SB22-232 MIDDLE INCOME HOUSING AUTHORITY

Colorado Office of Economic Development and International Trade

Quarter Ending June 30, 2023

This status report is published by the Office of Economic Development and International Trade (OEDIT) on behalf of the Middle Income Housing Authority (‘MIHA’ or ‘Authority’) as a quarterly progress report to members of the General Assembly. MIHA was established through Senate Bill 22-232 and amended by Senate Bill 23-035. This is the Fourth Quarter Report for Fiscal Year 2022-23.

Per C.R.S. 29-4-1104 (14)(b) the Authority shall submit a quarterly report to the Governor, to the State Auditor, and to the Senate Committees on Finance and Health and Human Services and the House of Representatives Committees on Finance, Health and Insurance, and Public and Behavioral Health and Human Services.

For questions or requests related to this report, please contact:

Xander Martin

Director of Legislative Affairs

Office of Economic Development and International Trade (OEDIT)

xander.martin@state.co.us 

Hilary Cooper

Director of Innovative Financing for Housing

Office of Economic Development and International Trade (OEDIT)

hilary.cooper@state.co.us

Executive Summary

MIHA is a body corporate and political subdivision of the state, is not an agency of the state and is not subject to administrative direction by the state. MIHA is a special purpose authority under state law. The revenues and spending of MIHA are not subject to TABOR revenue and spending limits. MIHA may issue bonds without voter approval.

MIHA income, property, bonds and interest on MIHA bonds are exempt from state and local taxation and assessments and its purchase and use of property are exempt from state and local sales and use taxes. MIHA may make payments in lieu of taxes to the state or local governments.

MIHA is an instrumentality of the state for federal income tax purposes. MIHA’s income and the interest on its bonds are exempt from federal and state income taxation and gifts to MIHA are tax deductible. MIHA may waive the tax exemption of interest on its bonds.

Powers

MIHA has the power to acquire, own, operate and finance affordable rental housing projects. MIHA also may provide housing assistance to tenants in its affordable rental housing projects to help them purchase homes, but the assistance may only be provided from funds not needed for affordable rental housing projects.

Per SB23-035 MIHA has the authority to enter into a public-private partnership in connection with an affordable housing rental project or in connection with providing housing assistance to tenants of an affordable housing rental project.

MIHA’s affordable rental housing projects are defined as property that has the primary purpose of providing rental housing for middle-income individuals and families, that is selected pursuant to the proposal process described below and that is owned by MIHA. An affordable rental housing project may include commercial space if it is incidental to the housing included in the project.

Middle-income individuals and families are defined as those with income at 80% to 120% of area median income (AMI) in the county in which the affordable rental housing project is located, with the following adjustments: the 120% upper limit is increased to 140% for rural resort counties; the board may increase the 120%/140% upper limit for a project based on “unique housing costs attributes” in the local community in which the affordable rental housing project is located; and the board may decrease the 80% lower limit when required by laws, rules or regulations of a local government in which the project is located.

MIHA has the authority to issue bonds to finance affordable rental housing projects or to accomplish any of its powers or duties relating to affordable rental housing projects. The bonds may be payable from the revenues or assets of MIHA and may be secured by any of MIHA’s revenues, assets or property.

Annual Audit and Reports to the State

MIHA must conduct an annual audit, adopt a budget and work plan for each fiscal year and submit them to the Governor, the State Auditor and the General Assembly. MIHA must submit quarterly reports to the Governor, the State Auditor committees of the General Assembly that include information regarding each affordable rental housing project described in section 1104(14)(b) of the Act.

MIHA shall select no more than 3500 affordable housing rental units in the initial pilot process. The projects shall have a geographic, income and project-size diversity and use a variety of developer entities. When MIHA determines it has enough information, it shall share a report with the General Assembly. The report must include recommendations on whether the pilot program should end and recommendations to improve or modify the program as implemented by the Authority.

Governance, Staffing and Website

MIHA is governed by a 14-person board, appointed by the Governor with the consent of the Senate. SB23-035 added two non-voting members from the General Assembly, appointed from each chamber by the Senate and House Majority Leaders, MIHA is being staffed through August 31, 2024 pursuant to a contract with the Colorado Office of Economic Development. MIHA’s website can be found at https://oedit.colorado.gov/middle-income-housing-authority.

Local Government Relationship

MIHA must notify the municipality or county in which a project is located and provide up to 90 days for the local government to object to the project. The municipality or county must consult with other overlapping local governments. If the municipality or county determines that a project is not feasible and notifies MIHA of that determination within the 90-day period, the project cannot go forward.

Progress Report (since Third Quarter 2022/23 Report)

Per statute MIHA was directed to publish the initial solicitation for proposals as part of the initial pilot program by April 1, 2023 and complete the initial review and selection process on or before July 1, 2023.

March 31, 2023 - Letters of Interest (LOI) process opened
May 1, 2023 - LOI Deadline (24 Projects submitted - 15 Urban, 6 Rural Resort & 3 Rural)

May 15, 2023 - 12 Applicants invited to submit applications (RFA)
June 12, 2023 - RFA Deadline (7 projects submitted - 5 Urban & 2 Rural Resort
Jun 30, 2023 - 6 Projects conditionally selected to proceed (4 Urban & 2 Rural Resort)

MIHA is currently working with the Applicants to address the conditions and the local jurisdictions to confirm that they will not veto the project in their jurisdiction. MIHA is also working to select a financial advisor and bond counsel before initiating the bond underwriting process. The Board is meeting monthly.

Financial Report as of June 30, 2023/FY 2023

Appendix

For more information on the Middle Income Housing Authority, including upcoming Board meetings and agendas, visit https://oedit.colorado.gov/middle-income-housing-authority.

For more information on the Solicitation and application process please visit: https://coloradomiha.com/.