SB 22-159

Senate Bill 22-159 establishes a new loan program in Colorado aimed at funding affordable housing projects. The program, called the Transformational Affordable Housing Revolving Loan Fund, provides low-interest loans to help finance eligible housing projects identified by the state. It also sets up requirements for how these loans are administered and ensures that any loans made to local districts comply with voter approval rules if necessary. As of now, $150 million has been transferred from another fund to support this initiative, and the program is officially signed into law. This means that it will start providing financial assistance to projects aimed at increasing affordable housing options across Colorado.

Official Summary

The act creates the transformational affordable housing revolving loan fund program (loan program) in the division of housing (division) in the department of local affairs (department) as a revolving loan program in accordance with the requirements of the act 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 act. 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 loan program, the division may enter into a contract with a third-party entity to administer the loan program. Any 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 the TABOR amendment to the state constitution, must either be approved by the voters of the district in accordance with TABOR 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 TABOR. The act specifies eligibility requirements in order for projects to be funded under the loan program. The division is required to establish and publicize policies for the loan program. The division is encouraged to consider prioritizing applications for funding that satisfy certain objectives specified in the act. The transformational affordable housing revolving loan fund (fund) is created in the state treasury and the act specifies requirements pertaining to the administration of the fund. On July 1, 2022, the state treasurer is required to transfer $150 million from the affordable housing and home ownership cash fund 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. For the 2022-23 state fiscal year, the act appropriates $379,081 to the office of the governor for use by the office of information technology (OIT). The appropriation is from reappropriated money from the fund. To implement the act, OIT may use the appropriation to provide information technology services for the department. (Note: This summary applies to this bill as enacted.)

Related Legislation

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