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Legislative Year: 2023 Change

Bill Detail: HB23-1304

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Title Proposition 123 Affordable Housing Programs
Status Governor Signed (06/05/2023)
Bill Subjects
  • Housing
House Sponsors J. McCluskie (D)
L. Frizell (R)
Senate Sponsors T. Exum Sr. (D)
D. Roberts (D)
House Committee Transportation, Housing and Local Government
Senate Committee Local Government and Housing
Date Introduced 04/20/2023

At the general election in 2022, voters approved proposition 123,
which created new affordable housing programs funded with income tax
revenue that the state is permitted to retain and spend as a voter-approved
revenue change. 60% of the dedicated revenue is allocated to the
affordable housing financing fund (financing fund) for 3 new affordable
housing programs. This money is continuously appropriated to the office
of economic development (office), which is required to give the money
to an administrator selected by the office to administer the programs. 40%
of the dedicated revenue is allocated to the affordable housing support
fund (support fund), which is continuously appropriated to the division
of housing for 3 other affordable housing programs, including the land
planning capacity development program.
Local governments that seek additional affordable housing funding
from these programs must commit to increasing the number of affordable
housing units within the local government by 3% annually and expedite
development approvals for affordable housing projects (conditions for
funding). The funding for the new affordable housing programs is
prohibited from supplanting existing state appropriations for affordable
housing programs (maintenance of effort requirement).

The bill modifies the affordable housing programs by:
  • Allowing tribal governments to participate in the programs,
subject to the same conditions for funding;
  • Requiring the division of local government, rather than the
division of housing, to administer the land planning
capacity development program and continuously
appropriating money in the support fund to the division of
local government for that purpose;
  • Allowing the office to use a portion of the money in the
financing fund for its administrative expenses, without
increasing the total amount of money from the fund that
may be used for administrative expenses;
  • Clarifying that, for the affordable housing programs
administered by the administrator, the area median income
and rent levels are designated for each rental unit instead of
being recalculated on a monthly basis and that the average
area median income calculation does not apply to the
modular and factory build manufacturer debt program;
  • Clarifying the description of how money is transferred or
  • For purposes of the 3% growth obligation that is a
condition for funding, specifying that all units from
projects funded through certain affordable housing
programs are counted towards the obligation and allowing
local governments and tribal governments to enter into a
written agreement to divvy up the units that result from
collaborative agreements;
  • Establishing a process for rural resort communities to
petition the division of housing to use different percentages
of area median income than those percentages specified for
eligibility for certain affordable housing programs funded
through the financing fund;
  • Exempting money originally from the federal coronavirus
state fiscal recovery fund from the appropriations for fiscal
year 2022-23 that are used to determine the state's
maintenance of effort requirement; and
  • Requiring the office and the division of housing to provide
3 annual reports to legislative committees about the
affordable housing programs.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (07/27/2023) (most recent)  
Additional Bill Documents Bill Documents
  • Past bill versions
  • Past fiscal notes
  • Committee activity and documents
  • Bill History
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Votes House and Senate Votes
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