HB26-1206 Housing Authority Tax Levying Powers and Revenue Bonds
Summary
Colorado HB26-1206 would authorize city and county housing authorities to levy sales taxes (capped at 1%), sales and use taxes, or property taxes (capped at 5 mills) within their jurisdictions, subject to local resolution and voter approval via ballot question. County housing authorities would gain authority to issue revenue or general obligation bonds and pledge their revenue-raising powers for bond repayment. Urban renewal authorities could enter shortfall guaranty contracts with developers to cover deficiencies in tax increment revenue. The bill passed the House Finance Committee on March 23, 2026 with amendments L.001 through L.006 adopted, and was referred to the House Committee on Appropriations on April 24, 2026.
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What changed
HB26-1206 would grant city and county housing authorities new authority to levy sales taxes (up to 1%), sales and use taxes, and property taxes (up to 5 mills) subject to local resolution and elector approval. The bill also authorizes county housing authorities to issue revenue or general obligation bonds and allows urban renewal authorities to contract with developers for shortfall guaranties that constitute liens on project property equal in priority to tax liens.
Housing authorities and urban renewal authorities in Colorado should monitor this bill's progress through the legislature. If enacted, affected authorities would need to establish ballot question procedures, designate revenue collection liaisons, and create fund structures for tax revenues. Developers entering urban renewal projects should understand that shortfall guaranty contracts would create property liens with priority over mortgages and other encumbrances.
Archived snapshot
Apr 24, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
HB26-1206
Improved Funding to Support Development
| Type | Bill |
|---|---|
| Session | 2026 Regular Session |
| Subjects | Housing Local Government |
Concerning improved funding to support development.
Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:
The bill gives city and county housing authorities (housing authority) the power to provide for the levy of a sales tax, sales and use tax, or property tax within the jurisdiction of the authority, the resulting revenue of which will be directed to the housing authority, subject to the following conditions:
- The city or county has adopted a resolution determining that the levying of the tax will fairly distribute the costs of the housing authority's activities among the beneficiaries of the housing authority's activities and will not impose an undue burden on any particular group of people; and
A ballot question has been submitted to a vote of the registered electors of the city or county and subsequently approved by a majority of such registered electors, and the ballot question describes the purposes for which the tax will be used by the housing authority and complies with section 20 of article X of the state constitution.
If a sales or sales and use tax is approved by the voters of a housing authority:The rate of the sales or sales and use tax must not exceed 1% on any transaction taxable by the state;
The authority shall designate a liaison to coordinate with the department of revenue to implement the collection of the tax and to identify people eligible to collect the sales and use tax; and
The tax revenue must be directed to a fund of the authority.
If an ad valorem property tax is approved by the voters of a housing authority:The rate of the ad valorem property tax must not exceed 5 mills on each dollar of valuation for assessment of the taxable property within the authority's jurisdiction;
The board of county commissioners of the county in which the housing authority is located shall levy the ad valorem property tax upon the valuation for assessment of all taxable property within the authority's jurisdiction;
The officials charged with collecting ad valorem property taxes for the county in which the housing authority is located shall collect the taxes at the time and in the form and manner and with like interest and penalties as other property taxes collected within the county;
The property tax revenue must be directed to a fund of the authority; and
All property tax revenue, together with interest thereon and penalties for default in payment thereof, and all costs of collecting the same shall constitute, until paid, a perpetual lien on and against the property taxed, and such lien shall be on a parity with the tax lien of other general taxes.
The bill gives county housing authorities the power to issue revenue or general obligation bonds and to pledge the authority's revenues and revenue-raising powers for the payment of such bonds.
The bill allows an urban renewal authority to enter into a shortfall guaranty contract with an urban renewal project developer (developer) specifying that, if the tax increment revenue is insufficient to pay the indebtedness incurred by the authority that is due, the developer is obligated to make a direct payment covering the full amount of the insufficiency. A shortfall guaranty contract:
- Constitutes a lien on the urban renewal project property the same as, and equal in priority to, a tax lien;
- Has priority over any mortgage, lien that is not a tax lien, or other encumbrance;
- Constitutes a covenant running with the land for the term of the contract; and
- May be recorded against the real property upon which the urban renewal project is developed. (Note: This summary applies to this bill as introduced.)
Prime Sponsors
Junie Joseph
Senator
William Lindstedt
Committees
House
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Status
Under Consideration
Introduced
Under Consideration
Upcoming Schedule
1 meeting
Apr 24
House Appropriations
8:30 AM Old State Library
Related Documents & Information
| Date | Version | Documents |
|---|---|---|
| 02/12/2026 | Introduced |
| Date | Version | Documents |
|---|---|---|
| 03/25/2026 | PA1 |
| Date | Version | Documents |
|---|---|---|
| 03/19/2026 | Initial Fiscal Note |
| Date | Version | Documents |
|---|---|---|
| 04/22/2026 | SA1 |
| Activity | Vote | Documents |
|---|---|---|
| Refer House Bill 26-1206, as amended, to the Committee of the Whole. | The motion passed on a vote of 8-3. | Vote summary |
| Activity | Vote | Documents |
|---|---|---|
| Adopt amendment L.001 | The motion passed without objection. | Vote summary |
| Adopt amendment L.002 | The motion passed without objection. | Vote summary |
| Adopt amendment L.004 | The motion passed without objection. | Vote summary |
| Adopt amendment L.006 | The motion passed without objection. | Vote summary |
| Adopt amendment L.007 | The motion failed on a vote of 5-5. | Vote summary |
| Refer House Bill 26-1206, as amended, to the Committee on Appropriations. | The motion passed on a vote of 7-3. | Vote summary |
| Hearing Summary | Committee Report: PDF | |
| Date | Amendment Number | Committee/ Floor Hearing |
| --- | --- | --- |
| 04/24/2026 | L.009 | HOU Appropriations |
| 03/23/2026 | L.007 | HOU Finance |
| 03/23/2026 | L.006 | HOU Finance |
| 03/23/2026 | L.004 | HOU Finance |
| 03/23/2026 | L.002 | HOU Finance |
| 03/23/2026 | L.001 | HOU Finance |
- Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.
** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.
| Date | Location | Action |
|---|---|---|
| 04/24/2026 | House | House Committee on Appropriations Refer Amended to House Committee of the Whole |
| 03/23/2026 | House | House Committee on Finance Refer Amended to Appropriations |
| 02/12/2026 | House | Introduced In House - Assigned to Finance |
Prime Sponsor
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(None)
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