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Improved Funding to Support Development

Concerning improved funding to support affordable housing development.

HB26-1206 2026 Regular Session Deemed Lost Housing Local Government

Cost estimates

At the first note read
$24,419
FACT March 12, 2026
At the last note read
$0
FACT August 17, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The note states no appropriation is required.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: No appropriation was required.

Bill summary

     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 ; and
  • A 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 ; and
  • The 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; and
  • All 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; and
  • May be recorded against the real property upon which the urban renewal project is developed.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)