SENATE BILL 25-006
BY SENATOR(S) Roberts, Amabile, Ball, Bridges, Cutter, Danielson,
Daugherty, Exum, Gonzales J., Jodeh, Kipp, Kolker, Marchman,
Michaelson Jenet, Mullica, Rodriguez, Snyder, Weissman, Coleman;
also REPRESENTATIVE(S) Rutinel and Bradfield, Bacon, Boesenecker,
Clifford, Joseph, Mabrey, McCormick, Smith, Valdez.
C
ONCERNING AUTHORIZATION FOR THE STATE TREASURER TO INVEST STATE
MONEY FOR THE CREATION OF AFFORDABLE FOR
-SALE HOUSING IN
THE STATE
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
(a) The creation of affordable homeownership opportunities is
essential to ensure the health of Colorado's workforce and the vitality of
Colorado's community and thereby serves a public purpose; and
(b) Affordable homeownership opportunities provide housing
stability for Colorado's workforce and facilitate intergenerational wealth.
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. (2) The general assembly further find and declares that there are
fewer sources of state-funded public subsidies available for affordable
homeownership as opposed to affordable rental housing and there is a need
for more for-sale housing, especially for the lowest income borrowers.
(3) It is therefore the intent of the general assembly to create an
avenue for the state to invest, and reinvest, state money for the creation of
affordable for-sale housing, thereby creating affordable homeownership
opportunities within the state.
SECTION 2. In Colorado Revised Statutes, 24-36-113, add (8) as
follows:
24-36-113. Investment of state money - limitations.
(8) (a) S
UBJECT TO THE REQUIREMENTS SET FORTH IN SUBSECTION (8)(b) OF
THIS SECTION
, THE STATE TREASURER MAY INVEST MONEY IN BONDS THAT
ARE ISSUED BY QUASI
-GOVERNMENTAL AUTHORITIES FOR THE PURPOSE OF
CREATING AFFORDABLE FOR
-SALE HOUSING WITHIN THE STATE CONSISTENT
WITH THE PUBLIC PURPOSES OF THE QUASI
-GOVERNMENTAL AUTHORITY
ISSUING THE BONDS
. NOTWITHSTANDING SUBSECTION (1)(a) OF THIS
SECTION
, AN INVESTMENT ALLOWED PURSUANT TO THIS SUBSECTION (8) MAY
HAVE A BELOW
-MARKET RATE OF INTEREST.
(b) (I) (A) A
N INVESTMENT MADE AS AUTHORIZED BY SUBSECTION
(8)(a) OF THIS SECTION MUST CREATE OR FINANCE NEW AFFORDABLE ,
INCOME-RESTRICTED FOR-SALE HOUSING WITHIN THE STATE THAT, WITHOUT
SUCH INVESTMENT
, WOULD NOT OTHERWISE BE MADE AVAILABLE AT
SIMILAR RATES AND TERMS
.
(B) T
HE HOUSING CREATED WITH PROCEEDS OF THE BONDS MUST
REMAIN AFFORDABLE LONG
-TERM AND BE AVAILABLE TO BORROWERS
EARNING NO MORE THAN ONE HUNDRED FORTY PERCENT OF THE STATEWIDE
AREA MEDIAN INCOME AS DEFINED ANNUALLY BY THE
UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITH CONSIDERATION
GIVEN TO ELEVATING OPPORTUNITIES FOR FOR
-SALE HOUSING FOR THE
LOWEST INCOME BORROWERS AND TAKING INTO CONSIDERATION
DEMONSTRATED COMMUNITY NEEDS
. THE QUASI-GOVERNMENTAL
AUTHORITY ISSUING THE BONDS OR ITS DESIGNEE SHALL REQUIRE THAT
INCOME VERIFICATIONS ARE COMPLETED
.
PAGE 2-SENATE BILL 25-006 (II) THE INITIAL INVESTMENT OF MONEY THAT IS INVESTED IN
ACCORDANCE WITH THIS SUBSECTION
(8) MUST NOT EXCEED FIFTY MILLION
DOLLARS
. NOTWITHSTANDING ANY LAW TO THE CONTRARY , THE TERM OF AN
INVESTMENT MADE PURSUANT TO THIS SUBSECTION
(8) MAY BE UP TO
FORTY
-FIVE YEARS.
(III) A
NY BOND PURCHASED IN ACCORDANCE WITH THIS SUBSECTION
(8) MUST HAVE AT LEAST TWO CREDIT RATINGS AT OR ABOVE A- OR A3 OR
ITS EQUIVALENT FROM A NATIONALLY RECOGNIZED RATING ORGANIZATION
AND MUST OTHERWISE BE ELIGIBLE FOR PURCHASE CONSISTENT WITH THE
STATE TREASURER
'S INVESTMENT POLICIES. THE ISSUANCE OF THE BONDS
MUST BE CONSISTENT WITH THE PUBLIC PURPOSES OF THE
QUASI
-GOVERNMENTAL AUTHORITY ISSUING THE BONDS .
(IV) T
HE STATE TREASURER SHALL REINVEST PRINCIPAL PROCEEDS
RECEIVED FROM REDEMPTION OF AN INVESTMENT MADE PURSUANT TO THIS
SUBSECTION
(8) IN ACCORDANCE WITH THIS SUBSECTION (8); EXCEPT THAT
ANY REINVESTMENT SHALL ONLY BE MADE AFTER THE STATE TREASURER
RECEIVES REPAYMENT OF FIFTY PERCENT OF THE PRINCIPAL AMOUNT
INVESTED
.
(V) T
HE QUASI-GOVERNMENTAL AUTHORITY ISSUING THE BONDS
SHALL PROVIDE AN ANNUAL REPORT TO THE TREASURER AND THE GENERAL
ASSEMBLY THAT INCLUDES THE TOTAL NUMBER OF UNITS CONSTRUCTED IN
THE REPORTING YEAR AND AT WHAT LEVELS OF AFFORDABILITY THE UNITS
WILL BE OFFERED FOR SALE
, A MAP SHOWING EACH LOCATION WHERE
PROCEEDS OF THE BONDS HAVE BEEN USED
, AND THE AVERAGE SALE PRICE
OF AFFORDABLE FOR
-SALE HOUSING CREATED WITH BOND PROCEEDS THAT
SOLD IN THE REPORTING YEAR CATEGORIZED BY RURAL
, URBAN, AND RURAL
RESORT REGIONS
. THE REPORT MUST ALSO INCLUDE HOUSING MARKET AND
DEMOGRAPHIC INFORMATION THAT DEMONSTRATES HOW THE UNITS
CREATED ADDRESS THE NEED FOR AFFORDABLE FOR
-SALE HOMES IN THE
COMMUNITIES THEY ARE INTENDED TO SERVE AND PROVIDE INFORMATION
ABOUT ANY REMAINING DISPARITIES CONCERNING HOUSING AFFORDABILITY
WITHIN THESE COMMUNITIES
.
SECTION 3. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 3-SENATE BILL 25-006 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
James Rashad Coleman, Sr. Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
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 4-SENATE BILL 25-006