C.R.S.
Section 29-4-1102
Legislative declaration
(1)
The general assembly finds and declares that:(a)
There is an acute shortage of affordable middle-income housing in the state, particularly in fast-growing areas where jobs are being created. Housing is increasingly not affordable for essential workers such as nurses, teachers, firefighters, and other members of communities who earn too much to qualify for governmental housing subsidies and for whom the market is not building new housing.(b)
For most of Colorado’s post-war history, the private market provided an abundant supply of starter homes for middle-income earners. As costs have escalated in high-cost housing markets, private investors have shifted their focus to financing housing for only the top earners in the marketplace, where high returns on investment can still be achieved. In the Denver metro area, not only are there fewer affordable rental units built every year, but there are also fewer affordable rental properties in total. This same trend is occurring in all high-cost communities across the state.(c)
There are established markets to raise capital to finance affordable housing for low-income individuals who qualify for governmental housing subsidies, generally those whose income is sixty percent, or in some cases eighty percent, or less of area median income, through the sale of federal and state low-income housing tax credits and tax-exempt bonds;(d)
Even with historic state investment this year of hundreds of millions of dollars for affordable housing, the statewide need is in the billions; even with the general assembly’s investment, there simply is not enough capital available to finance the middle-income workforce housing, leaving a damaging void of housing supply for middle-income individuals, families, and communities;(e)
In order to solve for the acute shortage of affordable middle-income housing, a mechanism is needed that will robustly increase the supply of affordable middle-income housing by raising large amounts of private sector capital to finance projects that can be placed into service quickly and efficiently. The creation of the middle-income housing authority is such a mechanism.(f)
The authority will be able to place projects into service quickly and efficiently because it will rely on the expertise of local governments, nonprofit organizations, and experienced real estate industry professionals to identify, propose, develop, and operate its projects;(g)
The authority’s housing units will remain affordable with stable rents because they will be owned by the authority and operated by experienced and competent operators at the authority’s direction, in perpetuity;(h)
Increasing affordable rental workforce housing through the activities of the authority and the exercise of its plenary powers pursuant to this part 11 is in the public interest and is a matter of statewide concern. The activities of the authority will comply with fair housing laws and promote a substantial, legitimate, and nondiscriminatory interest of the state that cannot be served by another practice that has a less discriminatory effect; and(i)
A public-private partnership entered into by the authority in connection with an affordable rental housing project or in connection with providing housing assistance to tenants of an affordable rental housing project in accordance with this part 11 serves a public purpose and does not, therefore, violate section 2 of article XI of the state constitution.
Source:
Section 29-4-1102 — Legislative declaration, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-29.pdf (accessed Oct. 20, 2023).
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