The federal government enacted the "American Rescue Plan Act of 2021" (federal act) to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and to assist them in their efforts to contain the effects of COVID-19 on their communities, residents, and businesses. Under the federal act, the state of Colorado receives over $500 million to address the housing needs of populations, households, or geographic areas disproportionately affected by the COVID-19 public health emergency.
The bill creates the affordable housing and home ownership cash fund (fund) in the state treasury. To respond to the public health emergency with respect to COVID-19 or its negative economic impacts, the bill authorizes the general assembly to appropriate or transfer money from the fund to a department or cash fund for programs or services that benefit populations, households, or geographic areas disproportionately impacted by the COVID-19 public health emergency, focusing on programs or services that address housing insecurity, lack of affordable housing, or homelessness.
Three days after the effective date of the bill, the state treasurer is required to transfer $550 million from the "American Rescue Plan Act of 2021" cash fund to the fund.
The bill requires the executive committee of the legislative council, by resolution, to create a task force to meet during the 2021 interim and issue a report with recommendations to the general assembly and the governor on policies to create transformative change in the area of housing using money the state receives from the federal act. The task force may include nonlegislative members and have working groups created to assist them.
For the 2021-22 state fiscal year, the bill appropriates $100 million to the department
of local affairs for use by the division of housing (division) . This appropriation is from the fund and of money the state received from the federal coronavirus state fiscal recovery fund . To implement the bill, the division may use the appropriation for programs and services that provide gap financing for projects financed through the housing investment trust fund or the housing development grant fund to assist populations, households, or geographic areas disproportionately affected by the COVID-19 public health emergency in order to obtain affordable housing by the acquisition, construction, or renovation of affordable housing projects or land acquisition, thus enabling individuals and families to relocate to neighborhoods with high levels of economic opportunity and reducing concentrated areas of low economic opportunity purposes authorized in the bill .
(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.)