A Bill for an Act
Page 1, Line 101Concerning authorization for the state treasurer to invest
Page 1, Line 102state money for the creation of affordable for-sale
Page 1, Line 103housing in the state.
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 authorizes the state treasurer to invest up to $50 million of state money in bonds that may have below-market interest rates that are issued by a quasi-governmental entity if the proceeds of the bonds are used for the creation of affordable for-sale housing that otherwise would not be created without the state's investment. Money from redemption of such bonds may be reinvested by the state treasurer for the same purpose.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) The creation of affordable homeownership opportunities is
Page 2, Line 4essential to ensure the health of Colorado's workforce and the vitality of Colorado's community and thereby serves a public purpose; and
Page 2, Line 5(b) Affordable homeownership opportunities provide housing stability for Colorado's workforce and facilitate intergenerational wealth.
Page 2, Line 6(2) The general assembly further find and declares that there are
Page 2, Line 7fewer sources of state-funded public subsidies available for affordable
Page 2, Line 8homeownership as opposed to affordable rental housing and there is a
Page 2, Line 9need for more for-sale housing, especially for the lowest income borrowers.
Page 2, Line 10(3) It is therefore the intent of the general assembly to create an
Page 2, Line 11avenue for the state to invest, and reinvest, state money for the creation
Page 2, Line 12of affordable for-sale housing, thereby creating affordable homeownership opportunities within the state.
Page 2, Line 13SECTION 2. In Colorado Revised Statutes, 24-36-113, add (8) as follows:
Page 2, Line 1424-36-113. Investment of state money - limitations.
Page 2, Line 15(8) (a) Subject to the requirements set forth in subsection (8)(b)
Page 2, Line 16of this section, the state treasurer may invest money in bonds
Page 2, Line 17that are issued by quasi-governmental authorities for the
Page 2, Line 18purpose of creating affordable for-sale housing within the state
Page 2, Line 19consistent with the public purposes of the quasi-governmental
Page 3, Line 1authority issuing the bonds. Notwithstanding subsection (1)(a)
Page 3, Line 2of this section, an investment allowed pursuant to this subsection (8) may have a below-market rate of interest.
Page 3, Line 3(b) (I) (A) An investment made as authorized by subsection
Page 3, Line 4(8)(a) of this section must create or finance new affordable,
Page 3, Line 5income-restricted for-sale housing within the state that,
Page 3, Line 6without such investment, would not otherwise be made available at similar rates and terms.
Page 3, Line 7(B) The housing created with proceeds of the bonds must
Page 3, Line 8remain affordable long-term and be available to borrowers
Page 3, Line 9earning no more than one hundred forty percent of the
Page 3, Line 10statewide area median income as defined annually by the United
Page 3, Line 11States department of housing and urban development with
Page 3, Line 12consideration given to elevating opportunities for for-sale
Page 3, Line 13housing for the lowest income borrowers and taking into
Page 3, Line 14consideration demonstrated community needs. The
Page 3, Line 15quasi-governmental authority issuing the bonds or its designee shall require that income verifications are completed.
Page 3, Line 16(II) The initial investment of money that is invested in
Page 3, Line 17accordance with this subsection (8) must not exceed fifty million
Page 3, Line 18dollars. Notwithstanding any law to the contrary, the term of
Page 3, Line 19an investment made pursuant to this subsection (8) may be up to forty-five years.
Page 3, Line 20(III) Any bond purchased in accordance with this
Page 3, Line 21subsection (8) must have at least two credit ratings at or above
Page 3, Line 22A- or A3 or its equivalent from a nationally recognized rating
Page 3, Line 23organization and must otherwise be eligible for purchase
Page 4, Line 1consistent with the state treasurer's investment policies. The
Page 4, Line 2issuance of the bonds must be consistent with the public purposes of the quasi-governmental authority issuing the bonds.
Page 4, Line 3(IV) The state treasurer shall reinvest principal proceeds
Page 4, Line 4received from redemption of an investment made pursuant to
Page 4, Line 5this subsection (8) in accordance with this subsection (8); except
Page 4, Line 6that any reinvestment shall only be made after the state
Page 4, Line 7treasurer receives repayment of fifty percent of the principal amount invested.
Page 4, Line 8(V) The quasi-governmental authority issuing the bonds
Page 4, Line 9shall provide an annual report to the treasurer and the
Page 4, Line 10general assembly that includes the total number of units
Page 4, Line 11constructed in the reporting year and at what levels of
Page 4, Line 12affordability the units will be offered for sale, a map showing
Page 4, Line 13each location where proceeds of the bonds have been used, and
Page 4, Line 14the average sale price of affordable for-sale housing created
Page 4, Line 15with bond proceeds that sold in the reporting year categorized
Page 4, Line 16by rural, urban, and rural resort regions. The report must also
Page 4, Line 17include housing market and demographic information that
Page 4, Line 18demonstrates how the units created address the need for
Page 4, Line 19affordable for-sale homes in the communities they are intended
Page 4, Line 20to serve and provide information about any remaining disparities concerning housing affordability within these communities.
Page 4, Line 21SECTION 3. Safety clause. The general assembly finds,
Page 4, Line 22determines, and declares that this act is necessary for the immediate
Page 4, Line 23preservation of the public peace, health, or safety or for appropriations for
Page 5, Line 1the support and maintenance of the departments of the state and state institutions.