Colorado § 29-32-105.5 - Alternative eligibility for programs - rural resort community - petition - legislative declaration - definition.

§ 29-32-105.5. Alternative eligibility for programs - rural resort community - petition - legislative declaration - definition.

(1) (a) The general assembly hereby finds and declares that:

(I) The lack of affordable housing is an issue throughout the state, and voters throughout the state voted in favor of proposition 123 at the statewide general election in 2022 to address this issue;

(II) The state income tax revenue that is the dedicated source of funding for the affordable housing programs created in this article should be available to all eligible communities in the state; and

(III) Coloradans should be able to live where they work and not have to spend more than thirty percent of their income on housing costs, especially in rural and rural resort communities where housing needs are unique.

(b) Therefore, it is the general assembly's intent that the petition process established in this section helps to ensure that eligible rural resort communities are able to receive funding for affordable housing projects that meet the demonstrated housing needs of their communities.

(2) As used in this section, unless the context otherwise requires, "petition" means a petition submitted by a rural resort community to the division in accordance with subsection (3) of this section.

(3) Notwithstanding the requirements set forth in section 29-32-104 (1), a rural resort community may, based on the average needs identified in a housing needs assessment, petition the division to use different percentages of area median income than those percentages specified for eligibility for a given funding cycle for:

(a) The land banking program;

(b) The affordable housing equity program; and

(c) Debt financing programs that are part of the concessionary debt program specified in section 29-32-104 (1)(c)(I) and (1)(c)(III).

(4) The division shall post notice that a petition has been filed on the division's website and shall establish a procedure for receiving public comments on a petition, including comments through the division's website. The division shall consider the public comments when considering the petition.

(5) The division may approve the petition to use different percentages of area median income, but only if:

(a) The submitted housing needs assessment:

(I) Is published by the state or is a local housing needs assessment that utilizes data from the state demographer or other publicly accessible sources, which in either case may be supported by other relevant and verifiable community data;

(II) Has been completed within the past three years of the petition date; and

(III) Is accompanied by a narrative description of why other funding sources cannot be utilized, are not sufficient, or are not accessible to meet the housing needs described within the petition; and

(b) The division determines that the current eligibility standards would cause implementation of this article in a manner inconsistent with demonstrated housing and workforce needs within the jurisdiction, taking into consideration regional workforce commuting trends.

(6) If the division grants the petition, the division shall establish the percentages of area median income based on the average needs identified in a housing needs assessment. A rural resort community may apply for more than one program in a petition.

(7) The approval of a rural resort community's petition does not affect the administrator's obligation in selecting investments that prioritize high-density housing, mixed-income housing, and projects consistent with the goal of environmental sustainability. A project must still meet the rural resort community's demonstrated housing needs.

Source: L. 2023: Entire section added, (HB 23-1304), ch. 381, p. 2291, § 5, effective June 5.