SB 25-167 CO

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Became Law

Section 1 of the act requires, in addition to othr existing uses, that interest and income earned on the investment of the money in the public school fund to be used to pay for the costs of administering a newly created shared equity down payment assistance program. Section 2 requires at least one member of the public school fund investment board (board) to have expertise in community investments, requires the board to direct the state treasurer to securely invest money deposited in the public school fund in a manner that prioritizes specified new investment objectives, and authorizes the board to enter into contracts with investment advisors or other investment professionals to provide advice on community investments. Section 3 extends the time frame under which the state treasurer may make up a loss of principal to the public school fund by taking actions which lead to gains in the fund from 18 to 24 months. Section 4 creates a new community investment portfolio (portfolio) within the public school fund, and requires the state treasurer to invest at least 20% of the public school fund's value into the community investment portfolio by July 1, 2032. Money in the portfolio must be invested in community investments, and allowable community investments include: Bonds issued by Colorado school districts and charter schools; Certificates of participation issued by Colorado school districts and charter schools; Mortgage pass-through securities and collateralized mortgage obligations secured by residential real estate, the majority of which is owned by public school employees; Loans to the Colorado middle income housing authority for a revolving loan fund that funds rental housing developments that include preferences for public school employees; Bonds issued by the middle income housing authority that fund rental housing developments which include preferences for public school employees; Bonds or mortgage-backed securities issued by the Colorado housing and finance authority that fund rental housing developments that include preferences for public school employees or mortgages secured by residential real estate, the majority of which is owned by public school employees; Mortgage revenue bonds that support public school employee mortgages with interest rates of 3% or less; Loans to community development financial institutions or nonprofits with a history of providing affordable home ownership financing that fund: Housing that includes preferences for public school employees; or Low-interest mortgages secured by residential real estate that is owned by public school employees; Down payment shared appreciation products secured by residential real estate that is owned by public school employees; and Other investments that support public purpose of the portfolio. The educator first home ownership program (program) is created within the portfolio. Subject to a specified limitation, the treasurer shall invest the following amounts in the program by the following dates: By July 1, 2028, the greater of 6% of the fund's value or $100 million; and By July 1, 2030, the greater of 12% of the fund's value or $200 million. The treasurer shall aim to invest a target of 75% of the money in the program into the shared equity down payment assistance program for public school employees. The shared equity down payment assistance program must be established by July 1, 2026. Once the shared equity down payment assistance program is established: The public school fund investment board shall purchase from the program manager the mortgage products created through the shared equity down payment assistance program; and The public school investment board may provide notice of any discontinuation of future investments that the program manager has not already committed to the shared equity down payment assistance program, which notice must be provided at least 6 months prior to discontinuation. The treasurer shall aim to invest a target of 25% of the money in the program into allowable community investments. The program manager shall establish underwriting criteria and other guidelines for the shared equity down payment assistance program so that the shared equity down payment assistance program: Prioritizes first-time home buyers that use the home as a primary residence; Provides shared equity down payment assistance to public school employees and aims to help as many public school employees as possible achieve affordable home ownership; and Allows appreciation-sharing between the shared equity down payment assistance program and the borrower. Unless investments in the shared equity down payment assistance program have been discontinued and there is no fund money invested in the shared equity down payment assistance program, the program administrator shall present an annual report to the board on program outcomes. For the 2025-26 state fiscal year, section 5 appropriates $375,900 from interest or income earned on the investment of the money in the public school fund to the department of the treasury. (Note: This summary applies to this bill as enacted.)

• Judy Amabile Democratic · primary
• Lisa Frizell Republican · primary
• Shannon Bird · primary
• Meghan Lukens Democratic · primary

1. Jun 4, 2025 Governor Signed · executive
2. May 12, 2025 Signed by the Speaker of the House · lower
3. May 12, 2025 Sent to the Governor · executive
4. May 12, 2025 Signed by the President of the Senate · upper
5. May 5, 2025 Senate Considered House Amendments - Result was to Concur - Repass · upper
6. May 2, 2025 House Third Reading Passed - No Amendments · lower
7. May 1, 2025 House Second Reading Special Order - Passed with Amendments - Floor · lower
8. May 1, 2025 House Committee on Appropriations Refer Unamended to House Committee of the Whole · lower
9. Apr 24, 2025 House Committee on Education Refer Unamended to Appropriations · lower
10. Apr 22, 2025 Introduced In House - Assigned to Education · lower
11. Apr 17, 2025 Senate Third Reading Passed - No Amendments · upper
12. Apr 16, 2025 Senate Third Reading Laid Over Daily - No Amendments · upper
13. Apr 15, 2025 Senate Second Reading Passed with Amendments - Committee, Floor · upper
14. Apr 11, 2025 Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole · upper
15. Apr 1, 2025 Senate Committee on Finance Refer Amended to Appropriations · upper
16. Feb 18, 2025 Introduced In Senate - Assigned to Finance · upper