House Bill 1384 aims to provide financial assistance of approximately $25 million to developers of low income housing units in Colorado. Representative Max Tyler mentioned that the affordable housing crisis in Colorado is distressing and burdensome to a large number of low income families. He also stated last Monday that the crisis cannot be resolved solely by the private market.
House Bill 1384 would utilize a third of available balance from the unclaimed property trust fund of the state. After which, the money will be deposited to Colorado Housing and Finance Authority’s rental housing fund for 5 fiscal years starting on the first of July.
In a research conducted by the Colorado Center on Law and Policy, since early 2007 the average rent rate in Colorado has increased by 21% while the income of a median renter household has increased by only 1%. Apartment rentals are sky rocketing and salaries are not keeping up. An estimated 161,658 households in Colorado pay more than 50% of their monthly income on rent. They have fewer resources to spend on food, health care, clothing and other essentials. Proponents of the legislation stressed out that a lot of families are pushed to the edge of homelessness.