April 20, 2019

HB 14-1017: Modifying Statutory Provisions Related to Housing Investment Trust Fund to Increase Availability of Affordable Housing

On January 8, 2014, Rep. Crisanta Duran and Sen. Jessie Ulibarri introduced HB 14-1017 – Concerning Measures to Expand the Availability of Affordable Housing in the State, and, in Connection Therewith, Making Modifications to Statutory Provisions Establishing the Housing Investment Trust Fund, the Housing Development Grant Fund, and the Low-Income Housing Tax Credit. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

In connection with the existing housing investment trust fund, the bill:

  • Changes the name of the fund from the home investment trust fund to the housing investment trust fund (trust fund);
  • Expands the sources of moneys that may be used to support the trust fund to include any moneys made available by the general assembly, all moneys collected by the division of housing (division) for the purpose of the trust fund from federal grants and from contributions, other grants, gifts, bequests, and donations received from any other organization, entity, or individual, public or private, and any fees or interest earned on such moneys;
  • Clarifies that the division is authorized and directed to solicit, accept, expend, and disburse all moneys collected for the trust fund from the various public and private sources identified in the bill for the purpose of making, not just loans as under existing law, but also loan guarantees, and for program administration. The bill specifies that any moneys in the trust fund at the end of any fiscal year do not revert to the general fund and that moneys in the trust fund are continuously appropriated to the division for the purposes specified in statute.
  • Under current law, upon the approval of the state housing board, the division is authorized to make a loan from moneys in the trust fund to any local housing authority, public nonprofit corporation, or private nonprofit corporation for development or redevelopment costs incurred prior to the completion or occupancy of low- or moderate-income housing or for the rehabilitation of such housing. The bill deletes the enumeration of the entities entitled to borrow such moneys and also eliminates the requirement that such loan moneys may be used for development or redevelopment costs incurred prior to the occupancy of low- or moderate-income housing; and
  • Permits the division to charge the borrower an origination fee for loans made from the trust fund. The fee must be used for direct and indirect costs associated with the administration of the trust fund.

In connection with the existing housing development grant fund (fund), the bill:

  • Expands the permissible uses of moneys in the fund to include program administration;
  • Strikes existing language authorizing the division to make a grant or loan from the fund to finance foreclosure prevention activities, which has been repealed effective June 30, 2011;
  • Eliminates the requirement that the borrower is required to seek replacement loans or funding no later than 180 days from the date of the loan; and
  • Under current law, not more than $250,000 may be appropriated from the general fund in any one state fiscal year for any uses not related to construction grants or loans. The bill changes this requirement so that not more than 20 percent of the balance of moneys in the fund calculated as of July 1 of any state fiscal year may be appropriated from the general fund in any one state fiscal year for any housing-connected uses not related to construction grants or loans.

The bill also deletes obsolete language in existing statutory provisions governing the two funds.

In connection with the existing state low-income housing tax credit, the bill adds as a requirement for establishment of the credit that, where the qualified development contains 100 or more total residential units, at least 10 percent of the residential units in the development must be occupied by qualified residents. Where the qualified development contains less than 100 total residential units, not less than 15 percent of the total number of residential units in the development must be occupied by qualified residents. “Qualified resident” means an occupant of a residential unit in a qualified development whose household income is not more than 30 percent of the adjusted median income of the area in which the qualified development is located.

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