Bill to Expand Local Government Access to Affordable Housing Clears Senate

HB26-1313 would modernize Prop 123 requirements to reflect rising construction costs
DENVER, CO
– The Senate today passed legislation sponsored by Senator Matt Ball, D-Denver, to expand local government access to affordable housing funds.
“Under current Proposition 123 rules, even the most proactive local governments can’t meet production requirements to access affordable housing funds, as rising construction costs continue to put up barriers,”
Ball said.
“This important bill would modernize Prop 123 requirements to allow more local governments to leverage this dedicated funding and create more affordable housing for Colorado families.”
Under current law, local and tribal governments seeking state affordable housing funding through the voter-approved Proposition 123 program must commit to increasing affordable housing units by three percent annually over a three year cycle.
HB26
-1313
, also sponsored by Senator Lisa Frizell, R-Castle Rock, would replace this growth requirement with a target that encompasses each jurisdiction’s pace of development. For each local government, the target would equal the average annual number of permits issued over the past three years for new construction, multiplied by three (for the 3-year cycle), multiplied by a growth factor of 10, 15, or 20 percent, depending on the rate of job growth in the local jurisdiction.
The bill would provide bonus credit toward targets for certain types of affordable housing, like units on donated land, for-sale units, or units for very low-income households. Additionally, it would allow local governments to request waivers if they cannot meet requirements – either a good faith effort waiver for the 2024 cycle or an adjustment waiver for 2027 and beyond.
HB26-1313 now moves back to the House for consideration of amendments. Track its progress
here
.