SB 25-313 Colorado Senate · 2025 Regular Session

Proposition 123 Revenue Uses

Summary

Proposition 123, which was approved by the voters at the 2022 statewide election, created the affordable housing support fund (fund) and continuously appropriated money from the fund to the division of housing within the department of local affairs (department) for enumerated uses relating to an affordable home ownership program and a program serving persons experiencing homelessness and to the division of local government, also within the department, for enumerated uses relating to a local planning capacity development program. A specified percentage of money from the fund is allocated for the implementation of each program, and from each allocated percentage the division of housing or the division of local government, as applicable, is permitted to use up to 5% to pay for the direct and indirect costs of administering each program. Beginning in state fiscal year 2026-27, the act makes the expenditure of up to 5% of the money from each program's allocation of funding for administration of each program subject to annual appropriation by the general assembly and clarifies how that 5% amount is calculated. The act also allows the division of housing, subject to annual appropriation by the general assembly, to expend money under the program serving persons experiencing homelessness for: Capital needs at 2 state-owned supportive residential communities for persons experiencing homelessness (supportive residential communities); and Direct and indirect costs of operating the 2 supportive residential communities. Proposition 123 also included a prohibition on the general assembly appropriating funds from the fund and the affordable housing financing fund to supplant other state support for affordable housing projects. The act clarifies when appropriations from the fund and the affordable housing financing fund would violate this prohibition. (Note: This summary applies to this bill as enacted.)

Sub-Topics: Government Spending Homelessness Affordable Housing Property Development

Bill status signed all 5 stages cleared

Introduction

Apr 2025

Committee Review

May 2025

Senate Passage

Apr 2025

House Passage

May 2025

Signed into Law

May 2025

Introduced Apr 24, 2025 Signed May 30, 2025

Maddy AI version diff · 6 comparisons

What changed between versions

Rerevised (05/02/2025) → Revised (05/01/2025) · 3 edits

MINOR

The bill was revised to remove several House sponsors from the sponsorship list and update the versioning status from 'Rerevised' to 'Revised' to reflect its status after second reading in the Senate. Additionally, the permissible expenditures section was expanded to include subsections (3)(b) and (3)(c) alongside (3)(a), allowing the Division of Housing and Division of Local Government to use transferred funds for a broader range of affordable housing programs.

Scope change

The bill's scope of permissible expenditures was expanded to include additional affordable housing program categories previously not explicitly listed.

TECHNICAL

Removed four House sponsors (McCluskie, Lindsay, Taggart, Sirota) from the official sponsorship list, reducing the number of co-sponsors.

Updated the document header from 'Rerevised' to 'Revised' and changed the amendment status description to reflect that amendments were adopted on second reading rather than in the second house.

FISCAL

Expanded the list of permissible affordable housing programs that can receive transferred funds to include subsections (3)(b) and (3)(c) in addition to (3)(a), broadening the scope of eligible expenditures.

Reengrossed (04/30/2025) → Signed Act (05/30/2025) · 7 edits · May 30, 2025

MODERATE

This bill was reengrossed to add new sponsors to the House, clarify the bill title, and significantly expand the permissible uses of funds from Proposition 123. The changes allow the Division of Housing to use up to 45% of funds for programs serving persons experiencing homelessness, including grants for supportive housing and specific funding for two existing residential communities. Additionally, the bill clarifies that up to 5% of allocated funds can be used for program administration costs, subject to annual appropriation starting in fiscal year 2026-27.

Scope change

The bill's scope was expanded to include specific programs for persons experiencing homelessness, including grants to non-profits, local governments, and private entities for supportive housing development, and direct funding for two specific supportive residential communities.

ELIGIBILITY

Added eligibility criteria for affordable home ownership program, specifying assistance for households earning 120% of area median income with housing costs not exceeding 35% of monthly income.

FISCAL

Added authority for the Division of Housing to use up to 45% of funds for programs serving persons experiencing homelessness, including rental assistance, housing vouchers, and eviction defense.

Added specific funding for capital construction needs and operating costs at Ridge View and Fort Lyon Supportive Residential Communities, subject to annual appropriation.

REQUIREMENT

Added requirement that 5% of allocated funds for each program may be used for direct and indirect administrative costs, subject to annual appropriation beginning in fiscal year 2026-27.

SCOPE

Modified the bill to include grants to non-profits, local governments, tribal governments, community development financial institutions, and community land trusts for affordable home ownership.

TIMELINE

Added timeline for specific funding provisions, with capital construction funding beginning in fiscal year 2025-26 and operating costs beginning in fiscal year 2026-27.

MODIFIED

Added new House sponsors to the bill and updated formatting to reflect reengrossed version with all amendments included.

Floor votes · Senate Apr 30, 2025 · House May 2, 2025

How they voted

27–7

Passed

Total votes 34

Apr 30, 2025

D Democratic22

21 Yea 1 Nay

95% Yea

R Republican12

6 Yea 6 Nay

50% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 30, 2025

Signed into law

Governor Signed

executive

May 2, 2025

Lower · Passed

House Third Reading Passed - No Amendments

lower

May 1, 2025

Lower · Passed

House Committee on Appropriations Refer Unamended to House Committee of the Whole

lower

Apr 30, 2025

Introduced

Introduced In House - Assigned to Appropriations

lower

Apr 30, 2025

Upper · Passed

Senate Third Reading Passed - No Amendments

upper

Apr 29, 2025

Upper · Passed

Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

upper

Apr 24, 2025

Introduced

Introduced In Senate - Assigned to Appropriations

upper

4 primary · 4 co-sponsors