Colorado § 24-38.5-115 - Sustainable rebuilding program - fund - creation - policies - report - definitions.

§ 24-38.5-115. Sustainable rebuilding program - fund - creation - policies - report - definitions.

(1) As used in this section, unless the context otherwise requires:

(a) "Administrator" means an entity or entities that the office contracts with pursuant to subsection (2)(b) of this section to administer the program.

(b) "Eligible business" means a business that owns a building or structure that was affected by a disaster emergency declared by the governor pursuant to section 24-33.5-704 (4) and that meets the eligibility criteria established by the office in policies adopted pursuant to subsection (4) of this section.

(c) "Eligible homeowner" means a person or persons who own a home that was affected by a disaster emergency declared by the governor pursuant to section 24-33.5-704 (4) and that meets the eligibility criteria established by the office in policies adopted pursuant to subsection (4) of this section.

(d) "Fund" means the sustainable rebuilding program fund established in subsection (7) of this section.

(e) "Governmental entity" means any authority, county, municipality, city and county, district, or other political subdivision of the state; any tribal government with jurisdiction in Colorado; and any institution, department, agency, or authority of any of the foregoing.

(f) "Home" means any residential structure, including a manufactured, mobile, or modular home, whether the structure is owner-occupied or is a rental property.

(g) "Low-income community member" means an individual or household meeting one or more of the following criteria:

(I) A household income that is less than or equal to two hundred percent of the federal poverty guideline;

(II) A household income that is less than or equal to eighty percent of median income for the area; or

(III) Qualification under income guidelines adopted by the department of human services pursuant to section 40-8.5-105.

(h) "Office" means the Colorado energy office created in section 24-38.5-101.

(i) "Program" means the sustainable rebuilding program created in subsection (2) of this section.

(2) (a) The office shall, in consultation with the department of local affairs, establish the sustainable rebuilding program as a loan and grant program in accordance with the requirements of this section and the policies established by the office pursuant to subsection (4) of this section. The program may provide loans and grants from the fund to eligible homeowners and eligible businesses seeking assistance to rebuild homes and buildings after a disaster emergency declared by the governor pursuant to section 24-33.5-704 (4), with the program giving priority to eligible homeowners and eligible businesses seeking assistance to rebuild high-efficiency homes and buildings.

(b) The office may contract with a governmental entity, Colorado-based nonprofit green bank with a history of and expertise in providing loans and grants for successful energy efficiency projects and services, business nonprofit organization, bank, nondepository community development financial institution, or business development corporation or other entity as determined by the office to administer the program. If the office contracts with an entity or entities to administer the program, the office shall use an open and competitive process pursuant to the state procurement code, articles 101 to 112 of this title 24, to select the entity or entities. A contract with an administrator may include an administration fee established by the office at an amount reasonably calculated to cover the ongoing administrative costs of the office in overseeing the program. The office may advance money to an entity under a contract in preparation for issuing loans and grants and administering the program.

(3) A contract with an administrator may require the administrator to repay all lending capital that is not committed to loans or grants under the program and all principal and interest that is repaid by borrowers under the program at the end of the contract period if, in the judgment of the office, the administrator has not performed successfully under the terms of the contract. The office may redeploy money repaid under this subsection (3) as grants or loans under the program or through another administrator.

(4) (a) The office or, if applicable, an administrator shall establish and publicize policies for the program. At a minimum, the policies must address:

(I) The process and any deadlines for applying for and receiving a loan or grant under the program, including the information and documentation required for the application;

(II) Eligibility criteria for homeowners and businesses applying to the program;

(III) Maximum assistance levels for loans and grants;

(IV) Loan terms, including interest rates and repayment terms;

(V) Any additional specifications or criteria for the uses of the grant or loan money allowed by subsection (5) of this section;

(VI) Any reporting requirements for recipients, which must include the demographic data of each recipient aggregated by race, ethnicity, disability status, and income level;

(VII) Any program fees, including any application fee or origination fee, and closing costs;

(VIII) Underwriting and risk management policies;

(IX) Equitable community outreach and equitable access to program information, including communications in the relevant languages of the community and equitable hearing, sight, and physical accessibility; and

(X) Any additional policies necessary to administer the program.

(b) The policies required by this subsection (4) shall be developed and implemented with a goal of ensuring that low-income community members who are most impacted by climate change receive equitable support and resources.

(5) Loans and grants received from the program may be used:

(a) To rebuild or rehabilitate a home or building with a highly efficient heat pump for space or water heating;

(b) To achieve advanced energy certifications, including from Energy Star, the Passive House Institute U.S., the United States department of energy zero energy ready homes, or other similar programs, as determined by the office;

(c) To achieve net zero energy or net zero carbon buildings with the addition of renewable energy generation;

(d) To assist with the costs of installing battery storage and electric vehicle charging stations;

(e) In a jurisdiction that has adopted the most recent edition of the international energy conservation code or energy requirements that exceed the requirements of that code, to assist with the incremental costs of meeting the requirements of that code compared to the previous edition of the code, taking into account the funding available from utilities and from the law, and ordinance coverage of any available homeowners insurance; and

(f) For other similar uses as determined by the office, including providing loans or grants pursuant to section 24-32-134 (5).

(6) The office may seek, accept, and expend gifts, grants, or donations from private or public sources for the purposes of this section. The office shall transmit all money received through gifts, grants, or donations to the state treasurer, who shall credit the money to the fund.

(7) (a) The sustainable rebuilding program fund is hereby created in the state treasury. The fund consists of money transferred to the fund in accordance with subsection (7)(d) of this section, any other money that the general assembly appropriates or transfers to the fund, and any gifts, grants, or donations credited to the fund pursuant to subsection (6) of this section.

(b) (I) For state fiscal years commencing on or before July 1, 2024, the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.

(II) For state fiscal years commencing on or after July 1, 2025, in accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.

(III) Repealed.

(c) Money in the fund is continuously appropriated to the office for the purposes specified in this section and for the development of the disaster survivor portal described in section 24-33.5-1106 (4).

(d) Three days after May 17, 2022, the state treasurer shall transfer twenty million dollars from the general fund to the sustainable rebuilding program fund created in subsection (7)(a) of this section.

(8) In implementing this section, the office shall collaborate with the department of local affairs created in section 24-1-125 in order to offer streamlined customer service for the sustainable rebuilding program and the disaster resilience rebuilding program created in section 24-32-134.

(9) On or before January 1, 2024, and on or before each January 1 thereafter, the office shall submit a report summarizing the program to the house of representatives energy and environment committee and the senate transportation and energy committee, or their successor committees. Notwithstanding the requirement in section 24-1-136 (11)(a)(I), the requirement to submit the report required in this subsection (9) continues indefinitely.

Source: L. 2022: Entire section added, (SB 22-206), ch. 173, p. 1148, § 3, effective May 17. L. 2024: (2)(a) and (5)(f) amended, (SB 24-214), ch. 191, p. 1107, § 21, effective May 17. L. 2025: (7)(b) amended, (SB 25-317), ch. 385, p. 2149, § 19, effective June 3.

Editor's note: Subsection (7)(b)(III)(B) provided for the repeal of subsection (7)(b)(III), effective July 1, 2026. (See L. 2025, p. 2149.)

Cross references: For the legislative declaration in SB 22-206, see section 1 of chapter 173, Session Laws of Colorado 2022. For the legislative declaration in SB 25-317, see section 1 of chapter 385, Session Laws of Colorado 2025.