SB 1

SENATE BILL 26-001
BY SENATOR(S) Roberts and Bridges, Cutter, Gonzales J., Jodeh, Kipp,
Lindstedt, Michaelson Jenet, Mullica, Snyder, Sullivan, Weissman
also REPRESENTATIVE(S) Boesenecker and Richardson, Bacon, Brown,
Caldwell, Camacho, Clifford, Froelich, Garcia, Gonzalez R., Hamrick,
Jackson, Joseph, Lindsay, Mabrey, Mauro, McCormick, Nguyen, Rutinel,
Rydin, Sirota, Smith, Stewart R., Story, Titone, Winter T., Woodrow,
Zokaie, McCluskie.
CONCERNING HOUSING, AND, IN CONNECTION THEREWITH, AUTHORIZING A
        BOARD OF COUNTY COMMISSIONERS TO APPROPRIATE MONEY TO
        SUPPORT       SPECIFIED      TYPES     OF    HOUSING       AND     MAKING       THE
        MIDDLE-INCOME HOUSING TAX CREDIT AVAILABLE TO TRANSFEREES
        WHO DO NOT OWN AN INTEREST IN A QUALIFIED DEVELOPMENT.
Be it enacted by the General Assembly of the State of Colorado:
        SECTION 1. In Colorado Revised Statutes, 30-35-202, add (l)(d)
as follows:
        30-35-202. Power to sell public works - sell or lease property.
        (1) The governing body shall have the following additional powers:
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
      (d) NOTWITHSTANDING SUBSECTIONS (l)(a) AND (l)(b) OF THIS
SECTION, TO SELL AND DISPOSE OF, BY ORDINANCE, ANY PUBLIC BUILDING OR
REAL PROPERTY OWNED BY A COUNTY THAT IS HELD FOR GOVERNMENT
PURPOSES, OTHER THAN PARK PURPOSES, IF THE SALE AND DISPOSITION OF
THE PUBLIC BUILDING OR REAL PROPERTY IS FOR THE PURPOSE OF PROVIDING
PROPERTY TO BE USED FOR THE DEVELOPMENT OF AFFORDABLE HOUSING OR
HOUSING IDENTIFIED IN A HOUSING NEEDS ASSESSMENT CONDUCTED
PURSUANT TO SECTION 24-32-3703 OR24-32-3704. THE GOVERNING BODY
SHALL DETERMINE THE TERMS AND CONDITIONS OF THE SALE AND
DISPOSITION AT A REGULAR OR SPECIAL MEETING.
       SECTION 2. In Colorado Revised Statutes, 31-15-713, add (l)(d)
as follows:
       31-15-713. Power to sell public works - real property.
       ( 1) The governing body of each municipality has the power:
      (d) NOTWITHSTANDING SUBSECTIONS (l)(a) AND (l)(b) OF THIS
SECTION, TO SELL AND DISPOSE OF, BY ORDINANCE, ANY PUBLIC BUILDING OR
REAL PROPERTY OWNED BY A MUNICIPALITY THAT IS HELD FOR GOVERNMENT
PURPOSES, OTHER THAN PARK PURPOSES, IF THE SALE AND DISPOSITION OF
THE PUBLIC BUILDING OR REAL PROPERTY IS FOR THE PURPOSE OF PROVIDING
PROPERTY TO BE USED FOR THE DEVELOPMENT OF AFFORDABLE HOUSING OR
HOUSING IDENTIFIED IN A HOUSING NEEDS ASSESSMENT CONDUCTED
PURSUANT TO SECTION 24-32-3703 OR 24-32-3704. THE GOVERNING BODY
SHALL DETERMINE THE TERMS AND CONDITIONS OF THE SALE AND
DISPOSITION AT A REGULAR OR SPECIAL MEETING.
       SECTION 3. In Colorado Revised Statutes, amend 31-15-801 as
follows:
       31-15-801. Agreements - ordinance - financing.
       In order to provide necessary land, buildings, equipment, and other
property for governmental or proprietary purposes, INCLUDING FOR THE
DEVELOPMENT OF AFFORDABLE HOUSING OR HOUSING IDENTIFIED IN A
HOUSING NEEDS ASSESSMENT CONDUCTED PURSUANT TO SECTION
24-32-3703 OR 24-32-3704, or for financing of forest health projects, as
defined in section 3 7-95-103 ( 4.9), any municipality is authorized to enter
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into long-term rental or leasehold agreements. but in no event shall this be
constt ued as authorizing the use by any municipality of leasehold
agreements to finance residential housing. Such agreements may include an
option to purchase and acquire title to such leased or rented property within
a period not exceeding the useful life of such property and in no case
exceeding thirty years. Each such agreement and the terms thereof shall be
concluded by an ordinance duly enacted by the municipality. No such
ordinance shall take effect before thirty days after its passage and
publication. The governing body of any municipality is authorized to
provide for the payment of said rentals from a general levy imposed upon
both personal and real property included within the boundaries of the
municipality; by imposing rates, tolls, and service charges for the use of
such property or any part thereof by others; from any other available
municipal income; or from any one or more of the said sources. The
obligation to pay such rentals shall not constitute an indebtedness of said
municipality within the meaning of the constitutional limitations on
contracting of indebtedness by municipalities.
       SECTION 4. In Colorado Revised Statutes, 29-1-204.5, amend
(7.5)(c); and add (7.5)(d) as follows:
      29-1-204.5.      Establishment of multijurisdictional housing
authorities.
       (7 .5) (c) The questions proposed to the registered electors under
parngtaphs (a) and (b) of this subsection PURSUANT TO SUBSECTIONS
(7.5)(a) AND (7.5)(b) OF THIS SECTION shall be submitted at a general
election, BIENNIAL LOCAL ELECTION, or any election to be held on the first
Tuesday in November of an odd-numbered year. The action shall not take
effect unless a majority of the registered electors voting thereon at the
election vote in favor thereof. The election shall be conducted in
substantially the same manner as county elections and the county clerk and
recorder of each county in which the election is conducted shall assist the
authority in conducting the election. The authority shall pay the costs
incurred by each county in conducting such an election. No moneys MONEY
of the authority may be used to urge or oppose passage of an election
required under this section.
      (d) THE CONTRACT ESTABLISHING THE AUTHORITY MAY BE
CONDITIONED UPON VOTER APPROVAL BY THE INDIVIDUAL CONTRACTING
PAGE 3-SENATE BILL 26-001
JURISDICTION AS SUCH TERMS MAY BE DEFINED IN THE CONTRACT. THE
QUESTION OF ESTABLISHING THE AUTHORITY MAY BE COMBINED WITH A
QUESTION ABOUT A TAX, IMPACT FEE, MULTIPLE-FISCAL YEAR DEBT, OR
OTHER FINANCIAL OBLIGATION REQUIRED BY SUBSECTIONS (7.5)(a) OR
(7.5)(b) OF THIS SECTION.
        SECTION 5. In Colorado Revised Statutes, 30-11-107, amend
(l)(s) as follows:
       30-11-107. Powers of the board.
       ( 1) The board of county commissioners of each county has power
at any meeting:
       ( s) To appropriate moneys ft om sottt ces othet than ad valot em taxes
to- MONEY FOR WORKFORCE HOUSING, HOUSING PROGRAMS,
multijurisdictional housing authorities, or housing authorities established
under part 5 of article 4 of title 29 C.R.S., from the county general fund OR
OTHER SPECIFIED FUNDS ESTABLISHED BY THE BOARD;
        SECTION 6. In Colorado Revised Statutes, 39-22-5402, add (15)
as follows:
       39-22-5402. Definitions.
       As used in this part 54, unless the context otherwise requires:
      (15) "TRANSFEREE" MEANS A TAXPAYER SUBJECT TO THE TAXES
IMPOSED BY THIS ARTICLE 22 THAT ACQUIRES CREDITS FROM A
GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY PURSUANT TO SECTION
39-22-5404.
       SECTION 7. In Colorado Revised Statutes, 39-22-5404, amend
(l)(b) and (l)(c) as follows:
      39-22-5404. Qualified development owned by governmental or
quasi-governmental entity.
       (1) Notwithstanding any other provision of this part 54:
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       (b) (I) A governmental or quasi-governmental entity may transfer
credits allocated to it by the authority to any qualified taxpayer A
TRANSFEREE.
        (II) Such a governmental or quasi-governmental entity shall invest
in the qualified development any compensation received in connection with
a transfer of credits to a qualified taxpayer TRANSFEREE.
        (III) A qualified taxpayer TRANSFEREE to which a credit is
transferred pursuant to this subsection ( 1)(b) is entitled to claim the credit
in the same manner and subject to the same conditions and allocation rights
as an owner of a qualified development to which the authority has allocated
a credit.
       ( c) (I) A credit allocated to a governmental or quasi-governmental
entity or a transferee thereof is subject to recapture pursuant to section
39-22-5405 IF, AS OF THE LAST DAY OF ANY TAXABLE YEAR DURING THE
COMPLIANCE PERIOD, THE AMOUNT OF THE QUALIFIED BASIS OF SUCH
GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY IS LESS THAN THE
AMOUNT OF THE QUALIFIED BASIS WITH RESPECT TO SUCH GOVERNMENTAL
OR QUASI-GOVERNMENTAL ENTITY AS OF THE LAST DAY OF THE PRIOR
TAXABLE YEAR.
        (II) If a credit transferred to a qualified taxpayer TRANSFEREE by a
governmental or quasi-governmental entity is recaptured pursuant to section
39-22-5405 SUBSECTION ( 1)( c)(I), the governmental or quasi-governmental
entity shall notify the department of the identity of the qualified taxpayer
TRANSFEREE to which it transferred a credit AND SUCH TRANSFEREE MUST
INCREASE THEIR INCOME TAX LIABILITY PURSUANT TO SECTION 39-22-5305
IN THE SAME MANNER AND TO THE SAME EXTENT AS A PARTNER,
SHAREHOLDER, MEMBER, OR OTHER QUALIFIED TAXPAYER OF AN OWNER
ALLOCATED A CREDIT PURSUANT TO SECTION 3 9-22-5403 (6) MUST INCREASE
THEIR INCOME TAX LIABILITY PURSUANT TO SECTION 39-22-5405.
        SECTION 8. In Colorado Revised Statutes, 39-22-5405, amend
(1), (4)(b), and (4)(c) as follows:
       39-22-5405. Recapture.
       (1) As of the last day of any taxable year during the compliance
PAGE 5-SENATE BILL 26-001
period, if the amount of the qualified basis of a qualified development with
respect to a qualified taxpayer is less than the amount of the qualified basis
with respect to a qualified taxpayer as of the last day of the prior taxable
year, then the amount of a relevant QUALIFIED taxpayer's state income tax
liability for that taxable year is increased by the credit recapture amount.
      (4) If recapture of any credit is required in any tax year, the return
submitted for that tax year to the department must include the following
information:
       (b) The identity of each QUALIFIED taxpayer subject to the recapture;
and
      (c) The amount of credit previously allocated to the QUALIFIED
taxpayer.
        SECTION 9. In Colorado Revised Statutes, 39-26-708, add
(l)(a)(III) and (2)(a)(III) as follows:
      39-26-708. Construction and building materials - legislative
declaration - definition.
       ( 1) There shall be exempt from taxation under part 1 of this article
26 all sales of construction and building materials to contractors and
subcontractors for use in the building, erection, alteration, or repair of
structures, highways, roads, streets, and other public works owned and used
by:
       (a) (Ill) As USED IN THIS SUBSECTION (l)(a), "GOVERNMENTAL
CAPACITIES" INCLUDES THE BUILDING, ERECTION, ALTERATION, OR REPAIR
OF STRUCTURES FOR WORKFORCE HOUSING PROJECTS UNDERTAKEN BY
COUNTIES;
        (2) There shall be exempt from taxation under part 2 of this article
26 the storage, use, or consumption by a contractor or subcontractor of
construction and building materials for use in the building, erection,
alteration, or repair of structures, highways, roads, streets, and other public
works owned and used by:
       (a) (III) As USED IN THIS SUBSECTION (2)(a), "GOVERNMENTAL
PAGE 6-SENATE BILL 26-001
CAPACITIES" INCLUDES THE BUILDING, ERECTION, ALTERATION, OR REPAIR
OF STRUCTURES FOR WORKFORCE HOUSING PROJECTS UNDERTAKEN BY
COUNTIES;
       SECTION 10. Act subject to petition - effective date. Section
39-22-5404, Colorado Revised Statutes, as amended in section 7 of this act,
takes effect January 1, 2027, and the remainder of this act takes effect at
12:01 a.m. on the day following the expiration of the ninety-day period after
final adjournment of the general assembly; except that, if a referendum
petition is filed pursuant to section 1 (3) of article V of the state constitution
against this act or an item, section, or part of this act within such period,
then the act, item, section, or part will not take effect unless approved by the
people at the general election to be held in November 2026 and, in such
case, will take effect on the date of the official declaration of the vote
thereon by the governor; except that section 39-22-5404, Colorado Revised
PAGE 7-SENATE BILL 26-001
Statutes, as amended in section 7 of this act, takes effect January 1, 2027,
or on the date of the official declaration of the vote thereon by the governor,
whichever is later.
James Rashad Coleman, Sr.
PRESIDENT OF
                                                   ~
                                               SPEAKER OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
                                            \)~  ~  lly
Esther van Mourik
SECRETARY OF  CHIEF CLERK OF THE HOUSE
THE SENATE  OF REPRESENTATIVES
        APPROVED O\'\        W  m~~ 2..      s~ 2.0lh ~t l:30fM
                                          e and Time)
                   Jared S. Polis
                   GOVERNO OF
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