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HB22-1359

Colorado Household Financial Recovery Program

Concerning the creation of the Colorado household financial recovery pilot program, and, in connection therewith, making an appropriation.
Session:
2022 Regular Session
Subjects:
Business & Economic Development
State Government
Bill Summary

The bill requires the state treasurer to establish the Colorado household financial recovery pilot program (program) in the department of the treasury to partner with financial institutions to incentivize lending to low-income individuals and households impacted by the COVID-19 pandemic or its negative economic impacts.

Money available for the program must be used for one or more of the following purposes:

  • To establish a loan loss reserve to partially offset risk to lenders in making loans to individuals and households impacted by the COVID-19 pandemic;
  • To make payments to lenders to buy down interest rates on loans made to individuals and households impacted by the COVID-19 pandemic;
  • To provide lending capital for affordable, small loans to individuals and households impacted by the COVID-19 pandemic; or
  • To award grants to nonprofit community-based organizations to conduct marketing and outreach to individuals and households impacted by the COVID-19 pandemic who may be eligible to participate in the program.

The state treasurer may select one or more program administrators, including banks, community development financial institutions, or credit unions, to administer all or a portion of the money available for the program. The administrator or administrators are selected based, in part, on their proposed use of the money, their ability to partner with nonprofit community-based organizations that work with individuals and households impacted by the COVID-19 pandemic, and to connect borrowers to affordable banking products and other financial services.

The bill specifies program policies, including loan terms, and requires the state treasurer and administrators to establish and publicize additional program policies as necessary.

The state treasurer or an administrator may establish a loan loss reserve to partially offset loan losses and thereby incentivize lending by financial institutions to individuals and households impacted by the COVID-19 pandemic. The state treasurer shall determine the amount of the offset and shall establish and publicize policies for participating financial institutions.

The state treasurer selected administrators shall report annually to the governor and certain committees of the general assembly concerning the use of program money and other information concerning the program.

The bill creates a fund for the program and identifies allowable uses of the money in the fund.

The bill appropriates $5,200,000 from the general fund to the fund to implement the pilot program. From this appropriation, $59,142 is reappropriated to the department of law for legal services for the department of the treasury. The appropriation is based on the assumption that the department of law will require an additional 0.3 FTE.

(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.)

Status

Introduced
Passed
Became Law

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