A Bill for an Act
Page 1, Line 101Concerning funding for community integration housing, and,
Page 1, Line 102in connection therewith, requiring ten percent of
Page 1, Line 103federal low-income housing tax credits be set aside and
Page 1, Line 104priority for state affordable housing tax credits be
Page 1, Line 105given to developments that qualify as community
Page 1, Line 106integration housing for persons with intellectual and
Page 1, Line 107developmental disabilities.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill creates a targeted allocation priority within Colorado's administration of federal and state affordable housing tax credits to support development of integrated, community-based housing for persons with intellectual and developmental disabilities. The bill requires a set aside of at least 10% of the state's annual allocation of competitive federal low-income housing tax credits (federal tax credits) for "community integration housing". To qualify, a development must comply with federal tax credit requirements, meet federal home- and community-based services settings standards, reserve at least 20% of its units for persons with intellectual and developmental disabilities, and partner with a community-centered board or certified case-management agency. The bill authorizes the Colorado housing and finance authority (authority) to reallocate unused credits from the set aside at the end of a calendar year for allocation to any eligible project.
The bill amends the state affordable housing tax credit (state tax credit) to require the authority to provide priority scoring or preference to qualified developments that have received a federal tax credit as a qualified community integration housing development and that continue to meet all requirements for community integration housing. The requirement for priority scoring or preference does not waive or otherwise limit the authority's ability to enforce all applicable eligibility requirements or to determine the amount of the state tax credit to be allocated to any qualified development.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 39-22-572 as
Page 2, Line 3follows:
Page 2, Line 439-22-572. Federal low-income housing tax credit ceiling set
Page 2, Line 5aside for community integration housing - legislative declaration -
Page 2, Line 6definitions.
Page 2, Line 7(1) The general assembly finds and declares that:
Page 2, Line 8(a) There is a significant unmet need in Colorado for
Page 2, Line 9integrated, affordable housing for persons with intellectual
Page 2, Line 10and developmental disabilities;
Page 2, Line 11(b) The development of community-based housing that
Page 3, Line 1complies with federal home- and community-based services
Page 3, Line 2settings requirements (community integration housing) is vital
Page 3, Line 3to meeting this need as well as the state's obligations under
Page 3, Line 4federal law; and
Page 3, Line 5(c) Establishing an allocation priority for community
Page 3, Line 6integration housing to receive federal low-income housing tax
Page 3, Line 7credits through a qualified allocation plan will encourage and
Page 3, Line 8support developments to address this specific housing need.
Page 3, Line 9(2) As used in this section, unless the context otherwise
Page 3, Line 10requires:
Page 3, Line 11(a) "Authority" means the Colorado housing and finance
Page 3, Line 12authority created in section 29-4-704.
Page 3, Line 13(b) "Case management agency" has the meaning set forth
Page 3, Line 14in section 25.5-6-1702 (2).
Page 3, Line 15(c) "Community-centered board" has the meaning set
Page 3, Line 16forth in section 25.5-6-1702 (5).
Page 3, Line 17(d) "Department" means the department of health care
Page 3, Line 18policy and financing.
Page 3, Line 19(e) "Federal tax credit" means the federal low-income
Page 3, Line 20housing tax credit provided by section 42 of the internal
Page 3, Line 21revenue code that is allocated by the authority pursuant to a
Page 3, Line 22competitive process established in the qualified allocation plan.
Page 3, Line 23(f) "Federal tax credit ceiling" means the aggregate
Page 3, Line 24dollar amount of federal tax credits that the authority may
Page 3, Line 25allocate for any calendar year in accordance with section 42
Page 3, Line 26(h)(3)(C) of the internal revenue code.
Page 3, Line 27(g) "HCBS settings rule" means the federal regulatory
Page 4, Line 1requirements for any home- and community-based services
Page 4, Line 2setting set forth in 42 CFR 441.301(c)(4).
Page 4, Line 3(h) "HCBS waiver services" means the home- and
Page 4, Line 4community-based services for persons with intellectual and
Page 4, Line 5developmental disabilities allowed to be furnished in
Page 4, Line 6non-institutional, community settings as an alternative to
Page 4, Line 7institutional care pursuant to 42 U.S.C. sec. 1396n(c).
Page 4, Line 8(i) "Person with an intellectual and developmental
Page 4, Line 9disability" has the meaning set forth in section 25.5-10-202 (26).
Page 4, Line 10(j) "Qualified allocation plan" means the qualified
Page 4, Line 11allocation plan adopted by the authority pursuant to section
Page 4, Line 1242 (m) of the internal revenue code.
Page 4, Line 13(k) "Qualified community integration housing
Page 4, Line 14development" means a "qualified low-income housing project", as
Page 4, Line 15that term is defined in section 42 of the internal revenue code,
Page 4, Line 16that is:
Page 4, Line 17(I) Located in Colorado; and
Page 4, Line 18(II) Determined by the authority to meet the requirements
Page 4, Line 19for community integration housing set forth in subsection (4)(b)
Page 4, Line 20of this section.
Page 4, Line 21(3) The authority shall set aside not less than ten percent
Page 4, Line 22of the annual federal tax credit ceiling for allocation to
Page 4, Line 23qualified community integration housing developments, as
Page 4, Line 24defined in subsection (2)(k) of this section; except that, any
Page 4, Line 25amount of credit set aside for qualified community integration
Page 4, Line 26housing developments remaining after the ranking of projects
Page 4, Line 27but prior to the final allocation cycle of any calendar year
Page 5, Line 1shall be available for allocation to any eligible project.
Page 5, Line 2(4) (a) Except as provided in subsection (4)(b) of this
Page 5, Line 3section, the authority shall determine eligibility for a credit
Page 5, Line 4and allocate credits set aside pursuant to subsection (3) of this
Page 5, Line 5section in accordance with the qualified allocation plan.
Page 5, Line 6(b) The authority shall allocate a credit set aside
Page 5, Line 7pursuant to this section only to proposed developments
Page 5, Line 8determined by the authority, in consultation with the
Page 5, Line 9department, to have met the following requirements for
Page 5, Line 10community integration housing:
Page 5, Line 11(I) Design, development, and operation in compliance with
Page 5, Line 12the HCBS settings rule, and any successor provisions, as well as
Page 5, Line 13any related state statutes or regulations;
Page 5, Line 14(II) Reservation of at least twenty percent of the
Page 5, Line 15residential dwelling units for occupancy by persons with
Page 5, Line 16intellectual and developmental disabilities, with tenant
Page 5, Line 17selection policies for such reserved units that provide priority,
Page 5, Line 18to the extent permitted by federal law, to persons with
Page 5, Line 19intellectual and developmental disabilities who are eligible for
Page 5, Line 20HCBS waiver services administered by the department; and
Page 5, Line 21(III) Formal partnership, evidenced by a written
Page 5, Line 22agreement, with a community-centered board or a case
Page 5, Line 23management agency certified by the department.
Page 5, Line 24(5) Nothing in this section shall be construed to:
Page 5, Line 25(a) Require the allocation of a federal tax credit to a
Page 5, Line 26development that does not comply with section 42 of the
Page 5, Line 27internal revenue code or the eligibility requirements in the
Page 6, Line 1qualified allocation plan; or
Page 6, Line 2(b) Prohibit a community integration housing development
Page 6, Line 3from competing for federal tax credits outside the set aside
Page 6, Line 4established by subsection (3) of this section.
Page 6, Line 5SECTION 2. In Colorado Revised Statutes, 39-22-2102, add
Page 6, Line 6(8.5) as follows:
Page 6, Line 739-22-2102. Credit against tax - affordable housing
Page 6, Line 8developments - legislative declaration.
Page 6, Line 9(8.5) (a) In administering the credit allowed by subsection
Page 6, Line 10(1) of this section, the authority shall provide priority scoring
Page 6, Line 11or preference in the competitive evaluation of applications for
Page 6, Line 12the credit to a qualified development that:
Page 6, Line 13(I) Has been allocated a federal tax credit set aside
Page 6, Line 14pursuant to section 39-22-572 as a qualified community
Page 6, Line 15integration housing development; and
Page 6, Line 16(II) Continues to meet the requirements for community
Page 6, Line 17integration housing set forth in section 39-22-572 (4)(b).
Page 6, Line 18(b) The priority scoring or preference required by
Page 6, Line 19subsection (8.5)(a) of this section must be implemented through
Page 6, Line 20the authority's application scoring criteria or selection
Page 6, Line 21priorities and does not require the allocation of a credit to a
Page 6, Line 22qualified development that fails to meet all other eligibility,
Page 6, Line 23underwriting, or feasibility requirements.
Page 6, Line 24(c) Nothing in this subsection (8.5) limits the authority of
Page 6, Line 25the authority to determine the amount of the credit allocated
Page 6, Line 26to any owner of qualified development or to ensure compliance
Page 6, Line 27with applicable state and federal laws.
Page 7, Line 1SECTION 3. Act subject to petition - effective date -
Page 7, Line 2applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 7, Line 3the expiration of the ninety-day period after final adjournment of the
Page 7, Line 4general assembly (August 12, 2026, if adjournment sine die is on May 13,
Page 7, Line 52026); except that, if a referendum petition is filed pursuant to section 1
Page 7, Line 6(3) of article V of the state constitution against this act or an item, section,
Page 7, Line 7or part of this act within such period, then the act, item, section, or part
Page 7, Line 8will not take effect unless approved by the people at the general election
Page 7, Line 9to be held in November 2026 and, in such case, will take effect on the
Page 7, Line 10date of the official declaration of the vote thereon by the governor.
Page 7, Line 11(2) This act applies to any qualified application plan for federal
Page 7, Line 12tax credits adopted by the authority on or after the applicable effective
Page 7, Line 13date of this act.