The act creates the strengthen Colorado homes enterprise (enterprise), which is a government-owned business created in the division of insurance (division) in the department of regulatory agencies. The enterprise is governed by a 7-member board (board), including the commissioner of insurance (commissioner), or their designee; members with expertise in home hardening, risk mitigation, resilient roof systems, and insurance underwriting or actuarial analysis; and members representing the interests of insurance companies, consumers, and counties. The primary purpose of the enterprise is to impose and collect an annual fee (fee) from an admitted insurance company that offers multiperil homeowner's insurance policies in the state and is subject to certain filing requirements with the division, not including the fair access to insurance requirements association (insurer). The enterprise shall use fee revenue to provide business services to insurers that pay the fee, including:Reducing insurer losses and administrative expenses due to hail damage claims by defraying the cost of retrofitting residential property by providing grants for the installation of resilient roof systems (grants). At least 85% of the fee revenue must be used for grants to Colorado homeowners to retrofit residential property to reduce insurer losses due to hail and windstorms.Analyzing data on hail losses to identify areas of the state to target for installation of resilient roof systems;Setting standards for resilient roof systems and awarding workforce training grants for installing and certifying resilient roof systems;Creating codes of conduct for roofing contractors to ensure roofs are properly and appropriately installed;Evaluating roofing protocols to ascertain if the protocols meet science-based, certifiable standards; Conducting or contracting with a third party to conduct a study to analyze insurance risk in high-risk wildfire areas of the state; andImproving market stability throughout the state. Beginning in the 2027 calendar year, the amount of the fee imposed and collected by the enterprise is an amount equal to 0.5% of the total premium collected by an insurer on multiperil homeowner's insurance policies in the state in the immediately preceding calender year. The insurer shall not surcharge the fee amount to policyholders. The enterprise may lower or cease collecting the fee from an insurer in any calendar year to ensure that total fee revenue does not exceed $100 million in the first 5 years of the enterprise's existence. In awarding grants, the board shall prioritize homes that are the homeowner applicant's (applicant) primary residence and shall consider other criteria, including applicant income, the age of the roof, the size of the home, the number of grant applicants, whether the home is in a locality with hail-resistant building codes, and whether the applicant lives in a location that has historically had a higher susceptibility to extreme weather events. In order to ensure the necessary workforce, fee revenue may also be used to award grants to defray the costs of training and certification related to installing and certifying resilient roof systems. A contractor that is awarded bids and receives money from a grant is prohibited from waiving homeowner's insurance deductibles. In addition, the board shall use fee revenue to conduct or contract with a third party to conduct a study to analyze insurance risk in high-risk wildfire areas of the state, including an analysis of market competition in those areas and the impact of a high risk program on the potential losses in the high-risk wildfire areas of the state and the availability of homeowner's insurance in those areas. The board or third party conducting the study shall engage with relevant stakeholders that include, at a minimum, representatives of reinsurers and reinsurance brokers, insurers writing homeowner's insurance contracts or policies in Colorado, individuals with expertise in complex financial instruments and debt instruments, and consumers or other individuals with expertise in wildfire mitigation. The board shall send the study to certain committees of the general assembly. The board shall adopt rules and policies for the regulation of the enterprise's affairs and the conduct of enterprise business, including standards for resilient roof systems and standards for contractor-specialized training in the installation of impact-resistant roof systems. No sooner than January 1, 2027, and upon the commissioner adopting rules, an insurer offering multiperil homeowner's insurance for property or risks located in the state is required to submit an annual filing to the commissioner that includes the number of policies in force, the number of homes that have installed a resilient roof system, the discount applied to homes due to the presence of a resilient roof system, and the wind and hail claims frequency and severity for homes with and without a resilient roof system. $66,250 is appropriated from the legal services cash fund to the department of law to provide legal services to the department of regulatory agencies to implement the act. The appropriation is from revenue received from the department of regulatory agencies that is continuously appropriated to the department of regulatory agencies from the strengthen Colorado homes enterprise fund. The appropriation to the department of law is based on an assumption that the department of law will require an additional 0.3 FTE to implement the act.(Note: This summary applies to this bill as enacted.)
Under current law, the Colorado homeless contribution tax credit (credit) may only be claimed through state income tax year 2026. The act amends the credit to allow taxpayers to claim the credit through state income tax year 2030.(Note: This summary applies to this bill as enacted.)
On June 30, 2026, the state treasurer is required to transfer the following amounts from the unclaimed property trust fund (UPTF):$72.8 million to the general fund; and$2.2 million to the division of housing to be deposited into the housing development grant fund (grant fund). On July 1, 2026, the act repeals the statutory provisions that authorize future transfers from the UPTF to the grant fund and to the adult dental fund. For the 2026-27 state fiscal year, $63,491,322 is appropriated from the general fund to the department of health care policy and financing (HCPF), and an appropriation to HCPF from the adult dental fund is decreased by a corresponding amount. The appropriation takes effect only if the annual general appropriation act for the 2026-27 state fiscal year becomes law.(Note: This summary applies to this bill as enacted.)
The act directs the state treasurer to transfer $130 million from the state affordable housing fund (fund) to the general fund on June 30, 2026, and makes 3 corresponding adjustments to the affordable housing financing fund (financing fund). First, the act reduces the July 1, 2026, transfer from the fund to the financing fund by the amount of the June 30, 2026, transfer from the state affordable housing fund. Second, for the 2026-27 state fiscal year only, the act adjusts the prioritization of programs funded by the financing fund so that the programs are funded in the following order: The concessionary debt program, the affordable housing equity program, and the land banking program. Third, the act ensures that this transfer does not reduce the amount that may be spent on administrative expenses to implement programs funded by the financing fund in the 2026-27 state fiscal year and pools the costs of administering these programs between the administrator and the office of economic development for state fiscal years beginning with the 2026-27 state fiscal year. Under current law, if legislative council staff's March economic and revenue forecast projects that state revenue will not exceed the state fiscal year spending limit, the general assembly may reduce the funding allocated to the financing fund. The act allows for the general assembly to so reduce the funding allocated to the financing fund for the 2025-26 state fiscal year as a result of revenue forecasts projecting that state revenue will not exceed the state fiscal year spending limit.(Note: This summary applies to this bill as enacted.)
The bill gives city and county housing authorities (housing authority) the power to provide for the levy of a sales tax, sales and use tax, or property tax both within the jurisdiction of the authority, the resulting revenue of which will be directed to the housing authority, subject to the following conditions:The city or county has adopted a resolution determining that the levying of the tax will fairly distribute the costs of the housing authority's activities among the beneficiaries of the housing authority's activities and will not impose an undue burden on any particular group of people or businesses ; andA ballot question has been submitted to a vote of the registered electors of the city or county and subsequently approved by a majority of such registered electors, and the ballot question describes the purposes for which the tax will be used by the housing authority and complies with section 20 of article X of the state constitution. All new tax revenues generated are irrevocably pledged to the authority for the purposes set forth in the ballot question. If a sales or sales and use tax is approved by the voters of a housing authority:The rate of the sales or sales and use tax must not exceed 1% on any transaction taxable by the state , excluding the sale or use of cigarettes ; andThe executive director of the department of revenue shall collect, administer, and enforce the tax, and the city or county shall pay the net incremental cost incurred by the department in the administration and collection of the tax. The authority shall designate a liaison to coordinate with the department of revenue to implement the collection of the tax and to identify people eligible to collect the sales and use tax; and The tax revenue must be directed to a fund of the authority.The provisions authorizing the levy of the sales or sales and use tax will only take effect if the department of revenue receives an amount of gifts, grants, and donations sufficient to pay for the department's costs in administering the tax. If an ad valorem property tax is approved by the voters of a housing authority:The rate of the ad valorem property tax must not exceed 5 mills on each dollar of valuation for assessment of the taxable property within the authority's jurisdiction;The board of county commissioners of the county in which the housing authority is located shall levy the ad valorem property tax upon the valuation for assessment of all taxable property within the authority's jurisdiction;The officials charged with collecting ad valorem property taxes for the county in which the housing authority is located shall collect the taxes at the time and in the form and manner and with like interest and penalties as other property taxes collected within the county;The property tax revenue must be directed to a fund of the authority; andAll property tax revenue, together with interest thereon and penalties for default in payment thereof, and all costs of collecting the same shall constitute, until paid, a perpetual lien on and against the property taxed, and such lien shall be on a parity with the tax lien of other general taxes. The bill gives county housing authorities the power to issue revenue or general obligation bonds and to pledge the authority's revenues and revenue-raising powers for the payment of such bonds. The bill allows an urban renewal authority to enter into a shortfall guaranty contract with an urban renewal project developer (developer) specifying that, if the tax increment revenue is insufficient to pay the indebtedness incurred by the authority that is due, the developer is obligated to make a direct payment covering the full amount of the insufficiency. A shortfall guaranty contract:Constitutes a lien on the urban renewal project property the same as, and equal in priority to, a tax lien;Has priority over any mortgage, lien that is not a tax lien, or other encumbrance;Constitutes a covenant running with the land for the term of the contract; andMay be recorded against the real property upon which the urban renewal project is developed.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
