First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0911.02 Pierce Lively x2059
SENATE BILL 25-313
Senate Committees House Committees
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE PERMISSIBLE USES OF STATE INCOME TAX REVENUE101
RAISED IN CONNECTION WITH PROPOSITION 123.102
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/
.)
Joint Budget Committee. Among other things related to
affordable housing, Proposition 123, which was approved by the voters
at the 2022 statewide election, created the affordable housing support
fund (fund) and continuously appropriated money from the fund to the
division of housing within the department of local affairs (department) for
enumerated uses relating to an affordable home ownership program and
SENATE SPONSORSHIP
Amabile and Bridges, Kirkmeyer
HOUSE SPONSORSHIP
Bird and Sirota, Taggart
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. a program serving persons experiencing homelessness and to the division
of local government, also within the department, for enumerated uses
relating to a local planning capacity development program. A specified
percentage of money from the fund is allocated for the implementation of
each program, and from each allocated percentage the division of housing
or the division of local government, as applicable, is permitted to use up
to 5% to pay for the direct and indirect costs of administering each
program.
Beginning in state fiscal year 2026-27, the bill makes the
expenditure of up to 5% of the money from each program's allocation of
funding for administration of each program subject to annual
appropriation by the general assembly and clarifies how that 5% amount
is calculated.
The bill also allows the division of housing, subject to annual
appropriation by the general assembly, to expend money under the
program serving persons experiencing homelessness for:
! Capital needs at 2 state-owned supportive residential
communities for persons experiencing homelessness
(supportive residential communities); and
! Direct and indirect costs of operating the 2 supportive
residential communities.
Proposition 123 also included a prohibition on the general
assembly appropriating funds from the fund and the affordable housing
financing fund to supplant other state support for affordable housing
projects. The bill clarifies when appropriations from the fund and the
affordable housing financing fund would violate this prohibition.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 29-32-103, amend2
(1) as follows:3
29-32-103. Transfers of money - permitted uses of the fund -4
continuous appropriation. (1) (a) The affordable housing support fund5
is hereby created in the state treasury. The support fund shall consist
6
CONSISTS of money deposited into it under subsection (3) of this section.7
The division of housing shall administer the support fund and expend the8
money in the support fund only for the purposes set forth in sections9
SECTION 29-32-104 (3)(a) and (3)(b). The division of local government10
SB25-313-2- in the department of local affairs created in section 24-32-103 shall1
expend the money in the support fund only for the purposes set forth in2
section 29-32-104 (3)(c). All money not expended or encumbered, and all3
interest earned on the investment or deposit of money in the support fund,4
shall remain REMAINS in the support fund and shall DOES not revert to the5
general fund or any other fund at the end of any fiscal year. E
XCEPT AS6
OTHERWISE PROVIDED IN SUBSECTION (1)(b) OF THIS SECTION AND7
SECTION 29-32-104 (3)(b)(II), all money transferred to the support fund8
pursuant to subsection (3) of this section is continuously appropriated to9
the division of housing for the purposes set forth in sections
SECTION10
29-32-104 (3)(a) and (3)(b) and, to the extent allocated by the division of11
housing, to the division of local government for the purposes set forth in12
section 29-32-104 (3)(c).13
(b) S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL14
ASSEMBLY, BEGINNING IN STATE FISCAL YEAR 2026-27, AND SUBJECT TO15
THE LIMITATIONS SET FORTH IN SECTION 29-32-104 (3)(a), (3)(b), AND16
(3)(c),
THE DIVISION OF HOUSING OR THE DIVISION OF LOCAL GOVERNMENT17
MAY EXPEND MONEY FROM THE FUND FOR DIRECT AND INDIRECT COSTS OF18
ADMINISTERING THE PROGRAMS SET FORTH IN SECTION 29-32-104 (3)(a),19
(3)(b),
AND (3)(c).20
SECTION 2. In Colorado Revised Statutes, 29-32-104, amend21
(3) as follows:22
29-32-104. Permissible expenditures - affordable housing23
programs - report - definitions. (3) The division of housing and the24
division of local government shall expend the money transferred to the25
support fund in section 29-32-103 (1) to support the following programs26
only:27
SB25-313
-3- (a) An affordable home ownership program administered by the1
division or one or more contractors of the division. The program shall2
offer home ownership down-payment assistance to first-time homebuyers3
and shall prioritize assistance, to the extent practicable, to first-generation4
homebuyers. The assistance shall be provided to households with income5
less than or equal to 120% ONE HUNDRED TWENTY PERCENT of the area6
median income of households of that size in the territory or jurisdiction7
of local government or tribal government in which the housing is located,8
as calculated and published for a given year by the United States9
department of housing and urban development, and the cost of the10
monthly housing payment towards TOWARD mortgage principal, mortgage11
interest, property taxes, mortgage and homeowner's insurance,12
homeowner association fees, land lease fees, and metropolitan district13
fees shall not cost more than 35% THIRTY-FIVE PERCENT of monthly14
household income. The program shall also make grants to non-profits15
NONPROFIT ORGANIZATIONS , local governments, tribal governments,16
community development financial institutions, and community land trusts17
to support affordable home ownership. The program shall also make18
grants or loans to groups or associations of mobile home owners and their19
assignees to assist them with the purchase of a mobile home park20
pursuant to section 38-12-217. Said grants and loans shall be used to21
support affordable home ownership for households with income less than22
or equal to 100% ONE HUNDRED PERCENT of the area median income of23
households of that size in the territory or jurisdiction of local government24
or tribal government in which the households are located, as calculated25
and published for a given year by the United States department of housing26
and urban development, and the cost of the monthly housing payment27
SB25-313
-4- towards TOWARD mortgage principal, mortgage interest, property taxes,1
mortgage and homeowner's insurance, homeowner association fees, land2
lease fees, and metropolitan district fees shall not cost more than 35%3
THIRTY-FIVE PERCENT of monthly household income. All principal and4
interest payments on loans made under this paragraph (a) SUBSECTION5
(3)(a) shall be paid to the division and used by the division for the6
purposes set forth in this subsection (3). Up to 50% FIFTY PERCENT of7
monies MONEY transferred to the support fund annually may be used for8
the program. The division shall determine how much of the available9
funding shall be allocated to each aspect of the program. The division10
may utilize up to 5% FIVE PERCENT of the funds it allocates RECEIVES11
from the fund for the program each state fiscal year to pay for the direct12
and indirect costs of administering the program.13
(b) (I) A program serving persons experiencing homelessness to14
be administered by the division. The program shall provide rental15
assistance, housing vouchers, and eviction defense assistance, including16
legal, financial, and case management, to persons experiencing17
homelessness or at risk of experiencing homelessness. The program shall18
also make grants or loans to non-profit NONPROFIT organizations, local19
governments, tribal governments, or private entities to support the20
development and preservation of supportive housing for persons21
experiencing homelessness, and other homelessness related activities the22
division determines contribute to the resolution of or prevention of23
homelessness, including housing programs paid for by non-profit24
NONPROFIT organizations, local governments, tribal governments, or25
private entities on a pay for success PAY-FOR-SUCCESS basis, meaning an26
organization, local government, tribal government, or private entity would27
SB25-313
-5- receive financial support from the program upon achieving objectives1
contractually agreed upon with the division. All principal and interest2
payments on loans made under this paragraph (b) SUBSECTION (3)(b)(I)3
shall be paid to the division and used by the division for the purposes set4
forth in this subsection (3). Up to 45% FORTY-FIVE PERCENT of monies5
MONEY transferred to the support fund annually may be used for the6
program. The division may utilize up to 5% FIVE PERCENT of the funds it7
allocates RECEIVES from the fund for the program each state fiscal year8
to pay for the direct and indirect costs of administering the program.9
(II) T
HE PROGRAM SET FORTH IN SUBSECTION (3)(b)(I) OF THIS10
SECTION MAY ALSO:11
(A) B
EGINNING IN STATE FISCAL YEAR 2025-26 AND SUBJECT TO12
ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY , PROVIDE FUNDING13
TO THE STATE OR ANY OTHER ENTITY FOR CAPITAL CONSTRUCTION NEEDS14
AT THE RIDGE VIEW SUPPORTIVE RESIDENTIAL COMMUNITY AND THE15
F
ORT LYON SUPPORTIVE RESIDENTIAL COMMUNITY; AND16
(B) P
ROVIDE FUNDING TO THE STATE OR ANY OTHER ENTITY FOR17
DIRECT AND INDIRECT COSTS OF OPERATING TO THE RIDGE VIEW18
S
UPPORTIVE RESIDENTIAL COMMUNITY AND THE FORT LYON SUPPORTIVE19
R
ESIDENTIAL COMMUNITY AND, BEGINNING IN STATE FISCAL YEAR20
2026-27,
PROVIDE SUCH FUNDING SUBJECT TO ANNUAL APPROPRIATION BY21
THE GENERAL ASSEMBLY;22
(III) A
S USED IN SUBSECTION (3)(b)(II) OF THIS SECTION:23
(A) "F
ORT LYON SUPPORTIVE RESIDENTIAL COMMUNITY" MEANS24
THE PORTION OF THE FORT LYON PROPERTY THAT IS DESIGNATED BY THE25
DIVISION FOR PROVIDING HOMELESSNESS -RELATED ACTIVITIES THAT THE26
DIVISION DETERMINES CONTRIBUTE TO THE RESOLUTION OF OR27
SB25-313
-6- PREVENTION OF HOMELESSNESS .1
(B) "R
IDGE VIEW SUPPORTIVE RESIDENTIAL COMMUNITY" MEANS,2
AS SET FORTH IN SECTION 24-32-730 (2)(a), THE RIDGE VIEW CAMPUS3
THAT, AFTER JULY 1, 2022, IS DESIGNATED BY THE DIVISION FOR4
PROVIDING HOMELESSNESS -RELATED ACTIVITIES THAT THE DIVISION5
DETERMINES CONTRIBUTE TO THE RESOLUTION OF OR PREVENTION OF6
HOMELESSNESS.7
(c) A local planning capacity development program administered8
by the division of local government. The program shall provide grants to9
local governments and tribal governments to increase the capacity of local10
government and tribal government planning departments responsible for11
processing land use, permitting and zoning applications for housing12
projects. Up to 5% of monies
FIVE PERCENT OF MONEY transferred to the13
support fund annually may be used for the program. The division of local14
government may utilize up to 5% FIVE PERCENT of the funds that the15
division of housing allocates from the fund for the program each state16
fiscal year to pay for the direct and indirect costs of administering the17
program.18
SECTION 3. In Colorado Revised Statutes, 29-32-106, amend19
(1); add (3); and repeal (2) as follows:20
29-32-106. Appropriation requirement for affordable housing21
projects - definition. (1) For any state fiscal year in which money is22
appropriated from the financing fund or the support fund in accordance23
with the requirements of this article ARTICLE 32, any such money24
appropriated must supplement and shall not supplant the level of general25
fund and cash fund appropriations STATE FUNDING SUPPORT for affordable26
housing programs for the state fiscal year 2022-23.27
SB25-313
-7- (2) For purposes of determining the appropriations for affordable1
housing programs for the state fiscal year 2022-23, cash fund2
appropriations do not include any appropriations of money that originated3
from money the state received from the federal coronavirus state fiscal4
recovery fund.5
(3) (a) T
HE GENERAL ASSEMBLY VIOLATES SUBSECTION (1) OF THIS6
SECTION ONLY IF, FOR A STATE FISCAL YEAR FOR WHICH THE LEGISLATIVE7
COUNCIL STAFF FORECAST FOR THE MARCH IMMEDIATELY PRECEDING THE8
STATE FISCAL YEAR PROJECTED THAT STATE REVENUE IN THE STATE9
FISCAL YEAR WOULD EXCEED THE STATE FISCAL YEAR SPENDING LIMIT10
IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, THE11
GENERAL ASSEMBLY APPROPRIATES MONEY FROM THE FINANCING FUND OR12
THE SUPPORT FUND IN ACCORDANCE WITH THE REQUIREMENTS OF THIS13
ARTICLE 32 FOR AFFORDABLE HOUSING PROGRAMS AND THE TOTAL14
AMOUNT OF STATE FUNDING SUPPORT FOR AFFORDABLE HOUSING15
PROGRAMS IS LESS IN THAT STATE FISCAL YEAR THAN THE TOTAL AMOUNT16
OF STATE FUNDING SUPPORT FOR AFFORDABLE HOUSING PROGRAMS17
DURING THE 2022-23 STATE FISCAL YEAR.18
(b) A
S USED IN THIS SUBSECTION (3), UNLESS THE CONTEXT19
OTHERWISE REQUIRES, "STATE FUNDING SUPPORT" MEANS, FOR A STATE20
FISCAL YEAR, THE TOTAL OF:21
(I) T
HE AMOUNT OF STATE MONEY APPROPRIATED FOR22
AFFORDABLE HOUSING PROGRAMS BY THE GENERAL ASSEMBLY IN THAT23
STATE FISCAL YEAR THAT ARE NOT APPROPRIATIONS OF MONEY :24
(A) F
ROM THE SUPPORT FUND OR THE FINANCING FUND ;25
(B) T
HAT ORIGINATED FROM THE CORONAVIRUS STATE FISCAL26
RECOVERY FUND;27
SB25-313
-8- (C) FROM THE GENERAL FUND THAT WERE REFINANCED IN HOUSE1
B
ILL 24-1466;2
(D) T
HAT THE STATE TREASURER TRANSFERRED TO THE HOUSING3
DEVELOPMENT GRANT FUND PURSUANT TO SECTION 24-22-118 (2);4
(E) T
HAT THE STATE TREASURER TRANSFERRED FROM THE5
AFFORDABLE HOUSING AND HOME OWNERSHIP CASH FUND TO THE6
TRANSFORMATIONAL AFFORDABLE HOUSING REVOLVING FUND PURSUANT7
TO SECTION 24-32-731 (9)(d); OR8
(F) T
HAT THE GENERAL ASSEMBLY APPROPRIATED FROM THE9
AFFORDABLE HOUSING AND HOME OWNERSHIP CASH FUND PURSUANT TO10
SECTION 24-32-721.3.11
(II) T
HE REDUCTION IN STATE REVENUE FOR THE STATE FISCAL12
YEAR THAT IS ATTRIBUTABLE TO TAX EXPENDITURES CONCERNING13
AFFORDABLE HOUSING PROGRAMS THAT THE OFFICE OF STATE PLANNING14
AND BUDGETING PROJECTS DURING THE MARCH REVENUE FORECAST THAT15
IMMEDIATELY PRECEDES THE STATE FISCAL YEAR WILL BE CLAIMED IN THE16
STATE FISCAL YEAR; AND17
(III) T
HE REDUCTION IN STATE REVENUE FOR THE STATE FISCAL18
YEAR THAT IS ATTRIBUTABLE TO TAX EXPENDITURES CONCERNING19
AFFORDABLE HOUSING PROGRAMS , IS NOT INCLUDED IN THE PROJECTION20
DESCRIBED IN SUBSECTION (3)(b)(II) OF THIS SECTION, AND IS DESCRIBED21
IN FISCAL NOTES PROVIDED BY THE LEGISLATIVE COUNCIL OF THE GENERAL22
ASSEMBLY PURSUANT TO SECTION 2-2-322.23
SECTION 4. Safety clause. The general assembly finds,24
determines, and declares that this act is necessary for the immediate25
preservation of the public peace, health, or safety or for appropriations for26
SB25-313
-9- the support and maintenance of the departments of the state and state1
institutions.2
SB25-313
-10-