HB 1360: Affordable Housing Financing Fund - Colorado

Final Act → Signed Act · 7 edits · May 29, 2026

MODERATE

This bill updates the Affordable Housing Financing Fund by creating a new fund within the state treasury to support affordable housing initiatives. It establishes specific spending limits for administrative costs and outlines a timeline for transferring funds from the existing fund to the new financing fund, with a special one-time transfer to the general fund in 2026. The changes also redefine permissible expenditures to include land banking programs with specific loan forgiveness conditions and clarify administrative expense caps.

Scope change

The bill expands the scope by creating a distinct 'affordable housing financing fund' separate from the existing 'fund,' while modifying the rules for how money moves between them and how it can be spent.

FISCAL

Created a new 'affordable housing financing fund' in the state treasury to hold specific deposits and interest earnings.

Established a one-time transfer of $130 million from the existing fund to the general fund on June 30, 2026.

TIMELINE

Set a schedule for transferring funds from the existing fund to the new financing fund, excluding July 1, 2026, when the special transfer occurs.

REQUIREMENT

Limited administrative expenses to no more than 2% of funds transferred to the financing fund for most fiscal years.

Added specific rules for a land banking program, including loan forgiveness if development occurs within 5 years and funding within 10 years.

ELIGIBILITY

Clarified that mixed-use development is allowed if the predominant use is affordable housing.

TECHNICAL

Removed previous repeal dates and administrative caps that were set to expire in 2025 or 2027.

Rerevised → Final Act · 4 edits · May 22, 2026

MODERATE

This bill modifies how Colorado's Affordable Housing Financing Fund operates by diverting $130 million to the general fund in 2026 and adjusting administrative expense limits. The changes ensure that future transfers to the fund are calculated based on the balance remaining after this diversion, while also clarifying that interest earned on the fund can be used for projects.

Scope change

The bill's scope remains focused on the Affordable Housing Financing Fund, but the specific fiscal year rules and transfer calculations have been altered to accommodate a one-time diversion of funds.

FISCAL

Added a requirement for the State Treasurer to transfer $130 million from the Affordable Housing Fund to the General Fund on June 30, 2026.

Modified the calculation for transferring money to the Financing Fund; the July 1, 2026 transfer is now based on the balance remaining after the June 30 diversion, rather than the original fund balance.

TIMELINE

Updated the timeline for administrative expense limits, repealing the special 2026 rule and establishing a standard two-percent cap for fiscal years on or after July 1, 2027.

DEFINITION

Clarified that interest and investment income earned on the Financing Fund may be expended for projects funded by the fund.

Revised → Rerevised · 3 edits · Apr 16, 2026

MINOR

The bill was re-revised to include all amendments adopted by the Senate, marking the document as '3rd Reading Unamended' for the Senate. The most significant substantive change is the removal of specific funding transfer instructions for July 1, 2023, and June 30, 2026, which previously mandated moving funds to the support fund, the financing fund, and the general fund. This deletion alters the bill's financial operations by eliminating these specific one-time and recurring transfers for those fiscal years.

Scope change

The bill's scope regarding fund administration has narrowed by removing specific transfer mandates for the years 2023 and 2026, though the general framework for administering the programs remains.

FISCAL

Deleted the requirement to transfer 40% of the fund balance to the support fund and 60% to the financing fund on July 1, 2023, and subsequent years (except July 1, 2026).

Deleted the specific instruction for the state treasurer to transfer $130 million from the fund to the general fund on June 30, 2026.

TIMELINE

Updated the document header to reflect that this version includes all amendments adopted in the Second House and is marked as '3rd Reading Unamended' for the Senate.

Reengrossed → Revised · 3 edits · Apr 15, 2026

MINOR

The bill has been reclassified from a 'Reengrossed' version to a 'Revised' version, indicating it is now in its final form after amendments were adopted on second reading in the second house. The text includes updated dates for legislative actions and a new summary section for the Senate. A significant portion of the original text regarding specific fund transfer amounts and constitutional spending limitations was removed, suggesting these details were either finalized elsewhere or the bill's scope was narrowed to focus on the procedural status of the legislation.

Scope change

The bill's scope appears to have been narrowed or finalized, as specific operational details about fund transfers and spending limits were removed from the text, while the document structure was updated to reflect its revised status.

FISCAL

Removed specific text detailing a July 1, 2026 transfer of 40% of a fund balance and an exemption from state constitutional spending limitations.

TIMELINE

Updated the document header to reflect 'Revised' status with amendments adopted on second reading, replacing the previous 'Reengrossed' status.

TECHNICAL

Added a new '2nd Reading Unamended' summary section for the Senate dated April 15, 2026, and updated other dates to reflect the revised legislative timeline.

Engrossed → Reengrossed · 3 edits · Apr 11, 2026

MINOR

The bill was reengrossed to include all amendments adopted during the House of Introduction, updating the header and summary date to April 11, 2026. A significant substantive change involves the removal of specific instructions regarding the transfer of remaining fund balances to the Support Fund and Financing Fund, altering the final disposition of the $130 million transfer from the affordable housing fund.

Scope change

The bill's scope regarding the final allocation of the affordable housing fund balance was narrowed by removing directives to transfer remaining funds to the Support and Financing funds.

FISCAL

Deleted instructions requiring the state treasurer to transfer the remaining balance of the affordable housing fund to the Support Fund and the Financing Fund after the initial $130 million transfer.

TECHNICAL

Updated the document header from 'Engrossed' to 'Reengrossed' and added the date April 11, 2026, to reflect the latest version of the bill.

Added the sponsor 'Sirota' to the list of House sponsors.

Introduced → Engrossed · 4 edits · Apr 9, 2026

MODERATE

The bill has progressed from its initial introduction to an engrossed version, meaning it has passed its second reading in the House and includes all amendments adopted during that process. The document now displays updated page headers and footers reflecting its new status and the date of the amendments (April 9, 2026).

Scope change

The bill's substantive scope regarding affordable housing financing appears unchanged in the provided text, as the visible modifications are primarily administrative updates to the document's metadata and formatting.

TECHNICAL

The bill title was updated from 'Introduced' to 'Engrossed' to reflect its current legislative status and inclusion of all House amendments.

New header text was added to indicate that this version includes all amendments adopted on the second reading in the House.

Specific dates and session details were added to the header, noting the amendments were adopted on April 9, 2026.

The bill number in the footer was updated from 'HB26-1360' to '1360' to match the engrossed format.

Affordable Housing Financing Fund

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