I_LOCC_TPTF_2023A 09/07/2023 10:03:13 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE Date 09/07/2023 Attendance Frizell X Kolker X Liston X Marshall X Hansen X Weissman X Time 10:03:13 AM to 03:05:01 PM Place HCR 0112 This Meeting was called to order by Weissman This Report was prepared by Katie Ruedebusch Hearing Items Action Taken hCenter on Budget and Policy Priorities Committee Discussion Only hInstitute on Taxation and Economic Policy Committee Discussion Only hPresentation from Office of Legislative Legal Services Committee Discussion Only hHousing Colorado Committee Discussion Only hUpdate on Proposition 123 Committee Discussion Only 10:03:35 AM Chair Weissman called the meeting to order and discussed the day's agenda. Center on Budget and Policy Priorities - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2023A/commsumm.nsf/0/C965435E2474...$File/Attachment A.pdf?OpenElement Attachment A.pdf 10:03:58 AM Ms. Mari Castaldi and Mr. Will Fischer, representing the Center on Budget and Policy Priorities, presented to the committee on housing affordability for people with low incomes in Colorado. Their presentation may be found in Attachment A. 10:14:40 AM Ms. Castaldi discussed the rise in rental costs in the United States and Colorado. 10:15:24 AM She continued by discussing federal rental assistance and the extreme shortfall of resources compared to need. 10:23:38 AM Ms. Castaldi continued by discussing federal policies to increase access to affordable housing for people with lowest incomes. 10:41:57 AM Committee discussion with Ms. Castaldi and Mr. Fischer. 10:48:28 AM Committee discussion continued on rental assistance, rental tax credits, wraparound services, and a recent HUD demonstration. Institute on Taxation and Economic Policy - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2023A/commsumm.nsf/0/3E013713DF16...$File/Attachment B.pdf?OpenElement Attachment B.pdf 10:59:23 AM Mr. Marco Guzman, representing the Institute on Taxation and Economic Policy (ITEP), presented to the committee on state property tax circuit breakers. A copy of his presentation may be found in Attachment B. 11:03:06 AM He continued by discussing circuit breakers in the US, including Colorado's property tax/rent/heat (PTC) rebate. 11:05:03 AM He continued by discussing options for reforming the PTC including expanding eligibility, raising the income eligibility levels, and restructuring the calculation to threshold-style circuit breaker. 11:07:49 AM Mr. Guzman continued by discussing additional policy design questions, such as caps, expanding to renters, percentage of income, and program awareness. 11:10:53 AM Mr. Guzman continued by discussing alternatives to circuit breakers such as homestead exemptions and growth caps on assessed values. 11:16:59 AM Committee discussion continued with Mr. Guzman regarding policy design and flaws. 11:22:59 AM Committee discussion regarding service providers and distribution. Presentation from Office of Legislative Legal Services - Committee Discussion Only 11:36:35 AM Ms. Megan McCall, Legislative Legal Services, came to the table to answer questions raised in previous meetings of the committee. 11:40:26 AM She discussed the definition of modular and manufactured homes as well as questions related to House Bill 23-1189 (Employer Assistance For Home Purchase Tax Credit). 11:43:17 AM The committee took a recess for lunch. Housing Colorado - Committee Discussion Only 01:30:27 PM The committee came back to order. 01:30:38 PM Executive Director Brian Rossbert, representing Housing Colorado, presented to the committee on the organization's work. 01:35:30 PM Mr. Rossbert discussed Housing Colorado's mission and the Colorado state housing tax credit. 01:39:49 PM Mr. Rossbert continued by discussing various solutions related the affordable housing issue. 01:40:18 PM In response to a committee question, Mr. Rossbert discussed modular homes and their role in this space. 01:48:45 PM Committee discussion continued related to federal low income housing tax credit. 01:53:57 PM Committee discussion continued on preservation of affordable housing units and rental assistance. Update on Proposition 123 - Committee Discussion Only Attachment Tag File Name Attachment C http://www2.leg.state.co.us/CLICS/CLICS2023A/commsumm.nsf/0/80D25F8F9A76...$File/Attachment C.pdf?OpenElement Attachment C.pdf Attachment D http://www2.leg.state.co.us/CLICS/CLICS2023A/commsumm.nsf/0/DA6F28224D9D...$File/Attachment D.pdf?OpenElement Attachment D.pdf 02:00:30 PM Ms. Alison George and Mr. Maulid Miskell, representing the Department of Local Affairs (DOLA), presented on the implementation on Proposition 123. Their presentation may be found in Attachment C. 02:04:52 PM Mr. Miskell discussed commitment options and requirements as well as policies and guidelines timeline. 02:12:31 PM Ms. George continued by discussing the funding for the Affordable Housing Support Fund and their homeownership programs. 02:13:27 PM Ms. George continued by discussing homelessness and local planning capacity programs. 02:17:39 PM Mr. Miskell wrapped up his presentation on DOLA's engagement website. 02:18:08 PM In response to committee questions, Ms. George and Mr. Miskell discussed the administrative costs of the programs and commitments by local governments. 02:25:17 PM Ms. Hilary Cooper, representing the Office of Economic Development and International Trade (OEDIT), presented on OEDIT's implementation of Proposition 123. Her presentation may be found in Attachment D. 02:33:11 PM She continued by discussing the Affordable Housing Financing Fund. 02:35:58 PM She discussed the three programs administered: land banking, concessionary debt, and equity. 02:39:07 PM She continued by discussing the program timelines. 02:48:26 PM She continued by discussing several policy decisions related to the fund. 02:48:45 PM Mr. Steve Boice, representing CHFA, in response to committee questions, discussed CHFA's role as the administrator of OEDIT's programs. 02:53:11 PM Committee discussion ensued. 03:00:32 PM Ms. Megan McCall, Legislative Legal Services, came to the table to discuss the bill draft request and approval process. 03:05:01 PM The committee adjourned.