Law directs $130 million in housing funds to Colorado’s budget

Colorado’s treasurer must transfer $130 million from money set aside for affordable housing to the state’s general fund. The money goes into Colorado’s general state budget to help balance the budget for the fiscal year ending June 30, 2026. The housing support fund receives 40% of the balance measured before the $130 million transfer. The housing financing fund receives what remains. The $130 million transfer is exempt from Colorado’s constitutional limit on yearly state spending. The $130 million transfer is required on June 30, 2026. Transfers to the two housing funds follow on July 1, 2026, or as soon as practical thereafter. These temporary rules expire July 1, 2027.

The state housing program office and its administrator must choose funding shares using the law’s priority order. Housing loans come first, investments in affordable rental housing come second, and land purchases for affordable housing come third. They must aim to fund all three programs, but funding for each is not guaranteed. For this fiscal year, they choose the shares instead of using the listed minimum and maximum percentages. This funding rule applies to the state fiscal year beginning July 1, 2026, and expires July 1, 2027.

The state housing program office and its administrator must keep their combined costs of running the financing programs within a 2% cap. The limit covers the office’s and administrator’s combined costs across the affordable housing financing programs. For the fiscal year beginning July 1, 2026, the cap uses the financing fund transfer that would occur without the $130 million diversion. For fiscal years beginning on or before July 1, 2025, and on or after July 1, 2027, the cap uses actual transfers to the financing fund. The special calculation for the fiscal year beginning July 1, 2026, expires July 1, 2027.