SB 40 CO

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Became Law

The division of housing in the department of local affairs (division) administers an affordable home ownership program (program) that makes grants to nonprofit organizations, local governments, community development financial institutions, and community land trusts (eligible organizations) and tribal governments to support affordable home ownership, including the development of residential housing units that are described in an eligible organization's funding request (project). Current law specifies that only a household with an income less than or equal to 120% of the area median income is eligible for assistance through the program, but it is unclear whether this requirement applies to housing units constructed by an eligible organization through one of its projects. The act clarifies that only a household with an income less than or equal to either 120% of the area median income of households of that size in the jurisdiction of a local government in which the households are located, or 120% of the statewide area median income of households of that size, is eligible for housing constructed by an eligible organization through one of its projects.     In addition, the act requires the program to offer housing that costs not more than 38% of a household's monthly income unless the ownership program is providing a homeowner with assistance for home rehabilitation.     The act also requires the program to offer grants and loans to groups or associations of mobile home owners and their assignees to support affordable homeownership for households with income less than or equal to 120% of the area median income of households of that size in the territory or jurisdiction of the local government in which the households are located, and specifies that the monthly housing payment must not cost more than 35% of the monthly household income. The act allows the division to modify the maximum percentage of income that a household may allocate pursuant to the program as applied to a residential unit constructed by an eligible organization as part of an affordable housing project pursuant to a waiver process initiated by an eligible organization if a substantial need for housing the project's target population exists, the unit has been adequately marketed to eligible buyers for purchase for at least 6 months after final completion of the unit, and the unit has not been purchased by an eligible buyer within that 6-month period.     For grants from the program to support tribal government programs, the tribe is responsible for establishing limitations on household income and maximum percentage of income that a household may allocate for monthly housing costs and a tribal affordability mechanism in lieu of any state-prescribed use covenant. The tribe shall submit evidence to the division that it has satisfied these requirements but is not required to disclose confidential tribal data, including the specific limitations or mechanisms it sets.     The division also administers a land banking program (land banking program) that makes grants to local and tribal governments and loans to nonprofits to acquire and preserve land for the development of affordable housing. For grants made to local governments or loans to nonprofits, the development of affordable housing includes rental housing projects with an imputed income limit by household size not to exceed 60% of area median income. Regulated units in the project must have a gross rent limit that does not exceed 30% of the imputed income limitation applicable to the units. Current law requires that a project provide for-sale housing that may be purchased by a household with an annual income of 100% of area median income. The act changes the income limit to 120% of area median income. For land banking program grants to support tribal government programs, the tribe is required to establish income limits by household size and gross rent limits and is not required to use the limits otherwise required for eligible organizations. The tribal government is required to submit evidence that it has established income and gross rent limits but is not required to disclose confidential tribal data, including what the specific limitations are.     The division may issue a waiver with housing cost limits that are different from those requested by an eligible organization if different housing cost limits would better serve needs identified in the community, the project remains financially feasible, and there are eligible buyers that meet the division's requirements. Alternatively, the division may modify the total amount of funding to account for an increase in the sales price of the unit. In lieu of this process, the division may approve an eligible organization's process for determining when to exceed the maximum monthly household income for a unit funded by the program, which shall not require a 6-month marketing period.     The division may allow an eligible organization to rent residential units constructed as part of the project. On or before December 31, 2026, the division is required to issue guidance for when units within a project may be rented and develop a process by which rented units may return to the for-sale market. A homeowner may rent a unit funded by the ownership program as long as the unit remains their primary residence.(Note: This summary applies to this bill as enacted.)

• J. Amabile Democratic · sponsor
• C. Simpson Republican · sponsor
• L. Smith Democratic · sponsor
• K. Stewart Democratic · sponsor

1. May 6, 2026 Governor Signed · executive
2. Apr 27, 2026 Sent to the Governor · executive
3. Apr 27, 2026 Signed by the Speaker of the House · lower
4. Apr 27, 2026 Signed by the President of the Senate · upper
5. Apr 23, 2026 Senate Considered House Amendments - Result was to Concur - Repass · upper
6. Apr 21, 2026 House Third Reading Passed with Amendments - Floor · lower
7. Apr 20, 2026 House Second Reading Special Order - Passed with Amendments - Committee, Floor · lower
8. Apr 16, 2026 House Second Reading Laid Over Daily - No Amendments · lower
9. Apr 14, 2026 House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole · lower
10. Mar 31, 2026 Introduced In House - Assigned to Transportation, Housing & Local Government · lower
11. Mar 31, 2026 Senate Third Reading Passed - No Amendments · upper
12. Mar 30, 2026 Senate Second Reading Passed with Amendments - Committee, Floor · upper
13. Mar 27, 2026 Senate Second Reading Laid Over to 03/30/2026 - No Amendments · upper
14. Mar 26, 2026 Senate Second Reading Laid Over to 03/27/2026 - No Amendments · upper
15. Mar 25, 2026 Senate Second Reading Laid Over to 03/26/2026 - No Amendments · upper
16. Mar 24, 2026 Senate Second Reading Laid Over to 03/25/2026 - No Amendments · upper
17. Mar 23, 2026 Senate Second Reading Laid Over to 03/24/2026 - No Amendments · upper
18. Mar 20, 2026 Senate Second Reading Laid Over to 03/23/2026 - No Amendments · upper
19. Mar 19, 2026 Senate Second Reading Laid Over to 03/20/2026 - No Amendments · upper
20. Mar 18, 2026 Senate Second Reading Laid Over to 03/19/2026 - No Amendments · upper
21. Mar 17, 2026 Senate Second Reading Laid Over to 03/18/2026 - No Amendments · upper
22. Mar 16, 2026 Senate Second Reading Laid Over to 03/17/2026 - No Amendments · upper
23. Mar 13, 2026 Senate Second Reading Laid Over to 03/16/2026 - No Amendments · upper
24. Mar 12, 2026 Senate Second Reading Laid Over to 03/13/2026 - No Amendments · upper
25. Mar 11, 2026 Senate Second Reading Laid Over to 03/12/2026 - No Amendments · upper
26. Mar 10, 2026 Senate Second Reading Laid Over to 03/11/2026 - No Amendments · upper
27. Mar 9, 2026 Senate Second Reading Laid Over to 03/10/2026 - No Amendments · upper
28. Mar 6, 2026 Senate Second Reading Laid Over to 03/09/2026 - No Amendments · upper
29. Mar 5, 2026 Senate Second Reading Laid Over to 03/06/2026 - No Amendments · upper
30. Mar 4, 2026 Senate Second Reading Laid Over to 03/05/2026 - No Amendments · upper
31. Mar 3, 2026 Senate Second Reading Laid Over to 03/04/2026 - No Amendments · upper
32. Feb 26, 2026 Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole · upper
33. Jan 27, 2026 Introduced In Senate - Assigned to Local Government & Housing · upper