SB 22-159 Summary

• Creates the Transformational Affordable Housing Revolving Loan Fund within the Division of Housing in the Department of Local Affairs to provide flexible, low-interest, below-market rate loans for affordable housing projects.

• Transfers $150 million from the Affordable Housing and Home Ownership Cash Fund to the new revolving loan fund on July 1, 2022, to support new housing development, preservation and rehabilitation of existing affordable housing, gap financing, and land acquisition.

• Establishes eligible loan recipients including local governments, for-profit developers, nonprofit community partners, and political subdivisions; allows the division to contract with third-party administrators to manage the program.

• Requires the division to prioritize applications for projects in communities with demonstrated housing needs, COVID-19 impacts, capital access barriers, and projects that create permanent affordability, serve persons with disabilities, or employ high-efficiency energy measures.

• Mandates annual public reporting on loan program metrics including number of applicants, loan distribution amounts, use of funds across income and housing spectrums, and recommendations for future program administration.