECTION. THE LOAN PROGRAM IS ESTABLISHED TO PROVIDE10
FLEXIBLE, LOW-INTEREST, AND BELOW-MARKET RATE LOAN FUNDING TO11
ASSIST ELIGIBLE RECIPIENTS IN COMPLETING THE ELIGIBLE LOAN PROJECTS12
IDENTIFIED IN SUBSECTION (3) OF THIS SECTION.13
(b) T
HE DIVISION MAY ADMINISTER THE LOAN PROGRAM OR , IF IT14
DETERMINES THAT IT WOULD BE MORE EFFICIENT AND EFFECTIVE TO15
CONTRACT OUT FULL OR PARTIAL ADMINISTRATION OF THE PROGRAM , IT16
MAY ENTER INTO A CONTRACT WITH A BUSINESS NONPROFIT17
ORGANIZATION, BANK, NONDEPOSITORY COMMUNITY DEVELOPMENT18
FINANCIAL INSTITUTION, BUSINESS DEVELOPMENT CORPORATION ,19
NONPROFIT OR GANIZATION THAT ADMINISTERS GAP FI NANCING ,20
CONSTRUCTION, OR MORTGAGE LOAN PROGRAMS , OR OTHER ENTITY AS21
DETERMINED BY THE DIVISION TO ADMINISTER THE LOAN PROGRAM IN22
WHOLE OR IN PART. IF THE DIVISION CONTRACTS WITH AN ENTITY OR23
ENTITIES TO ADMINISTER THE PROGRAM, THE DIVISION SHALL USE AN OPEN24
AND COMPETITIVE PROCESS TO SELECT THE ENTITY OR ENTITIES . A25
CONTRACT WITH AN ADMINISTRATOR MAY INCLUDE AN ADMINISTRATION26
FEE ESTABLISHED BY THE DIVISION AT AN AMOUNT REASONABLY27
159
-7- CALCULATED TO COVER THE ONGOING ADMINISTRATIVE COSTS OF THE1
DIVISION IN OVERSEEING THE LOAN PROGRAM . THE DIVISION MAY2
ADVANCE MONEY TO AN ENTITY UNDER A CONTRACT IN PREPARATION IN3
THE FORM OF A GRANT OR PAYMENT FOR ISSUING LOANS AND4
ADMINISTERING THE LOAN PROGRAM .5
(c) T
HE DIVISION MAY WORK WITH THE COLORADO HOUSING AND6
FINANCE AUTHORITY, CREATED IN SECTION 29-4-704 (1), TO ASSIST IN7
OFFERING LOANS UNDER THE LOAN PROGRAM .8
(d) A
NY LOAN MADE UNDER THE LOAN PROGRAM BY THE STATE ,
9
ANY DEPARTMENT , DIVISION, OR AGENCY OF THE STATE , OR ANY10
ADMINISTRATOR TO A DISTRICT , AS DEFINED IN SECTION 20 (2)(b) OF11
ARTICLE X OF THE STATE CONSTITUTION, MUST EITHER BE APPROVED BY12
THE VOTERS OF THE DISTRICT IN ACCORDANCE WITH SECTION 20 (4)(b) OF13
ARTICLE X OF THE STATE CONSTITUTION OR BE STRUCTURED SO THAT IT14
IS NOT A MULTIPLE-FISCAL YEAR DIRECT OR INDIRECT DISTRICT DEBT OR15
OTHER FINANCIAL OBLIGATION WHATSOEVER THAT REQUIRES VOTER16
APPROVAL UNDER SECTION 20 (4)(b) OF ARTICLE X OF THE STATE17
CONSTITUTION.18
(3) Eligible loan projects. I
N ORDER TO RECEIVE LOAN FUNDING19
UNDER THE LOAN PROGRAM , THE PROJECT FOR WHICH THE LOAN20
APPLICANT SEEKS LOAN FUNDING MUST DO ONE OR MORE OF THE21
FOLLOWING:22
(a) D
EVELOP AND INTEGRATE HOUSING -RELATED INFRASTRUCTURE23
TO OFFSET CONSTRUCTION AND PREDEVELOPMENT COSTS ;24
(b) P
ROVIDE GAP FINANCING FOR HOUSING DEVELOPMENT ,
25
INCLUDING TRANSACTIONS UNDER THE FEDERAL LOW -INCOME TAX CREDIT26
DEFINED IN SECTION 39-22-2101 (7) AND THE AFFORDABLE HOUSING TAX27
159
-8- CREDIT CREATED IN SECTION 39-22-2102 (1). FOR PURPOSES OF THIS1
SUBSECTION (3)(b), GAP FINANCING INCLUDES FINANCING MECHANISMS2
THAT ALLOW PERSONS SEEKING AFFORDABLE HOUSING TO PURCHASE3
EXISTING AFFORDABLE HOUSING, MULTI-FAMILY STRUCTURES, LAND, AND4
BUILDINGS, PARTICULARLY IN COMMUNITIES WHERE EFFORTS HAVE BEEN5
MADE TO ENCOURAGE AFFORDABLE HOUSING DEVELOPMENT OR IN6
COMMUNITIES IN WHICH LOW CONCENTRATIONS OF AFFORDABLE HOUSING7
EXIST.8
(c) I
NCREASE THE SUPPLY OF NEW AFFORDABLE FOR -SALE HOUSING
9
STOCK BY PROVIDING FUNDING TO ASSIST WITH THE COST OF10
CONSTRUCTION, INCLUDING BUT NOT LIMITED TO COSTS ASSOCIATED WITH11
CONSTRUCTION COSTS, LAND ACQUISITION, TAP FEES, BUILDING PERMITS,12
OR IMPACT FEES.13
(d) MAINTAIN EXISTING AFFORDABLE HOUSING THROUGH F UNDING14
FOR THE PRESERVATION AND RESTORATION OF AFFORDABLE HOUSING15
STOCK THROUGH REHABILITATION , RETROFITTING, RENOVATION, CAPITAL16
IMPROVEMENTS, AND REPAIR OF CURRENT AFFORDABLE HOUSING STOCK ,17
INCLUDING HOUSING MADE AVAILABLE UNDER 42 U.S.C. SEC. 1437f AND18
AFFORDABLE HOUSING FOR POPULATIONS AND HOUSEHOLDS19
DISPROPORTIONATELY IMPACTED BY THE COVID-19 PANDEMIC WITH20
COMMITMENTS FOR LONG -TERM AFFORDABILITY. THE USES COVERED BY21
THIS SUBSECTION (3)(d) MUST INCLUDE INVESTMENTS IN ONE OR MORE OF22
THE FOLLOWING:23
(I) S
ENIOR HOUSING;24
(II) T
HE PURCHASE OF AND THE
REMEDIATION OF LOW-QUALITY OR25
CONDEMNED PROPERTIES ;26
(III) H
OUSING UNITS, INTEGRATED INTO NONSEGREGATED
27
159
-9- HOUSING DEVELOPMENTS , SPECIFICALLY DESIGNED FOR PEOPLE LIVING1
WITH DISABILITIES;2
(IV) W
EATHERIZATION AND ENERGY IMPROVEMENTS TO3
MULTI-FAMILY AND SINGE-FAMILY RESIDENTS TO MAINTAIN AND IMPROVE4
THE QUALITY OF AFFORDABLE HOMES AND RENTAL UNITS ;5
(V) T
HE PURCHASE AND TRANSITION OF CURRENT HOUSING STOCK6
INTO AFFORDABLE HOUSING, INCLUDING PROPERTIES CURRENTLY IN USE7
ON A SHORT-TERM RENTAL BASIS;8
(VI) P
ROGRAMS OR INITIATIVES TO ENSURE THAT EXISTING9
HOUSING REMAINS AFFORDABLE FOR LOCAL WORKFORCE OR COMMUNITY10
HOUSEHOLDS;11
(VII) L
AND ACQUISITION FOR AFFORDABLE HOUSING ;12
(VIII) P
ROPERTY CONVERSION AND ADAPTIVE REUSE ; OR13
(IX) P
ERMANENT SUPPORTIVE HOUSING .14
(e)
FINANCE ENERGY IMPROVEMENTS IN AFFORDABLE HOUSING ,15
WHICH WILL PROVIDE FUNDING FOR INCREMENTAL UP -FRONT COSTS FOR16
EFFICIENT, ELECTRIC MEASURES, AND RENEWABLE ENERGY SYSTEMS FOR17
BOTH EXISTING BUILDINGS AND NEW HOUSING CONSTRUCTION .18
(f) C
REATE PERMANENTLY OR LONG -TERM AFFORDABLE
19
HOMEOWNERSHIP OPPORTUNITIES .20
(4) Loan program goals. (a) T
HE LOAN PROGRAM MUST BE21
ADMINISTERED WITH A GOAL OF GENERATING ENOUGH RETURN ON LOANS22
MADE UNDER THE LOAN PROGRAM TO REPLENISH THE LOAN PROGRAM FOR23
FUTURE LOAN ALLOCATIONS .24
(b) A
LL LOANS FINANCED THROUGH THE LOAN PROGRAM MUST25
OFFER FLEXIBLE TERMS AND LOW-INTEREST AND BELOW-MARKET RATES.26
(5) Loan program
policies - eligibility for loan funding. (a)27
159
-10- THE DIVISION OR THE ADMINISTRATOR, AS APPLICABLE, SHALL ESTABLISH1
AND PUBLICIZE POLICIES FOR THE LOAN PROGRAM . AT A MINIMUM, THE2
POLICIES MUST ADDRESS:3
(I) THE PROCESS AND DEADLINES FOR APPLYING FOR AND4
RECEIVING A LOAN UNDER THE LOAN PROGRAM , INCLUDING THE5
INFORMATION AND DOCUMENTATION REQUIRED FOR A L OAN APPLICATION ;6
(II) ELIGIBILITY CRITERIA FOR INDIVIDUALS OR ENTITIES APPLYING7
FOR A LOAN UNDER THE LOAN PROGRAM ;8
(III) THE MAXIMUM ASSISTANCE LEVELS FOR LOANS ;9
(IV) LOAN TERMS, INCLUDING INTEREST RATES AND REPAYMENT10
TERMS;11
(V) REPORTING REQUIREMENTS FOR LOAN RECIPIENTS ;12
(VI) LOAN PROGRAM FEES, INCLUDING THE APPLICATION FEE ,13
ORIGINATION FEE, AND CLOSING COST POLICIES;14
(VII) UNDERWRITING AND RISK MANAGEMENT POLICIES ;15
(VIII) THE AMOUNT OF ANY APPLICATION OR ORIGINATION FEES16
AND CLOSING COST POLICIES; 17
(IX) THE MEANS BY WHICH ELIGIBLE RECIPIENTS WHO FACE18
BARRIERS IN ESTABLISHING BORROWER RELATIONSHIPS WITH TRADITIONAL19
LENDERS WILL BE INFORMED OF THE LOAN PROGRAM AND ENCOURAGED TO20
APPLY FOR A LOAN FINANCED THROUGH THE LOAN PROGRAM ; AND21
(X) ANY ADDITIONAL REQUIREMENTS THAT THE DIVISION DEEMS22
NECESSARY TO ADMINISTER THE LOAN PROGRAM .23
(b) (I) IN CONNECTION WITH THE POLICIES FOR THE LOAN PROGRAM24
THAT THE DIVISION OR THE ADMINISTRATOR IS REQUIRED TO ESTABLISH25
AND PUBLICIZE PURSUANT TO SUBSECTION (5)(a) OF THIS SECTION, THE26
POLICIES MUST SPECIFY THAT, IN ORDER FOR AN ELIGIBLE RECIPIENT TO27
159
-11- OBTAIN LOAN FUNDING DIRECTLY FROM THE DIVISION , AN ELIGIBLE1
RECIPIENT MUST FOLLOW PROCEDURES THAT SHALL BE SPECIFIED BY THE2
DIVISION TO DOCUMENT THE AMOUNT OF LEVERAGED F UNDS PROPOSED OR3
COMMITTED AS PART OF A LOAN APPLICATION AND THE AMOUNT OF4
FUNDING SOUGHT FROM OTHER SOURCES, INCLUDING DEMONSTRATED5
EFFORTS BY THE ELIGIBLE RECIPIENT TO OBTAIN FINANCING FOR LOAN6
FUNDING FROM FINANCIAL INSTITUTIONS .7
(II) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A LIEN8
FILED BY THE DIVISION, IS SUPERIOR ONLY TO ANY OTHER LIEN PLACED ON9
THE SAME ASSETS THAT IS FILED LATER IN TIME EXCEPT FOR A LIEN FOR10
UNPAID PROPERTY TAXES.11
(6) Prioritization criteria. (a) THE GENERAL ASSEMBLY HEREBY12
ENCOURAGES THE DIVISION, TO THE EXTENT PRACTICABLE, IN REVIEWING13
LOAN APPLICATIONS, TO CONSIDER PRIORITIZING APPLICATIONS FOR14
PROJECTS THAT:15
(I) I
NCREASE THE SUPPLY OF HOUSING IN COMMUNITIES ACROSS
16
THE STATE IN PROPORTION TO EACH COMMUNITY 'S DEMONSTRATED17
HOUSING NEEDS THROUGH :18
(A) A
PREFERENCE FOR MIXED-INCOME PROJECTS IN WHICH A
19
PERCENTAGE OF UNITS, PROPORTIONAL TO THE DEMONSTRATED HOUSING20
NEEDS OF THE LOCAL COMMUNITY , WITHIN A PARTICULAR DEVELOPMENT21
HAVE RESTRICTED AVAILABILITY TO HOUSEHOLDS AT AND BELOW THE22
INCOME LEVELS SPECIFIED IN SUBSECTION (6)(b)(I) OF THIS SECTION. THE23
PERCENTAGE OF RESTRICTED UNITS AND AFFORDABILITY LEVELS MUST24
COMPLY WITH LAWS ENACTED BY LOCAL GOVERNMENTS PROMOTING THE25
DEVELOPMENT OF NEW AFFORDABLE HOUSING UNITS PURSUANT TO26
SECTION 29-20-104 (1).27
159
-12- (B) DEVELOPMENTS IN WHICH HOUSING UNITS ARE RESTRICTED AT1
INCOME LEVELS DEMONSTRATED BY LOCAL COMMUNITY NEEDS AS2
SPECIFIED IN SUBSECTION (6)(b)(I) OF THIS SECTION;3
(II) ARE LOCATED IN OR SERVE COMMUNITIES THAT:4
(A) F
ACE BARRIERS TO ACCESSING CAPITAL FROM TRADITIONAL5
SOURCES;6
(B) H
AVE SUFFERED SIGNIFICANT NEGATIVE FINANCIAL OR OTHER7
IMPACTS RESULTING FROM THE COVID-19 PANDEMIC; OR8
(C) A
RE OTHERWISE UNDERSERVED ;9
(III)
ALIGN WITH OTHER STATE ECONOMIC DEVELOPMENT10
EFFORTS;11
(IV) CREATE PERMANENTLY AFFORDABLE HOME OWNERSHIP12
OPPORTUNITIES;13
(V) E
NSURE THE LONG -TERM AFFORDABILITY OF ANY
14
DEVELOPMENT OR PROJECTS FUNDED BY THE LOAN PROGRAM ;15
(VI) I
NCLUDE UNITS THAT ARE RESTRICTED FOR RENTAL USAGE TO
16
PERSONS WITH DISABILITIES OR THAT INCLUDE UNIVERSAL DESIGN17
FEATURES THAT ALLOW INDIVIDUALS TO RESIDE IN THEIR DWELLING UNITS18
AS THEY AGE; OR19
(VII) ARE HIGHLY ENERGY EFFICIENT OR USE HIGH -EFFICIENCY20
ELECTRIC EQUIPMENT FOR SPACE AND WATER HEATING . THE DIVISION MAY21
CONSULT WITH THE COLORADO ENERGY OFFICE CREATED IN SECTION22
24-38.5-101
(1) TO DEVELOP CRITERIA FOR MEETING THE OBJECTIVES23
DESCRIBED IN THIS SUBSECTION (6)(a)(VII).
24
(b) (I) T
HE RENTAL AND HOME OWNERSHIP TARGETS APPLICABLE
25
TO LOCAL COMMUNITIES ACROSS THE STATE AS REQUIRED BY SUBSECTION26
(6)(a)(I)
OF THIS SECTION ARE SPECIFIED IN THIS SUBSECTION (6)(b)(I) IN
27
159
-13- ACCORDANCE WITH THE FOLLOWING :1
(A) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS ,
2
ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED3
TWENTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT4
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED ; 5
(B) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A
6
HOME-OWNERSHIP BASIS, ANNUAL INCOME OF THE HOUSEHOLD IS AT OR7
BELOW ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN INCOME OF8
HOUSEHOLDS OF THAT SIZE IN THE C OUNTY IN WHICH THE HOUSING IS9
LOCATED;10
(C) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS
11
IN RURAL RESORT COUNTIES, ANNUAL INCOME OF THE HOUSEHOLD IS AT12
OR BELOW ONE HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME13
OF HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS14
LOCATED; AND15
(D) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A HOME
16
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
(II) A
N APPLICANT SEEKING FUNDING FOR A PARTICULAR
21
DEVELOPMENT, PROJECT, OR PROGRAM THAT IS FUNDED BY THE LOAN22
PROGRAM MAY, AT ANY TIME, REQUEST THAT THE DIVISION GRANT THE23
APPLICANT AN EXCEPTION TO THE AREA MEDIAN INCOME LEVELS24
SPECIFIED IN SUBSECTION (6)(b)(I) OF THIS SECTION BASED UPON25
DEMONSTRATED UNIQUE ECONOMIC AND HOUSING COSTS ATTRIBUTES IN26
THE LOCAL COMMUNITY IN WHICH THE DEVELOPMENT , PROJECT, OR27
159
-14- PROGRAM IS LOCATED.1
(c) (I) N
OT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF
2
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 (6)(b)(I) OF THIS SECTION BASED UPON THE5
DEFINITIONS OF THE TERMS AS SPECIFIED IN THE FINAL REPORT OF THE6
C
OLORADO STRATEGIC HOUSING WORKING GROUP FINAL REPORT , DATED
7
J
ULY 6, 2021. THE DIVISION OF HOUSING SHALL REGULARLY UPDATE AND
8
PUBLISH MODIFICATIONS OF THE INITIAL CLASSIFICATION OF A PARTICULAR9
COUNTY AS IT RECEIVES OR PRODUCES INFORMATION DOCUMENTING10
CHANGES IN LOCAL ECONOMIC CIRCUMSTANCES AND HOUSING COST11
FACTORS MATERIALLY AFFECTING SUCH CLASSIFICATIONS .12
(II) N
OTWITHSTANDING SUBSECTION (6)(c)(I) OF THIS SECTION,
13
ANY COUNTY MAY REQUEST FROM THE DIVISION OF HOUSING :14
(A) A
DETERMINATION THAT A DIFFERENT INCOME RESTRICTION
15
SHOULD APPLY TO THAT COUNTY FROM THE ONE MADE APPLICABLE TO THE16
COUNTY IN ACCORDANCE WITH SUBSECTION (6)(c)(I) OF THIS SECTION17
BASED UPON THE UNIQUE ECONOMIC AND HOUSING COST FACTORS18
PRESENT IN THE COUNTY. NOT LATER THAN SEPTEMBER 1, 2022, THE19
DIVISION OF HOUSING SHALL PUBLISH ANY SUCH MODIFIED INCOME20
RESTRICTIONS AND THE BASIS FOR ANY MODIFICATION APPROVED .21
(B) A
T ANY TIME, A RECLASSIFICATION OF THE COUNTY FROM THE
22
CATEGORY IN WHICH THE COUNTY IS INITIALLY CLASSIFIED PURSUANT TO23
SUBSECTION (6)(c)(I) OF THIS SECTION BASED UPON THE UNIQUE24
ECONOMIC AND HOUSING COST FACTORS PRESENT IN THE COUNTY .25
(d) TO THE EXTENT PRACTICABLE , THE DIVISION AND THE26
ADMINISTRATOR, AS APPLICABLE, SHALL SUPPORT INNOVATIVE FUNDING27
159
-15- MECHANISMS THAT ALLOW MONEY TO REVOLVE QUICKLY TO ENSURE THE1
RAPID REUSE OF MONEY FOR ONGOING PROJECTS .2
(7) Publicizing the loan program. T
HE DIVISION SHALL WORK3
WITH THE MINORITY BUSINESS OFFICE CREATED IN SECTION 24-49.5-102,4
SMALL BUSINESS DEVELOPMENT CENTERS , COMMUNITY DEVELOPMENT5
FINANCIAL INSTITUTIONS, AND STAKEHOLDER PARTNERS TO PROMOTE THE6
PROGRAM TO ELIGIBLE RECIPIENTS WHO PRIMARILY SERVE COMMUNITIES7
THAT ARE UNDERSERVED OR DISADVANTAGED , INCLUDING ELIGIBLE8
RECIPIENTS LOCATED IN RURAL COUNTIES . ON OR BEFORE DECEMBER 1,9
2022,
THE DIVISION SHALL DEVELOP AND ADMINISTER A MARKETING10
INITIATIVE FOR THE PROGRAM IN COORDINATION WITH THE MINORITY11
BUSINESS OFFICE CREATED IN SECTION 24-49.5-102, THE SMALL BUSINESS12
ASSISTANCE CENTER CREATED IN SECTION 24-48.5-102, LOCAL CHAMBERS13
OF COMMERCE, AND OTHER LOCAL AND REGIONAL ECONOMIC14
DEVELOPMENT ENTITIES TO PROMOTE THE PROGRAM TO ELIGIBLE15
RECIPIENTS AND TARGET COMMUNITIES . THE MARKETING INITIATIVE16
SHALL BE CONDUCTED IN THE TOP SPOKEN LANGUAGES IN THOSE17
COMMUNITIES.18
(8) Gifts, grants, and donations - leveraging federal money.19
(a) T
HE DIVISION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR20
DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS21
SECTION. THE DIVISION SHALL TRANSMIT ALL MONEY RECEIVED THROUGH22
GIFTS, GRANTS, OR DONATIONS TO THE STATE TREASURER , WHO SHALL23
CREDIT THE MONEY TO THE FUND.24
(b) T
HE DIVISION MAY EXPEND, DEPLOY, OR LEVERAGE MONEY25
RECEIVED FROM FEDERAL GOVERNMENT PROGRAMS THAT SUPPORT L OANS26
AND INVESTMENTS FOR ONE OR MORE OF THE ELIGIBLE PROJECTS SPECIFIED27
159
-16- IN SUBSECTION (3) OF THIS SECTION TO MAKE LOANS UNDER THE LOAN1
PROGRAM OR TO OTHERWISE MARKET , PROMOTE, OR SUPPORT LOANS2
UNDER THE PROGRAM, IF ALLOWED UNDER FEDERAL LAW .3
(9) Transformational affordable housing revolving loan fund4
- transfer of money to fund - payment of administrative costs -5
appropriation. (a) T
HE TRANSFORMATIONAL AFFORDABLE HOUSING6
REVOLVING LOAN FUND IS HEREBY CREATED IN THE STATE TREASURY . THE7
FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND IN ACCORDANCE8
WITH SUBSECTION (9)(d) OF THIS SECTION, ANY OTHER MONEY THAT THE9
GENERAL ASSEMBLY APPROPRIATES OR TRANSFERS TO THE FUND , AND ANY10
GIFTS, GRANTS, OR DONATIONS CREDITED TO THE FUND PURSUANT TO11
SUBSECTION (8)(a) OF THIS SECTION.12
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND13
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE14
FUND TO THE FUND.15
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE16
DEPARTMENT FOR THE PURPOSES SPECIFIED IN THIS SECTION . THE17
DEPARTMENT MAY EXPEND UP TO FIVE PERCENT OF THE MONEY18
APPROPRIATED OR TRANSFERRED INTO , OR REPAID FROM, THE FUND ON AN19
ANNUAL BASIS TO PAY FOR ITS DIRECT AND INDIRECT COSTS IN20
ADMINISTERING THIS SECTION.21
(d) O
N JULY 1, 2022,
THE STATE TREASURER SHALL TRANSFER ONE22
HUNDRED FIFTY MILLION DOLLARS FROM THE AFFORDABLE HOUSING AND23
HOME OWNERSHIP CASH FUND CREATED IN SECTION 24-75-229 (3)(a) THAT24
ORIGINATES FROM THE GENERAL FUND , TO THE FUND. THE DIVISION SHALL25
USE THE MONEY TRANSFERRED PURSUANT TO THIS SUBSECTION (9)(d)26
ONLY FOR:27
159
-17- (I) MAKING LOANS TO ELIGIBLE RECIPIENTS PURS UANT TO THE1
LOAN PROGRAM; AND2
(II) T
HE COSTS OF ADMINISTERING THE LOAN PROGRAM AS MAY BE3
INCURRED BY THE DIVISION OR THE ADMINISTRATOR , AS APPLICABLE, IN4
ACCORDANCE WITH SUBSECTION (9)(c) OF THIS SECTION. ALL SUCH5
ADMINISTRATIVE COSTS MUST BE PAID OUT OF THE MONEY EITHER6
TRANSFERRED TO THE FUND PURSUANT TO THIS SUBSECTION (9)(d)
OR7
THAT IS APPROPRIATED TO THE FUND.8
(10) Reporting. I
N CONNECTION WITH THE PUBLIC REPORT THE9
DIVISION PREPARES IN ACCORDANCE WITH SECTION 24-32-705.5 (1), THE10
DIVISION SHALL INCLUDE IN THE REPORT INFORMATION SUMMARIZING THE11
USE OF ALL OF THE MONEY THAT WAS PROVIDED AS A LOAN FROM THE12
LOAN PROGRAM IN THE PRECEDING STATE FISCAL YEAR . AT A MINIMUM,13
THE INFORMATION INCLUDED IN THE REPORT PERTAINING TO THE LOAN14
PROGRAM MUST SPECIFY THE NUMBER OF ELIGIBLE RECIPIENTS THAT15
APPLIED FOR A LOAN, THE NUMBER OF ELIGIBLE RECIPIENTS THAT WERE16
NOT AWARDED A LOAN , THE AMOUNT OF LOAN MONEY DISTRIBUTED TO17
EACH LOAN RECIPIENT, A DESCRIPTION OF EACH LOAN RECIPIENT'S USE OF18
THE LOAN MONEY, THE USE OF LOAN MONEY ALONG THE HOUSING AND
19
INCOME SPECTRUMS, THE AMOUNT OF TIME FROM COMPLETION OF A LOAN20
APPLICATION THROUGH THE FUNDING OF A LOAN , RECOMMENDATIONS21
CONCERNING FUTURE ADMINISTRATION OF THE LOAN PROGRAM , AND HOW22
THE USE OF THE LOAN FURTHERED THE VISION OF TRANSFORMATIONAL23
AFFORDABLE HOUSING DESCRIBED IN THE FINAL REPORT OF THE TASK24
FORCE ESTABLISHED IN SECTION 24-75-229 (6)(a). THE DIVISION SHALL25
ALSO INCLUDE IN THE REPORT ITS RECOMMENDATIONS CONCERNING26
FUTURE ADMINISTRATION OF THE LOAN PROGRAM .27
159
-18- SECTION 3. In Colorado Revised Statutes, 24-32-705, amend1
(7) as follows:2
24-32-705. Functions of division. (7) The division shall3
administer:4
(a) The affordable housing guided toolkit and local officials guide5
program in accordance with section 24-32-721.5;6
(b) T
HE TRANSFORMATIONAL AFFORDABLE HOUSING REVOLVING7
LOAN FUND PROGRAM CREATED IN SECTION 24-32-726 (2)(a), UNLESS THE8
DIVISION ELECTS TO CONTRACT OUT FULL OR PARTIAL ADMINISTRATION OF9
THE LOAN PROGRAM PURSUANT TO SECTION 24-32-726 (2)(b).10
SECTION 4. In Colorado Revised Statutes, 24-32-705.5, add11
(3.5) as follows:12
24-32-705.5. Annual public report on funding of affordable13
housing preservation and production - definition. (3.5) F
OR THE14
PUBLIC REPORT REQUIRED BY SUBSECTION (1) OF THIS SECTION, THE15
DIVISION MUST INCLUDE, ON AN ANNUAL BASIS , THE INFORMATION16
REQUIRED TO BE INCLUDED IN ACCORDANCE WITH SECTION 24-32-72617
(10).18
SECTION 5. Appropriation. (1) For the 2022-23 state fiscal
19
year, $379,081 is appropriated to the office of the governor for use by the20
office of information technology. This appropriation is from21
reappropriated funds received from the department of local affairs from22
the transformational affordable housing revolving loan fund created in23
section 24-32-726 (9)(a), C.R.S., that originate from the general fund, and24
is based on an assumption that the office of information technology will25
require an additional 4.3 FTE. To implement this act, the office may use26
this appropriation to provide information technology services for the27
159
-19- department of local affairs.1
SECTION 6. Safety clause. The general assembly hereby finds,2
determines, and declares that this act is necessary for the immediate3
preservation of the public peace, health, or safety.4
159
-20-