May 2, 2024

urge senate finance committee to support hb24-1434 and hb24-1316

CHFA is glad to report that HB24-1434 and HB24-1316, which propose increased and new tax credit resources for affordable and middle-income housing, advanced in the legislature this week.

HB24-1434: Strengthens and Expands the State Affordable Housing Tax Credit

Sponsored by Representatives Bird and Weinberg and Senators Zenzinger and Simpson, HB24-1434 passed Third Reading in the House with bipartisan support on Wednesday, May 1. As currently written, HB24-1434 proposes to increase CHFA’s existing $10 million in state AHTC allocation authority by:

  • $20 million in 2024-2026;
    $16 million in 2027-2029; and
    $10 million in 2030-2031.

This increase includes resources to support CHFA in better meeting the demand for Housing Tax Credits, which are over-subscribed by a rate of 3:1, and to help mitigate the impact of reduced availability of gap fund resources due to loss of ARPA and vendor fee resources.

In addition, the bill was amended in the House to also include additional tax credit resources to support developments in transit-oriented communities (TOCs), originally a provision of HB24-1313 sponsored by Representatives Woodrow and Jodeh and Senators Hansen and Winter. Unlike the six-year state AHTC, the TOC Credit would be a five-year credit with credit allocation authority beginning in 2025 through 2029. CHFA would be authorized to allocate TOC credits to eligible TOC projects as follows:

  • $8.6 million in 2025;
    $7.2 million in 2026;
    $5.6 in 2027;
    $5 million in 2028; and
    $3.6 million in 2029.

With the housing shortage facing Colorado, increasing construction and labor costs, and diminishing availability for gap fund resources, it is critical that HB24-1434 continues to move forward this session. View CHFA’s Fact Sheet on HB24-1434 for more information.

HB24-1316: Middle Income Housing Tax Credit

Also on Wednesday, HB24-1316, sponsored by Representatives Lindstedt and Lindsay and Senator Bridges to establish a Middle-Income Housing Tax Credit (MIHTC) pilot program, passed Third Reading in the House. This bill proposes a new three-year pilot program that builds on the success of the state AHTC to support the development and preservation of middle-income rental housing serving households earning up to 120% AMI or 140% AMI in rural resort counties.

Amendments were added to HB24-1316 in the House that would permit the Middle Income Housing Authority (MIHA) and other governmental or quasi-governmental entities to apply for and receive the credit. This would create two distinct credit structures for MIHTC—an allocated structure for private or nonprofit developers and an optional transferable structure for quasi- or governmental agencies. View CHFA’s Fact Sheet on HB24-1316 to learn more.

Both bills will be considered in the Senate Finance committee on Friday, May 3. Passage by the Senate must occur before the legislative session ends on May 8, 2024. Please urge your state Senators to support both HB24-1434 and HB24-1316.

Please contact Jerilynn Francis or Julia Selby for more information.