SB 25-006
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-006: INVEST. AUTHORITY OF TREASURER FOR AFFORDABLE HOUSING
Prime Sponsors:
Sen. Roberts
Rep. Rutinel; Bradfield
Published for: House Finance
Drafting number: LLS 25-0586
Fiscal Analyst:
Josh Abram, 303-866-3561
josh.abram@coleg.gov
Version: First Revised Note
Date: March 17, 2025
Fiscal note status: The fiscal note reflects the reengrossed bill.
Summary Information
Overview. The bill permits the State Treasurer to invest up to $50 million in bonds at below market rates
to create affordable housing.
Types of impacts. The bill potentially affects the following areas on an ongoing basis:
Minimal State Workload
State Revenue
TABOR Refund
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue Decrease Decrease
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds Decrease Decrease
Change in State FTE 0.0 FTE 0.0 FTE
1
The bill potentially reduces investment earning by the state. However, an exact estimate cannot be
made at this time, as any impact depends on future investment decisions by the State Treasurer. Page 2
March 17, 2025 SB 25-006
Summary of Legislation
The bill authorizes the State Treasurer to invest up to $50 million in bonds issued by
quasi-governmental agencies in order to create or finance new affordable, income-restricted,
for-sale housing in the state that, without such investment, would not otherwise be available at
similar rates and terms. The terms of the investment may be up to 45 years, and the treasurer
must reinvest principal proceeds. The housing created with proceeds of the bonds must remain
affordable long-term, and be available to borrowers earning no more than 140 percent of the
statewide area median income. The bill allows these investments to be made at a below-market
rate of interest, and allows the treasurer to reinvest money received from redemption of any
investment.
State Revenue and Expenditures
The bill minimally increases workload for the treasurer to identify appropriate investments and
to manage these deposits for affordable housing.
Allowing the State Treasurer to make investments at below market interest rates could reduce
the amount of interest earnings on investments that could have been earned by investing at a
higher rate or return. This change in revenue has not been estimated as it depends on future
investment decisions made by the State Treasurer.
For informational purposes, an investment of $50 million at one percent below market rate
would result in $0.5 million of lost revenue each year. Interest earnings on state investments are
subject to TABOR, unless they involve money from a fund associated with a state enterprise. This
revenue decrease is further compounded over time from the requirement that the treasurer
reinvest all principal instead of returning the original principal into higher yield investments.
TABOR Refunds
The bill potentially decreases the amount of state revenue required to be refunded to taxpayers
by an indeterminate amount through FY 2026-27. This estimate assumes the December 2024
LCS revenue forecast. A forecast of state revenue subject to TABOR is not available beyond
FY 2026-27.
Because TABOR refunds are paid from the General Fund, decreased General Fund revenue will
lower the TABOR refund obligation, but result in no net change to the amount of General Fund
otherwise available to spend or save. If any below market investments are made using money
held in cash funds, decreased cash fund revenue will increase the amount of General Fund
available to spend or save.
Effective Date
The bill takes effect upon signature of the Governor, or on taking effect without his signature. Page 3
March 17, 2025 SB 25-006
State and Local Government Contacts
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 the General Assembly website.