SB 25-006

Senate Bill 25-006, which has been signed into law, allows Colorado's state treasurer to invest up to $50 million in special bonds that help create affordable homes for sale. These homes are meant for people earning up to 140% of the area’s median income and would likely not be built without this investment. The bill ensures these homes stay affordable over time and requires regular updates on how the money is being used. This law aims to make homeownership more accessible for low- and moderate-income families in Colorado.

Official Summary

The act authorizes the state treasurer to invest up to $50 million of state money in bonds, which may have below-market interest rates, that are issued by a quasi-governmental authority to create or finance new affordable, income-restricted for-sale housing that would not be made available at similar rates and terms without the state's investment. The housing must remain affordable long-term and be available to borrowers earning no more than 140% of the statewide area median income. The bonds may have a term of up to 45 years and must have at least 2 credit ratings at or above A- or A3 or its equivalent from nationally recognized rating organizations. Money from principal proceeds of such bonds must be reinvested by the state treasurer for the same purpose once the state treasurer has received repayment of 50% of the principal amount invested. The quasi-governmental authority issuing the bonds shall provide an annual report to the treasurer and the general assembly that includes specified information about the affordable housing created with bond proceeds. (Note: This summary applies to this bill as enacted.)

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