Colorado § 39-22-5402 - Definitions.

§ 39-22-5402. Definitions.

As used in this part 54, unless the context otherwise requires:

(1) "Allocation certificate" means a statement issued by the authority certifying that a qualified development meets the requirements of this part 54 and specifying the amount of the credit allocated to the owner of a qualified development.

(2) "Allocation plan" means the allocation plan adopted by the authority that governs the selection criteria and preferences for allocating the credits allowed in this part 54 and that is posted on the authority's website.

(3) "Authority" means the Colorado housing and finance authority created in section 29-4-704.

(4) "Compliance period" means the period of fifteen years beginning with the first taxable year of the credit period.

(5) "Credit" means the middle-income housing tax credit allowed pursuant to this part 54.

(6) (a) "Credit period" means the period of five taxable years beginning with the taxable year in which a qualified development is placed in service.

(b) As used in this subsection (6), "placed in service" means the date defined by the authority as set forth in the allocation plan and based on 26 CFR 1.46-3 (d).

(7) "Department" means the Colorado department of revenue.

(8) "Middle-income housing unit" means a residential unit in a qualified development that is rent restricted and reserved for occupancy only by middle-income individuals and families.

(9) (a) "Middle-income individuals and families" means individuals and families with an annual income between eighty percent and one hundred twenty percent of the area median income of households of that size in the county in which the qualified development is located; except that, for individuals and families residing in a rural resort county, the annual household income is between eighty percent and one hundred forty percent of the area median income of households of that size in the county in which the qualified development is located.

(b) As used in this subsection (9), "area median income" means the median household income of households of a given size in the county in which the housing is located, as established for a given year by the United States department of housing and urban development.

(c) As used in this subsection (9), "rural resort county" means any county classified as a rural resort county by the division of housing in the department of local affairs as specified in the final report of the Colorado strategic housing working group, dated July 6, 2021, including updates and modifications to the initial classification of a county.

(10) "Owner" means the owner of a qualified development.

(11) (a) "Qualified basis" means the amount that equals the adjusted basis of the qualified development as of the close of the first taxable year of the credit period multiplied by the applicable fraction.

(b) As used in this subsection (11), "adjusted basis" means the adjusted basis amount calculated according to the allocation plan.

(c) As used in this subsection (11), "applicable fraction" means the fraction that has as its numerator the number of middle-income housing units in the qualified development and as its denominator the number of residential units in the qualified development.

(12) "Qualified development" means a housing development that is located in the state and is determined by the authority to meet the criteria established in the allocation plan, including providing the required number of middle-income housing units.

(13) "Qualified taxpayer" means an individual, person, firm, corporation, or other entity that owns an interest, direct or indirect, in a qualified development and that is subject to the taxes imposed by this article 22.

(14) (a) "Rent restricted" means a residential unit in a qualified development for which the gross rent does not exceed thirty percent of the imputed income limitation applicable to the unit.

(b) As used in this subsection (14), "imputed income limitation applicable to the unit" means the income limitation for occupants of the unit calculated based on the number of bedrooms in the unit and using the area median income target elected by the owner, as follows:

(I) In the case of a unit without a separate bedroom, one individual; or

(II) In the case of a unit with one or more separate bedrooms, one and one-half individuals for each separate bedroom.

(15) "Transferee" means a taxpayer subject to the taxes imposed by this article 22 that acquires credits from a governmental or quasi-governmental entity pursuant to section 39-22-5404.

Source: L. 2024: Entire part added, (HB 24-1316), ch. 287, p. 1920, § 1, effective May 30. L. 2026: (15) added, (SB 26-001), ch. 7, p. 22, § 6, effective August 12.