2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › PRINCIPAL DEPARTMENTS (§§ 24-30-101 — 24-36-306) › Article 32 - DEPARTMENT OF LOCAL AFFAIRS (§§ 24-32-101 — 24-32-3711) › Part 1 - DIVISION OF LOCAL GOVERNMENT (§§ 24-32-101 — 24-32-134) › Section 24-32-133 - Infrastructure and strong communities grant program - creation - fund - reporting - definitions - repeal

(1)
Definitions.
As used in this section, unless the context otherwise requires:
(a)
"Affordable housing" means:
(I)
For a household residing in housing on a rental basis, annual income of the household is at or below one hundred forty percent of the area median income of households of that size in the county in which the housing is located;
(II)
For a household residing in housing on a home ownership basis, annual income of the household at or below one hundred forty percent of the area median income of households of that size in the county in which the housing is located; or
(III)
For a household residing in housing on a home ownership basis in rural resort counties, annual income of the household is at or below one hundred sixty percent of the area median income of households of that size in the county in which the housing is located.
(b)
"Department" means the department of local affairs.
(c)
"Eligible expenses" include planning, engineering, infrastructure, and local capacity.
(d)
"Eligible local government" means a municipality or a county.
(e)
"Fund" means the infrastructure and strong communities grant program fund created in subsection (5) of this section.
(f)
"Grant program" means the infrastructure and strong communities grant program created in subsection (3)(a) of this section.
(g)
"Infill development" means the development of unused and underutilized land within existing development patterns, typically but not exclusively in urban areas.
(h)
"Local government" means a county, municipality, or a city and county.
(i)
"Multi-agency group" means the division, the Colorado energy office created in section
24-38.5-101 (1)
, and the department of transportation created in section
43-1-103 (1)
.
(j)
"Sustainable development pattern" means a development pattern that may be extended in a cost-effective way that mitigates harm and minimizes the need for additional resources to maintain the development over time.
(k)
"Transit-oriented development" means a development that is within walking distance of a transit or other alternative transportation facility.
(2)
Multi-agency group - best practices.
(a)
The multi-agency group shall encourage the involvement of local governments across the state in the grant program. The multi-agency group, with the assistance of stakeholders, shall develop a list of sustainable land use best practices that will accomplish the goals of the grant program and improve a local government's viability in being considered for a grant award.
(b)
The sustainable land use best practices referenced in subsection (2)(a) of this section will address one or more of the following, without limitation:
(I)
Enabling accessory development units or the use of multiplexes by right in residential zones;
(II)
Zoning for mixed-use higher density development in downtown areas of municipalities and around transit stations;
(III)
Annexation policies;
(IV)
Intergovernmental agreements that coordinate future development;
(V)
Reduced parking requirements;
(VI)
Relaxed occupancy rules;
(VII)
Budgeting policies;
(VIII)
Water rate structures;
(IX)
Road standards;
(X)
Hazard risk reduction and mitigation standards;
(XI)
Energy efficient building codes;
(XII)
Zoning for innovative housing options, including but not limited to modular, manufactured, and prefabricated homes;
(XIII)
The use of vacant publicly owned real property within the local government for the development of affordable housing;
(XIV)
Planned unit developments with integrated affordable housing units;
(XV)
The development of small square footage residential unit sizes; or
(XVI)
Any other practice that is deemed innovative by a local government and approved by the multi-agency working group.
(c)
The multi-agency group shall distribute the sustainable land use practices developed pursuant to subsection (2)(b) of this section to local governments so that local governments may analyze which, if any, of these practices might have a positive impact in their communities, and then determine how to customize these best practices and adopt them in their communities as appropriate.
(3)
Grant program - criteria for awarding grants.
(a)
The infrastructure and strong communities grant program is hereby created within the division to provide grants to eligible local governments to enable local governments to invest in infill infrastructure projects that support affordable housing.
(b)
The division shall administer the grant program, in consultation with the Colorado energy office, created in section
24-38.5-101 (1)
, and the department of transportation, created in section
43-1-103 (1)
, and, subject to available appropriations, award grants in accordance with the requirements of this section. Subject to available appropriations, grants must be paid out of the fund created in subsection (5) of this section.
(c)
The division shall develop policies, procedures, and guidelines that establish the criteria that the division must consider in awarding grants pursuant to this section. At a minimum, the criteria must include the consideration of:
(I)
The potential impact of a project that a local government would fund with a grant award in light of the goals of the grant program; and
(II)
The sustainable land use practices that the local government has adopted to support greater infill housing supply, more affordable housing, and sustainable development patterns.
(4)
Policies, procedures, and guidelines governing us of grant funds.
(a)
The division shall develop policies and procedures to determine how grants funded by the grant program may be used.
(b)
At a minimum, the policies, procedures, and guidelines developed pursuant to subsection (4)(a) of this section must require that a grant award be used, at least in part, to fund infrastructure projects that increase the supply of affordable housing and that are within or adjacent to a downtown area, a core business district of a municipality, a transit-oriented development, or that include onsite early childhood care and education services.
(c)
The division shall ensure flexibility is afforded rural counties to be able to seek grant funding that addresses local objectives that are compatible with the goals underlying the grant program.
(d)
A portion of any grant award may be used for project delivery, planning, and community engagement.
(e)
The general assembly hereby encourages grant recipients to expend a portion of any grant award, whenever possible, for funding accessibility improvements or amenities that make the site of the project age-friendly and accessible for persons with disabilities.
(f)
(I)
Not later than September 1, 2022, the division of housing, created in section
24-32-704 (1)
, shall classify each county in the state as "urban", "rural", or "rural resort", as those terms are used in this section, based upon the definitions of the terms as specified in the final report of the Colorado strategic housing working group final report, dated July 6, 2021. The division of housing shall regularly update and publish modifications of the initial classification of a particular county as it receives or produces information documenting changes in local economic circumstances and housing cost factors materially affecting such classifications.
(II)
Notwithstanding subsection (4)(f)(I) of this section, any county or municipality may request from the division of housing:
(A)
A determination that a different income restriction should apply to that county or municipality from the one made applicable to the county or municipality in accordance with subsection (4)(f)(I) of this section based upon the unique economic and housing cost factors present in the county or municipality. Not later than September 1, 2022, the division of housing shall publish any such modified income restrictions and the basis for any modification approved.
(B)
At any time, a reclassification of the county or municipality from the category in which the county is initially classified pursuant to subsection (4)(f)(I) of this section based upon the unique economic and housing cost factors present in the county or municipality.
(5)
Fund - administrative costs - permitted uses - gifts, grants, and donations.
(a)
The infrastructure and strong communities grant program fund is hereby created in the state treasury. The fund consists of any money transferred to the fund, any money that the general assembly may appropriate to the fund, and any gifts, grants, or donations that the division receives for the grant program pursuant to subsection (5)(f) of this section.
(b)
The state treasurer shall credit all interest and income derived from the investment and deposit of money in the fund to the fund. All money in the fund that is not expended or encumbered, and all interest earned on the investment or deposit of money in the fund, remains in the fund and shall not be credited, transferred, or reverted to the general fund or any other fund at the end of any fiscal year. The money in the fund is continuously appropriated to the division for the purposes of this section.
(c)
The division may only use the money in the fund for one or more of the following uses:
(I)
The costs of administering the grant program as may be incurred by the division. The department may expend up to six percent of the money appropriated or transferred to the fund to pay for its direct and indirect costs in connection with administering the uses of grant funding described in subsection (5)(c)(II) of this section.
(II)
Making grants to eligible local governments pursuant to the grant program to assist such local governments in:
(A)
Identifying sustainable land use best practices and supporting sustainable development patterns;
(B)
Determining where and how best to upgrade local government infrastructure to support more efficient, sustainable development patterns that enable greater affordable infill housing development; and
(C)
Financing infrastructure improvements.
(d)
The Colorado energy office, created in section
24-38.5-101 (1)
, may use money in the fund for the direct and indirect costs of educational programming and technical assistance for local governments that the Colorado energy office provides pursuant to section
24-32-133 (2)
.
(e)
The department of transportation, created in section
43-1-103 (1)
, may use money in the fund for the direct and indirect costs of educational programming and technical assistance for local governments that the department of transportation provides pursuant to section
24-32-133 (2)
.
(f)
The division may seek, accept, and expend gifts, grants, or donations from any public or private resource for the purposes of this section. The division shall transmit all money received from gifts, grants, or donations to the state treasurer who shall credit the money to the fund.
(6)
Transfer of money to fund.
On June 1, 2022, or as soon as practicable thereafter, the state treasurer shall transfer to the fund forty million dollars from the affordable housing and home ownership cash fund created in section
24-75-229 (3)(a)
that originates from money the state received from the federal coronavirus state fiscal recovery fund.
(7)
Reporting.
(a)
On or before October 1, 2023, and on or before October 1 of each year thereafter for the duration of the grant program, the department shall submit a summarized report on the grant program to the senate local government committee and the house of representatives local government committee, or any successor committees. At a minimum, the report must include:
(I)
The number of additional affordable housing units and overall housing units projected to be created as a result of the grant program;
(II)
The projected or estimated reduction in greenhouse gas emissions as a result of the grant program;
(III)
The estimated reduction in vehicle miles traveled and household transportation savings as result of the grant program; and
(IV)
The number and type of best practices adopted by eligible local governments that have received grant awards.
(b)
Notwithstanding section
24-1-136 (11)(a)(I)
, the reporting requirement specified in subsection (7)(a) of this section continues until the grant program is repealed in accordance with subsection (8) of this section.
(c)
The division and any person that receives money from the division pursuant to the grant program shall comply with the compliance, reporting, record-keeping, and program evaluation requirements established by the office of state planning and budgeting and the state controller in accordance with section
24-75-226 (5)
.
(8)
Repeal.
This section is repealed, effective December 31, 2026.
Added by 2022 Ch. 290, § 5, eff. 6/1/2022.