HB 21-1329

Abstract

The federal government enacted the "American Rescue Plan Act of 2021" (federal act) to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and to assist them in their efforts to contain the effects of COVID-19 on their communities, residents, and businesses. Under the federal act, the state of Colorado receives over $500 million to address the housing needs of populations, households, or geographic areas disproportionately affected by the COVID-19 public health emergency.The act creates the affordable housing and home ownership cash fund (fund) in the state treasury. To respond to the public health emergency with respect to COVID-19 or its negative economic impacts, the act authorizes the general assembly to appropriate or transfer money from the fund to a department or cash fund for programs or services that benefit populations, households, or geographic areas disproportionately impacted by the COVID-19 public health emergency, focusing on programs or services that address housing insecurity, lack of affordable housing, or homelessness.Three days after the effective date of the act, the state treasurer is required to transfer $550 million from the "American Rescue Plan Act of 2021" cash fund to the fund.The act requires the division of housing (division) within the department of local affairs (department) to use the appropriation made by the act for programs or services of the type and kind financed through the housing investment trust fund or the housing development grant fund to support the programs or services that benefit populations, households, or geographic areas disproportionately affected by the COVID-19 public health emergency to obtain affordable housing, focusing on programs or services that address housing insecurity, lack of affordable and workforce housing, or homelessness, including the programs or services that are specified as authorized uses under the federal act.Three days after the effective date of the act, the state treasurer is required to transfer $1,500,000 from the fund to the eviction legal defense fund. The eviction legal defense fund is used to provide legal representation to indigent tenants to resolve civil legal matters resulting from an eviction or impending eviction caused by the COVID-19 public health emergency. Money transferred to the eviction legal defense fund is to be used to make grant awards to qualifying organizations that provide legal services to indigent clients.The act requires the executive committee of the legislative council, by resolution, to create a task force to meet during the 2021 interim and issue a report with recommendations to the general assembly and the governor on policies to create transformative change in the area of housing using money the state receives from the federal act. The task force may include nonlegislative members and have working groups created to assist them.For the 2021-22 state fiscal year, the act appropriates $98,500,000 to the department for use by the division. This appropriation is from the fund and of money the state received from the federal coronavirus state fiscal recovery fund. To implement the act, the division may use the appropriation for the purposes specified in the statutory provisions creating the fund.For the 2021-22 state fiscal year, the act appropriates $200,000 to the legislative department for its implementation. This appropriation is from the fund and originates from the general fund.For the 2021-22 state fiscal year, the act appropriates $1,500,000 to the judicial department for use by the eviction legal defense fund. This appropriation is from the eviction legal defense fund and of money the state received from the federal coronavirus state fiscal recovery fund. To implant the act, the judicial department may use the appropriation for the purpose of providing legal representation to indigent tenants.(Note: This summary applies to this bill as enacted.)