HomeMy WebLinkAbout2022-10-25 VLHA Agenda
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Vail Local Housing Authority Minutes
September 27, 2022
3:00 PM
Town Council Chambers and Virtually via Zoom
75 S. Frontage Road - Vail, Colorado, 81657
PRESENT ABSENT
Steve Lindstrom Craig Denton
James Wilkins
Kristin Williams
Dan Godec via phone
STAFF
George Ruther, Housing Director
Missy Johnson, Housing Coordinator
1. Call to Order
1.1. Call to Order at 3 p.m. with a quorum present. Craig Denton joined within 5 minutes of the
meeting beginning.
2. Citizen Participation
2.1. Citizen Participation
There are no comments.
3. Approval of Minutes
3.1. VLHA September 13, 2022 Minutes
Tabled to next meeting
4. Main Agenda
4.1
Communicating Housing Matters
Presenter(s): Kris Widlak
Tabled to a future meeting
4.2
2027 Strategic Housing Plan Update
Presenter(s): George Ruther, Director of Housing and Steve Lindstrom, VLHA Chairman
Tabled to a future meeting
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4.3
Town Council Direction on Community Housing Lottery Ticket Eligibility
Presenter(s): George Ruther, Director of Housing and Missy Johnson, Housing Coordinator
George reviewed the accompanying memo reflecting Town Council direction for the upcoming
Community Housing Lotteries. Three options were presented to the Council, which came from
a melding of direction or desires that have come from the Council and the Authority.
The objective of this initiative is to amend the lottery eligibility requirements for housing
lotteries ensuring credibility and integrity within the lottery process. The Town Council asked to
see a requirement for a home buyer education class completed before the application
deadline. They are still weighing out the desire to provide additional tickets in support of
longevity of working in Vail, but understand the need for streamline verification.
Discussion ensured around the memo and agreement to present a singular suggestion at the
upcoming Council meeting. In addition to detailing specific verification document will be
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accepted, the Authority came to consensus for the 2 option on the memo and the Housing
Staff will present the following at an upcoming Council meeting.
(3) TICKETS TOTAL One ticket for a complete application, one for not owning residential
property in Vail, one for a history of applying for 1 or more TOV housing lotteries and not being
selected
5. Matters from the Chairman and Authority Members
5.1. Matters from the Chairman and Authority Members
Presenter: Steve Lindstrom, Chairman
Reminder for next meeting that the VLHA will focus on the Goals and Recommendations
for the Entitlement Process;
Conversation ensued
A previous Vail Local Housing Authority agenda items discussed with Matt Gennett, was
the desire from the Authority to improve the entitlement process related to Employee
Housing Developments.
Steve proposed to direct the housing staff to secure 10 minutes in an upcoming Town
Council meeting. The Authority agreed that the Authority shall present a one-page
memorandum at the October 18, 2022 and George will check on the availability to
present.
Additionally a joint session for discussion of Housing Matters is scheduled for Tuesday,
November 15, 2022 for the Authority to pencil in to their calendars.
George highlighted a Timber Ridge update regarding the due diligence work is getting
done on-site related to the redevelopment.
Planning commission for West Middle Creek was up but it was tabled to the second
meeting in October.
Rental opportunities for the displacement of the current renters of Timber Ridge is an
ongoing conversation.
Wilkins moved to enter Executive Session.
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MOTION: WILKINS SECOND: WILLIAMS VOTE: 3-0 APPROVED
6. Executive Session
6.1. Executive Session per C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition,
lease, transfer or sale of real, personal or other property interests and to determine
positions relative to matters that may be subject to negotiations regarding: Vail InDEED
applications and deed restrictions.
Presenter(s): George Ruther, Housing Director
Wilkins moved to exit executive session and move into the regular meeting at
VLHA reentered the regular meeting with Lindstrom, Wilkins, Williams, Ruther and
Johnson present at 3:48 p.m. Dan Godec was with us for Executive Session but has
departed the meeting.
Wilkins moved to direct the staff to move forward with the recommendations presented at
Executive Session.
MOTION: WILKINS SECOND: WILLIAMS VOTE: 3-0 APPROVED
7. Any Action as a Result of Executive Session
7.1. Any Action as a Result of Executive Session
WILKINS moved to make a recommendation to direct staff to continue with Vail InDEED
action as discussed in executive session.
MOTION: WILKINS SECOND: WILLIAMS VOTE: 3-0 APPROVED
8. Adjournment
a. Adjournment 3:45 p.m.
MOTION: WILKINS SECOND: WILLIAMS VOTE: 3-0 APPROVED
9. Future Agenda Items
VLHA 101 continued
Land Banking (sale of GRFA)
Investment Banker Discussion
Update to Vail Housing 2027
10. Next Meeting Date
10.1 Next Meeting Date October 11, 2022
Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail
website www.vailgov.com. All housing authority meetings are open to the public. Times
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and order of agenda are approximate, subject to change, and cannot be relied upon to
determine at what time the Vail Local Housing Authority will discuss an item. Please call
(970) 479-2150 for additional information. Please call 711 for sign language interpretation
48 hours prior to meeting time.
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Vail Local Housing Authority Minutes
October 11, 2022
3:00 PM
Town Council Chambers and Virtually via Zoom
75 S. Frontage Road - Vail, Colorado, 81657
PRESENT ABSENT
Steve Lindstrom
Craig Denton
James Wilkins
Kristin Williams
Dan Godec
STAFF
George Ruther, Housing Director
Martha Anderson, Housing Coordinator
Missy Johnson, Housing Coordinator
1. Call to Order
1.1. Call to Order at 3 p.m. with a quorum present. Craig Denton joined within 5 minutes of the
meeting beginning.
2. Citizen Participation
2.1. Citizen Participation
There are no comments.
3. Approval of Minutes
3.1. VLHA September 13, 2022 Minutes
Wilkins moved to approve the minutes.
MOTION: WILKINS SECOND: DENTON VOTE: 5-0 APPROVED
4. Main Agenda
4.1 Resolution No. 4, Series of 2022, A Resolution
Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed
Restriction) in the Town of Vail Legally Described as Bldg B Subdivision: Wren House
Unit: 14, Eagle County, Colorado with a Physical Address of 5024 Main Gore Dr. S #B14,
Vail, Colorado; and Setting Forth Details in Regard Thereto.
Presenter(s): George Ruther
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Wilkins moved to approve the resolution.
MOTION: WILKINS SECOND: DENTON VOTE: 5-0 APPROVED
4.2 Goals and Recommendations for the Entitlement Process
Presenter(s): George Ruther, Director of Housing and Steve Lindstrom, VLHA Chairman
The Authority discussed next steps based on the overview process that town staff
member, Matt Gennett presented to the Authority a few weeks ago.
Lindstrom used an example of the recent review of an application to review the rezoning
of Middle Creek at PEC. The discussion was tabled as the staff has three sets of
demands to work on. The request of council to address the entitlement process will not
happen until the next meeting or two as it is not to be focused on this particular project.
Ruther suggests to present some objectives and begin the Authoritys discussion there
and aim to take a different perspective of how do we get to yes. Anything we can from an
objective standpoint to minimize development risk it might garner greater support from the
private sector.
Conversations ensued around it being more of a facilitating role vs a regulating role for
staff to use expert knowledge and building code. Council will be able to assist with
Council and then it is enforced at staff level.
Vails New Dawn is a good example of the public and private sector working together and
process was changed in order to be successful. This was a compelling public interested
that required a streamlined process.
Consideration of fee structures is another consideration.
Authority will continue to work on refining objectives, ideas and narrowing it down to main
points for future discussion. This will help to guide which strategies to pursue.
5. Matters from the Chairman and Authority Members
5.1. Matters from the Chairman and Authority Members
Presenter: Steve Lindstrom, Chairman
Related to the ballot issue to retain the sales tax for housing this first year, the Vail
Economic Advisory Council requested assistance from the Authority to be a voice to share
the pros and cons of the ballot issue.
A homebuyer class is scheduled for October 25, 2022 from 10 11:30 a.m. in the Grand
View Room. Please watch for flyer from housing staff.
We will have the opportunity to discuss real property acquisitions with the Council on
October 18, 2022.
6. Adjournment
a. Adjournment 3:55 p.m.
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MOTION: WILKINS SECOND: GODEC VOTE: 4-0 APPROVED
7. Future Agenda Items
VLHA 101 continued
Land Banking (sale of GRFA)
Investment Banker Discussion
Update to Vail Housing 2027
10. Next Meeting Date
10.1 Next Meeting Date October 25, 2022
Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail
website www.vailgov.com. All housing authority meetings are open to the public. Times
and order of agenda are approximate, subject to change, and cannot be relied upon to
determine at what time the Vail Local Housing Authority will discuss an item. Please call
(970) 479-2150 for additional information. Please call 711 for sign language interpretation
48 hours prior to meeting time.
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Town of Vail Ballot Issue 2I–Fact Sheet
What isBallot Issue2I?
Without increasing the tax rate, 2Iwould authorize the town to retainthe0.5% housing sales tax collected
in 2022 in excess of the $4.5 million approved by Town of Vail voters in November 2021. The ballot
language is as follows:
Ballot Issue 2I:
Ballot Title: Authorizing the retention of excess revenue from the Town's sales tax to be retained
and spent on housing initiatives.
Ballot Text:
WITHOUT IMPOSING ANY NEW TAX OR INCREASING THE RATE OF ANY EXISTING TAX, SHALL
THE TOWN OF VAIL BE AUTHORIZED TO RETAIN AND EXPEND WITHOUT LIMITATION THE
EXCESS REVENUE RECEIVED BY THE TOWN FROM THE 0.5% SALES TAX LEVIED PURSUANT
TO BALLOT ISSUE 2A PASSED BY THE TOWN'S REGISTERED ELECTORS ON NOVEMBER 2,
2021; PROVIDED THAT THE FUNDS SHALL BE USED FOR HOUSING INITIATIVES, HOUSING
DEVELOPMENTS AND HOUSING PROGRAMS AND RELATED ACTIVITIES INSIDE AND OUTSIDE
THE TOWN?
Why does the town need voter approval to retain the excess collections?
Colorado’s Taxpayer Bill of Rights (TABOR) prohibits first-year collections of any new tax to exceed the
amount stated in the original ballot language. Years 2023 and beyond do not restrictannual tax collection
amounts.
Why does the town expectto exceed the collection limit in 2022?
Collections are significantly higher than estimates based on trend forecasts evaluated when writing 2021
Ballot Issue 2Abecause of the unforeseen increases in economic activity during the 2022 winter ski
season and the inflationary price increases across sectors. The original ballot language projected that the
new 0.5% tax collection would not exceed $4.5M in 2022. Current forecastsproject collections to total
$5.3M in 2022.
How would the money from 2I be spent?
As with all funds generated by the 0.5% voter-approved housing sales tax, the excess funds would be
dedicated to funding housing initiatives, housing developments,and housing programs. The funds may
be used for projects outside of town boundaries, as long as they are for programs that benefit the Vail
community.
What happens if voters do not approve Ballot Issue 2I?
If Voters do not approve Ballot Issue 2Iand the town exceeds collection limits, TABORrequiresthe town
to pay a 10% penalty and “refund” the excess collections through a temporary pause in collections, for
example asking merchants to stop collecting the half cent of tax during the months of January and
February until the excess amount collected is reached.
Who can vote on Ballot Issue 2I?
Registered voters within the Town of Vail are eligible to vote on 2I.To check registration status, go to
www.govotecolorado.com. The 2Iballot question is contained within the Eagle County coordinated mail
ballot. Details here: Voting and Elections (eaglecounty.us)
Source: Town of Vail Finance Department
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Legislative Council Draft
Proposition 123: Dedicate Revenue
for Affordable Housing Programs
Placed on the ballot by citizen initiative • Passes with a majority vote
1 Proposition 123 proposes amending the Colorado statutes to:
2 set aside a portion of annual state income tax revenue for affordable housing
3 programs;
4 exempt that money from the state’s revenue limit, thereby reducing the
5 amount of money collected above the limit that is returned to taxpayers; and
6 establish eligible uses for this money.
7 What Your Vote Means
8 A “yes” vote on A “no” vote on Proposition 123
YES NO
9 Proposition 123 sets aside means that state revenue will
10 money for new affordable housing continue to be spent on priorities as
11 programs and exempts this money from determined by the state legislature or
12 the state’s revenue limit. This should not returned to taxpayers, as under current
13 be visiblelaw.
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Legislative Council Draft
Summary and Analysis for Proposition 123
1 What does the measure do?
2 The measure sets aside a portion of annual income tax revenue from the state
3 General Fund, up to 0.1 percent of taxable income each year, for affordable
4 housing programs administered by the state Office of Economic Development
5 and International Trade (OEDIT) and the Colorado Department of Local Affairs
6 (DOLA). This amount, which the measure exempts from the state’s constitutional
7 revenue limit, is estimated to be $145 million in state budget year 2022-23 and
8 $290 million in state budget year 2023-24 and beyond. The measure specifies
9 the uses for the dedicated funds, including:
10 grants and loans to local governments and nonprofit organizations to
11 acquire and preserve land for affordable housing development;
12 assistance to develop affordable, multi-family rental housing;
13 equity investments in affordable housing projects, including a program to
14 share home equity with tenants;
15 home ownership programs and down payment assistance for first-time
16 homebuyers;
17 a program addressing homelessness through rental assistance and
18 eviction defense; and
19 grants to increase the capacity of local government planning
20 departments.
21 The measure requires that this funding add to, and not replace, existing state
22 funds spent on affordable housing.
23 What is affordable housing?
24 The measure defines affordable housing based on two factors: household
25 income and housing costs. For certain programs, a household’s income is
26 compared to the area median income, or the midpoint of what households in a
27 specific area earn. As defined in the measure, affordable housing means
28 housing for renters making up to 60 percent of the area median income, or
29 homeowners making up to 100 percent of the area median income. Some of the
30 new programs may benefit households at higher income levels. Table 1 shows
31 examples of area median income for several areas in Colorado.
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Legislative Council Draft
1 Table 1
2 Examples of Area Median Income in Colorado for a Four-Person Household
Area (County or Metro Area) Median Income 60% of Median
Boulder County $125,400 $75,200
Denver-Aurora-Lakewood $117,800 $70,700
Mesa County $83,500 $50,100
Pueblo County $68,600 $41,200
Alamosa County $53,400 $32,000
Source: FY 2022 Rounded MFI Estimate, U.S. Department of Housing and Urban Development.
3 For a housing unit or project to qualify as affordable housing, housing costs must
4 not exceed 30 percent of the household’s income. Housing costs typically
5 consist of rent or mortgage payments, but may include other costs such as
6 utilities.
7 What is the state currently doing to support affordable housing?
8 The statepartners with local communities to increase and preserve Colorado’s
9 affordable housing stock, manage rental assistance vouchers, and address
10 homelessness. The DOLA serves households with varied income levels and
11 circumstances with grants and loans to provide developers, community
12 organizations, public housing authorities, and local governments with money to
13 acquire, modernize, and build housing and to assist buyers with down payments
14 for homes. The current budget for the department’s affordable housing initiatives
15 is about $200 million, about half of which is from state sources, with the rest
16 coming from federal sources.
17 Since 2021, the state has allocated over $1.2 billion from the federal American
18 Rescue Plan Act (ARPA) of 2021 for affordable housing and services that
19 address housing insecurity, lack of affordable and workforce housing, or
20 homelessness. These are one-time funds that will be spent over the next several
21 years specifically on:
22 emergency rental assistance;
23 homeowner mortgage assistance;
24 tax credits for developers;
25 housing and infrastructure; and
26 other housing solutions, such as manufactured homes.
27 How do the programs created by Proposition 123 work?
28 The measure creates the following programs with a focus on higher density,
29 environmentally sustainable projects serving households with a range of income
30 levels. For projects to qualify for funding, the local governments where the
31 projects are located must commit to increasing affordable housing by 3 percent
32 each year and create a fast-track approval process for affordable housing
33 projects. If a local government chooses not to meet these requirements, or if it
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Legislative Council Draft
1 fails to achieve its affordable housing goals, projects in that municipality or
2 county will be temporarily ineligible for funding from these programs.
3 Table 2 describes each proposed program, including the state agency that
4 oversees it and the amount of money the program will receive based on the
5 estimated $290 million set aside in state budget year 2023-24. Note that
6 programs overseen by OEDIT are run by a third-party administrator. A range of
7 funding is available for these programs, as shown in the table. Some of the
8 money for each program will be used for administrative expenses.
9 Table 2
10 Programs and Estimated Funding Created by Proposition 123
Land Banking OEDIT $26.1 million - $43.5 million
Provides grants to local governments and loans to nonprofit organizations with a
history of providing affordable housing. The funds help buy land for affordable housing
development.
Affordable Housing EquityOEDIT$69.6 million -$121.8 million
Invests in new and existing low- and middle-income, multi-family rental units.
Provides renters living in these units for at least a year with a share of the money made
on the development, called a tenant equity vehicle. This money may be used for the
renters’ future purchase of a home, such as a down payment.
Concessionary Debt OEDIT $26.1 million - $60.9 million
Finances new and existing low- and middle-income multi-family rental units, projects
that qualify for federal low-income housing tax credits, and modular and factory-built
housing manufacturers.
Affordable Home Ownership DOLA up to $58.0 million
Offers down payment assistance to first-time homebuyers. Makes grants or loans to
nonprofits and community land trusts to support home ownership, and to mobile home
owners’ associations to help purchase mobile home parks.
Homelessness DOLA up to $52.2 million
Provides rental assistance, housing vouchers, and eviction defense to people
experiencing, or at risk of experiencing, homelessness. Makes grants or loans to
support new and existing supportive housing for people experiencing homelessness.
Local Government Capacity Building DOLA up to $5.8 million
Provides grants to local governments to support their planning departments in
processing land use, permit, and zoning applications for housing projects.
11 OEDIT is the Office for Economic Development and International Trade.
12 DOLA is the Department of Local Affairs.
13 How does the measure affect TABOR refunds?
14 The income tax revenue that is set aside under the measure is considered a
15 voter-approved revenue change and is therefore not subject to the state’s
16 constitutional revenue limit, also called the Taxpayer’s Bill of Rights (TABOR)
17 limit. TABOR limits state government revenue to an amount adjusted annually
18 for inflation and population growth. Revenue collected under the limit may be
19 spent or saved. Revenue collected over the limit must be returned to taxpayers
20 unless voters approve a measure allowing the government to keep it.
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Legislative Council Draft
1 In years where state revenue exceeds the TABOR limit, the measure reduces the
2 money returned to taxpayers by the amount of income tax revenue that that the
3 measure allows the state to keep. In years where state revenue is below the
4 TABOR limit, the measure does not impact TABOR refunds, but may reduce the
5 amount of money available for the rest of the state budget. In this case, the
6 measure allows the state legislature to reduce part of the new funding to the
7 affordable housing programs to balance the state budget. The state currently
8 expects to return money collected above the limit through at least the 2023-24
9 budget year.
For information on those issue committees that support or oppose the
measures on the ballot at the November 8, 2022, election, go to the
Colorado Secretary of State’s elections center web site hyperlink for ballot
and initiative information:
http://www.sos.state.co.us/pubs/elections/Initiatives/InitiativesHome.html
10 Arguments For Proposition 123
11 1) The measure creates a sustainable source of funds to tackle housing issues
12 without raising tax rates, and gives local communities the flexibility to respond
13 to their specific needs. The state and local governments are not doing
14 enough to keep Colorado affordable.
15 2) Colorado’s housing prices make it too hard for many households to afford
16 rent or to buy their own home. The new programs help Coloradans
17 participate in the housing market now and in the future. Creating more
18 homes will allow residents and essential workers to remain in their
19 communities.
20 Arguments Against Proposition 123
21 1) Many of these programs do not address the underlying causes of high
22 housing costs. Pumping money into the market may distort it further, and the
23 real beneficiaries will be landlords and housing developers. This is neither
24 the role of government nor the best use of public resources.
25 2) The measure is unnecessary and will reduce Coloradans’ future TABOR
26 refunds. The state already provides resources to support affordable housing,
27 including over $1 billion in federal stimulus funds allocated in recent years.
28 Plus, the new programs will be limited if local governments cannot or will not
29 meet the requirements.
30 Fiscal Impact for Proposition 123
31 Proposition 123 increases state government spending by transferring money
32 from the state General Fund to pay for affordable housing programs. While the
33 measure does not change state revenue, it reduces the amount returned to
34 taxpayers in years when state revenue is over the TABOR revenue limit. These
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Legislative Council Draft
1 impacts are discussed below. The state budget year runs from July 1 through
2 June 30.
3 Transfers of state funds. Proposition 123 transfers an estimated $145 million
4 in the 2022-23 budget year and $290 million in the 2023-24 budget year and later
5 years. These amounts are divided between programs in the Office of Economic
6 Development and International Trade, which receives 60 percent, and the
7 Department of Local Affairs, which receives 40 percent.
8 State spending. The money transferred under Proposition 123 is required to be
9 spent for affordable housing programs and for administration of those programs.
10 Programs are funded the year after the transfer occurs. For example, the money
11 transferred in the 2022-23 budget year pays for programs in the 2023-24 budget
12 year, and so on.
13 Office of Economic Development and International Trade. Sixty
14 percent of total transfers are paid to the Affordable Housing Financing
15 Fund, estimated at $87 million in the 2022-23 budget year and $174
16 million in the 2023-24 budget year. Money in the fund is spent for the
17 land banking program, the affordable housing equity program, and the
18 concessionary debt program. A third party administrator is allowed to
19 keep 2 percent of funds for its administrative costs.
20 Department of Local Affairs. Forty percent of total transfers are paid to
21 the Affordable Housing Support Fund, estimated at $58 million in the
22 2022-23 budget year and $116 million in the 2023-24 budget year.
23 Money in the fund is spent for the affordable homeownership program,
24 the homelessness program, and the local capacity development program.
25 The department is allowed to keep 5 percent of funds for its
26 administrative costs.
27 Taxpayer impacts. Proposition 123 will decrease the amount to be returned to
28 taxpayers for years when state revenue is over the TABOR revenue limit. Based
29 on forecasts from June 2022, Proposition 123 is expected to decrease the
30 amount returned by $145 million in tax year 2023 and $290 million in tax year
31 2024. The impacts on taxpayers depend on how this money would be returned.
32 Based on the number of income tax returns for tax year 2018, Proposition 123 is
33 estimated to decrease the amount returned by $43 per taxpayer in tax year 2023
34 and $86 per taxpayer in tax year 2024.
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2nd Draft
Proposition ?: Dedicate Revenue for
Affordable Housing Programs
Placed on the ballot by citizen initiative • Passes with a majority vote
1 Proposition ? proposes amending the Colorado statutes to:
2 set aside a portion of annual state income tax revenue for affordable housing
3 programs;
4 exempt that money from the state’s revenue limit, thereby reducing the
5 amount of money collected above the limit that is returned to taxpayers; and
6 establish eligible uses for this money.
7 What Your Vote Means
8 A “yes” vote on A “no” vote on Proposition ?
YES NO
9 Proposition ? sets aside means that state revenue will
10 money for new affordable housing continue to be spent on priorities as
11 programs and exempts this money from determined by the state legislature or
12 the state’s revenue limit. This should not returned to taxpayers, as under current
13 be visiblelaw.
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2nd Draft
Summary and Analysis for Proposition ?
1 What does the measure do?
2 The measure sets aside a portion of annual income tax revenue from the state
3 General Fund, up to 0.1 percent of taxable income each year, for affordable
4 housing programs administered by the state Office of Economic Development
5 and International Trade (OEDIT) and the Colorado Department of Local Affairs
6 (DOLA). This amount, which the measure exempts from the state’s constitutional
7 revenue limit, is estimated to be $145 million in state budget year 2022-23 and
8 $290 million in state budget year 2023-24 and beyond. The measure specifies
9 the uses for the dedicated funds, including:
10 grants to local governments and nonprofit organizations;
11 assistance to develop affordable, multi-family rental housing;
12 equity investments in affordable housing projects, including tenant equity
13 sharing;
14 home ownership programs and down payment assistance for first-time
15 homebuyers;
16 a program addressing homelessness through rental assistance and eviction
17 defense; and
18 local government planning and zoning support.
19 The measure requires that this funding add to, and not replace, existing state
20 funds spent on affordable housing.
21 What is affordable housing?
22 The measure defines affordable housing based on two factors: household
23 income and housing costs. For certain programs, a household’s income is
24 compared to the area median income, or the midpoint of what households in a
25 specific area earn. In general, these programs apply to renters making up to 60
26 percent of the area median income, or homeowners making up to 100 percent of
27 the area median income. Table 1 shows examples of area median income for
28 several areas in Colorado.
29 Table 1
30 Examples of Area Median Income in Colorado for a Four-Person Household
Area (County or Metro Area) Median Income 60% of Median
Boulder County $125,400 $75,200
Denver-Aurora-Lakewood $117,800 $70,700
Mesa County $83,500 $50,100
Pueblo County $68,600 $41,200
Alamosa County $53,400 $32,000
Source: FY 2022 Rounded MFI Estimate, U.S. Department of Housing and Urban Development.
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2nd Draft
1 For a housing unit or project to qualify as affordable housing, housing costs must
2 not exceed 30 percent of the household’s income. Housing costs typically
3 consist of rent or mortgage payments, but may include other costs such as
4 utilities.
5 What is the state currently doing to support affordable housing?
6 The statepartners with local communities to increase and preserve Colorado’s
7 affordable housing stock, manage rental assistance vouchers, and address
8 homelessness. The DOLA serves households with varied income levels and
9 circumstances with grants and loans to provide developers, community
10 organizations, public housing authorities, and local governments with money to
11 acquire, modernize, and build housing and to assist buyers with down payments
12 for homes. The current budget for the department’s affordable housing initiatives
13 is about $200 million, about half of which is from state sources, with the rest coming
14 from federal sources.
15 Since 2021, the state has allocated over $1.2 billion from the federal American
16 Rescue Plan Act (ARPA) of 2021 for affordable housing and services that address
17 housing insecurity, lack of affordable and workforce housing, or homelessness.
18 These are one-time funds that will be spent over the next several years specifically
19 on:
20 emergency rental assistance;
21 homeowner mortgage assistance;
22 tax credits for developers;
23 housing and infrastructure; and
24 other housing solutions, such as manufactured homes.
25 How do the programs created by Proposition ? work?
26 The measure creates the following programs with a focus on higher density,
27 environmentally sustainable projects serving households with a range of income
28 levels. For projects to qualify for funding, the local governments where the
29 projects are located must commit to increasing affordable housing by 3 percent
30 each year and create a fast-track approval process for affordable housing
31 projects. If a local government chooses not to meet these requirements, or if it
32 fails to achieve its affordable housing goals, projects in that municipality or
33 county will be temporarily ineligible for funding from these programs.
34 Table 2 describes each proposed program, including the state agency that
35 oversees it and the amount of money the program will receive based on the
36 estimated $290 million set aside in state budget year 2023-24. Note that
37 programs overseen by OEDIT are run by a third-party administrator. A range of
38 funding is available for these programs, as shown in the table. Some of the
39 money for each program will be used for administrative expenses.
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2nd Draft
1 Table 2
2 Programs and Estimated Funding Created by Proposition ?
Land Banking OEDIT $26.1 million - $43.5 million
Provides grants to local governments and loans to nonprofit organizations with a
history of providing affordable housing. The funds help buy land for affordable housing
development.
Affordable Housing EquityOEDIT$69.6 million -$121.8 million
Invests in new and existing low- and middle-income, multi-family rental units.
Provides renters living in these units for at least a year with a share of the money made
on the development, called a tenant equity vehicle. This money may be used for the
renters’ future purchase of a home, such as a down payment.
Concessionary DebtOEDIT$26.1 million -$60.9 million
Finances new and existing low- and middle-income multi-family rental units, projects
that qualify for federal low-income housing tax credits, and modular and factory-built
housing manufacturers.
Affordable Home Ownership DOLA up to $58.0 million
Offers down payment assistance to first-time homebuyers. Makes grants or loans to
nonprofits and community land trusts to support home ownership, and to mobile home
owners’ associations to help purchase mobile home parks.
Homelessness DOLA up to $52.2 million
Provides rental assistance, housing vouchers, and eviction defense to people
experiencing, or at risk of experiencing, homelessness. Makes grants or loans to
support new and existing supportive housing for people experiencing homelessness.
Local Government Capacity Building DOLA up to $5.8 million
Provides grants to local governments to support their planning departments in
processing land use, permit, and zoning applications for housing projects.
3 OEDIT is the Office for Economic Development and International Trade.
4 DOLA is the Department of Local Affairs.
5 How does the measure affect TABOR refunds?
6 The income tax revenue that is set aside under the measure is considered a
7 voter-approved revenue change and is therefore not subject to the state’s
8 constitutional revenue limit, also called the Taxpayer’s Bill of Rights (TABOR)
9 limit. TABOR limits state government revenue to an amount adjusted annually
10 for inflation and population growth. Revenue collected under the limit may be
11 spent or saved. Revenue collected over the limit must be returned to taxpayers
12 unless voters approve a measure allowing the government to keep it.
13 In years where state revenue exceeds the TABOR limit, the measure reduces the
14 money returned to taxpayers by the amount of income tax revenue that that the
15 measure allows the state to keep. In years where state revenue is below the
16 TABOR limit, the measure does not impact TABOR refunds, but may reduce the
17 amount of money available for the rest of the state budget. In this case, the
18 measure allows the state legislature to reduce part of the new funding to the
19 affordable housing programs to balance the state budget. The state currently
20 expects to return money collected above the limit through at least the 2023-24
21 budget year.
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35
2nd Draft
For information on those issue committees that support or oppose the
measures on the ballot at the November 8, 2022, election, go to the
Colorado Secretary of State’s elections center web site hyperlink for ballot
and initiative information:
http://www.sos.state.co.us/pubs/elections/Initiatives/InitiativesHome.html
1 Arguments For Proposition ?
2 1) The measure creates a sustainable source of funds to tackle housing issues
3 without raising taxes, and gives local communities the flexibility to respond to
4 their specific needs. The state and local governments are not doing enough
5 to keep Colorado affordable.
6 2) Colorado’s housing prices make it too hard for many households to afford
7 rent or to buy their own home. The new programs help Coloradans
8 participate in the housing market now and in the future. Creating more
9 homes will allow residents and essential workers to remain in their
10 communities.
11 Arguments Against Proposition ?
12 1) Many of these programs do not address the underlying causes of high
13 housing costs. Pumping money into the market may distort it further, and the
14 real beneficiaries will be landlords and housing developers. This is neither
15 the role of government nor the best use of public resources.
16 2) The state already provides resources to support affordable housing, including
17 over $1 billion in federal stimulus funds allocated in recent years. Plus, the
18 new programs will be limited if local governments cannot or will not meet the
19 requirements. The measure is unnecessary and will reduce Coloradans’
20 future TABOR refunds.
21 Fiscal Impact for Proposition ?
22 Proposition ? increases state government spending by transferring money from the
23 state General Fund to pay for affordable housing programs. While the measure does
24 not change state revenue, it reduces the amount returned to taxpayers in years when
25 state revenue is over the TABOR revenue limit. These impacts are discussed below.
26 The state budget year runs from July 1 through June 30.
27 Transfers of state funds. Proposition ? transfers an estimated $145 million in the
28 2022-23 budget year and $290 million in the 2023-24 budget year and later years.
29 These amounts are divided between programs in the Office of Economic
30 Development and International Trade, which receives 60 percent, and the
31 Department of Local Affairs, which receives 40 percent.
32 State spending. The money transferred under Proposition ? is required to be spent
33 for affordable housing programs and for administration of those programs. Programs
34 are funded the year after the transfer occurs. For example, the money transferred in
35 the 2022-23 budget year pays for programs in the 2023-24 budget year, and so on.
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36
2nd Draft
1 Office of Economic Development and International Trade. Sixty percent of
2 total transfers are paid to the Affordable Housing Financing Fund, estimated at
3 $87 million in the 2022-23 budget year and $174 million in the 2023-24 budget
4 year. Money in the fund is spent for the land banking program, the affordable
5 housing equity program, and the concessionary debt program. A third party
6 administrator is allowed to keep 2 percent of funds for its administrative costs.
7 Department of Local Affairs. Forty percent of total transfers are paid to the
8 Affordable Housing Support Fund, estimated at $58 million in the 2022-23 budget
9 year and $116 million in the 2023-24 budget year. Money in the fund is spent for
10 the affordable homeownership program, the homelessness program, and the
11 local capacity development program. The department is allowed to keep 5
12 percent of funds for its administrative costs.
13 Taxpayer impacts. Proposition ? will decrease the amount to be returned to
14 taxpayers for years when state revenue is over the TABOR revenue limit. Based on
15 forecasts from June 2022, Proposition ? is expected to decrease the amount
16 returned by $145 million in tax year 2023 and $290 million in tax year 2024. The
17 impacts on taxpayers depend on how this money would be returned. Based on the
18 number of income tax returns for tax year 2018, Proposition ? is estimated to
19 decrease the amount returned by $43 per taxpayer in tax year 2023 and $86 per
20 taxpayer in tax year 2024.
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37
Last Draft Comments from Interested Parties 宀
宀
Proposition 123
Dedicate Revenue for Affordable Housing Programs
Penn Pfiffner, representing himself:
Arguments FOR the measure include the statement “without raising taxes.” That is
simply fallacious and Legislative Council staff should not be part of a blatant lie. If
you order a $6 sandwich for lunch, and pay with a $20 bill but the order taker refuses
to return the change, you have not paid $6 for the sandwich. You paid $20 for it.
Similarly, if the State retains a tax rebate, then taxpayers have paid higher taxes. I
am aware that tax increase proponents have stated the same disinformation before,
but it should appear in campaign materials, not in the neutral Blue Book. At the very
least, you must change the wording by adding one word, to say “without raising tax
RATES.”
Thank you for including information that this measure is not the first program to fund
affordable housing. A second observation is that a lot more annual subsidies come
(off-budget) through the Colorado Housing Finance Authority and that is a large
missing source that should be mentioned.
Luke Teater, representing the proponents:
Page 1:
• Line 2 - add “existing” in front of “annual state income tax revenue” to clarify that this
is not new revenue and to more closely align with the ballot language approved by the
Title Board.
• Lines 8-12, NO - Recommend clarifying that this means there would be no dedicated
funding source for affordable housing.
Page 2:
• Line 2 - add “existing” in front of “annual income tax revenue” to clarify that this is not
new revenue and more closely align with the ballot language approved by the Title
Board.
• Lines 10-18 As written, the spending categories listed in lines 10-18 are rather
confusing and unclear to the proponents and authors of this measure, let alone to
ordinary voters. We recommend replacing the current bullets with the following bullets
to make this overview as clear and simple as possible to voters:
i. (Combining lines 10 and 11 in the 2nd draft) Grants and loans to local governments
and nonprofit organizations to finance the development of affordable mixed-income
multi-family rental housing; (note: since the administrator is instructed to prioritize
funding for mixed-income housing projects, we think it is important for voters to be
B 1 B
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Last Draft Comments from Interested Parties
宀
Luke Teater, representing the proponents (Cont.):
aware that these funds will finance housing across a wide range of income levels, not
just low- and middle-income housing.)
ii. Equity investments in affordable mixed-income housing projects, including tools to
support renter wealth building (note: we must use a more plain-language term than
'tenant equity sharing' or 'tenant equity vehicle' because nobody knows what those
mean);
iii. Home ownership programs and down payment assistance for first-time and first-
generation homebuyers;
iv. A program addressing homelessness through rental assistance and eviction
defense (no change)
v. Grants to increase the capacity of local government planning departments.
• Lines 25-26 - This sentence gives the inaccurate impression that only renters making
less than 60% AMI or homeowners making less than 100% will benefit from these
programs. In reality, the largest programs in this measure will benefit a wide range of
income levels, not just those below 60% or 100% AMI. The homeownership assistance
program assists households all the way up to 120% AMI. The equity financing program
funds projects with an average rent affordable at 90% AMI and is instructed to
prioritize mixed-income projects (so for example, a project with half of its units
affordable at 30% AMI and half of its units at affordable at 150% AMI would not only be
eligible for funding, but would be prioritized for funding over a project that had 100% of
its units affordable at 90% AMI). The concessionary debt program does fund projects
at a 60% AMI threshold, but this is again only the average rent for the project, with the
explicit direction to prioritize mixed-income projects. It is important that voters be
aware that the benefits of this program are not limited to Coloradans below 60% or
100% of AMI - in reality, these programs will finance the construction of substantial
numbers of housing units for households above those income levels, and we fully
expect some units to be built under this measure for households up to 200% AMI. We
explicitly designed this measure to benefit Coloradans of a wide range of income
levels and across the housing spectrum, and that is lost in this sentence.
Page 3:
• Line 1 - Recommend removing “or project” from this sentence, since this sentence is
only describing household-level affordability. As described above, the standard for
projects to qualify as affordable housing under this measure is very nuanced.
• Lines 12-14 - This sentence is misleading. The FY23 Appropriations report lists
DOH’s total budget at $186M, the vast majority of which is either federal funds or one-
time ARPA funds that are already accounted for in the following paragraph (SB 22-146
and SB 22-211). State funding (that is, not ARPA funding, not federal funding) for DOH
is only $47M. The entire purpose of this measure is to increase state funding for
B 2 B
39
Last Draft Comments from Interested Parties 宀
宀
Luke Teater, representing the proponents (Cont.):
affordable housing, so it’s critical that voters be aware of the current level of state (not
federal, not ARPA) funding for affordable housing.
• Lines 15-17 - This sentence is inaccurate. Most of this $1.2B was federal spending
within the state that the state legislature did not allocate. The state did allocate $550M
in one-time ARPA funds for affordable housing through the Affordable Housing and
Home Ownership Cash Fund.
• Lines 15-19 - This paragraph is likely to be misleading to voters. These ARPA funds
were emergency relief and stimulus meant to support the economy through an
unprecedented crisis, and they were successful as evidenced by the low level of
evictions and high level of economic growth experienced since. They were not
designed or intended to be a solution to the housing affordability crisis that this
measure is intended to address. They were temporary funds that have already been
allocated and cannot be continued or replenished by the state. Finally, we recommend
changing (and shortening) the first sentence so that it ends with “...of 2021 for
temporary housing security and economic relief.”
• Line 30 - Recommend changing “fast track approval” to “prioritized review” to align
with the terminology used with voters and stakeholders during the campaign and
reduce confusion. We want it to be clear to voters that this process is not required to
result in permit approval.
Page 4:
• Table 2, several places - The phrase “new and existing affordable housing” is vague
and potentially misleading, recommend using the phrase “development and
preservation of affordable housing” instead. Voters may read this as saying that the
measure will just sink more money into existing affordable housing, when really it is
preventing it from becoming unaffordable, as “development and preservation” makes
clear.
• Table 2, several places - As discussed extensively above, the affordable housing
equity and concessionary debt programs will finance much more than just low- and
middle-income housing units - we fully expect that some units will be built through
these programs for households up to 200% AMI. Recommend saying “mixed-income”
rather than “low- and middle-income” multi-family rental units to clarify this.
• Line 6 - Recommend adding “existing” before “income tax revenue” to clarify that this
is not new revenue and to more closely align with the ballot language approved by the
Title Board.
Page 5:
• Lines 1-10, Arguments For:
B 3 B
3:
Last Draft Comments from Interested Parties
宀
Luke Teater, representing the proponents (Cont.):
i. Without raising taxes, this measure will help local communities tap into existing state
funds to create more housing that all Coloradans can afford both now and in the future.
The measure puts power in the hands of local governments to address our housing
crisis by giving them the flexibility and resources to meet local community needs.
ii. Over the last 50 years, wages in Colorado have not kept pace with housing costs.
As a result, hardworking Coloradans like firefighters, teachers and nurses are being
priced out of the communities that depend on them. This measure would unlock $6
billion to build 170,000 new homes over the next 20 years.
• Line 12 - Recommend removing the argument that these programs do not address
the underlying causes of high housing costs. The underlying cause of high housing
costs is a severe shortage of affordable housing, and the explicit purpose of this
measure is to increase the supply of affordable housing.
• Line 16 - Recommend adding the word “sufficient” as in “the state already provides
sufficient resources to support affordable housing”, since the root question posed by
this measure is whether current state funding levels are sufficient or whether we need
to increase state funding for affordable housing.
• Lines 22-25 - Since TABOR refunds are state expenditures (as in Table 1 of the
revenue forecast), this measure does not increase state government spending, but
merely dedicates more of that spending to affordable housing. Recommend deleting
the phrase about increasing state government spending so that the paragraph instead
reads “Proposition ? transfers money from the state General Fund to pay for affordable
housing programs. While the measure does not change state revenue or expenditures,
it reduces the amount refunded to taxpayers in years when state revenue is over the
TABOR revenue limit.”
B 4 B
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42
43
Proposition 123
Dedicate Revenue for Affordable Housing Programs
1Ballot Title:
2Shall there be a change to the Colorado Revised Statutes concerning statewide funding for
3additional affordable housing, and, in connection therewith, dedicating state revenues collected
4from an existing tax of one-tenth of one percent on federal taxable income of every individual,
5estate, trust, and corporation, as defined in law, for affordable housing and exempting the
6dedicated revenues from the constitutional limitation on state fiscal year spending; allocating
760% of the dedicated revenues to affordable housing financing programs that will reduce rents,
8purchase land for affordable housing development, and build assets for renters; allocating 40%
9of the dedicated revenues to programs that support affordable home ownership, serve persons
10 experiencing homelessness, and support local planning capacity; requiring local governments
11 that seek additional affordable housing funding to expedite development approvals for
12 affordable housing projects and commit to increasing the number of affordable housing units by
13 3% annually; and specifying that the dedicated revenues shall not supplant existing
14 appropriations for affordable housing programs?
15 Text of Measure:
16 Be it enacted by the People of the State of Colorado:
17 SECTION 1. In Colorado Revised Statutes, add article 32 to title 29 as follows:
18 ARTICLE 32
19 Statewide Affordable Housing Fund
20 29-32-101. Definitions. A S USED IN THIS A RTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
21 (1)“A DMINISTRATOR” MEANS A POLITICAL SUBDIVISION OF THE S TATE OF C OLORADO ESTABLISHED
22 FOR THE PURPOSES, AMONG OTHERS, OF INCREASING THE SUPPLY OF DECENT, SAFE, AND SANITARY
23 HOUSING FOR LOW- AND MODERATE-INCOME FAMILIES, OR OTHER THIRD PARTY ESTABLISHED FOR
24 SUCH PURPOSES, SELECTED BY THEOFFICE TO ADMINISTER CERTAIN AFFORDABLE HOUSING
25 PROGRAMS CREATED IN SECTION 29-32-104.
26 (2) “A FFORDABLE HOUSING” MEANS RENTAL HOUSING AFFORDABLE TO A HOUSEHOLD WITH AN
27 ANNUAL INCOME OF AT OR BELOW SIXTY PERCENT OF THE AREA MEDIAN INCOME, AND THAT COSTS
28 THE HOUSEHOLD LESS THAN THIRTY PERCENT OF ITS MONTHLY INCOME.“A FFORDABLE HOUSING”
29 ALSO MEANS FOR-SALE HOUSING THAT COULD BE PURCHASED BY A HOUSEHOLD WITH AN ANNUAL
30 INCOME OF AT OR BELOW ONE HUNDRED PERCENT OF THE AREA MEDIAN INCOME, FOR WHICH THE
31 MORTGAGE PAYMENT COSTS THE HOUSEHOLD LESS THAN THIRTY PERCENT OF ITS MONTHLY INCOME.
32 T ARGETS SET FOR THE LOCAL GOVERNMENTS UNDER SECTION 29-32-105 FOR AFFORDABLE
33 HOUSING SHALL BE BASED ON THE AVERAGE OF THE AREA MEDIAN INCOME.I F A LOCAL GOVERNMENT
34 DETERMINES THAT APPLICATION OF THIS DEFINITION OF AFFORDABLE HOUSING WOULD CAUSE
35 IMPLEMENTATION OF THIS ARTICLE IN A MANNER INCONSISTENT WITH HOUSING AND WORKFORCE
1
44
1 NEEDS WITHIN THE JURISDICTION, IT MAY PETITION THE DIVISION FOR LEAVE TO USE THE
2 CALCULATION APPLICABLE TO AN ADJACENT JURISDICTION OR THE STATE MEDIAN INCOME THAT
3 BETTER REFLECTS LOCAL NEEDS.
4(3)“A REA MEDIAN INCOME” MEANS THE MEDIAN HOUSEHOLD INCOME OF HOUSEHOLDS OF A GIVEN
5 SIZE IN THE MUNICIPALITY, OR METROPOLITAN STATISTICAL AREA ENCOMPASSING A MUNICIPALITY, OR
6 COUNTY IN WHICH THE HOUSING IS LOCATED, AS CALCULATED AND PUBLISHED FOR A GIVEN YEAR BY
7 THE U NITED S TATES D EPARTMENT OF H OUSING AND U RBAN D EVELOPMENT.
8(4)"D IVISION" MEANS THE DIVISION OF HOUSING IN THE DEPARTMENT OF LOCAL AFFAIRS CREATED IN
9 SECTION 24-32-704(1).
10 (5)"S UPPORT FUND” MEANS THE AFFORDABLE HOUSING SUPPORT FUND CREATED IN SECTION 29-32-
11 103(1).
12 (6)"F UND" MEANS THE STATE AFFORDABLE HOUSING FUND CREATED IN SECTION 29-32-102 (1).
13 (7) "L OCAL GOVERNMENT" MEANS A MUNICIPALITY, WHETHER HOME RULE OR STATUTORY; A COUNTY,
14 WHETHER HOME RULE OR STATUTORY; A CITY AND COUNTY; OR A LOCAL HOUSING AUTHORITY.
15 (8)“O FFICE” MEANS THE OFFICE OF ECONOMIC DEVELOPMENT CREATED IN SECTION 24-48.5-101.
16 (9)"F INANCING FUND" MEANS THE AFFORDABLE HOUSING FINANCING FUND CREATED IN SECTION 29-
17 32-103(2).
18 29-32-102. State affordable housing fund. (1)T HE STATE AFFORDABLE HOUSING FUND IS
19 HEREBY CREATED IN THE STATE TREASURY.C OMMENCING ON J ANUARY 1,2023, ALL STATE
20 REVENUES COLLECTED FROM AN EXISTING TAX ON ONE-TENTH OF ONE PERCENT ON FEDERAL
21 TAXABLE INCOME, AS MODIFIED BY LAW, OF EVERY INDIVIDUAL, ESTATE, TRUST, AND CORPORATION,
22 AS DEFINED IN LAW, AS CALCULATED PURSUANT TO SUBSECTION (4) OF THIS SECTION, SHALL BE
23 DEPOSITED IN THE FUND BY THE STATE TREASURER.T HE REVENUE DEPOSITED INTO THE FUND
24 PURSUANT TO THIS SUBSECTION (1) SHALL NOT BE SUBJECT TO THE LIMITATION ON FISCAL YEAR
25 SPENDING SPECIFIED IN SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION.
26 (2)T HE FUND SHALL CONSIST OF MONEY DEPOSITED INTO THE FUND UNDER SUBSECTION (1) OF THIS
27 SECTION; ANY MONEY APPROPRIATED TO THE FUND BY THE GENERAL ASSEMBLY; AND ANY GIFTS,
28 GRANTS, OR DONATIONS FROM ANY PUBLIC OR PRIVATE SOURCES, INCLUDING GOVERNMENTAL
29 ENTITIES, THAT THE DIVISION AND THE OFFICE ARE HEREBY AUTHORIZED TO SEEK AND ACCEPT.
30 (3)A LL MONEY NOT EXPENDED OR ENCUMBERED, AND ALL INTEREST EARNED ON THE INVESTMENT OR
31 DEPOSIT OF MONEY IN THE FUND, SHALL REMAIN IN THE FUND AND SHALL NOT REVERT TO THE
32 GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR.
33 (4)(a) T HE LEGISLATIVE COUNCIL, IN CONSULTATION WITH THE OFFICE OF STATE PLANNING AND
34 BUDGETING, SHALL CALCULATE THE AMOUNT OF REVENUES TO BE DEPOSITED IN THE FUND FOR THE
35 PERIOD COMMENCING J ANUARY 1,2023 AND ENDING J UNE 30,2023, AND FOR EACH STATE FISCAL
36 YEAR COMMENCING ON OR AFTER J ULY 1,2023. THE LEGISLATIVE COUNCIL AND THE OFFICE OF
37 STATE PLANNING AND BUDGETING SHALL RELY UPON THE QUARTERLY STATE REVENUE ESTIMATES
38 ISSUED BY THE LEGISLATIVE COUNCIL IN CALCULATING SUCH AMOUNTS AND SHALL UPDATE ITS
2
45
1 CALCULATIONS NOT LATER THAN FIVE DAYS FOLLOWING THE ISSUANCE OF EACH QUARTERLY STATE
2 REVENUE ESTIMATE.
3(b) T O ENSURE THAT ALL FUND REVENUES ARE TRANSFERRED TO THE FUND AND THAT OTHER STATE
4 REVENUES ARE NOT ERRONEOUSLY TRANSFERRED TO THE FUND:
5(I)N O LATER THAN TWO DAYS AFTER CALCULATING OR RECALCULATING THE AMOUNT OF FUND
6 REVENUES FOR THE PERIOD COMMENCING J ANUARY 1,2023 AND ENDING J UNE 30,2023, AND FOR
7 ANY FISCAL YEAR COMMENCING ON OR AFTER J ULY 1,2023, THE LEGISLATIVE COUNCIL, IN
8 CONSULTATION WITH THE OFFICE OF STATE PLANNING AND BUDGETING, SHALL CERTIFY TO THE
9 DEPARTMENT OF REVENUE THE AMOUNT OF FUND REVENUES THAT THE DEPARTMENT SHALL
10 TRANSFER TO THE STATE TREASURER FOR DEPOSIT INTO THE FUND ON THE FIRST DAY OF EACH OF
11 THE THREE SUCCEEDING CALENDAR MONTHS AS REQUIRED BY PARAGRAPH (c) OF THIS SUBSECTION
12 (4);
13 (II)N OTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH (b), NO LATER
14 THAN M AY 25 OF 2023 AND OF ANY STATE FISCAL YEAR COMMENCING ON OR AFTER J ULY 1,2023,
15 THE LEGISLATIVE COUNCIL, IN CONSULTATION WITH THE OFFICE OF STATE PLANNING AND BUDGETING,
16 MAY CERTIFY TO THE DEPARTMENT OF REVENUE AN ADJUSTED AMOUNT FOR ANY TRANSFER TO BE
17 MADE ON THE FIRST BUSINESS DAY OF THE IMMEDIATELY SUCCEEDING J UNE; AND
18 (III)S UBJECT TO REVIEW BY THE STATE AUDITOR, THE LEGISLATIVE COUNCIL, IN CONSULTATION WITH
19 THE OFFICE OF STATE PLANNING AND BUDGETING, MAY CORRECT ANY ERROR IN THE TOTAL AMOUNT
20 OF STATE AFFORDABLE HOUSING REVENUES TRANSFERRED DURING ANY STATE FISCAL YEAR BY
21 ADJUSTING THE AMOUNT OF ANY TRANSFER TO BE MADE DURING THE NEXT STATE FISCAL YEAR.
22 (c)O N THE FIRST BUSINESS DAY OF EACH CALENDAR MONTH THAT COMMENCES AFTER J ANUARY 5,
23 2023, THE DEPARTMENT OF REVENUE SHALL TRANSFER TO THE STATE TREASURER FOR DEPOSIT
24 INTO THE FUND REVENUES IN AN AMOUNT CERTIFIED TO THE DEPARTMENT BY THE LEGISLATIVE
25 COUNCIL, IN CONSULTATION WITH THE OFFICE OF STATE PLANNING AND BUDGETING, PURSUANT TO
26 PARAGRAPH (b) OF THIS SUBSECTION (4).
27 29-32-103. Transfers of money - permitted uses of the fund - continuous appropriation.
28 (1)T HE AFFORDABLE HOUSING SUPPORT FUND IS HEREBY CREATED IN THE STATE TREASURY.T HE
29 SUPPORT FUND SHALL CONSIST OF MONEY DEPOSITED INTO IT UNDER SUBSECTION (3) OF THIS
30 SECTION.T HE DIVISION SHALL ADMINISTER THE SUPPORT FUND AND EXPEND THE MONEYS IN THE
31 SUPPORT FUND ONLY FOR THE PURPOSES SET FORTH IN SECTION 29-32-104(3).A LL MONEY NOT
32 EXPENDED OR ENCUMBERED, AND ALL INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEY
33 IN THE SUPPORT FUND, SHALL REMAIN IN THE SUPPORT FUND AND SHALL NOT REVERT TO THE
34 GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR.A LL MONEY TRANSFERRED TO
35 THE SUPPORT FUND PURSUANT TO SUBSECTION (3) OF THIS SECTION IS CONTINUOUSLY
36 APPROPRIATED TO THE DIVISION FOR THE PURPOSES SET FORTH IN SECTION 29-32-104(3).
37 (2)T HE AFFORDABLE HOUSING FINANCING FUND IS HEREBY CREATED IN THE STATE TREASURY.T HE
38 FINANCING FUND SHALL CONSIST OF MONEY DEPOSITED INTO IT UNDER SUBSECTION (3) OF THIS
39 SECTION.T HE OFFICE SHALL ADMINISTER THE FINANCING FUND AND EXPEND THE MONEYS IN THE
40 FINANCING FUND ONLY FOR THE PURPOSES SET FORTH IN SECTION 29-32-104(1).A LL MONEY NOT
41 EXPENDED OR ENCUMBERED, AND ALL INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEY
42 IN THE FINANCING FUND, SHALL REMAIN IN THE FINANCING FUND AND SHALL NOT REVERT TO THE
3
46
1 GENERAL FUND OR ANY OTHER FUND AT THE END OF ANY FISCAL YEAR.A LL MONEY TRANSFERRED TO
2 THE FINANCING FUND PURSUANT TO SUBSECTION (3) OF THIS SECTION IS CONTINUOUSLY
3 APPROPRIATED TO THE OFFICE FOR THE PURPOSES SET FORTH IN SECTION 29-32-104(1).
4(3)O N J ULY 1,2023, OR AS SOON AS PRACTICABLE THEREAFTER, AND ON J ULY 1 OF EACH STATE
5 FISCAL YEAR THEREAFTER, THE STATE TREASURER SHALL TRANSFER FORTY PERCENT OF THE
6 BALANCE OF THE FUND ON THE DATE OF THE TRANSFER TO THE SUPPORT FUND AND SIXTY PERCENT
7 OF THE BALANCE OF THE FUND ON THE DATE OF THE TRANSFER TO THE FINANCING FUND.
829-32-104. Permissible expenditures – affordable housing programs. (1)T HE OFFICE SHALL
9 CONTRACT WITH THE ADMINISTRATOR.T HE OFFICE MAY SELECT AN ADMINISTRATOR WITHOUT A
10 COMPETITIVE PROCUREMENT PROCESS BUT SHALLANNOUNCE THE CONTRACT OPENING PUBLICLY
11 AND SELECT THE ADMINISTRATOR IN A MEETING THAT IS OPEN TO THE PUBLIC, NO LESS THAN
12 SEVENTY-TWO HOURS AFTER NOTICE OF SUCH MEETING IS PUBLICLY AVAILABLE.N O SINGLE
13 CONTRACT MAY EXCEED FIVE YEARS IN DURATION.U PON THE EXPIRATION OF ANY CONTRACT TERM,
14 THE OFFICE MAY RENEW THE CONTRACT WITH THE SAME ADMINISTRATOR OR MAY SELECT ANOTHER
15 ADMINISTRATOR.T HE ADMINISTRATOR SELECTED BY THE OFFICE SHALL EXPEND THE MONEY
16 TRANSFERRED TO THE FINANCING FUND IN SECTION 29-32-103(2) TO SUPPORT THE FOLLOWING
17 PROGRAMS ONLY:
18 (a) A LAND BANKING PROGRAM TO BE ADMINISTERED BY THE ADMINISTRATOR. THE PROGRAM SHALL
19 PROVIDE GRANTS TO LOCAL GOVERNMENTS AND LOANS TO NON-PROFIT ORGANIZATIONS WITH A
20 DEMONSTRATED HISTORY OF PROVIDING AFFORDABLE HOUSING TO ACQUIRE AND PRESERVE LAND
21 FOR THE DEVELOPMENT OF AFFORDABLE HOUSING.M IXED USE DEVELOPMENT IS AN ALLOWABLE USE
22 OF LAND PURCHASED UNDER THIS PROGRAM IF THE PREDOMINATE USE OF THE LAND IS AFFORDABLE
23 HOUSING.L OANS MADE BY THE PROGRAM SHALL BE FORGIVEN IF LAND ACQUIRED WITH THE
24 ASSISTANCE OF THE PROGRAM IS PROPERLY ZONED WITH AN ACTIVE PLAN FOR THE DEVELOPMENT OF
25 AFFORDABLE HOUSING WITHIN 5 YEARS OF DATE THE LOAN IS MADE AND IF THE DEVELOPMENT IS
26 PERMITTED AND FUNDED WITHIN 10 YEARS.T HE LENDER AND BORROWER MAY ESTABLISH
27 ADDITIONAL TERMS IF NEEDED.I F LAND ACQUIRED WITH THE ASSISTANCE OF THE PROGRAM IS NOT
28 DEVELOPED WITHIN THE TIMELINE ABOVE, THE LOAN MUST BE REPAID, WITH INTEREST, AS SOON AS
29 PRACTICAL, BUT NOT MORE THAN SIX MONTHS AFTER EXPIRATION OF SAID TIMELINE.L AND ACQUIRED
30 WITH THE ASSISTANCE OF THE PROGRAM THAT IS NOT DEVELOPED WITHIN THE TIMELINE ABOVE MAY
31 BE USED BY THE OWNER FOR ANY PURPOSE UPON PAYMENT OF THE LOAN WITH INTEREST OR, IN
32 EXCHANGE FOR A WAIVER OF INTEREST, CONVEYED TO A STATE AGENCY OR OTHER ENTITY FOR THE
33 DEVELOPMENT OF AFFORDABLE HOUSING WITH THE APPROVAL OF THE ADMINISTRATOR.A LL
34 PRINCIPAL AND INTEREST PAYMENTS ON LOANS MADE UNDER THIS PARAGRAPH(a) SHALL BE PAID TO
35 THE ADMINISTRATOR AND USED BY THE ADMINISTRATOR FOR THE PURPOSES SET FORTH IN THIS
36 SUBSECTION (1). AS DETERMINED BY THE ADMINISTRATOR, A MINIMUM OF 15% AND A MAXIMUM OF
37 25% OF MONIESTRANSFERRED TO THE OFFICE FROM THE FUND ANNUALLY MAY BE USED FOR THE
38 PROGRAM.T HE ADMINISTRATOR MAY UTILIZE UP TO TWO PERCENT OF THE FUNDS IT RECEIVES FROM
39 THE OFFICE FOR THE PROGRAM ANNUALLY TO PAY FOR THE COSTS OF ADMINISTERING THE PROGRAM.
40 (b) A N AFFORDABLE HOUSING EQUITY PROGRAM TO BE ADMINISTERED BY THE ADMINISTRATOR. THE
41 PROGRAM SHALL MAKE EQUITY INVESTMENTS IN LOW- AND MIDDLE-INCOME MULTI-FAMILY RENTAL
42 DEVELOPMENTS.T HE PROGRAM SHALL ALSO MAKE EQUITY INVESTMENTS IN EXISTING AFFORDABLE
43 HOUSING PROJECTS WHICH INCLUDE MULTI-FAMILY RENTAL UNITS FOR THE PURPOSE OF ENSURING
44 THAT SAID PROJECTS REMAIN AFFORDABLE.T HE AVERAGE OF RENTS FOR PROJECTS FUNDED BY THE
45 PROGRAM (CALCULATED BY ADDING TOGETHER THE MONTHLY RENT FOR ALL UNITS IN APROJECT AND
4
47
1 DIVIDING BY THE NUMBER OF UNITS IN THE PROJECT) MUST BE AND REMAIN PERMANENTLY
2 AFFORDABLE SUCH THAT A PARTICIPATING HOUSEHOLD SHALL NOT BE REQUIRED TO SPEND MORE
3 THAN 30% OF HOUSEHOLD INCOME ON RENT FOR HOUSEHOLDS THAT ARE AT OR BELOW 90% OF THE
4 AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT SIZE IN THE TERRITORY OR JURISDICTION OF LOCAL
5 GOVERNMENT IN WHICH THE HOUSING IS LOCATED, AS CALCULATED AND PUBLISHED FOR A GIVEN
6 YEAR BY THE U NITED S TATES D EPARTMENT OF H OUSING AND U RBAN D EVELOPMENT.T HE PROGRAM
7 SHALL INCLUDE A TENANT EQUITY VEHICLE, MEANING, IN PROJECTS FUNDED BY THE PROGRAM,
8 TENANTS WHO RESIDE IN THE PROJECT FOR AT LEAST ONE YEAR SHALL BE ENTITLED TO A SHARE OF
9 THE EQUITY GROWTH IN THE PROJECT, IF ANY, IN THE FORM OF FUNDING FROM THE PROGRAM FOR A
10 DOWN-PAYMENT ON HOUSING OR RELATED PURPOSES, IN AN AMOUNT DETERMINED BY THE
11 ADMINISTRATOR.E QUITY INVESTMENTS MADE BY THE PROGRAM SHALL BE MADE WITH THE
12 EXPECTATION OF RETURNS THAT ARE BELOW THE PREVAILING MARKET RETURNS.R ETURNS ON
13 PROGRAM INVESTMENTS UP TO THE AMOUNT OF THE PROGRAM’S INITIAL INVESTMENT SHALL BE
14 RETAINED IN THE PROGRAM AND REINVESTED. R ETURNS ON PROGRAM INVESTMENTS GREATER THAN
15 THE PROGRAM’S INITIAL INVESTMENT SHALL BE RETAINED IN THE PROGRAM TO FUND THE TENANT
16 EQUITY VEHICLE.I N SELECTING INVESTMENTS UNDER THIS PROGRAM, THE ADMINISTRATORSHALL
17 PRIORITIZE HIGH-DENSITY HOUSING, MIXED-INCOME HOUSING, AND PROJECTS CONSISTENT WITH THE
18 GOAL OF ENVIRONMENTAL SUSTAINABILITY.A S DETERMINED BY THE ADMINISTRATOR, A MINIMUM OF
19 40% OF MONIES AND A MAXIMUM OF 70% OFMONIES TRANSFERRED TO THE OFFICE FROM THE FUND
20 ANNUALLY MAY BE USED FOR THE PROGRAM.T HE ADMINISTRATOR MAY UTILIZE UP TO TWO PERCENT
21 OF THE FUNDS IT RECEIVES FROM THE OFFICE FOR THE PROGRAM ANNUALLY TO PAY FOR THE COSTS
22 OF ADMINISTERING THE PROGRAM.
23 (c)A CONCESSIONARY DEBT PROGRAM TO BE ADMINISTERED BY THE ADMINISTRATOR. THE PROGRAM
24 SHALL:
25 (I)P ROVIDE DEBT FINANCING OF LOW- AND MIDDLE-INCOME MULTI-FAMILY RENTAL DEVELOPMENTS,
26 (II)P ROVIDE GAP FINANCING IN THE FORM OF SUBORDINATE DEBT AND PRE- DEVELOPMENT LOANS
27 FOR PROJECTS THAT QUALIFY FOR FEDERAL LOW INCOME HOUSING TAX CREDITS,
28 (III)P ROVIDE DEBT FINANCING OF EXISTING AFFORDABLE HOUSING PROJECTS FOR THE PURPOSE OF
29 PRESERVING EXISTING AFFORDABLE MULTI-FAMILY RENTAL UNITS, AND
30 (IV)P ROVIDE DEBT FINANCING FOR MODULAR AND FACTORY BUILD HOUSING MANUFACTURERS.
31 T HE AVERAGE OF RENTS FOR PROJECTS FUNDED BY THE PROGRAM (CALCULATED BY ADDING
32 TOGETHER THE MONTHLY RENT FOR ALL UNITS IN A PROJECT AND DIVIDING BY THE NUMBER OF UNITS
33 IN THE PROJECT) MUST BE AND REMAIN PERMANENTLY AFFORDABLE (MEANING THAT A HOUSEHOLD
34 SHALL NOT BE REQUIRED TO SPEND MORE THAN 30% OF HOUSEHOLD INCOME ON RENT AND BASIC
35 UTILITIES) FOR HOUSEHOLDSTHAT ARE AT OR BELOW 60% OF THE AREA MEDIAN INCOME OF
36 HOUSEHOLDS OF THAT SIZE IN THE TERRITORY OR JURISDICTION OF LOCAL GOVERNMENT IN WHICH
37 THE HOUSING IS LOCATED, AS CALCULATED AND PUBLISHED FOR A GIVEN YEAR BY THE U NITED
38 S TATES D EPARTMENT OF H OUSING AND U RBAN D EVELOPMENT (THE AFFORDABILITYTHRESHOLD);
39 EXCEPT THAT WHERE THE PROGRAM IS A SECONDARY SOURCE OF FUNDING, THE AFFORDABILITY
40 THRESHOLD REQUIRED BY THE PRIMARY FUNDING SOURCE, IF ANY, MAY BE OPERATIVE.D EBT
41 FINANCING AND LOANS MADE BY THE PROGRAM SHALL BE MADE AT BELOW MARKET INTEREST RATES
42 AS DETERMINED BY THE ADMINISTRATOR.R ETURNS ON PROGRAM INVESTMENTS UP TO THE AMOUNT
43 OF THE PROGRAM’S INITIAL INVESTMENT SHALL BE RETAINED IN THE PROGRAM AND REINVESTED BY
44 THE ADMINISTRATOR IN THE PROGRAM ESTABLISHED IN THIS PARAGRAPH (C).R ETURNS ON PROGRAM
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1 INVESTMENTS GREATER THAN THE PROGRAM’S INITIAL INVESTMENT SHALL BE RETAINED IN THE
2 PROGRAM TO FUND THE TENANT EQUITY VEHICLE OF THE AFFORDABLE HOUSING EQUITY PROGRAM
3 CREATED IN SUBSECTION (1)(b) OF THIS SECTION. AS DETERMINED BY THE ADMINISTRATOR, A
4 MINIMUM OF 15% OF MONIES AND A MAXIMUM OF 35% OF MONIES TRANSFERRED TO THE OFFICE
5 FROM THE FUND ANNUALLY MAY BE USED FOR THE PROGRAM. THE ADMINISTRATOR MAY UTILIZE UP
6 TO TWO PERCENT OF THEFUNDS IT RECEIVES FROM THE OFFICE FOR THE PROGRAM ANNUALLY TO
7 PAY FOR THE COSTS OF ADMINISTERING THE PROGRAM.
8(2)I N SELECTING INVESTMENTS TO BE MADE BY THE PROGRAMS OF SUBSECTION (1) OF THIS
9 SECTION, THE ADMINISTRATOR SHALL PRIORITIZE PROJECTS THAT ACHIEVE HIGH-DENSITY HOUSING,
10 MIXED-INCOME HOUSING, AND PROJECTS CONSISTENT WITH THE GOAL OF ENVIRONMENTAL
11 SUSTAINABILITY, AS APPROPRIATE.
12 (3) T HE DIVISION SHALL EXPEND THE MONEY TRANSFERRED TO THE SUPPORT FUND IN SECTION 29-
13 32-103(1) TO SUPPORT THE FOLLOWING PROGRAMS ONLY:
14 (a) A N AFFORDABLE HOME OWNERSHIP PROGRAM ADMINISTERED BY THE DIVISION OR ONE OR MORE
15 CONTRACTORS OF THE DIVISION. THE PROGRAM SHALL OFFER HOME OWNERSHIP DOWN-PAYMENT
16 ASSISTANCE TO FIRST-TIME HOMEBUYERS AND SHALL PRIORITIZE ASSISTANCE, TO THE EXTENT
17 PRACTICABLE, TO FIRST-GENERATION HOMEBUYERS. THE ASSISTANCE SHALL BE PROVIDED TO
18 HOUSEHOLDS WITH INCOME LESS THAN OR EQUAL TO 120% OF THE AREA MEDIAN INCOME OF
19 HOUSEHOLDS OF THAT SIZE IN THE TERRITORY OR JURISDICTION OF LOCAL GOVERNMENT IN WHICH
20 THE HOUSING IS LOCATED, AS CALCULATED AND PUBLISHED FOR A GIVEN YEAR BY THE U NITED
21 S TATES D EPARTMENT OF H OUSING AND U RBAN D EVELOPMENT.T HE PROGRAM SHALL ALSO MAKE
22 GRANTS OR LOANS TO NON-PROFITS AND COMMUNITY LAND TRUSTS TO SUPPORT AFFORDABLE HOME
23 OWNERSHIP AND TO GROUPS OR ASSOCIATIONS OF MOBILE HOME OWNERS TO ASSIST THEM WITH THE
24 PURCHASE OF A MOBILE HOME PARK PURSUANT TOSECTION 38-12-217.S AID GRANTS AND LOANS
25 SHALL BE USED TO SUPPORT AFFORDABLE HOME OWNERSHIP FOR HOUSEHOLDS WITH INCOME LESS
26 THAN OR EQUAL TO 100% OF THE AREA MEDIAN INCOME OF HOUSEHOLDS OF THAT SIZE IN THE
27 TERRITORY OR JURISDICTION OF LOCAL GOVERNMENT IN WHICH THE HOUSEHOLDS ARE LOCATED, AS
28 CALCULATED AND PUBLISHED FOR A GIVEN YEAR BY THE UNITED STATES DEPARTMENT OF HOUSING
29 AND URBAN DEVELOPMENT.A LL PRINCIPAL AND INTEREST PAYMENTS ON LOANS MADE UNDER THIS
30 PARAGRAPH (a) SHALL BE PAID TO THE DIVISION AND USED BY THE ADMINISTRATOR FOR THE
31 PURPOSES SET FORTH IN THIS SUBSECTION (3). UP TO 50% OF MONIES TRANSFERRED TO THE
32 DIVISION FROM THE FUND ANNUALLY MAY BE USED FORTHE PROGRAM.T HE DIVISION SHALL
33 DETERMINE HOW MUCH OF THE AVAILABLE FUNDING SHALL BE ALLOCATED TO EACH ASPECT OF THE
34 PROGRAM.T HE DIVISION MAY UTILIZE UP TO 5% OF THE FUNDS IT RECEIVES FROM THE FUND FOR THE
35 PROGRAM ANNUALLY TO PAY FOR THE DIRECT AND INDIRECT COSTS OF ADMINISTERING THE
36 PROGRAM.
37 (b) A PROGRAM SERVING PERSONS EXPERIENCING HOMELESSNESS TO BE ADMINISTERED BY THE
38 DIVISION. THE PROGRAM SHALL PROVIDE RENTAL ASSISTANCE, HOUSING VOUCHERS, AND EVICTION
39 DEFENSE ASSISTANCE, INCLUDING LEGAL, FINANCIAL, AND CASE MANAGEMENT, TO PERSONS
40 EXPERIENCING HOMELESSNESS OR AT RISK OF EXPERIENCING HOMELESSNESS. THE PROGRAM SHALL
41 ALSO MAKE GRANTS OR LOANS TO NON-PROFIT ORGANIZATIONS, LOCAL GOVERNMENTS OR PRIVATE
42 ENTITIES TO SUPPORT THE DEVELOPMENT AND PRESERVATION OF SUPPORTIVE HOUSING FOR
43 PERSONS EXPERIENCING HOMELESSNESS, AND OTHER HOMELESSNESS RELATED ACTIVITIES THE
44 DIVISION DETERMINES CONTRIBUTE TO THE RESOLUTION OF OR PREVENTION OF HOMELESSNESS,
45 INCLUDING HOUSING PROGRAMS PAID FOR BY NON-PROFIT ORGANIZATIONS, LOCAL GOVERNMENTS
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49
1 OR PRIVATE ENTITIES ON A PAY FOR SUCCESS BASIS, MEANING AN ORGANIZATION, LOCAL
2 GOVERNMENT OR PRIVATE ENTITY WOULD RECEIVE FINANCIAL SUPPORT FROM THE PROGRAM UPON
3 ACHIEVING OBJECTIVES CONTRACTUALLY AGREED UPON WITH THE DIVISION. ALL PRINCIPAL AND
4 INTEREST PAYMENTS ON LOANS MADE UNDER THIS PARAGRAPH (b) SHALL BE PAID TO THE DIVISION
5 AND USED BY THE ADMINISTRATOR FOR THE PURPOSES SET FORTH IN THIS SUBSECTION (3).U P TO
645% OF MONIES TRANSFERRED TO THE DIVISION FROM THE FUND ANNUALLY MAY BE USED FOR THE
7 PROGRAM.T HE DIVISION MAY UTILIZE UP TO 5% OF THE FUNDS IT RECEIVES FROM THE FUND FOR THE
8 PROGRAM ANNUALLY TO PAY FOR THE DIRECT AND INDIRECT COSTS OF ADMINISTERING THE
9 PROGRAM.
10 (c) A LOCAL PLANNING CAPACITY DEVELOPMENT PROGRAM ADMINISTERED BY THE DIVISION. THE
11 PROGRAM SHALL PROVIDE GRANTS TO LOCAL GOVERNMENTS TO INCREASE THE CAPACITY OF LOCAL
12 GOVERNMENT PLANNING DEPARTMENTS RESPONSIBLE FOR PROCESSING LAND USE, PERMITTING AND
13 ZONING APPLICATIONS FOR HOUSING PROJECTS.U P TO 5% OF MONIES TRANSFERRED TO THE
14 DIVISION FROM THE FUND ANNUALLY MAY BE USED FOR THE PROGRAM.T HE DIVISION MAY UTILIZE UP
15 TO 5% OF THE FUNDS IT RECEIVES FROM THE FUND FOR THE PROGRAM ANNUALLY TO PAY FOR THE
16 DIRECT AND INDIRECT COSTS OF ADMINISTERING THE PROGRAM.
17 (5) I F THE L EGISLATIVE C OUNCIL S TAFF’S M ARCH E CONOMIC AND R EVENUE F ORECAST IN ANY
18 GIVEN YEAR PROJECTS REVENUE FOR THE NEXT STATE FISCAL YEAR WILL FALL BELOW THE REVENUE
19 LIMIT IMPOSED UNDER SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, THE GENERAL
20 ASSEMBLY MAY REDUCE THE FUNDING ALLOCATED TO THE OFFICE REQUIRED BY THIS SECTION FOR
21 THE NEXT STATE FISCAL YEAR IN ORDER TO BALANCE THE STATE BUDGET FOR SAID STATE FISCAL
22 YEAR.
23 29-32-105. Local government affordable housing commitments – three-year commitment
24 cycle - expedited development approval process - eligibility for assistance from the fund.
25 (1) (a) N OT LATER THAN N OVEMBER 1,2023, THE GOVERNING BODY OF EACH LOCAL GOVERNMENT,
26 OTHER THAN LOCAL HOUSING AUTHORITIES, DESIRING TO RECEIVE FUNDING UNDER THIS SECTION OR
27 DESIRING TO MAKE AFFORDABLE HOUSING PROJECTS WITHIN ITS TERRITORIAL BOUNDARIES ELIGIBLE
28 FOR FUNDING UNDER THIS SECTION SHALL MAKE AND FILE WITH THE DIVISION A COMMITMENT
29 SPECIFYING HOW, BY D ECEMBER 31,2026, THE COMBINED NUMBER OF NEWLY CONSTRUCTED
30 AFFORDABLE HOUSING UNITS AND EXISTING UNITS CONVERTED TO AFFORDABLE HOUSING, WITHIN ITS
31 TERRITORIAL BOUNDARIES SHALL BE INCREASED BY THREE PERCENT EACH YEAR OVER THE BASELINE
32 NUMBER OF AFFORDABLE HOUSING UNITS WITHIN ITS TERRITORIAL BOUNDARIES, DETERMINED AS
33 PROVIDED IN SUBSECTION (1)(c) OF THIS SECTION.
34 (b) IN THE CASE OF A COUNTY, THE REQUIREMENTS OF THIS SUBSECTION (1) ONLY APPLY TO THE
35 UNINCORPORATED AREAS OF THE COUNTY.
36 (c) T HE BASELINE NUMBER OF AFFORDABLE HOUSING UNITS WITHIN THE TERRITORIAL BOUNDARIES
37 OF A LOCAL GOVERNMENT, AS REFERENCED IN THIS SUBSECTION (1), SHALL BE DETERMINED BY THE
38 LOCAL GOVERNMENT BY REFERENCE TO:
39 (I)T HE 2017-2021A MERICAN C OMMUNITY S URVEY 5-YEAR ESTIMATES PUBLISHED BY THE U NITED
40 S TATES C ENSUS B UREAU.T HE BASELINE NUMBER SHALL RESET FOR 2027, BASED ON THE 2020-
41 2024A MERICAN C OMMUNITY S URVEY 5-YEAR ESTIMATES, EXPECTED TO BE PUBLISHED IN THE
42 SPRING OF 2026 AND EVERY THIRD YEAR THEREAFTER WITH THE PUBLICATION OF THE
43 CORRESPONDING A MERICAN C OMMUNITY S URVEY 5-YEAR ESTIMATES; OR
7
4:
1(II)T HE MOST RECENTLY AVAILABLE C OMPREHENSIVE H OUSING A FFORDABILITY S TRATEGIES
2 ESTIMATES PUBLISHED BY THE U NITED S TATES D EPARTMENT OF H OUSING AND U RBAN
3D EVELOPMENT; OR
4(III)A WEB-BASED SYSTEM CREATED, MAINTAINED, AND UPDATED BY THE DIVISION WITH THE
5 ESTIMATES SPECIFIED IN SUBSECTION (1)(C)(I) OF THIS SECTION, OR IF THE DIVISION FINDS THAT THE
6 ESTIMATES SPECIFIED IN SAID SUBSECTION (1)(C)(I) WOULD BE IMPRACTICAL OR DELETERIOUS TO
7 THE EFFICACIOUS IMPLEMENTATION OF THIS SECTION, AN ALTERNATIVE SOURCE OF ESTIMATES THAT
8 THE DIVISION FINDS TO BE APPROPRIATE.
9(d) B Y N OVEMBER 1,2026 AND BY N OVEMBER 1 ST OF EACH SUBSEQUENT YEAR IN WHICH THE
10 BASELINE RESETS, THE GOVERNING BODY OF EACH LOCAL GOVERNMENT, OTHER THAN LOCAL
11 HOUSING AUTHORITIES, DESIRING TO RECEIVE FUNDING UNDER THIS SECTION OR DESIRING TO MAKE
12 AFFORDABLE HOUSING PROJECTS WITHIN ITSTERRITORIAL BOUNDARIES ELIGIBLE FOR FUNDING
13 UNDER THIS SECTION SHALL MAKE AND FILE WITH THE DIVISION A COMMITMENT SPECIFYING HOW, BY
14 D ECEMBER 31 OF THE THIRD YEAR THEREAFTER, THE COMBINED NUMBER OF NEWLY CONSTRUCTED
15 AFFORDABLE HOUSING UNITS AND EXISTING UNITS CONVERTED TO AFFORDABLE HOUSING, WITHIN ITS
16 TERRITORIAL BOUNDARIES SHALL BE INCREASED BY THREE PERCENT EACH YEAR OVER THE BASELINE
17 NUMBER OF AFFORDABLE HOUSING UNITS WITHIN ITS TERRITORIAL BOUNDARIES DETERMINED AS
18 PROVIDED IN SUBSECTION (1)(c) OF THIS SECTION.
19 (e)I N DRAFTING AND ENACTING COMMITMENTS UNDER THIS SUBSECTION (1) LOCAL GOVERNMENTS
20 SHOULD PRIORITIZE HIGH-DENSITY HOUSING, MIXED-INCOME HOUSING, AND PROJECTS CONSISTENT
21 WITH THE GOAL OF ENVIRONMENTAL SUSTAINABILITY, WHEN APPROPRIATE, AND SHOULD PRIORITIZE
22 AFFORDABLE HOUSING IN COMMUNITIES IN WHICH LOW CONCENTRATIONS OF AFFORDABLE HOUSING
23 EXIST.
24 (2)(a)I N ORDER TO RECEIVE FINANCIAL ASSISTANCE UNDER THIS ARTICLE, OR FOR AFFORDABLE
25 HOUSING PROJECTS WITHIN A MUNICIPALITY, A CITY AND COUNTY, OR THE UNINCORPORATED AREA OF
26 A COUNTY TO BE ELIGIBLE FOR FUNDING, THE LOCAL GOVERNMENT, OTHER THAN A LOCAL
27 AFFORDABLE HOUSING AUTHORITY, MUST ESTABLISH PROCESSES TO ENABLE IT TO PROVIDE A FINAL
28 DECISION ON ANY APPLICATION FOR A SPECIAL PERMIT, VARIANCE, OR OTHER DEVELOPMENT PERMIT,
29 EXCLUDING SUBDIVISIONS, OF A DEVELOPMENT PROJECT FOR WHICH FIFTY PERCENT OR MORE OF
30 THE RESIDENTIAL UNITS IN THE DEVELOPMENT CONSTITUTE AFFORDABLE HOUSING NOT MORE THAN
31 NINETY CALENDAR DAYS AFTER SUBMISSION OF A COMPLETE APPLICATION, REFERRED TO HEREIN AS
32 A“FAST-TRACK APPROVAL PROCESS.”
33 (b)A LOCAL GOVERNMENT’S FAST-TRACK APPROVAL PROCESS MAY INCLUDE AN OPTION TO EXTEND
34 THE REVIEW PERIOD FOR AN ADDITIONAL NINETY DAYS AT THE REQUEST OF A DEVELOPER, FOR
35 COMPLIANCE WITH STATE LAW OR COURT ORDER, OR FOR A REVIEW PERIOD REQUIRED BY ANOTHER
36 LOCAL GOVERNMENT OR AGENCY, WITHIN THE LOCAL GOVERNMENT OR OUTSIDE, FOR ANY
37 COMPONENT OF THE APPLICATION REQUIRING THAT GOVERNMENT’S OR AGENCY’S APPROVAL.
38 (c)A LOCAL GOVERNMENT’S FAST-TRACK APPROVAL PROCESS MAY INCLUDE EXTENSIONS TO ALLOW
39 FOR THE SUBMISSION OF ADDITIONAL INFORMATION OR REVISIONS TO AN APPLICATION IN RESPONSE
40 TO REQUESTS FROM THE LOCAL GOVERNMENT.S UCH EXTENSIONS SHALL NOT EXCEED THE AMOUNT
41 OF TIME FROM THEREQUEST TO THE SUBMISSION OF THE APPLICANT’S RESPONSE PLUS THIRTY DAYS.
42 A PPLICANTS SHALL PROVIDE SUCH ADDITIONAL INFORMATION OR RESPONSES PROMPTLY AND SHALL,
8
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1 WHENEVER PRACTICABLE, PROVIDE A RESPONSE WITHIN FIVE BUSINESS DAYS.
2(d)N OTHING IN THIS SUBSECTION (2) SHALL BE INTERPRETED AS REQUIRING AN AFFORDABLE
3 HOUSING DEVELOPER TO UTILIZE A FAST-TRACK APPROVAL PROCESS.
4(3) (a) B EGINNING IN 2027, TO BE ELIGIBLE UNDER THIS ARTICLE FOR DIRECT FUNDING, OR FOR
5 AFFORDABLE HOUSING PROJECTS WITHIN A LOCAL GOVERNMENT’S TERRITORIAL BOUNDARIES TO BE
6 ELIGIBLE FOR FUNDING, LOCAL GOVERNMENTS, OTHER THAN LOCAL HOUSING AUTHORITIES, MUST
7 SATISFY BOTH THE REQUIREMENTS OF SUBSECTION (1) OF THIS SECTION TO COMMIT TO AND ACHIEVE
8 ANNUAL INCREASES IN THE NUMBER OF AFFORDABLE HOUSING UNITS WITHIN THEIR TERRITORIAL
9 BOUNDARIES, AND THE REQUIREMENTS OF SUBSECTION (2) OF THIS SECTION TO IMPLEMENT A
10 SYSTEM TO EXPEDITE THE DEVELOPMENT APPROVAL PROCESS FOR AFFORDABLE HOUSING
11 PROJECTS.
12 (b)(I) I F A LOCAL GOVERNMENT MAKES AND FILES WITH THE DIVISION THE COMMITMENT REQUIRED BY
13 SUBSECTION (1) OF THIS SECTION BY N OVEMBER 1,2023, IT SHALL BE DEEMED TO HAVE SATISFIED
14 THE REQUIREMENTS OF SUBSECTION (1) OF THIS SECTION THROUGH D ECEMBER 31,2026.
15 (II) I F A LOCAL GOVERNMENT MAKES AND FILES WITH THE DIVISION THE COMMITMENT REQUIRED BY
16 SUBSECTION (1) OF THIS SECTION BY N OVEMBER 1,2026, OR BY N OVEMBER 1 ST OF A SUBSEQUENT
17 YEAR IN WHICH THE BASELINE RESETS, AND IT MET ITS COMMITMENT TO INCREASE AFFORDABLE
18 HOUSING MADE UNDER SUBSECTION (1) OF THIS SECTION FOR THE PREVIOUS THREE-YEAR CYCLE, IT
19 SHALL BE DEEMED TO HAVE SATISFIED THE REQUIREMENTS OF SUBSECTION (1) OF THIS SECTION
20 THROUGH THE END OF THE CURRENT THREE-YEAR CYCLE.
21 (III) I F A LOCAL GOVERNMENT, OTHER THAN A LOCAL HOUSING AUTHORITY, FAILS TO MAKE AND FILE
22 WITH THE DIVISION THE COMMITMENT REQUIRED BY SUBSECTION (1) OF THIS SECTION BY N OVEMBER
23 1,2023, OR BY N OVEMBER 1 ST OF A SUBSEQUENT YEAR IN WHICH THE BASELINE RESETS, IT SHALL
24 BE INELIGIBLE TO RECEIVE FINANCIAL ASSISTANCE FROM THE DIVISION OR ADMINISTRATOR DURING
25 THE FOLLOWING CALENDAR YEAR.
26 (IV) I F A LOCAL GOVERNMENT FAILS TO MEET ITS COMMITMENT TO INCREASE AFFORDABLE HOUSING
27 MADE AND FILED PURSUANT TO SUBSECTION (1) OF THIS SECTION FOR ANY THREE-YEAR CYCLE, IT
28 SHALL BE INELIGIBLE TO RECEIVE FINANCIAL ASSISTANCE FROM THE DIVISION OR ADMINISTRATOR
29 DURING THE FIRST CALENDAR YEAR OF THE NEXT THREE-YEAR CYCLE.
30 (V) A N INELIGIBLE LOCAL GOVERNMENT MAY APPLY FOR A SUBSEQUENT YEAR WITH A NEW
31 COMMITMENT UNDER SUBSECTION (1) OF THIS SECTION FOR THE BALANCE OF THE THEN-CURRENT
32 THREE-YEAR CYCLE.
33 (VI)A DEVELOPER, WHETHER FOR-PROFIT OR NONPROFIT, OR A LOCAL GOVERNMENT DEVELOPING
34 AN AFFORDABLE HOUSING PROJECT WITHIN THE TERRITORIAL BOUNDARIES OF A LOCAL GOVERNMENT
35 THAT FAILS TO MEET THE REQUIREMENTS OF SUBSECTION (1) OR (2) OF THIS SECTION SHALL BE
36 INELIGIBLE TO RECEIVE FINANCIAL ASSISTANCE FROM THE DIVISION OR ADMINISTRATOR.
37 N OTWITHSTANDING THISRESTRICTION, A PROJECT WITHIN THE TERRITORIAL BOUNDARIES OF AN
38 ELIGIBLE MUNICIPALITY SHALL BE ELIGIBLE FOR FUNDING EVEN IF THE COUNTY IN WHICH THE PROJECT
39 IS LOCATED IS INELIGIBLE.
40 (VII) I NELIGIBLE LOCAL GOVERNMENTS AND DEVELOPERS OF PROJECTS IN INELIGIBLE LOCAL
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1 GOVERNMENT JURISDICTIONS SHALL NOT BE REQUIRED TO PAY BACK TO THE DIVISION OR THE
2 ADMINISTRATOR MONEY PAID TO THEM UNDER THIS ARTICLE PRIOR TO INELIGIBILITY.
3(d) T HE DIVISION SHALL BE RESPONSIBLE FOR DETERMINING COMPLIANCE WITH THIS SECTION. FOR
4 THE PURPOSE OF CALCULATING WHETHER A LOCAL GOVERNMENT HAS MET THE REQUIREMENTS OF
5 SUBSECTION (1) OF THIS SECTION, A NEW RESIDENTIAL HOUSING UNIT IS TO BE COUNTED AT THE TIME
6 IT IS PERMITTED RATHER THAN THE TIME IT IS CONSTRUCTED.A N EXISTING HOUSING UNIT NEWLY
7 QUALIFYING AS AFFORDABLE HOUSING IS TO BE COUNTED AT THE TIME IT IS PERMITTED AND FULLY
8 FUNDED RATHER THAN AT THE TIME THE CONVERSION IS COMPLETED.F OR THE PURPOSE OF
9 CALCULATING WHETHER A LOCAL GOVERNMENT HAS MET THE REQUIREMENTS OF SUBSECTION (1) OF
10 THIS SECTION, IN ADDITION TO AFFORDABLE HOUSING GROWTH ACHIEVED THROUGH THE PROGRAMS
11 IN THIS ARTICLE, ANY NEW DEED RESTRICTED AFFORDABLE HOUSING, NEWLY CONSTRUCTED OR
12 CONVERTED TO AFFORDABLE, WITHIN A LOCAL GOVERNMENT’S TERRITORIAL BOUNDARIES SHALL BE
13 COUNTED TOWARD THE LOCAL GOVERNMENT’S GROWTH REQUIREMENT.A FFORDABLE HOUSING
14 GROWTH IN ANOTHER JURISDICTION RESULTING DIRECTLY FROM A LOCAL GOVERNMENT’S FUNDING
15 OF SUCH AFFORDABLE HOUSING IN COOPERATION WITH ANOTHER LOCAL GOVERNMENT SHALL BE
16 ATTRIBUTED TO A LOCAL GOVERNMENT IN PROPORTION TO THE FUNDING PROVIDED BY THE LOCAL
17 GOVERNMENT TO SUCH HOUSING.
18 29-32-106. Maintenance of effort. F OR ANY STATE FISCAL YEAR IN WHICH MONEY IS
19 APPROPRIATED FROM THE FUND IN ACCORDANCE WITH THE REQUIREMENTS OF THIS ARTICLE, ANY
20 SUCH MONEY APPROPRIATED MUST SUPPLEMENT AND SHALL NOT SUPPLANT THE LEVEL OF GENERAL
21 FUND AND CASH FUND APPROPRIATIONS FOR AFFORDABLE HOUSING PROGRAMS AS OF STATE FISCAL
22 YEAR 2022-23.
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54
DRAFT LETTER TO THE EDITOR
The Vail Local Housing Authority advocates for affordable housing initiatives and works to
ensure there is Vail-based deed-restricted housing for at least 30 percent of Vail’s workforce. To
that end, and with your mail-in ballots now sitting on your kitchen counterand ready to be
filled out, we support and urge ‘yes’ votes on the following three initiatives that will be
instrumental to delivering on housing solutions:
First, last November, Town of Vail voters approved a 0.5 percent sales tax increase for housing
initiatives that would not exceed $4.5 million in its first year of collections.Sales tax collections
are significantly higher than what was estimated in 2021 because of the unforeseen increases in
economic activity during this past winter ski season as well asinflationary price increases.
Current forecasts project the new half-cent sales tax collections to total $5.3 million in 2022.
The VLHA feels this is a good problem to have to help us continue to be a leader in addressing
the ongoing housing crisis. 2I is on the ballot because Colorado’s Taxpayer Bill of Rights (TABOR)
prohibits first-year-only collections of any new tax to exceed the amount stated in the original
ballot language.
Second, Colorado Proposition 123is a statewide initiative aimed at making a serious dent in the
housing crisis by creating an annual $300 million funding source with existingstateincome tax
revenue–no new taxes would be levied. Local government, like the Town of Vail, would be
able to determinehow they would want to spend what they’ve been allocatedif Prop. 123
passes.
And, our support also goes to the formation of the Eagle ValleyRegional Transportation
Authorityand a half-cent sales tax increase. While the Town of Vail has a world-class transit
system, it is critically important that we coordinate and connect better among our small
businesses and where our workforce is livingby way of enhancedtransit throughout the Eagle
River Valley. Improved transit will also help us achieve our sustainability goals by getting more
of us and our guests out of our carsand onto more efficient bus service. The RTA formation
question will be on the ballots for not only Vail voters but Eagle County, Minturn, Avon, Eagle,
Gypsum, Red Cliff and Beaver Creek Metropolitan District.
Thank you for considering YES votes for housing and transit.
VLHA Members:
Steve Lindstrom
Dan Godec
Kristin Kenney Williams
James Wilkins
Craig Denton
55
RESOLUTION NO.5
SERIES 2022
A RESOLUTION IN SUPPORT OF TOWN OF VAIL BALLOT ISSUES2H,
2I, ANDCOLORADO PROPOSITION 123
WHEREAS,creating more community housing is the mission of the Vail Local
Housing Authority (the “VLHA”) in order to preserve and sustain Vail’svision to be the
premier international mountain resort community;
WHEREAS, the VLHA continues to be leaders in the development of community
housing by prioritizing the goals adopted in the Vail Housing 2027 Plan and implementing
the various housing initiatives, policies and administration of the Vail InDeed Program;
WHEREAS, the VLHAsupportscommunity housing solutions by ensuring
dedicated funding sources are available for the initiatives and programsto increase the
supply of deed-restricted homes for year-round and seasonal residents;and
WHEREAS, the VLHA finds that improved regionaltransportation solutions benefit
the creation and supportsthe development of community housing throughout the Eagle
Valley region.
NOW THEREFORE, BE IT RESOLVED BY THE VAILLOCAL HOUSING
AUTHORITY
Section 1.The Vail Local Housing Authorityurges Vail voters to vote in the
upcoming November 8, 2022 General Coordinated Election and encourages voters to
support Ballot Issue 2I, the creation of a regional transit authority, and Colorado
Proposition 123at the upcoming November 8, 2022 General Coordinated Election by
voting YES.
Section 2. This Resolution shall take effect immediately upon its passage.
INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Vail Local
TH
Housing Authority heldthis 25DAY OF OCTOBER,2022.
______________________________
Steve Lindstrom, Chair, VLHA
ATTEST:
____________________________
Martha Anderson, VLHA, Secretary
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