(1)The general assembly finds and
declares that:
(a)There is an acute shortage of affordable middle-income housing in the
state, particularly in fast-growing areas where jobs are being created. Housing is
increasingly not affordable for essential workers such as nurses, teachers,
firefighters, and other members of communities who earn too much to qualify for
governmental housing subsidies and for whom the market is not building new
housing.
(b)For most of Colorado's post-war history, the private market provided an
abundant supply of starter homes for middle-income earners. As costs have
escalated in high-cost housing markets, private investors have shifted their focus to
financing housing for only the top earners in the marketplace, where high returns
on investment can still
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(1) The general assembly finds and
declares that:
(a) There is an acute shortage of affordable middle-income housing in the
state, particularly in fast-growing areas where jobs are being created. Housing is
increasingly not affordable for essential workers such as nurses, teachers,
firefighters, and other members of communities who earn too much to qualify for
governmental housing subsidies and for whom the market is not building new
housing.
(b) For most of Colorado's post-war history, the private market provided an
abundant supply of starter homes for middle-income earners. As costs have
escalated in high-cost housing markets, private investors have shifted their focus to
financing housing for only the top earners in the marketplace, where high returns
on investment can still be achieved. In the Denver metro area, not only are there
fewer affordable rental units built every year, but there are also fewer affordable
rental properties in total. This same trend is occurring in all high-cost communities
across the state.
(c) There are established markets to raise capital to finance affordable
housing for low-income individuals who qualify for governmental housing subsidies,
generally those whose income is sixty percent, or in some cases eighty percent, or
less of area median income, through the sale of federal and state low-income
housing tax credits and tax-exempt bonds;
(d) Even with historic state investment this year of hundreds of millions of
dollars for affordable housing, the statewide need is in the billions; even with the
general assembly's investment, there simply is not enough capital available to
finance the middle-income workforce housing, leaving a damaging void of housing
supply for middle-income individuals, families, and communities;
(e) In order to solve for the acute shortage of affordable middle-income
housing, a mechanism is needed that will robustly increase the supply of affordable
middle-income housing by raising large amounts of private sector capital to finance
projects that can be placed into service quickly and efficiently. The creation of the
middle-income housing authority is such a mechanism.
(f) The authority will be able to place projects into service quickly and
efficiently because it will rely on the expertise of local governments, nonprofit
organizations, and experienced real estate industry professionals to identify,
propose, develop, and operate its projects;
(g) The authority's housing units will remain affordable with stable rents
because they will be owned by the authority and operated by experienced and
competent operators at the authority's direction, in perpetuity;
(h) Increasing affordable rental workforce housing through the activities of
the authority and the exercise of its plenary powers pursuant to this part 11 is in the
public interest and is a matter of statewide concern. The activities of the authority
will comply with fair housing laws and promote a substantial, legitimate, and
nondiscriminatory interest of the state that cannot be served by another practice
that has a less discriminatory effect; and
(i) A public-private partnership entered into by the authority in connection
with an affordable rental housing project or in connection with providing housing
assistance to tenants of an affordable rental housing project in accordance with
this part 11 serves a public purpose and does not, therefore, violate section 2 of
article XI of the state constitution.