HomeMy WebLinkAbout16288Docusign Envelope ID: 2A2D7213-0257-482D-BACF-5006AF84C854
City Clerk's Office Item # 02
of
1111--PUEBLO
colDorado
Background Paper for Proposed
Action Item
COUNCIL MEETING DATE: March 23, 2026
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Vince Petkosek, Deputy City Clerk
FROM: Melissa Cook, Director Department of Housing & Citizen Services
SUBJECT: A RESOLUTION OF THE CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION, IN SUPPORT OF HB26-1313: CONCERNING
ADJUSTMENTS TO THE REQUIREMENTS OF THE STATEWIDE
AFFORDABLE HOUSING FUND
SUMMARY:
Attached is a Resolution in support of HB26-1313: Adjust Requirements Statewide
Affordable Housing Fund.
PREVIOUS COUNCIL ACTION:
Not Applicable to this Resolution.
BACKGROUND:
Colorado HB26-1313 was introduced in the Colorado House of Representatives on
March 2, 2026, by Representative Andrew Boesenecker. The bill updates how local
governments demonstrate progress toward affordable housing goals established under
Proposition 123, the statewide affordable housing measure approved by voters in
2022. Under current law, any jurisdiction that fails to meet its previously calculated goal
becomes ineligible, along with its for-profit and nonprofit development partners, for
Proposition 123 funding in the 2027 calendar year. This includes the City of Pueblo
For the City of Pueblo, the original formula created a significant and unintended
barrier. Because Pueblo has a higher proportion of low-income residents and historically
lower housing rates than surrounding areas, the baseline number of affordable units was
artificially inflated. This produced an unrealistic requirement: a 3% annual increase in
deed -restricted affordable housing for three consecutive years, totaling 1,206 new
units. Pueblo has not experienced overall residential growth at that scale in recent
decades, let alone growth specifically in deed -restricted affordable housing. As a result,
the original target was effectively unattainable.
HB26-1313 substantially revises the system for determining whether communities
Docusign Envelope ID: 2A2D7213-0257-482D-BACF-5006AF84C854
remain eligible for Proposition 123 funding. Beginning with the 2027-2029 compliance
cycle, the rigid 3% annual increase is replaced with a "target increase number." This
new target is calculated by taking the jurisdiction's average annual number of new
housing permits over the previous three years and multiplying it by a factor of 0.10, 0.15,
or 0.20. The factor applied depends on how the county's job growth compares to the
statewide median.
Preliminary estimates indicate that Pueblo would fall into the 0.15 category. Using recent
permitting data, Pueblo's new three-year target would be approximately 120
deed -restricted affordable units, an achievable and realistic goal compared to the
previous requirement of 1,206 units.
The bill also introduces several flexibility mechanisms. Local governments may request
waivers if they are unable to meet their targets, and certain types of units, such as those
built on donated land, those that receive property/sales tax abatements, or for -sale
affordable units, receive bonus credit toward the target.
Additionally, a good -faith waiver option is available for the current 2024-2026 cycle,
which the City will need to access funding in 2027.
Overall, HB26-1313 provides a more accurate and equitable framework for measuring
affordable housing progress. For Pueblo, it corrects a structural flaw in the original
formula and ensures that the City, its development partners, community organizations,
and citizens can continue accessing critical Proposition 123 resources.
Since the inception of the program (01/01/2023 — 03/11/2026), Pueblo County, including
the City of Pueblo, have received awards totaling $17,483,337.
FINANCIAL IMPLICATIONS:
There are no financial implications for the City in passing this Resolution.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
City Council could choose not to publicly support HB26-1313.
RECOMMENDATION:
Approval of the Resolution.
ATTACHMENTS:
None
Docusign Envelope ID: 2A2D7213-0257-482D-BACF-5006AF84C854
RESOLUTION NO. 16288
A RESOLUTION OF THE CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION, IN SUPPORT OF HB26-1313:
CONCERNING ADJUSTMENTS TO THE REQUIREMENTS OF
THE STATEWIDE AFFORDABLE HOUSING FUND
WHEREAS, The Colorado General Assembly recently introduced House Bill 26-1313,
Adjust Requirements Statewide Affordable Housing Fund to update how local governments
demonstrate progress toward affordable housing goals established under Proposition 123 ; and
WHEREAS, The City of Pueblo's existing goal is artificially inflated and effectively
unattainable; and
WHEREAS, The City of Pueblo, vital community partners, and citizens of the City of Pueblo
will be negatively impacted by losing access to this funding in 2027; NOW, THEREFORE, in
consideration of the foregoing recitals and the terms and conditions set forth herein, the parties
hereto do mutually agree as follows:
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1 _
The City of Pueblo supports House Bill 26-1313 and urges its legislators to vote YES on
this legislation.
SECTION 2.
A copy of this Resolution be transmitted to all members of the Colorado Senate and House
of Representatives.
INTRODUCED: March 23, 2026
Signed by:
ATTESTED BY: vtn ptpust.
DEPOT GI LERK
BY: Roger Gomez
MEMBER OF J ;ccJNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL