SB 26-1

Senate Bill 26-1, which has been signed into law in Colorado, aims to make it easier for local governments to develop affordable housing. It allows counties and cities to sell or lease public property for the purpose of creating more affordable homes and gives municipalities flexibility in how they fund these projects through taxes and fees. Additionally, the bill helps businesses claim tax credits without needing to own a stake in specific housing developments, encouraging private investment in middle-income housing. This law is now active and will help local governments create workforce housing by using tax revenues and exempting construction materials from taxation when used for government-led affordable housing projects.

Official Summary

The act allows a board of county commissioners and the governing body of a municipality to sell and dispose of property owned by the county or municipality, as applicable, to provide for affordable housing and allows a municipality to enter into a long-term rental or lease agreement for the development of affordable housing.     The act allows for the approval of a mutijurisdictional housing authority at a biennial local election instead of only during a general election or an election held on the first Tuesday in November of an odd-numbered year. The ballot question about establishing the authority may be combined with a question about a tax, impact fee, multiple-fiscal year debt, or other financial obligation.     The act allows a board of county commissioners to use ad valorem tax revenue for housing authorities, housing programs, and workforce housing.     The act entitles an entity subject to income tax to which a middle-income housing tax credit is transferred by a governmental entity or quasi-governmental entity to claim the credit without owning an interest in a qualified project.     The sale and use of construction materials by contractors is exempt from taxation if the materials are used by the state in its governmental capacity only. The act provides that 'governmental capacity' includes the construction of workforce housing projects undertaken by counties.(Note: This summary applies to this bill as enacted.)

Topics

Votes