HB1061 creates a targeted housing-tax-credit preference for developments serving people with intellectual and developmental disabilities. It requires the Colorado Housing and Finance Authority (CHFA) to set aside at least 10% of the annual federal low-income housing tax credit ceiling for “community integration housing” projects, which must meet federal home- and community-based services (HCBS) settings requirements, reserve at least 20% of units for people with intellectual and developmental disabilities, and have a formal partnership with a community-centered board or certified case-management agency.
The bill also amends Colorado’s state affordable housing tax credit program to give priority scoring or preference to developments that received the federal set-aside and continue to meet the community integration housing requirements. The preference does not override other eligibility, underwriting, feasibility, or compliance requirements, and CHFA retains authority to determine credit amounts and enforce state and federal law. Unused federal set-aside credits may be reallocated to other eligible projects later in the year.
Impact
If enacted, HB1061 would change how CHFA allocates both federal low-income housing tax credits and state affordable housing tax credits by creating a dedicated pipeline for integrated housing for people with intellectual and developmental disabilities. It would add new statutory definitions and allocation requirements in the Colorado Revised Statutes, and it would apply to qualified allocation plans adopted on or after the effective date. The bill would not require credits to be awarded to noncompliant projects and would preserve CHFA’s existing discretion and compliance authority.
Sentiment
The bill’s stated purpose is strongly supportive of expanding integrated, community-based housing options for people with intellectual and developmental disabilities, and the legislative declaration frames the measure as addressing a significant unmet need and state obligations under federal law. However, the available voting history suggests the proposal faced substantial resistance in committee: the House Transportation, Housing & Local Government Committee voted 10-1 to postpone the bill indefinitely, indicating broad opposition or concern despite the bill’s policy goals.
Contention
The main points of contention appear to be the mandate to reserve a fixed share of scarce housing tax credits and the extent to which the state should prioritize one category of housing development over others. Potential concerns include whether a 10% set-aside could reduce flexibility in the competitive tax-credit process, whether the reserved-unit and partnership requirements are too restrictive, and whether the bill could affect the financing of other affordable housing projects. Supporters are likely to emphasize the need for integrated housing and compliance with HCBS standards, while opponents may focus on allocation fairness, administrative burden, and market feasibility.