HB21-1271 Summary

• Creates three state grant programs to help local governments develop affordable housing: the Housing Development Incentives Grant Program ($39.3 million), the Planning Grant Program ($7.1 million), and the Housing Toolkit Program ($1.6 million).

• Requires local governments to adopt at least three policy or regulatory tools from a menu including density bonuses, accessory dwelling units, expedited permitting, fee waivers, and mixed-income development to be eligible for development incentives grants.

• Appropriates $46.4 million in federal coronavirus state fiscal recovery funds to the Colorado Heritage Communities Fund to support the three programs through July 1, 2024, with up to 4-8% available for administrative costs.

• Establishes eligibility criteria prioritizing geographic diversity, best practices, maximum housing impact, long-term affordability, and sustainable development patterns when awarding grants to local governments.

• Requires annual reporting on grant awards, beneficiary local governments, adopted policies, and funding distributions to the General Assembly and Department website by November 1, 2022 and 2023.