House Bill 19-1245 Summary

• Establishes the "Affordable Housing Act of 2019" to increase funding for affordable housing by modifying Colorado's state sales tax vendor fee structure effective January 1, 2020

• Reduces the vendor fee allowance from 3.33% to 4% of tax reported with a cap of $1,000 per filing period (previously uncapped), generating additional state revenue estimated at $50+ million annually

• Directs all revenue generated from the vendor fee changes to the Housing Development Grant Fund created in section 24-32-721, with at least one-third allocated annually to affordable housing for households earning 30% or less of area median income

• Specifies reductions in housing fund credits: $15,335,781 for fiscal year 2019-20; $40,323,158 for fiscal year 2020-21; and $985,335 for fiscal year 2021-22 and thereafter

• Appropriates $3,398 to the Department of Local Affairs and $286,408 to the Department of Revenue for implementation; takes effect 90 days after final adjournment unless subject to successful referendum petition requiring 2020 voter approval