SB 25-313

Senate Bill 25-313, which is based on Proposition 123 approved by voters in 2022, allocates money from the affordable housing support fund to help with programs for affordable homeownership and services for people experiencing homelessness. Starting in fiscal year 2026-27, it requires annual approval by lawmakers for up to 5% of these funds to cover administrative costs. Additionally, it allows the division of housing to use money from this fund for capital improvements at two state-owned supportive residential communities and their operating costs. The bill also clarifies rules around using these funds without replacing other state funding meant for affordable housing projects. Since the governor has signed this bill into law, its provisions will now be implemented as described.

Official Summary

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 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 act 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 act 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 act clarifies when appropriations from the fund and the affordable housing financing fund would violate this prohibition. (Note: This summary applies to this bill as enacted.)

Votes