CO SB040

Clarifies that households must have income at or below 120% of the statewide area median income to be eligible for housing constructed through the affordable home ownership program funded by Proposition 123

Creates a waiver process allowing the Division of Housing to increase or waive the 35% maximum monthly housing cost limit for units that remain unsold 6 months after receiving a certificate of occupancy, provided there is substantial housing need and adequate marketing was conducted

Requires the Division to accept local affordability mechanisms (deed restrictions, community land trust ground leases, recapture liens) in place of state-prescribed use covenants if they provide equivalent protections or are necessary for financing in disproportionately impacted communities

Authorizes the Division to allow eligible organizations to rent residential units constructed through the program, with guidance on rental circumstances to be issued by December 31, 2026

Takes effect July 1, 2026, and applies to waiver requests received on or after that date