SB22-232 MIDDLE INCOME HOUSING AUTHORITY

Colorado Office of Economic Development and International Trade

Quarter Ending December 31, 2022

This status report is published by the Office of Economic Development and International Trade (OEDIT) as part of its quarterly progress report to members of the General Assembly. The Middle Income Housing Authority Board was established through Senate Bill 22-232.

The Middle Income Housing Authority Report to the Colorado General Assembly on the SB22-232: Middle Income housing Program for the first quarter of Fiscal Year 2022-23.

The Authority shall submit a 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 on a quarterly basis.

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

Xander Martin

Director of Legislative Affairs - OEDIT

xander.martin@state.co.us 

Eleni Angelides                                         

Deputy Legislative Director

Office of the Governor

eleni.angelides@state.co.us

Overview

The Middle Income Housing Authority (MIHA) is an independent special-purpose authority for promoting affordable rental housing projects for middle-income workforce housing. The new Authority was created by Senate Bill 232, sponsored by Senator Bridges, Senator Moreno, and Representative Leslie Herod.

The Middle-Income Housing Authority for the purpose of acquiring, constructing, rehabilitating, owning, operating, and financing affordable rental housing projects for middle-income workforce housing.

The Authority is governed by a board of directors composed of appointees by the Governor with the consent of the Senate. Rental units in affordable rental housing projects must provide middle-income workforce housing with stable rents and must not exceed 3500 units in this pilot. The Authority is also a "public entity" and is a "special purpose authority" for the purpose of TABOR. The Authority is authorized to exercise the powers necessary to acquire, construct, rehabilitate, own, operate, and finance affordable rental housing projects, including but not limited to:

• The power to issue bonds in connection with its affordable rental housing projects payable solely from revenues from affordable rental housing projects and with no recourse to the state;
• The power to enter into public-private partnerships and to contract with experienced real estate professionals to develop and operate affordable rental housing projects;
• The power to employ its own personnel or contract with public or private entities, or both, for services necessary or convenient to the conduct of all of the authority's activities;
• To provide assistance to tenants in its rental housing to enable a transition to homeownership; and
• To establish one or more controlled entities to carry out its activities.

The Colorado General Assembly appropriated $1 million to establish the Middle Income  Housing Authority. The Middle Income Housing Authority (MIHA) has the intention of placing projects into service quickly and efficiently with the collaboration of local governments, non profit organizations and experienced real estate industry professionals.  

Board Appointments

The Governor made appointments of Board Members on September 1, 2022 in accordance with  SB22-232, and appointed Patrick Meyers, Executive Director of OEDIT,  to serve as the initial chairperson. The initial chairperson has the Authority to establish and administer matters related to the initial set up of the authority.

Implementation to Date

The Authority has entered into an agreement with OEDIT in which OEDIT is paid to provide staff and other services to the Authority.

Budget

Budget Planning to date:

• The Authority has established a bank account at Vectra Bank Colorado
• The Authority has entered in an Investment Agreement with the Colorado State Treasurer  
• The board has not had any expenditures
• The Authority has entered into an agreement with OEDIT in which OEDIT is paid to provide staff and other services to the Authority.

Key Statutory Dates

• Sept 1, 2022 - Initial Appointments
• Sept 1, 2022 - Appoint Chairperson (Executive Director Patrick Meyers)
• Sept 1, 2022 - County Classification as urban, rural, or rural resort
• Within 30 days of initial appointments - First and second meetings of board scheduled; By December 31, 2022 - First and second meetings of board held
• April 1, 2023 - Publish solicitation of pilot project proposals
• July 1, 2023 - Complete review and selection of pilot projects
• Within 14 days after receipt of project proposal - notify county and municipality where the project is proposed to be located.
• Within 90 days after receipt of notice of proposed project - object or accept proposal.

Plan for Program Launch

Program Development

On or before April 1, 2023, the authority shall publish the first solicitation for proposals as part of an initial pilot program and must complete the review and selection process on or before July 1, 2023, in accordance with the requirements set forth in this section.

7 Key Components:

• Increase the supply of affordable workforce housing in urban, rural, and rural resort communities across the state.
• Create opportunities to build intergenerational wealth for families.
• Meaningfully contribute to the alleviation of housing pressures the local workforce faces
• Provide for the long-term affordability of rental units
• have minimal negative impact on existing or planned affordable housing projects in the state, which impacts shall be evaluated by the authority in consultation with other housing authorities, nonprofits, local governments, or any other applicable entity.
• Target a diverse range of income levels within the income restricted housing component for middle-income individuals and families
• Promote mixed-income development where a percentage of units, proportional to the local demonstrated housing needs within a particular development, have restricted availability to households at the income levels for middle-income individuals and families

Looking Ahead

The Authority has prioritized action items to be executed in the next quarter to move the pilot program forward. The Authority will be implementing 3 potential sub committee’s one to include an education committee whose purpose is to give us a deeper understanding of the statute requirements, educate the board on the different aspects of bonding, finance and construction and present options the authority has to get this project completed successfully.  The Authority is on target to reach its statutory requirements by April 1, 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.

Meetings To Date:

• October 21, 2022 2:00pm to 4:00pm
• November 10, 2022 1:30pm to 3:30pm
• December 16, 2022 9:00am to 1:00pm