C.R.S.
Section 24-32-729
Transformational affordable housing through local investments
- grant program
- investments eligible for funding
- report
- definitions
- repeal
(1)
Definitions.(a)
“Community partner” means a nonprofit organization that undertakes any of the activities or services described in subsection (2)(b) of this section.(b)
“Department” means the department of local affairs.(c)
“Eligible recipient” means a local government or a community partner that applies for a grant through the grant program.(d)
“Fund” means the local investments in transformational affordable housing fund created in subsection (4)(a) of this section.(e)
“Grant program” means the local investments in transformational affordable housing grant program created in subsection (2)(a) of this section.(f)
“Local government” means a county, municipality, city and county, tribal government, special district organized under title 32, school district, district, housing authority, council of governments, a regional planning commission organized under title 30, or any other political subdivision of the state.(g)
“Match” means monetary and nonmonetary contributions to a project.(2)
Creation of the grant program - projects or programs eligible for funding.(a)
There is created in the division the local investments in transformational affordable housing grant program to provide grants to eligible recipients to enable such entities to make investments in their communities or regions of the state in transformational affordable housing and housing related matters in accordance with the requirements of this section. The division shall administer the grant program.(b)
The division may award grants under the grant program to support investments by eligible recipients in projects or programs that:(I)
Develop and integrate infrastructure tied to an affordable housing development, including funding for capital construction and the cost of infrastructure design;(II)
Provide gap financing for housing development projects including but not limited to transactions under the federal low-income housing tax credit and the affordable housing tax credit created in section 39-22-2102 (1) and for the purchase or conversion of existing affordable housing and multifamily developments, land, and buildings, particularly in communities where efforts have been made to encourage affordable housing development or in communities in which low concentrations of affordable housing exist;(III)
Increase new affordable for-sale housing stock by providing funding to assist with the costs of construction, including but not limited to construction costs, land acquisition costs, tap fees, building permits, and impact fees;(IV)
Maintain existing affordable housing through funding for preservation, restoration through rehabilitation, retrofitting, renovation, capital improvements, the repair of current affordable housing stock, including housing made available under 42 U.S.C. sec. 1437f, and public housing for populations and households disproportionately impacted by the COVID-19 pandemic with commitments for long-term affordability. These investments may include but are not limited to:(A)
Senior housing;(B)
Remediation of low-quality and condemned properties;(C)
Housing units that are integrated into nonsegregated housing units that are specifically designed for people living with disabilities;(D)
The purchase and transition of current housing stock, including properties currently in use on a short-term rental basis, into affordable housing on a long-term basis; and(E)
The provision of time-limited rental assistance for households disproportionately impacted by the COVID-19 pandemic and at-risk of losing their home or in need of rapid re-housing, including funding for outreach, housing navigation assistance, and legal services;(V)
Finance energy improvements in single-family and multifamily affordable housing that will provide funding for incremental, up-front costs for efficient, electric measures and renewable energy systems for both existing homes and rental units and new housing construction;(VI)
Provide or maintain property conversion for transitional or long-term housing;(VII)
Provide or maintain permanent supportive housing and supportive services;(VIII)
Provide or maintain land banking and land trust strategies for long-term affordable housing planning and development; and(IX)
Provide or maintain funding for eviction legal defense.(3)
Policies, procedures, and guidelines.(a)
On or before September 1, 2022, the division shall adopt policies, procedures, and guidelines for the grant program that include, without limitation:(I)
The process by which a local government or community partner applies for a grant award and the criteria used to determine eligibility for a grant award;(II)
Procedures and time lines by which an eligible recipient may apply for a grant;(III)
Performance criteria for grant recipients’ projects;(IV)
Reporting requirements for grant recipients; and(V)
Requirements for grant recipients to offer a match in resources.(b)
In awarding grants, the division shall prioritize projects or programs that, to the greatest extent practicable, promote one or more of the following goals and objectives:(I)
Increase the supply of housing in urban, rural, and rural resort communities across the state that is proportional to each community’s demonstrated need through:(A)
A preference for mixed-income projects in which a percentage of units, proportional to the demonstrated housing needs of the local community, within a particular development have restricted availability to households at and below the income levels specified in subsection (3)(c) of this section. The percentage of restricted units and affordability levels must comply with laws enacted by local governments promoting the development of new affordable housing units pursuant to section 29-20-104 (1);(B)
Developments in which housing units are restricted at income levels demonstrated by local community needs as specified in subsection (3)(c)(I) of this section;(C)
Transit oriented development;(D)
The inclusion of housing units that are restricted for rental usage to persons with disabilities or that include universal design features that allow individuals to continue to reside in their dwelling units as they age; or(E)
Housing that is restricted to the victims of domestic violence or sexual assault;(II)
Leverage capital and operating subsidies from various public and private sources;(III)
Create opportunities to build intergenerational wealth for families;(IV)
Promote the long-term affordability of any developments or projects that are funded by the grant program;(V)
Involve the purchase of real property necessary to secure land areas needed for future development; or(VI)
Represent a one-time funding proposal to the state with minimal or no multi-year financial obligations and contribute to the overall well-being and professional and recreational needs of the local workforce and population.(c)
The rental and home ownership targets applicable to local communities across the state as required by subsection (3)(b)(I) of this section are specified in subsection (3)(c)(I) of this section in accordance with the following:(I)
Intentionally left blank —Ed.(A)
For a household residing in housing on a rental basis in urban counties, housing must be targeted to households with an annual income that is at or below eighty percent of the area median income of households of that size in the county in which the housing is located.(B)
For a household residing in housing on a rental basis in rural counties, housing must be targeted to households with an annual income that is at or below one hundred forty percent of the area median income of households of that size in the county in which the housing is located.(C)
For a household residing in housing on a rental basis in rural resort counties, housing must be targeted to households with an annual income that is at or below one hundred seventy percent of the area median income of households of that size in the county in which the housing is located.(D)
For a household residing in housing on a home ownership basis in any area of the state, housing must be targeted to households with an annual income that is at or below one hundred forty percent of the area median income of households of that size in the county in which the housing is located.(II)
Not later than September 1, 2022, the division shall classify each county in the state as “urban”, “rural”, or “rural resort”, as those terms are used in this section, based upon definitions of the terms as specified in the final report of the Colorado strategic housing working group final report dated July 6, 2021. The division shall regularly update and publish modification of the initial classification of a particular county as it receives information documenting changes in local economic circumstances and housing cost factors materially affecting such classifications.(III)
Notwithstanding subsection (3)(c)(I) or (3)(c)(II) of this section, any county or municipality may request from the division:(A)
A determination that a different income restriction should apply to that county or municipality from the one made applicable to the county or municipality in accordance with subsection (3)(c)(I) of this section based upon the unique economic and housing cost factors present in the county or municipality. Not later than September 1, 2022, the division shall publish any such modified income restrictions and the basis for any modification approved.(B)
At any time, a reclassification of the county or municipality from the category in which the county or municipality is initially classified pursuant to subsection (3)(c)(II) based upon the unique economic and housing cost factors present in the county or municipality.(d)
The division shall either create or utilize an existing process that ensures that grants are only considered and awarded after a fair and rigorous open competition among eligible grant recipients.(e)
In determining grant amounts, the division shall seek to increase investments in for-sale housing stock. The objective described in this subsection (3)(e) may be achieved by providing grants under the grant program that are layered with awards under existing state grant programs to increase subsidies on a per-unit basis.(f)
Notwithstanding any other provision of this section:(I)
Through December 31, 2023, the division shall make not more than fifty percent of the money available under the grant program for grant applications, developments, or programs that are proposed for rural or rural resort counties across the state and shall make not more than fifty percent of the funds available under the grant program for grant applications, developments, or programs that are proposed for urban counties across the state.(II)
After December 31, 2023, all unencumbered money available under the grant program may be expended in accordance with this section in any area of the state without regard to the restrictions specified in subsection (3)(f)(I) of this section.(III)
Not later than July 15, 2023, the division shall submit a report to the general assembly specifying the state of encumbered money under the grant program as of June 30, 2023, and a list of projects that have been approved but that are awaiting funding as of June 30, 2023.(g)
In light of differing needs for per housing unit subsidies across different areas of the state, the division may waive per unit subsidy amounts that have been initially set for particular projects or programs to adjust for market factors if the purpose of the project has been accomplished or to satisfy the intent of the grant award.(h)
Notwithstanding any other provision of this section, the amount of any grant award under the grant program and any restrictions or conditions placed upon the use of grant money awarded is within the discretion of the division in accordance with the requirements of this section.(4)
Funds.(a)
The local investments in transformational affordable housing fund is created in the state treasury. The fund consists of money transferred to the fund pursuant to subsection (4)(c) of this section; money appropriated to the fund by the general assembly; and any gifts, grants, or donations from any public or private sources, including governmental entities, that the division is authorized to seek and accept.(b)
The state treasurer shall credit all interest and income derived from the investment and deposit of money in the fund to the fund. Except as otherwise required by this subsection (4)(b), all money not expended or encumbered, and all interest earned on the investment or deposit of money in the fund, must remain in the fund and shall not revert to the general fund or any other fund at the end of any fiscal year. The money in the fund is continuously appropriated to the division for the purposes of this section. Any money in the fund that is not expended or obligated by December 30, 2024, reverts to the “American Rescue Plan Act of 2021” cash fund created in section 24-75-226 (2) in accordance with section 24-75-226 (4)(d).(c)
On June 1, 2022, or as soon as practicable thereafter, the state treasurer shall transfer one hundred thirty-eight million dollars from the affordable housing and home ownership cash fund created in section 24-75-229 (3)(a) that originates from money the state received from the federal coronavirus state fiscal recovery fund to the fund. The money transferred pursuant to this subsection (4) must only be used for:(I)
Making grants to eligible recipients pursuant to the grant program; and(II)
The costs of administering the grant program as may be incurred by the division. The department may expend up to six percent of the money appropriated or transferred to the fund to pay for its direct and indirect costs in administering the grant program. All such administrative costs must be paid out of the money transferred to the fund pursuant to this subsection (4)(c).(5)
Reporting.(a)
In connection with the public report the division prepared in accordance with section 24-32-705.5 (1), for the report prepared in 2023 and 2024, the division shall include in the report information summarizing the use of all of the money that was awarded as grants from the grant program in the preceding state fiscal year. At a minimum, the information included in the report pertaining to the grant program must specify the number of local governments or community partners that applied for a grant award, including the number of local governments or community partners that were not awarded a grant; the amount of grant money distributed to each grant recipient; a description of each grant recipient’s use of the grant money; and how the use of the grant awarded furthered the vision of transformational affordable housing described in the final report of the task force established in section 24-75-229 (6)(a). The division shall also include in the report its recommendations concerning future administration of the grant program.(b)
The division and any person that receives money from the division pursuant to the grant program shall comply with the compliance, reporting, record-keeping, and program evaluation requirements established by the office of state planning and budgeting and the state controller in accordance with section 24-75-226 (5).(6)
Repeal.
Source:
Section 24-32-729 — Transformational affordable housing through local investments - grant program - investments eligible for funding - report - definitions - repeal, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-24.pdf (accessed Oct. 20, 2023).
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