s_lg_2017a_2017-04-26t13:56:05z1 Hearing Summary

Date: 04/26/2017

Location: HCR 0107

02:00 PM -- HB17-1309



Representative Winter and Representative Jackson, co-prime sponsors, explained HB17-1309 concerning a documentary fee to fund affordable housing. They explained that under current law, when the total amount paid by the purchaser on a real property transaction exceeds $500, the county clerk and recorder collects a one cent documentary fee for each $100 of the amount paid for the recording of a real estate deed or other documents. The bill increases the documentary fee to two cents per $100.



Beginning January 1, 2018, 50 percent of the fees generated must be used as prescribed by current law and 50 percent must be deposited in the newly created Statewide Affordable Housing Investment Fund (fund) administered by the Colorado Housing and Finance Authority (CHFA). The bill specifies that moneys in the fund, as allocated by CHFA, must be used for new or existing programs that:



• facilitate the construction or rehabilitation of residential affordable housing units; and

• provide financial assistance to a nonprofit or political subdivision that make loans to households for the financing, purchase, or rehabilitation of residential housing.



The bill defines affordable housing as housing that is affordable for households with an income that is up to 80 percent of the area median income for rental occupancy and up to 110 percent for home ownership. It also specifies that a portion of the funds must be used for programs that serve counties with a population of 175,000 or less. Beginning November 1, 2021, CHFA must submit a report every three years to the Governor and to the Finance committees of the General Assembly specifying how the new funds were used.



The representatives explained the necessity for the bill and emphasized housing issues across the states, including lack of affordable housing, low inventory, and high housing prices. They said this fund is designed to provide gap funding for affordable housing or to assist lower or middle income home buyers with down payments. The representatives answered questions from the committee about middle income home buyers, real estate developers, CHFA, and the bill's applicability to rural and urban areas. The representatives also emphasized that Colorado is one of the few states that does not have a trust fund or a steady stream of funding for affordable housing.



02:15 PM -- Sara Reynolds, representing Housing Colorado, spoke in support of the bill. She reported on the current state of the Colorado housing market. She confirmed that rental costs continue to increase and many people are spending over 50% of their income on rent. She stated the reasons why she supports the bill, including its flexibility and steady funding stream. She answered questions from the committee about the distribution of the funds between rural and urban jurisdictions and "deBrucing."



02:33 PM -- Lynn Crist, representing herself, spoke in support of the bill. As a developer, she explained the complexities of securing funding for affordable housing. She answered questions from the committee regarding the housing market, grant funds, and middle-income home buyers.



02:44 PM -- Jason Hopfer, representing the Colorado Association of Realtors, spoke in opposition to the measure. He expressed concerns about the bill's financial impact on real estate transactions and reported that the fee is disproportionately impacting low-and middle-income buyers. He answered questions from the committee regarding fees and affordable housing.



02:55 PM -- Michelle Webster, representing the Colorado Center on Law & Policy, presented a neutral position on the bill. She explained her organization is neutral because the bill does not place priority on low-income individuals. She answered questions from the committee regarding affordable housing, dedicated funding, and the steep increases in rent.



03:16 PM -- Monica Martinez, representing the Fax Partnership, spoke in support of the bill. She explained that her organization is trying to preserve affordable housing on the East Colfax corridor.



03:19 PM -- Neil Mendel, representing the Mendel Development Company, spoke in favor of the measure. He explained the difficulties and complexities of securing funding for affordable housing projects. He stressed that the bill is important as many of the federal funding sources are drying up. He answered questions from the committee regarding carry-backs and funding sources.



03:32 PM -- Don May, representing himself, spoke in support of the bill. He explained his experience working in the affordable housing field and confirmed that Colorado has no permanent funding source for low-income housing.



03:40 PM -- Cathy Alderman, representing the Colorado Coalition for the Homeless, presented a neutral position on the bill. She explained that the bill should be more focused on low-income housing. She discussed the 100-unit housing development the Colorado Coalition for the Homeless has financed and developed for chronically homeless individuals. She answered questions from the committee about leveraging funds and wrap-around services.



03:58 PM -- Richard Cimino, representing Grand County, spoke in support of the measure. Mr. Cimino explained that he is a Grand County Commissioner, and discussed the problems his county is facing regarding affordable housing. He answered questions from the committee about seasonal workers and equitable distribution of the funds.



04:09 PM -- Kevin Marchman, representing the Stapleton Development Corporation, spoke in support of the bill. He explained that housing funds at the federal level are decreasing and Colorado needs to a response in place.



04:14 PM -- Ed Shackelford, representing the Colorado Senior Lobby, testified in support of the bill. He discussed seniors and affordable housing.





04:18 PM



Representative Jackson distributed Amendment L.001 (Attachment A).



17HouseLocalGov0426AttachA.pdf

04:23 PM



Representative Singer distributed amendment L.002 (Attachment B).



17HouseLocalGov0426AttachB.pdf

04:28 PM



Representative Jackson made closing remarks and stressed the importance of safe and affordable living options.





04:30 PM



Representative Winter gave her closing remarks and emphasized that affordable housing is a statewide problem.