The city of Longmont is throwing its support behind proposed legislation that extends the state’s affordable housing tax credit, which officials say mirrors local efforts to increase access to homes for middle- and lower- class families.
City Council Tuesday night voted unanimously to back HB22-1051, which boosts the amount of tax credits available to developers of affordable homes. Assistant City Manager Sandi Seader told the council the bill will strengthen every city’s affordable housing policies.
“Following the pandemic and the increased pressure facing the housing market, there is no more important time for Colorado to unite in support” of the bill, Seader told the council.
Currently, the Colorado Housing and Finance Authority, or CHFA, can allocate income tax credits in an annual aggregate amount of up to $10 million for the years beginning on Jan.1, 2020, and ending on Dec. 31, 2024, Seader said.
The new bill extends this period to Dec. 31, 2034 and increases the annual aggregate cap for the years beginning on Jan. 1, 2023 and ending on Dec. 31, 2034, to $15 million, she said.
The state credit has proven to be a valuable resource for Coloradans seeking new affordable homes, Seader said.
“Demand for credits remains strong with requests exceeding credit availability by about two to one,” Seader said.
The bill was introduced on Jan. 13 and is now assigned to the House Transportation and Local Government Committee. There has been no hearing date set as of Wednesday.
