SB22-159 – Revolving Loan Fund Invest Affordable Housing

Making an appropriation to create a revolving loan fund within the Division Of Housing within the Department Of Local Affairs to make investments in transformational affordable housing.

In accordance with the requirements of the act and the policies established by the Division of Housing (division) in the Department Of Local Affairs (department), the act establishes a transformational Affordable Housing Revolving Loan Fund Program (loan program). To facilitate the completion of eligible loan projects identified in the act, the loan program provides flexible, low-interest, and below-market rate funding.

As long as the division determines that contracting out full or partial administration of the loan program would be more efficient and effective, it may enter into a contract with a third-party entity.

As defined by the TABOR amendment to the state constitution, any state, department, division, or agency that makes a loan to a district under the loan program must either be approved by the voters in accordance with TABOR, or structured in a way that does not constitute a multiple-fiscal-year direct or indirect district debt or other financial obligation that requires voter approval under TABOR.

The act specifies eligibility requirements in order for projects to be funded under the loan program.

A loan program policy must be established and publicized by the division. In accordance with the act, the division should consider prioritizing applications for funding that meet certain objectives.

A transformational Affordable Housing Revolving Loan Fund (fund) is created in the state treasury, and the act specifies its administration requirements.

On July 1, 2022, the state treasurer is required to transfer $150 million from the affordable housing and home ownership cash fund to the fund.

The division is required to report on the activities of the loan program as part of the regular annual public report prepared by the division on affordable housing spending undertaken by the state.

The act appropriates $379,081 for use by the office of information technology (OIT) in the state fiscal year 2022-23. Funds from the fund have been reappropriated. The appropriation may be used by OIT to provide information technology services to the department in order to implement the act.