• Education & School Finance (Pre & K-12)
• State Government
• State Revenue & Budget

• Requires at least one board member of the Public School Fund Investment Board to have expertise in community investments.
• Expands the types of investments the state treasurer can make with public school fund money.
• Extends the period to offset losses in the public school fund from 18 to 24 months.
• Creates the Community Investment Portfolio within the Permanent School Fund, requiring:
  • 6% investment by July 1, 2027.
  • 20% investment by July 1, 2032.
• Community investments include:
  • School district bonds and loans.
  • Housing projects for public school employees.
  • Low-interest mortgages for school employees.
  • Venture capital supporting education in Colorado.

• A new housing assistance program within the Community Investment Portfolio.
• The state treasurer must invest:
  • 6% of the fund’s value or $100 million by July 1, 2027.
  • 12% of the fund’s value or $200 million by July 1, 2028.
• Investment breakdown:
  • 75% for shared equity down payment assistance, covering at least 15% of a home’s cost for public school employees.
  • 25% to increase housing supply in underserved communities.
• Mortgages must have interest rates at or below prevailing market rates.
• The program administrator must submit an annual report to the Public School Fund Investment Board.

• Allows investments in equities, mutual funds, ETFs, real estate, and education-related projects.

• Requires at least 20% of the fund to be invested in real estate, equities, and community projects by July 1, 2032.
• Creates two interest-free loans from the Unclaimed Property Trust Fund to the Department of Local Affairs, to be repaid by July 1, 2045:
  • $100 million for a zero-interest revolving loan fund for affordable housing developers.
  • $50 million for a zero-interest revolving loan fund for fire and ambulance districts.
• Establishes the Colorado Investment Portfolio within the Unclaimed Property Trust Fund, requiring:
  • 5% investment by July 1, 2027.
  • 20% investment by July 1, 2032.
• Investments will support:
  • Housing projects and mortgages for Colorado residents.
  • Infrastructure and bonds issued by local governments and tribes.
  • Loans to small businesses and venture capital in Colorado.

• Reduces the Housing Development Grant Fund’s budget by $15 million for FY 2026-27.

This bill expands investment opportunities for public school funds and unclaimed property trust funds, directing more money into community projects, housing for school employees, and local economic development. It also establishes zero-interest loan programs for affordable housing and emergency services while introducing a new down payment assistance program for public school employees.

Section 1 of the bill requires at least one member of the public
school fund investment board (board) to have expertise in community
investments, requires the board to direct the state treasurer to securely
invest money deposited in the public school fund in a manner that
prioritizes new investment objectives, and authorizes the board to enter
into contracts with investment advisors or other investment professionals
to provide advice on community investments. Section 2 makes
conforming changes in order to expand the types of investments the state
treasurer can make using public school fund money and extends the
amount of time the treasurer has to offset an aggregate loss of principal
to the public school fund from 18 to 24 months.
Section 3 creates the new community investment portfolio within
the permanent school fund, and requires the state treasurer to invest at
least 6% of the money in the permanent school fund into the community
investment portfolio by July 1, 2027. The state treasurer is required to
invest at least 20% of the money in the permanent school fund into the
community investment portfolio by July 1, 2032.
Money in the portfolio must be invested in community
investments, and allowable community investments include:
  • Bonds issued by Colorado school districts and charter
schools;
  • Certificates of participation issued by Colorado school
districts and charter schools;
  • Mortgage pass-through securities and collateralized
mortgage obligations secured by residential real estate, the
majority of which is owned by public school employees;
  • Loans to the Colorado middle income housing authority for
a revolving loan fund that funds rental housing
developments that include preferences for public school
employees;
  • Bonds issued by the middle income housing authority that
fund rental housing developments which include
preferences for public school employees;
  • Bonds issued by the Colorado housing and finance
authority that fund rental housing developments that
include preferences for public school employees;
  • Mortgage revenue bonds that support public school
employee mortgages with interest rates of 3% or less;
  • Loans to community development financial institutions that
fund:
  • The construction of housing developments
that include preferences for public school
employees; or
  • Low-interest mortgages secured by
residential real estate that is owned by public
school employees; and
  • Other venture capital, private equity, or public equity funds
that support education in Colorado.
The educator first home ownership program (program) is created
within the community investment portfolio. The treasurer shall invest the
following amounts in the program by the following dates:
  • By July 1, 2027, the greater of 6% of the fund's value or
$100 million; and
  • By July 1, 2028, the greater of 12% of the fund's value or
$200 million.
The treasurer shall invest the money in the program as follows:
  • 75% of the money in the program shall be administered by
the program administrator and used for a shared equity
down payment assistance program that:
  • Provides at least 15% of the total cost of a
home to public school employees; and
  • Allows appreciation-sharing between the
program and the homeowner, with the
program's share of appreciation capped at
10%.
  • 25% of the money in the program must be invested in
allowable community investments with the purpose of
increasing the supply of houses for sale and access to home
ownership in rural and other underserved communities.
The program administrator shall ensure that mortgages in the
shared equity down payment assistance program bear interest rates that
are at least as low as prevailing mortgage rates at the time the mortgages
in the shared equity down payment assistance program are entered into.
The program administrator shall present an annual report to the public
school fund investment board on program outcomes.
Sections 4 and 5 clarify that the state treasurer may invest state
money in direct and indirect equity investments and other asset classes
including mutual funds, exchange-traded funds, direct and indirect real
estate investments, and education-related community investments.
Section 6 requires the state treasurer to invest at least 20% of the
money in the unclaimed property trust fund in direct and indirect equity
investments, mutual funds, exchange-traded funds, direct and indirect real
estate investments, and other asset classes by July 1, 2032. The state
treasurer is also required to make 2 loans of money from the unclaimed
property trust fund to the department of local affairs, both of which must
be paid back in full by July 1, 2045, including:
  • $100 million on July 1, 2025, that the department of local
affairs shall use to create a new zero-interest revolving loan
program for affordable housing developers; and
  • $50 million that the department of local affairs shall use to
create a new zero-interest revolving loan program to
benefit fire protection districts and ambulance districts
experiencing cash flow issues.
Section 7 creates the new Colorado investment portfolio (Colorado
portfolio) within the unclaimed property trust fund. The treasurer is
required to invest at least 5% of the money in the unclaimed property trust
fund into the Colorado portfolio by July 1, 2027, and at least 20% of the
money in the unclaimed property trust fund into the Colorado portfolio by
July 1, 2032.
Money in the Colorado portfolio must be invested in:
  • The community investment portfolio;
  • Bonds issued by Colorado school districts, charter schools,
local governments, special districts, state enterprises,
Indian tribes, or special purpose authorities;
  • Certificates of participation issued by Colorado school
districts, charter schools, local governments, special
districts, state enterprises, Indian tribes, or special purpose
authorities;
  • Mortgage pass-through securities and collateralized
mortgage obligations secured by Colorado residential real
estate that is owned by Coloradans;
  • Bonds issued by the middle income housing authority;
  • Bonds issued by the Colorado housing and finance
authority;
  • Loans to community development financial institutions that
fund:
  • The construction of housing developments in
Colorado; or
  • Mortgages secured by Colorado residential
real estate that is owned by Coloradans;
  • Bonds issued by businesses headquartered in Colorado;
  • Asset-backed securities supported by loans to small
businesses in Colorado;
  • The venture capital authority within the office of economic
development and international trade; or
  • Other venture capital, private equity, or public equity funds
that support communities in Colorado.
Section 8 reduces the amount credited to the housing development
grant fund from the general fund by $15 million for state fiscal year
2026-27.

• Past bill versions
• Past fiscal notes
• Committee activity and documents
• Bill History