Currently, when the total consideration paid by the purchaser in a real property transaction exceeds $500, the county clerk and recorder collects a one cent documentary fee for each $100 of such consideration for the recording of real estate deeds or other instruments in writing.
Section 1 of the bill raises the fee to 2 cents commencing January 1, 2018.
Section 2 specifies that 50% of the moneys generated from the imposition of the total fee must be deposited with the county treasurer at least once each month and credited by him or her in the manner prescribed by law and the remaining 50% of the moneys generated from the imposition of the fee must be transmitted by the county treasurer to the Colorado housing and finance authority (authority) at least once each month to be credited to the statewide affordable housing investment fund (fund).
Section 3 creates the fund in the authority. The bill specifies the source of moneys to be deposited into the fund and that the authority is to administer the fund.
All moneys in the fund must be expended for the purpose of supporting new or existing programs that:
- Facilitate the construction or rehabilitation of housing containing residential units designated as affordable housing; and
- Provide financial assistance to any nonprofit entity and political subdivision that makes loans to households to enable the financing, purchase, or rehabilitation of residential units.
The bill defines 'affordable housing' to mean housing that is designed to be affordable for households with an income that is:
- Up to 80% of the area median income for rental occupancy; and
- Up to 110% of the area median income for home ownership.
This section of the bill also specifies the intent of the general assembly that, of the moneys made available to the authority to support the programs supported by the bill, the authority shall direct that a portion of such moneys be expended on programs in counties with a total population of 175,000 or fewer residents.
New or existing programs supported by the fund are to be administered by the authority. The authority may determine how best to allocate and expend the portion of moneys deposited into the fund that support the programs that it administers under the bill.
Section 3 also requires the authority to prepare a report, no later than November 1, 2021, and no later than November 1 of the last year of each 3-year period thereafter, specifying the use of the fund during the prior 3-year period.. The report must include information on all moneys allocated to, and expended from, the fund. The bill requires the department of local affairs to include a summary of the report in its departmental presentation to its oversight committee of reference made pursuant to the 'SMART Act' in connection with the departmental presentation made in the year following the calendar year in which the authority has prepared a report.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)