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--- version:Introduced+++ version:(document, no version)@@ -1,205 +1,8 @@-Second Regular Session-Seventy-fifth General Assembly-STATE OF COLORADO-INTRODUCED--LLS NO. 26-0268.01 Jacob Bennington x2371 HOUSE BILL 26-1066-House Committees Senate Committees-Finance-A BILL FOR AN ACT-CONCERNING THE EXPANSION OF PROPERTY TAX EXEMPTIONS TO101-INCLUDE DEVELOPMENT OF LOW-INCOME RENTAL PROPERTY.102-Bill Summary-(Note: This summary applies to this bill as introduced and does-not reflect any amendments that may be subsequently adopted. If this bill-passes third reading in the house of introduction, a bill summary that-applies to the reengrossed version of this bill will be available at-http://leg.colorado.gov-.)-Current law provides an exemption for taxation on property-acquired and developed for low-in come housing by nonprofit housing-providers, comm unity la nd trusts, and nonpr ofit affo rdable-homeownership developers. The bill expands the exemption to also-include property intended for low-income residential rental property.-HOUSE SPONSORSHIP-Stewart R. and Stewart K.,-SENATE SPONSORSHIP-Ball,-Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.-Capital letters or bold & italic numbers indicate new material to be added to existing law.-Dashes through the words or numbers indicate deletions from existing law.-Be it enacted by the General Assembly of the State of Colorado:1-SECTION 1. In Colorado Revised Statutes, 39-3-113.5, amend2-(1)(a.5), (1)(b), (1)(b.5), (1)(c)(II) introductory portion, (1)(d), (2)(a),3-(2)(c)(II)(B), and (2)(c)(II)(C) as follows:4-39-3-113.5. Property acquired by nonprofit housing provider5-for low-income housing - use for charitable purposes - exemption -6-limitations - definitions.7-(1) As used in this section, unless the context otherwise requires:8-(a.5) "Community land trust" means a nonprofit organization that9-is exempt from taxation under section 501 (c)(3) of the federal "Internal10-Revenue Code of 1986", as amended, and is designed to ensure long-term11-housing affordability through a shared-equity model by acquiring and12-maintaining ownership of real property, while selling OR RENTING the13-improvements to low-to-middle income households for use as a primary14-residence.15-(b) "Indicators of intent" means off-site activities of a nonprofit16-housing provider that establish the provider's specific intent to:17-(I) Use property for the purpose of constructing or rehabilitating18-housing to be sold OR RENTED to low-income applicants; or19-(II) Sell OR RENT the property to low-income applicants for the20-purpose of constructing or rehabilitating housing for the low-income21-applicants.22-(b.5) "Land lease" means a long-term lease used in affordable23-homeownership OR RENTAL properties to lease the real property that is24-owned by a community land trust or nonprofit affordable homeownership25-OR RENTAL developer to the owner of the improvements on the real26-HB26-1066-2--property and preserve the improvements as an affordable homeownership1-OR RENTAL property.2-(c) "Low-income applicant" means:3-(II) For property tax years commencing on or after January 1,4-2024, an individual or family who both apply to a nonprofit housing5-provider to purchase OR RENT an affordable for-sale unit and whose total6-income is at or below either:7-(d) "Nonprofit housing provider" means an organization that is8-exempt from federal income tax pursuant to section 501 (c)(3) of the9-federal "Internal Revenue Code of 1986", as amended, and that has a10-primary organizational mission of THAT INCLUDES:11-(I) Working with low-income applicants to construct or12-rehabilitate housing that the organization then sells OR RENTS to the13-low-income applicants for their residential use; or14-(II) Selling OR RENTING property or improvements to low-income15-applicants for the low-income applicants' residential use.16-(2) (a) Subject to the limitations specified in subsection (3) of this17-section, for property tax years commencing on or after January 1, 2011,18-real property acquired by a nonprofit housing provider upon which the19-provider intends to construct or rehabilitate housing to be sold OR RENTED20-to low-income applicants or which the provider intends to sell OR RENT21-to low-income applicants for their residential use is deemed to be being22-used for strictly charitable purposes, regardless of whether or not there is23-actual physical use of the property, and shall be exempt from property24-taxation in accordance with section 5 of article X of the state constitution.25-(c) (II) For property tax years commencing on or after January 1,26-2024, in determining whether a nonprofit housing provider satisfies the27-HB26-1066-3--intent requirement of subsection (2)(a) of this section with respect to1-particular property, the administrator may consider indicators of intent,2-including but not limited to:3-(B) A resolution by the nonprof it housing provider's board that4-designates the property for construction or rehabilitation of for-sale OR5-RENTAL affordable housing; or6-(C) A resolution by the nonprofit housing provider's board that7-approves the purchase of the property for land banking with the purpose8-of constructing or rehabilitating for-sale OR RENTAL affordable housing. 9-SECTION 2. In Colorado Revised Statutes, 39-3-127.7, amend10-(1), (2)(a), (2)(c), (2)(d), (2)(e), (3)(a)(I), (3)(a)(III), (3)(b), (4), (6), (7)(a)11-introductory portion, and (7)(b) as follows:12-39-3-127.7. Community land trust property - nonprofit13-affordable homeownership or rental developer property - exemption14-- requirements - legislative declaration - definitions.15-(1) (a) The general assembly hereby finds and declares that:16-(I) The cost of homeownership AND HOME RENTAL has risen17-dramatically in Colorado: From December 2020 to December 2022, the18-median home value in Colorado increased over thirty percent; AND19-(II) Entry-level homeownership options AND AFFORDABLE20-RENTALS are increasingly unavailable, and community land trusts and21-nonprofit affordable homeownership HOUSING developers are playing an22-increasingly large role in helping low- and middle-income Coloradans23-access homeownership AND AFFORDABLE HOMES FOR RENT; and.24-(III) Compared to tools used to incentivize affordable rental25-housing, such as the low-income housing tax credit, there are fewer tools26-to incentivize the creation of affordable for-sale housing.27-HB26-1066-4--(b) Therefore, it is the intent of the general assembly to provide1-a limited property tax exemption to community land trusts and nonprofit2-affordable homeownership HOUSING developers in certain circumstances.3-(2) As used in this section, unless the context otherwise requires:4-(a) "Affordable homeownership OR RENTAL property" means any5-dwelling that:6-(I) Is restricted by a deed that impacts ownership of the property,7-limits the property's resale price, requires a long-term land lease with a8-community land trust or nonprofit affordable homeownership OR RENTAL9-developer, or imposes any other restriction that limits the property such10-that it may only be purchased OR RENTED by designated households, a11-community land trust, or a nonprofit affordable homeownership OR12-RENTAL developer;13-(II) Is sold OR RENTED to a household that at the time of purchase14-OR RENTAL is at or below one hundred percent of the area median income15-of households of that same size in the county in which the housing is16-located; and17-(III) Is sold OR RENTED to a purchaser OR LESSEE to be used as a18-primary residence.19-(c) "Improvement" means a permanent change to real property20-that augments the real property's value including but not limited to a21-single-family home, townhome, or condominium, OR RENTAL PROPERTY.22-(d) "Land lease" means a long-term lease used in affordable23-homeownership OR RENTAL properties to lease the real property that is24-owned by a community land trust or nonprofit affordable homeownership25-developer to the owner of the improvements on the real property and26-preserve the improvements as an affordable homeownership OR RENTAL27-HB26-1066-5--property.1-(e) "Nonprofit affordable homeownership OR RENTAL developer"2-means an organization that is exempt from federal income tax pursuant3-to section 501 (c)(3) of the federal "Internal Revenue Code of 1986", as4-amended, and that has a primary organizational mission of THAT5-INCLUDES providing for-sale OR FOR RENT affordable housing units to6-low-to-middle income households for use as a primary residence.7-(3) (a) For property tax years commencing on or after January 1,8-2024, real property is deemed to be used for a strictly charitable purpose,9-and is exempt from property taxation in accordance with section 5 of10-article X of the state constitution, if the real property:11-(I) Is held by either a community land trust or a nonprofit12-affordable homeownership OR RENTAL developer;13-(III) Is leased to the owner of the improvements as an affordable14-homeownership OR RENTAL property.15-(b) The real property described in subsection (3)(a) of this section16-is deemed to be used for a strictly charitable purpose, and is exempt from17-property taxation in accordance with section 5 of article X of the state18-constitution, un til the real property is no longer used as an affordable19-homeownership OR RENTAL property.20-(4) If a community land trust or nonprofit affordable21-homeownership OR RENTAL developer claims a property tax exemption22-pursuant to this section for a real property and then subsequently sells,23-donates, or leases that real property so that the real property no longer24-qualifies as an affordable homeownership OR RENTAL property, the25-community land trust or nonprofit affordable homeownership OR RENTAL26-developer is liable for all property taxes for the real property for the27-HB26-1066-6--property tax years when the real property did not qualify as an affordable1-homeownership OR RENTAL property and during which the community2-land trust or nonprofit affordable homeownership OR RENTAL developer3-did not pay property taxes for the real property due to the property tax4-exemption described in this section.5-(6) A community land trust or nonprofit affordable home6-ownership OR RENTAL developer that owns real property that qualifies for7-the property tax exemption described in this section shall submit the land8-lease for each real property that qualifies for the property tax exemption9-described in this section to the appropriate county assessor within10-twenty-five days of the initial execution of the land lease.11-(7) (a) Any community land trust or nonprofit affordable12-homeownership OR RENTAL developer that claims a property tax13-exemption pursuant to this section shall comply with the provisions of14-section 39-2-117; except that, if the real property that is allowed an15-exemption pursuant to this section has been subdivided, the owner of such16-property or the owner's agent is only required to:17-(b) Notwithstanding subsection (7)(a)(II) of this section, if the real18-property that is allowed an exemption pursuant to this section has been19-subdivided but the subdivided parcel has been split into a separate taxable20-parcel from the improvements and is leased to the owner of the21-improvements as an affordable homeownership OR RENTAL property, then22-the owner of such real property or the owner's agent must file an23-individual annual report for the subdivided parcel in accordance with24-section 39-2-117 (3)(a).25-SECTION 3. Act subject to petition - effective date. This act26-takes effect January 1, 2027; except that, if a referendum petition is filed27-HB26-1066-7--pursuant to section 1 (3) of article V of the state constitution against this1-act or an item, section, or part of this act within the ninety-day period2-after final adjournment of the general assembly, then the act, item,3-section, or part will not take effect unless approved by the people at the4-general election to be held in November 2026 and, in such case, will take5-effect January 1, 2027, or on the date of the official declaration of the6-vote thereon by the governor, whichever is later.7-HB26-1066-8-+HB1066_L.002+HOUSE COMMITTEE OF REFERENCE AMENDMENT+Committee on Finance.+HB26-1066 be amended as follows:+1 Amend printed bill, page 5, line 23, strike "RENTAL PROPERTY." and+2 substitute "MULTIUNIT PROPERTY.".+** *** ** *** **+LLS: Jacob Bennington x2371
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