HOUSE 3rd Reading Unamended May 1, 2015 HOUSE Amended 2nd Reading April 30, 2015First Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 15-0980.02 Bob Lackner x4350 HOUSE BILL 15-1384 HOUSE SPONSORSHIP Tyler and Esgar, Arndt, Becker K., Court, Danielson, Duran, Fields, Garnett, Ginal, Hullinghorst, Kagan, Kraft-Tharp, Lebsock, Lee, Lontine, McCann, Melton, Moreno, Pabon, Pettersen, Primavera, Rosenthal, Ryden, Salazar, Singer, Vigil, Williams, Winter SENATE SPONSORSHIP Ulibarri, Newell House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the use of moneys from the unclaimed property trust fund to promote the provision of affordable housing. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Section 1 of the bill requires the state treasurer, for the 2015-16 state fiscal year and for the next 4 state fiscal years, to transmit 1/3 of the available balance in the state's unclaimed property trust fund (unclaimed property moneys) to the Colorado housing and finance authority (authority) to be deposited by the authority into the affordable housing assistance fund (fund) for the purposes of supporting new or existing programs that: Provide rental assistance to persons in low- or extremely low-income households across the state to enable such persons to obtain rental housing; and Promote the construction, acquisition, or rehabilitation of either rental housing for persons in low- or extremely low-income households across the state or owner-occupied housing for persons in low- or moderate-income households across the state. Section 2 of the bill authorizes the authority to accept the unclaimed property trust fund moneys from the state treasurer, to deposit such moneys into the fund, and to enter into an agreement with the division of housing in the department of local affairs (division) whereby the authority will partner with the division to most effectively administer the moneys in the fund to support new or existing programs that will best serve the purposes of the bill. Section 3 of the bill creates the fund in the authority. This section specifies the source of moneys to be deposited into the fund. All moneys in the fund must be expended for the purpose of supporting new or existing programs that provide rental assistance or promote the construction, acquisition, or rehabilitation of either rental housing for persons in low- or extremely low-income households or owner-occupied housing for persons in low- or moderate-income households. These programs are to be administered by the division pursuant to an intergovernmental agreement with the authority. The bill specifies the date by which the agreement is to be entered into and the contents of the agreement. The fund provisions are repealed, effective July 1, 2023. Section 4 of the bill specifies that the division is to administer all new or existing programs supported by the fund. In administering such programs, the division is required, with the approval of the state housing board, to allocate such moneys to new or existing programs as it determines in its sole administrative discretion will best satisfy the purposes of the bill with restrictions placed on the yearly allocation for rental assistance for persons in low- or extremely low-income households and for the construction, acquisition, or rehabilitation of owner-occupied housing for persons in low- or moderate-income households. The rental assistance that the division may provide includes, without limitation, the provision of rental assistance vouchers. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 38-13-116.5, amend (1) (b); and add (3.5) as follows: 38-13-116.5. Unclaimed property trust fund - creation - payments - interest - appropriations - records - rules - definition - repeal. (1) (b) Except as provided in subsections (2), (2.7), and (2.9) (2.8) and (3.5) of this section, the principal of the trust fund shall not be expended except to pay claims made pursuant to this article. Moneys comprising the principal of the trust fund shall not constitute fiscal year spending of the state for purposes of section 20 of article X of the state constitution and are not subject to appropriation by the general assembly. (3.5) (a) Notwithstanding any other provision of this section, on July 1, 2015, and on July 1 of each succeeding state fiscal year through and including the 2019-20 state fiscal year, the state treasurer shall transmit one-third of the available balance as of that date in the unclaimed property trust fund created in subsection (1) of this section to the Colorado housing and finance authority created in section 29-4-704 (1), C.R.S., to be deposited by the authority into the affordable housing assistance fund in accordance with section 29-4-736, C.R.S., for the purposes of supporting new or existing programs that: (I) Provide rental assistance to persons in low- or extremely low-income households across the state to enable such persons to obtain rental housing; and (II) Promote the construction, acquisition, or rehabilitation of either rental housing for persons in low- or extremely low-income households across the state or owner-occupied housing for persons in low- or moderate-income households across the state. (b) For purposes of paragraph (a) of this subsection (3.5), "available balance" means the moneys in the unclaimed property trust fund created in section (1) of this section as of July 1, 2015, and on July 1 of each succeeding state fiscal year through and including the 2019-20 state fiscal year, minus for each state fiscal year: (I) The direct and indirect costs of administering this article; (II) The amounts transmitted to the adult dental fund created in section 25.5-5-207 (4), C.R.S., pursuant to paragraph (a) of subsection (2.8) of this section; and (III) The reservation of the amounts specified in paragraph (b) of subsection (2.8) of this section. (c) This subsection (3.5) is repealed, effective July 1, 2023. SECTION 2. In Colorado Revised Statutes, 29-4-708, add (1) (bb) as follows: 29-4-708. General powers of the authority. (1) In addition to any other powers granted to the authority in this part 7, the authority shall have the following powers: (bb) To accept moneys from the state treasurer pursuant to section 38-13-116.5 (3.5) (a), C.R.S., to deposit such moneys into the affordable housing assistance fund created in section 29-4-736 (1), and, pursuant to section 29-4-736 (3), to enter into an agreement with the division of housing in the department of local affairs created in section 24-32-704 (1), C.R.S., whereby the authority will partner with the division to most effectively administer the moneys in the fund to support new or existing programs that will best serve the purposes specified in section 38-13-116.5 (3.5) (a). SECTION 3. In Colorado Revised Statutes, add 29-4-736 as follows: 29-4-736. Affordable housing assistance fund - creation - repeal. (1) There is hereby created in the authority the affordable housing assistance fund, which is referred to in this section as the "fund". The authority shall deposit into the fund: (a) All moneys transmitted to it by the state treasurer pursuant to section 38-13-116.5 (3.5) (a), C.R.S.; (b) Any moneys appropriated and made available by the state for the purposes of the fund; and (c) Any moneys that are made available by or to the authority from any other sources for the purpose of the fund. (2) (a) All moneys in the fund must be expended for the purpose of supporting new or existing programs that: (I) Provide rental assistance to persons in low- or extremely low-income households across the state to enable such persons to obtain rental housing; and (II) Promote the construction, acquisition, or rehabilitation of either rental housing for persons in low- or extremely low-income households across the state or owner-occupied housing for persons in low- or moderate-income households across the state. (b) All such programs supported by the fund are to be administered by the division of housing in the department of local affairs created in section 24-32-704 (1), C.R.S., in partnership with the authority and pursuant to an intergovernmental agreement with the authority. (3) No later than January 1, 2016, the authority and the division of housing shall enter into the agreement required by subsection (2) of this section. The agreement must describe all necessary terms and conditions pertaining to the administration by the division in partnership with the authority of new or existing programs that support the uses specified in paragraph (a) of subsection (2) of this section. (4) Moneys held in the fund shall not be transferred to any of the other funds created by the authority pursuant to this part 7. (5) This section is repealed, effective July 1, 2023. SECTION 4. In Colorado Revised Statutes, 24-32-705, add (4) as follows: 24-32-705. Functions of division - repeal. (4) (a) The division shall administer all new or existing programs supported by the affordable housing assistance fund created in the Colorado housing and finance authority, referred to in this subsection (4) as the "authority", pursuant to section 29-4-736 (1), C.R.S. The division shall administer such programs in partnership with the authority and in accordance with an intergovernmental agreement to be entered into with the authority pursuant to paragraph (b) of this subsection (4). The affordable housing assistance fund is referred to in this subsection (4) as the "fund". (b) No later than January 1, 2016, the division and the authority shall enter into the agreement required by section 29-4-736 (2), C.R.S. (c) Programs supported by the fund to be administered by the division in partnership with the authority must: (I) Provide rental assistance to persons in low- or extremely low-income households across the state to enable such persons to obtain rental housing; and (II) Promote the construction, acquisition, or rehabilitation of either rental housing for persons in low- or extremely low-income households across the state or owner-occupied housing for persons in low- or moderate-income households across the state. (d) In administering programs in accordance with this subsection (4) in partnership with the authority, the division shall, with the approval of the board, allocate such moneys to new or existing programs as it determines in its sole administrative discretion will best satisfy the purposes specified in paragraph (c) of this subsection (4); except that, for any given state fiscal year, not more than twenty-five percent of such moneys may be allocated to the provision of rental assistance for persons in low- or extremely low-income households and not more than twenty-five percent of such moneys may be used for the construction, acquisition, or rehabilitation of owner-occupied housing for persons in low- or moderate-income households. The rental assistance that the division may provide pursuant to subparagraph (I) of paragraph (c) of this subsection (4) includes, without limitation, the provision of rental assistance vouchers. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.