SENATE BILL 22-159
BY SENATOR(S) Bridges and Zenzinger, Buckner, Coleman, Fields,
Ginal, Gonzales, Hansen, Hinrichsen, Hisey, Holbert, Jaquez Lewis,
Kolker, Lee, Moreno, Pettersen, Rankin, Rodriguez, Scott, Simpson, Story,
Winter, Woodward, Fenberg;
also REPRESENTATIVE(S) Ortiz and Will, Amabile, Bacon, Benavidez,
Bernett, Bird, Boesenecker, Caraveo, Cutter, Duran, Esgar, Exum, Froelich,
Gonzales-Gutierrez, Herod, Hooton, Jodeh, Kipp, Lindsay, McCluskie,
McCormick, McLachlan, Michaelson Jenet, Ricks, Sirota, Snyder, Titone,
Valdez A., Valdez D., Weissman, Young, Garnett.
C
ONCERNING THE CREATION OF A REVOLVING LOAN FUND WITHIN THE
DIVISION OF HOUSING IN THE DEPARTMENT OF LOCAL AFFAIRS TO
MAKE INVESTMENTS IN TRANSFORMATIONAL AFFORDABLE HOUSING
,
AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
(a) Though it has been exacerbated by the COVID-19 pandemic, the
housing crisis that Colorado faces is not new. For decades, the lack of
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. affordable housing has upended the lives of thousands who face
homelessness in the Denver metropolitan area and across the state, shuttered
Colorado businesses, hindered working-class employment because of a lack
of workforce housing, and exacerbated inequities, including for
communities of color, immigrant or mixed-status households, low-wage
earners, older adults, people with disabilities, and others living on fixed
incomes.
(b) Currently, Colorado requires approximately 225,000 affordable
for-sale and rental homes to address the state's housing crisis, and the
Colorado housing and finance authority reports that nearly half of all
Colorado renters pay at least thirty percent of their income on housing, with
an additional twenty-four percent paying fifty percent or more of their
income on housing;
(c) The average home price in the state increased 130% from 2011
to 2021. Statewide, the median home price increased an additional 7% from
January to February 2022, and the median price is now $555,540, a 90%
increase over March 2021. The townhome and condominium market also
reached a new pricing level in February 2022, and the median price of such
units now stands at $402,390, which is an increase of 17% from February
2021. Six out of 10 Colorado households are unable to afford the average
priced home.
(d) In House Bill 21-1329, enacted in 2021, the general assembly
created the affordable housing transformational task force, referred to in
this section as the "task force", to recommend transformational policies to
Colorado's housing sector that will produce immediate, sweeping, and
long-lasting change. The impetus of the task force brought together the
legislative and executive branches of state government, as well as a diverse
group of stakeholders made up of affordable housing practitioners and
experts, to tackle the affordable housing crisis and determine which
investments would make the biggest impact. The sixteen-member task force
was made up of a bipartisan group of ten members of the general assembly,
five agency directors, and the executive director of the Colorado housing
and finance authority. A fifteen-member subpanel of diverse affordable
housing experts was also appointed to advise the task force. The task force
and subpanel undertook a deliberative, iterative, and transparent process.
Ultimately the task force came to a near unanimous consensus on its
funding recommendations and allocations, as well as a broad agreement on
PAGE 2-SENATE BILL 22-159 several policy concepts.
(e) The recommendations made by the task force will not solve
Colorado's affordable housing crisis completely but will be a
transformational step forward in achieving that objective. Once
implemented at the local level across the state, these policies will make
significant strides in increasing access to flexible capital sources, fostering
innovation, strengthening the social safety net, enhancing market stability,
and ultimately promoting more broad and equitable home ownership and
rental housing opportunities for Coloradans in every corner of the state.
These investments will result in more affordable housing being built across
the state and will maintain existing affordable housing stock that is at risk
of becoming unsafe or unaffordable. The recommendations made by the
task force will help reduce disparities and address homelessness. They will
help many Coloradans purchase homes that were previously out of financial
reach, which will help build intergenerational wealth across the state.
(f) The task force also identified an equitable funding distribution
to effectively address the disproportionate impacts from COVID-19;
(g) The revolving loan program created by this act will provide
individuals and households across the state critical financial support with
more flexible loan criteria not regularly offered by traditional financial
institutions, thereby assisting Coloradans in obtaining necessary access to
capital;
(h) A revolving loan fund ensures that these funds are evergreen and
recycled many times across multiple generations, thereby assisting the
provision of affordable housing for all Coloradans far into the future; and
(i) By providing eligible recipients who face barriers in establishing
borrower relationships with traditional lenders access to capital, and by
engaging in concerted outreach and education concerning the availability
of this program, a revolving loan program can provide financial support to
unserved or underserved populations.
(2) The general assembly intends to address the affordable housing
crisis in Colorado, in part, by creating a revolving loan fund to provide
flexible, low-interest, and below-market rate funding that will support
increases in new housing developments, the preservation and rehabilitation
PAGE 3-SENATE BILL 22-159 of existing home stock, property conversions, and nontraditional housing
capacity in diverse geographic communities where the economic impact of
COVID-19 has significantly affected housing affordability and availability.
The funds provided by the revolving loan fund are intended to support the
development of new affordable housing units and the purchase of existing
affordable housing units, either rental housing or for-sale homes, including
mixed-income developments, and the purchase of land or buildings for
future development within a defined timeline. In addition, funding to
maintain existing affordable housing through projects that incorporate
permanent supportive housing is intended to compliment tangential
legislative efforts and aims to support individuals experiencing
homelessness, victims of domestic violence or sexual assault, and
individuals living with disabilities. Supporting the recommendations of the
task force, the general assembly intends that interest rates on loans made
available under this section be below-market rates and not exceed those
necessary to meaningfully advance affordable housing development or the
preservation of existing affordable housing stock in local communities
across the state. Further, money should be made available to local and
regional groups, governments, and community partners to be used for a
variety of more specific affordable housing needs across the state as
specified in this section.
SECTION 2. In Colorado Revised Statutes, add 24-32-731 as
follows:
24-32-731. Revolving loan fund - eligible projects - report -
definitions - legislative declaration. (1) Definitions. A
S USED IN THIS
SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "A
DMINISTRATOR" MEANS A THIRD-PARTY ENTITY OR ENTITIES
THAT THE DIVISION CONTRACTS WITH TO ADMINISTER ALL OR ANY PART OF
THE LOAN PROGRAM PURSUANT TO SUBSECTION
(2)(b) OF THIS SECTION.
(b) "C
OMMUNITY PARTNER " MEANS A NONPROFIT ORGANIZATION
THAT UNDERTAKES ANY OF THE ACTIVITIES OR SERVICES DESCRIBED IN
SUBSECTION
(3) OF THIS SECTION.
(c) "D
EPARTMENT" MEANS THE DEPARTMENT OF LOCAL AFFAIRS .
(d) "E
LIGIBLE RECIPIENT" MEANS A LOCAL GOVERNMENT , A
PAGE 4-SENATE BILL 22-159 FOR-PROFIT DEVELOPER, A COMMUNITY PARTNER , OR A POLITICAL
SUBDIVISION OF THE STATE THAT APPLIES FOR A LOAN THROUGH THE LOAN
PROGRAM
.
(e) "F
UND" MEANS THE TRANSFORMATIONAL AFFORDABLE HOUSING
REVOLVING LOAN FUND CREATED IN SUBSECTION
(9)(a) OF THIS SECTION.
(f) "L
OAN PROGRAM" MEANS THE TRANSFORMATIONAL AFFORDABLE
HOUSING REVOLVING LOAN FUND PROGRAM CREATED IN SUBSECTION
(2)(a)
OF THIS SECTION.
(g) "L
OCAL GOVERNMENT" MEANS A COUNTY, MUNICIPALITY, CITY
AND COUNTY
, TRIBAL GOVERNMENT, SPECIAL DISTRICT ORGANIZED UNDER
TITLE
32, SCHOOL DISTRICT, DISTRICT, OR A HOUSING AUTHORITY CREATED
UNDER PART
2 OF ARTICLE 4 OF TITLE 29.
(2) Creation of loan program - administration. (a) T
HE
TRANSFORMATIONAL AFFORDABLE HOUSING REVOLVING LOAN FUND
PROGRAM IS HEREBY CREATED IN THE DIVISION AS A REVOLVING LOAN
PROGRAM IN ACCORDANCE WITH THE REQUIREMENTS OF THIS SECTION AND
THE POLICIES ESTABLISHED BY THE DIVISION PURSUANT TO SUBSECTION
(5)
OF THIS SECTION. THE LOAN PROGRAM IS ESTABLISHED TO PROVIDE
FLEXIBLE
, LOW-INTEREST, AND BELOW-MARKET RATE LOAN FUNDING TO
ASSIST ELIGIBLE RECIPIENTS IN COMPLETING THE ELIGIBLE LOAN PROJECTS
IDENTIFIED IN SUBSECTION
(3) OF THIS SECTION.
(b) T
HE 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
, IT MAY
ENTER INTO A CONTRACT WITH A BUSINESS NONPROFIT ORGANIZATION
,
BANK, NONDEPOSITORY COMMUNITY DEVELOPMENT FI NANCIAL INSTITUTION ,
BUSINESS DEVELOPMENT CORPORATION , NONPROFIT ORGANIZATION THAT
ADMINISTERS GAP FINANCING
, CONSTRUCTION, OR MORTGAGE LOAN
PROGRAMS
, OR OTHER ENTITY AS DETERMINED BY THE DIVISION TO
ADMINISTER THE LOAN PROGRAM IN WHOLE OR IN PART
. IF THE DIVISION
CONTRACTS WITH AN ENTITY OR ENTITIES TO ADMINISTER THE PROGRAM
,
THE DIVISION SHALL USE AN OPEN AND COMPETITIVE PROCESS TO SELECT
THE ENTITY OR ENTITIES
. A CONTRACT WITH AN ADMINISTRATOR MAY
INCLUDE AN ADMINISTRATION FEE ESTABLISHED BY THE DIVISION AT AN
AMOUNT REASONABLY CALCULATED TO COVER THE ONGOING
PAGE 5-SENATE BILL 22-159 ADMINISTRATIVE COSTS OF THE DIVISION IN OVERSEEING THE LOAN
PROGRAM
. THE DIVISION MAY ADVANCE MONEY TO AN ENTITY UNDER A
CONTRACT IN PREPARATION IN THE FORM OF A GRANT OR PAYMENT FOR
ISSUING LOANS AND ADMINISTERING THE LOAN PROGRAM
.
(c) T
HE DIVISION MAY WORK WITH THE COLORADO HOUSING AND
FINANCE AUTHORITY
, CREATED IN SECTION 29-4-704 (1), TO ASSIST IN
OFFERING LOANS UNDER THE LOAN PROGRAM
.
(d) A
NY LOAN MADE UNDER THE LOAN PROGRAM BY THE STATE , ANY
DEPARTMENT
, DIVISION, OR AGENCY OF THE STATE, OR ANY ADMINISTRATOR
TO A DISTRICT
, AS DEFINED IN SECTION 20 (2)(b) OF ARTICLE X OF THE STATE
CONSTITUTION
, MUST EITHER BE APPROVED BY THE VOTERS OF THE DISTRICT
IN ACCORDANCE WITH SECTION
20 (4)(b) OF ARTICLE X OF THE STATE
CONSTITUTION OR BE STRUCTURED SO THAT IT IS NOT A MULTIPLE
-FISCAL
YEAR DIRECT OR INDIRECT DISTRICT DEBT OR OTHER FINANCIAL OBLIGATION
WHATSOEVER THAT REQUIRES VOTER APPROVAL UNDER SECTION
20 (4)(b)
OF ARTICLE X OF THE STATE CONSTITUTION.
(3) Eligible loan projects. I
N ORDER TO RECEIVE LOAN FUNDING
UNDER THE LOAN PROGRAM
, THE PROJECT FOR WHICH THE LOAN APPLICANT
SEEKS LOAN FUNDING MUST DO ONE OR MORE OF THE FOLLOWING
:
(a) D
EVELOP AND INTEGRATE HOUSING -RELATED INFRASTRUCTURE
TO OFFSET CONSTRUCTION AND PREDEVELOPMENT COSTS
;
(b) P
ROVIDE GAP FINANCING FOR HOUSING DEVELOPMENT ,
INCLUDING TRANSACTIONS UNDER THE FEDERAL LOW -INCOME TAX CREDIT
DEFINED IN SECTION
39-22-2101 (7) AND THE AFFORDABLE HOUSING TAX
CREDIT CREATED IN SECTION
39-22-2102 (1). FOR PURPOSES OF THIS
SUBSECTION
(3)(b), GAP FINANCING INCLUDES FINANCING MECHANISMS
THAT ALLOW PERSONS SEEKING AFFORDABLE HOUSING TO PURCHASE
EXISTING AFFORDABLE HOUSING
, MULTI-FAMILY STRUCTURES, LAND, AND
BUILDINGS
, PARTICULARLY IN COMMUNITIES WHERE EFFORTS HAVE BEEN
MADE TO ENCOURAGE AFFORDABLE HOUSING DEVELOPMENT OR IN
COMMUNITIES IN WHICH LOW CONCENTRATIONS OF AFFORDABLE HOUSING
EXIST
.
(c) I
NCREASE THE SUPPLY OF NEW AFFORDABLE FOR -SALE HOUSING
STOCK BY PROVIDING FUNDING TO ASSIST WITH THE COST OF CONSTRUCTION
,
PAGE 6-SENATE BILL 22-159 INCLUDING BUT NOT LIMITED TO COSTS ASSOCIATED WITH CONSTRUCTION
COSTS
, LAND ACQUISITION, TAP FEES, BUILDING PERMITS, OR IMPACT FEES.
(d) M
AINTAIN EXISTING AFFORDABLE HOUSING THROUGH FUNDING
FOR THE PRESERVATION AND RESTORATION OF AFFORDABLE HOUSING STOCK
THROUGH REHABILITATION
, RETROFITTING, RENOVATION, CAPITAL
IMPROVEMENTS
, AND REPAIR OF CURRENT AFFORDABLE HOUSING STOCK ,
INCLUDING HOUSING MADE AVAILABLE UNDER 42 U.S.C. SEC. 1437f AND
AFFORDABLE HOUSING FOR POPULATIONS AND HOUSEHOLDS
DISPROPORTIONATELY IMPACTED BY THE
COVID-19 PANDEMIC WITH
COMMITMENTS FOR LONG
-TERM AFFORDABILITY. THE USES COVERED BY
THIS SUBSECTION
(3)(d) MUST INCLUDE INVESTMENTS IN ONE OR MORE OF
THE FOLLOWING
:
(I) S
ENIOR HOUSING;
(II) T
HE PURCHASE OF AND THE REMEDIATION OF LOW -QUALITY OR
CONDEMNED PROPERTIES
;
(III) H
OUSING UNITS, INTEGRATED INTO NONSEGREGATED HOUSING
DEVELOPMENTS
, SPECIFICALLY DESIGNED FOR PEOPLE LIVING WITH
DISABILITIES
;
(IV) W
EATHERIZATION AND ENERGY IMPROVEMENTS TO
MULTI
-FAMILY AND SINGE-FAMILY RESIDENTS TO MAINTAIN AND IMPROVE
THE QUALITY OF AFFORDABLE HOMES AND RENTAL UNITS
;
(V) T
HE PURCHASE AND TRANSITION OF CURRENT HOUSING STOCK
INTO AFFORDABLE HOUSING
, INCLUDING PROPERTIES CURRENTLY IN USE ON
A SHORT
-TERM RENTAL BASIS;
(VI) P
ROGRAMS OR INITIATIVES TO ENSURE THAT EXISTING HOUSING
REMAINS AFFORDABLE FOR LOCAL WORKFORCE OR COMMUNITY
HOUSEHOLDS
;
(VII) L
AND ACQUISITION FOR AFFORDABLE HOUSING ;
(VIII) P
ROPERTY CONVERSION AND ADAPTIVE REUSE ; OR
(IX) PERMANENT SUPPORTIVE HOUSING .
PAGE 7-SENATE BILL 22-159 (e) FINANCE ENERGY IMPROVEMENTS IN AFFORDABLE HOUSING ,
WHICH WILL PROVIDE FUNDING FOR INCREMENTAL UP -FRONT COSTS FOR
EFFICIENT
, ELECTRIC MEASURES, AND RENEWABLE ENERGY SYSTEMS FOR
BOTH EXISTING BUILDINGS AND NEW HOUSING CONSTRUCTION
.
(f) C
REATE PERMANENTLY OR LONG -TERM AFFORDABLE
HOMEOWNERSHIP OPPORTUNITIES
.
(4) Loan program goals. (a) T
HE LOAN PROGRAM MUST BE
ADMINISTERED WITH A GOAL OF GENERATING ENOUGH RETURN ON LOANS
MADE UNDER THE LOAN PROGRAM TO REPLENISH THE LOAN PROGRAM FOR
FUTURE LOAN ALLOCATIONS
.
(b) A
LL LOANS FINANCED THROUGH THE LOAN PROGRAM MUST
OFFER FLEXIBLE TERMS AND LOW
-INTEREST AND BELOW-MARKET RATES.
(5) Loan program policies - eligibility for loan funding. (a) T
HE
DIVISION OR THE ADMINISTRATOR
, AS APPLICABLE, SHALL ESTABLISH AND
PUBLICIZE POLICIES FOR THE LOAN PROGRAM
. AT A MINIMUM, THE POLICIES
MUST ADDRESS
:
(I) T
HE PROCESS AND DEADLINES FOR APPLYING FOR AND RECEIVING
A LOAN UNDER THE LOAN PROGRAM
, INCLUDING THE INFORMATION AND
DOCUMENTATION REQUIRED FOR A LOAN APPLICATION
;
(II) E
LIGIBILITY CRITERIA FOR INDIVIDUALS OR ENTITIES APPLYING
FOR A LOAN UNDER THE LOAN PROGRAM
;
(III) T
HE MAXIMUM ASSISTANCE LEVELS FOR LOANS ;
(IV) L
OAN TERMS, INCLUDING INTEREST RATES AND REPAYMENT
TERMS
;
(V) R
EPORTING REQUIREMENTS FOR LOAN RECIPIENTS ;
(VI) L
OAN PROGRAM FEES , INCLUDING THE APPLICATION FEE ,
ORIGINATION FEE, AND CLOSING COST POLICIES;
(VII) U
NDERWRITING AND RISK MANAGEMENT POLICIES ;
PAGE 8-SENATE BILL 22-159 (VIII) THE AMOUNT OF ANY APPLICATION OR ORIGINATION FEES AND
CLOSING COST POLICIES
;
(IX) T
HE MEANS BY WHICH ELIGIBLE RECIPIENTS WHO FACE
BARRIERS IN ESTABLISHING BORROWER RELATIONSHIPS WITH TRADITIONAL
LENDERS WILL BE INFORMED OF THE LOAN PROGRAM AND ENCOURAGED TO
APPLY FOR A LOAN FINANCED THROUGH THE LOAN PROGRAM
; AND
(X) ANY ADDITIONAL REQUIREMENTS THAT THE DIVISION DEEMS
NECESSARY TO ADMINISTER THE LOAN PROGRAM
.
(b) (I) I
N CONNECTION WITH THE POLICIES FOR THE LOAN PROGRAM
THAT THE DIVISION OR THE ADMINISTRATOR IS REQUIRED TO ESTABLISH AND
PUBLICIZE PURSUANT TO SUBSECTION
(5)(a) OF THIS SECTION, THE POLICIES
MUST SPECIFY THAT
, IN ORDER FOR AN ELIGIBLE RECIPIENT TO OBTAIN LOAN
FUNDING DIRECTLY FROM THE DIVISION
, AN ELIGIBLE RECIPIENT MUST
FOLLOW PROCEDURES THAT SHALL BE SPECIFIED BY THE DIVISION TO
DOCUMENT THE AMOUNT OF LEVERAGED FUNDS PROPOSED OR COMMITTED
AS PART OF A LOAN APPLICATION AND THE AMOUNT OF FUNDING SOUGHT
FROM OTHER SOURCES
, INCLUDING DEMONSTRATED EFFORTS BY THE
ELIGIBLE RECIPIENT TO OBTAIN FINANCING FOR LOAN FUNDING FROM
FINANCIAL INSTITUTIONS
.
(II) N
OTWITHSTANDING ANY OTHER PROVISION OF LAW , A LIEN FILED
BY THE DIVISION
, IS SUPERIOR ONLY TO ANY OTHER LIEN PLACED ON THE
SAME ASSETS THAT IS FILED LATER IN TIME EXCEPT FOR A LIEN FOR UNPAID
PROPERTY TAXES
.
(6) Prioritization criteria. (a) T
HE GENERAL ASSEMBLY HEREBY
ENCOURAGES THE DIVISION
, TO THE EXTENT PRACTICABLE, IN REVIEWING
LOAN APPLICATIONS
, TO CONSIDER PRIORITIZING APPLICATIONS FOR
PROJECTS THAT
:
(I) I
NCREASE THE SUPPLY OF HOUSING IN COMMUNITIES ACROSS THE
STATE IN PROPORTION TO EACH COMMUNITY
'S DEMONSTRATED HOUSING
NEEDS THROUGH
:
(A) A
PREFERENCE FOR MIXED -INCOME PROJECTS IN WHICH A
PERCENTAGE OF UNITS
, PROPORTIONAL TO THE DEMONSTRATED HOUSING
NEEDS OF THE LOCAL COMMUNITY
, WITHIN A PARTICULAR DEVELOPMENT
PAGE 9-SENATE BILL 22-159 HAVE RESTRICTED AVAILABILITY TO HOUSEHOLDS AT AND BELOW THE
INCOME LEVELS SPECIFIED IN SUBSECTION
(6)(b)(I) OF THIS SECTION. THE
PERCENTAGE OF RESTRICTED UNITS AND AFFORDABILITY LEVELS MUST
COMPLY WITH LAWS ENACTED BY LOCAL GOVERNMENTS PROMOTING THE
DEVELOPMENT OF NEW AFFORDABLE HOUSING UNITS PURSUANT TO SECTION
29-20-104 (1).
(B) D
EVELOPMENTS IN WHICH HOUSING UNITS ARE RESTRICTED AT
INCOME LEVELS DEMONSTRATED BY LOCAL COMMUNITY NEEDS AS SPECIFIED
IN SUBSECTION
(6)(b)(I) OF THIS SECTION;
(II) A
RE LOCATED IN OR SERVE COMMUNITIES THAT :
(A) F
ACE BARRIERS TO ACCESSING CAPITAL FROM TRADITIONAL
SOURCES
;
(B) H
AVE SUFFERED SIGNIFICANT NEGATIVE FINANCIAL OR OTHER
IMPACTS RESULTING FROM THE
COVID-19 PANDEMIC; OR
(C) ARE OTHERWISE UNDERSERVED ;
(III) A
LIGN WITH OTHER STATE ECONOMIC DEVELOPMENT EFFORTS ;
(IV) C
REATE PERMANENTLY AFFORDABLE HOME OWNERSHIP
OPPORTUNITIES
;
(V) E
NSURE THE LONG-TERM AFFORDABILITY OF ANY DEVELOPMENT
OR PROJECTS FUNDED BY THE LOAN PROGRAM
;
(VI) I
NCLUDE UNITS THAT ARE RESTRICTED FOR RENTAL USAGE TO
PERSONS WITH DISABILITIES OR THAT INCLUDE UNIVERSAL DESIGN FEATURES
THAT ALLOW INDIVIDUALS TO RESIDE IN THEIR DWELLING UNITS AS THEY
AGE
; OR
(VII) ARE HIGHLY ENERGY EFFICIENT OR USE HIGH -EFFICIENCY
ELECTRIC EQUIPMENT FOR SPACE AND WATER HEATING
. THE DIVISION MAY
CONSULT WITH THE
COLORADO ENERGY OFFICE CREATED IN SECTION
24-38.5-101 (1) TO DEVELOP CRITERIA FOR MEETING THE OBJECTIVES
DESCRIBED IN THIS SUBSECTION
(6)(a)(VII).
PAGE 10-SENATE BILL 22-159 (b) (I) THE RENTAL AND HOME OWNERSHIP TARGETS APPLICABLE TO
LOCAL COMMUNITIES ACROSS THE STATE AS REQUIRED BY SUBSECTION
(6)(a)(I) OF THIS SECTION ARE SPECIFIED IN THIS SUBSECTION (6)(b)(I) IN
ACCORDANCE WITH THE FOLLOWING
:
(A) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS ,
ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED
TWENTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED
;
(B) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A HOME -OWNERSHIP
BASIS
, ANNUAL INCOME OF THE HOUSEHOLD IS AT OR BELOW ONE HUNDRED
TWENTY PERCENT OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT
SIZE IN THE COUNTY IN WHICH THE HOUSING IS LOCATED
;
(C) F
OR A HOUSEHOLD RESIDING IN HOUSING ON A RENTAL BASIS IN
RURAL RESORT COUNTIES
, ANNUAL INCOME OF THE HOUSEHOLD IS AT OR
BELOW ONE HUNDRED FORTY PERCENT OF THE AREA MEDIAN INCOME OF
HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS
LOCATED
; AND
(D) FOR A HOUSEHOLD RESIDING IN HOUSING ON A HOME OWNERSHIP
BASIS IN RURAL RESORT COUNTIES
, ANNUAL INCOME OF THE HOUSEHOLD IS
AT OR BELOW ONE HUNDRED SIXTY PERCENT OF THE AREA MEDIAN INCOME
OF HOUSEHOLDS OF THAT SIZE IN THE COUNTY IN WHICH THE HOUSING IS
LOCATED
.
(II) A
N APPLICANT SEEKING FUNDING FOR A PARTICULAR
DEVELOPMENT
, PROJECT, OR PROGRAM THAT IS FUNDED BY THE LOAN
PROGRAM MAY
, AT ANY TIME, REQUEST THAT THE DIVISION GRANT THE
APPLICANT AN EXCEPTION TO THE AREA MEDIAN INCOME LEVELS SPECIFIED
IN SUBSECTION
(6)(b)(I) OF THIS SECTION BASED UPON DEMONSTRATED
UNIQUE ECONOMIC AND HOUSING COSTS ATTRIBUTES IN THE LOCAL
COMMUNITY IN WHICH THE DEVELOPMENT
, PROJECT, OR PROGRAM IS
LOCATED
.
(c) (I) N
OT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF
HOUSING
, CREATED IN SECTION 24-32-704 (1), SHALL CLASSIFY EACH
COUNTY IN THE STATE AS
"URBAN", "RURAL", OR "RURAL RESORT" AS USED
IN SUBSECTION
(6)(b)(I) OF THIS SECTION BASED UPON THE DEFINITIONS OF
PAGE 11-SENATE BILL 22-159 THE TERMS AS SPECIFIED IN THE FINAL REPORT OF THE COLORADO
STRATEGIC HOUSING WORKING GROUP FINAL REPORT
, DATED JULY 6, 2021.
T
HE DIVISION OF HOUSING SHALL REGULARLY UPDATE AND PUBLISH
MODIFICATIONS OF THE INITIAL CLASSIFICATION OF A PARTICULAR COUNTY
AS IT RECEIVES OR PRODUCES INFORMATION DOCUMENTING CHANGES IN
LOCAL ECONOMIC CIRCUMSTANCES AND HOUSING COST FACTORS
MATERIALLY AFFECTING SUCH CLASSIFICATIONS
.
(II) N
OTWITHSTANDING SUBSECTION (6)(c)(I) OF THIS SECTION, ANY
COUNTY MAY REQUEST FROM THE DIVISION OF HOUSING
:
(A) A
DETERMINATION THAT A DIFFERENT INCOME RESTRICTION
SHOULD APPLY TO THAT COUNTY FROM THE ONE MADE APPLICABLE TO THE
COUNTY IN ACCORDANCE WITH SUBSECTION
(6)(c)(I) OF THIS SECTION BASED
UPON THE UNIQUE ECONOMIC AND HOUSING COST FACTORS PRESENT IN THE
COUNTY
. NOT LATER THAN SEPTEMBER 1, 2022, THE DIVISION OF HOUSING
SHALL PUBLISH ANY SUCH MODIFIED INCOME RESTRICTIONS AND THE BASIS
FOR ANY MODIFICATION APPROVED
.
(B) A
T ANY TIME, A RECLASSIFICATION OF THE COUNTY FROM THE
CATEGORY IN WHICH THE COUNTY IS INITIALLY CLASSIFIED PURSUANT TO
SUBSECTION
(6)(c)(I) OF THIS SECTION BASED UPON THE UNIQUE ECONOMIC
AND HOUSING COST FACTORS PRESENT IN THE COUNTY
.
(d) T
O THE EXTENT PRACTICABLE , THE DIVISION AND THE
ADMINISTRATOR
, AS APPLICABLE, SHALL SUPPORT INNOVATIVE FUNDING
MECHANISMS THAT ALLOW MONEY TO REVOLVE QUICKLY TO ENSURE THE
RAPID REUSE OF MONEY FOR ONGOING PROJECTS
.
(7) Publicizing the loan program. T
HE DIVISION SHALL WORK WITH
THE MINORITY BUSINESS OFFICE CREATED IN SECTION
24-49.5-102, SMALL
BUSINESS DEVELOPMENT CENTERS
, COMMUNITY DEVELOPMENT FINANCIAL
INSTITUTIONS
, AND STAKEHOLDER PARTNERS TO PROMOTE THE PROGRAM TO
ELIGIBLE RECIPIENTS WHO PRIMARILY SERVE COMMUNITIES THAT ARE
UNDERSERVED OR DIS ADVANTAGED
, INCLUDING ELIGIBLE RECIPIENTS
LOCATED IN RURAL COUNTIES
. ON OR BEFORE DECEMBER 1, 2022, THE
DIVISION SHALL DEVELOP AND ADMINISTER A MARKETING INITIATIVE FOR
THE PROGRAM IN COORDINATION WITH THE MINORITY BUSINESS OFFICE
CREATED IN SECTION
24-49.5-102, THE SMALL BUSINESS ASSISTANCE CENTER
CREATED IN SECTION
24-48.5-102, LOCAL CHAMBERS OF COMMERCE , AND
PAGE 12-SENATE BILL 22-159 OTHER LOCAL AND REGIONAL ECONOMIC DEVELOPMENT ENTITIES TO
PROMOTE THE PROGRAM TO ELIGIBLE RECIPIENTS AND TARGET
COMMUNITIES
. THE MARKETING INITIATIVE SHALL BE CONDUCTED IN THE
TOP SPOKEN LANGUAGES IN THOSE COMMUNITIES
.
(8) Gifts, grants, and donations - leveraging federal money.
(a) T
HE DIVISION MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR
DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS
SECTION
. THE DIVISION SHALL TRANSMIT ALL MONEY RECEIVED THROUGH
GIFTS
, GRANTS, OR DONATIONS TO THE STATE TREASURER , WHO SHALL
CREDIT THE MONEY TO THE FUND
.
(b) T
HE DIVISION MAY EXPEND, DEPLOY, OR LEVERAGE MONEY
RECEIVED FROM FEDERAL GOVERNMENT PROGRAMS THAT SUPPORT LOANS
AND INVESTMENTS FOR ONE OR MORE OF THE ELIGIBLE PROJECTS SPECIFIED
IN SUBSECTION
(3) OF THIS SECTION TO MAKE LOANS UNDER THE LOAN
PROGRAM OR TO OTHERWISE MARKET
, PROMOTE, OR SUPPORT LOANS UNDER
THE PROGRAM
, IF ALLOWED UNDER FEDERAL LAW .
(9) Transformational affordable housing revolving loan fund -
transfer of money to fund - payment of administrative costs -
appropriation. (a) T
HE TRANSFORMATIONAL AFFORDABLE HOUSING
REVOLVING LOAN FUND IS HEREBY CREATED IN THE STATE TREASURY
. THE
FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND IN ACCORDANCE
WITH SUBSECTION
(9)(d) OF THIS SECTION, ANY OTHER MONEY THAT THE
GENERAL ASSEMBLY APPROPRIATES OR TRANSFERS TO THE FUND
, AND ANY
GIFTS
, GRANTS, OR DONATIONS CREDITED TO THE FUND PURSUANT TO
SUBSECTION
(8)(a) OF THIS SECTION.
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO
THE FUND
.
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE
DEPARTMENT FOR THE PURPOSES SPECIFIED IN THIS SECTION
. THE
DEPARTMENT MAY EXPEND UP TO FIVE PERCENT OF THE MONEY
APPROPRIATED OR TRANSFERRED INTO
, OR REPAID FROM, THE FUND ON AN
ANNUAL BASIS TO PAY FOR ITS DIRECT AND INDIRECT COSTS IN
ADMINISTERING THIS SECTION
.
PAGE 13-SENATE BILL 22-159 (d) ON JULY 1, 2022, THE STATE TREASURER SHALL TRANSFER ONE
HUNDRED FIFTY MILLION DOLLARS FROM THE AFFORDABLE HOUSING AND
HOME OWNERSHIP CASH FUND CREATED IN SECTION
24-75-229 (3)(a) THAT
ORIGINATES FROM THE GENERAL FUND
, TO THE FUND. THE DIVISION SHALL
USE THE MONEY TRANSFERRED PURSUANT TO THIS SUBSECTION
(9)(d) ONLY
FOR
:
(I) M
AKING LOANS TO ELIGIBLE RECIPIENTS PURSUANT TO THE LOAN
PROGRAM
; AND
(II) THE COSTS OF ADMINISTERING THE LOAN PROGRAM AS MAY BE
INCURRED BY THE DIVISION OR THE ADMINISTRATOR
, AS APPLICABLE, IN
ACCORDANCE WITH SUBSECTION
(9)(c) OF THIS SECTION. ALL SUCH
ADMINISTRATIVE COSTS MUST BE PAID OUT OF THE MONEY EITHER
TRANSFERRED TO THE FUND PURSUANT TO THIS SUBSECTION
(9)(d) OR THAT
IS APPROPRIATED TO THE FUND
.
(10) Reporting. I
N CONNECTION WITH THE PUBLIC REPORT THE
DIVISION PREPARES IN ACCORDANCE WITH SECTION
24-32-705.5 (1), THE
DIVISION SHALL INCLUDE IN THE REPORT INFORMATION SUMMARIZING THE
USE OF ALL OF THE MONEY THAT WAS PROVIDED AS A LOAN FROM THE LOAN
PROGRAM IN THE PRECEDING STATE FISCAL YEAR
. AT A MINIMUM, THE
INFORMATION INCLUDED IN THE REPORT PERTAINING TO THE LOAN PROGRAM
MUST SPECIFY THE NUMBER OF ELIGIBLE RECIPIENTS THAT APPLIED FOR A
LOAN
, THE NUMBER OF ELIGIBLE RECIPIENTS THAT WERE NOT AWARDED A
LOAN
, THE AMOUNT OF LOAN MONEY DISTRIBUTED TO EACH LOAN
RECIPIENT
, A DESCRIPTION OF EACH LOAN RECIPIENT 'S USE OF THE LOAN
MONEY
, THE USE OF LOAN MONEY ALONG THE HOUSING AND INCOME
SPECTRUMS
, THE AMOUNT OF TIME FROM COMPLETION OF A LOAN
APPLICATION THROUGH THE FUNDING OF A LOAN
, RECOMMENDATIONS
CONCERNING FUTURE ADMINISTRATION OF THE LOAN PROGRAM
, AND HOW
THE USE OF THE LOAN FURTHERED THE VISION OF TRANSFORMATI ONAL
AFFORDABLE HOUSING DESCRIBED IN THE FINAL REPORT OF THE TASK FORCE
ESTABLISHED IN SECTION
24-75-229 (6)(a). THE DIVISION SHALL ALSO
INCLUDE IN THE REPORT ITS RECOMMENDATIONS CONCERNING FUTURE
ADMINISTRATION OF THE LOAN PROGRAM
.
SECTION 3. In Colorado Revised Statutes, 24-32-705, amend (7)
as follows:
PAGE 14-SENATE BILL 22-159 24-32-705. Functions of division. (7) The division shall
administer:
(a) The affordable housing guided toolkit and local officials guide
program in accordance with section 24-32-721.5;
(b) T
HE TRANSFORMATIONAL AFFORDABLE HOUSING REVOLVING
LOAN FUND PROGRAM CREATED IN SECTION
24-32-731 (2)(a), UNLESS THE
DIVISION ELECTS TO CONTRACT OUT FULL OR PARTIAL ADMINISTRATION OF
THE LOAN PROGRAM PURSUANT TO SECTION
24-32-731 (2)(b).
SECTION 4. In Colorado Revised Statutes, 24-32-705.5, add (3.3)
as follows:
24-32-705.5. Annual public report on funding of affordable
housing preservation and production - definition. (3.3) F
OR THE PUBLIC
REPORT REQUIRED BY SUBSECTION
(1) OF THIS SECTION, THE DIVISION MUST
INCLUDE
, ON AN ANNUAL BASIS , THE INFORMATION REQUIRED TO BE
INCLUDED IN ACCORDANCE WITH SECTION
24-32-731 (10).
SECTION 5. Appropriation. For the 2022-23 state fiscal year,
$379,081 is appropriated to the office of the governor for use by the office
of information technology. This appropriation is from reappropriated funds
received from the department of local affairs from the transformational
affordable housing revolving loan fund created in section 24-32-731 (9)(a),
C.R.S., that originate from the general fund, and is based on an assumption
that the office of information technology will require an additional 4.3 FTE.
To implement this act, the office may use this appropriation to provide
information technology services for the department of local affairs.
SECTION 6. Safety clause. The general assembly hereby finds,
PAGE 15-SENATE BILL 22-159 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Steve Fenberg Alec Garnett
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 16-SENATE BILL 22-159