(June 6) – Gov. John Hickenlooper signed a bill this morning by Majority Leader Crisanta Duran to continue the successful state Low Income Housing Tax Credits (LIHTC) program to create thousands of homes for Coloradans in need.
“A home is the foundation for a happy and healthy life, but too many Coloradans are struggling to afford a decent home because the cost is just too high,” said Majority Leader Duran. “That’s where LIHTC comes in. This tax credit has already proven successful in creating thousands of units of affordable housing, and thanks to the passage of this law, the program will continue to create homes for families that are struggling today.”
Housing tax credits help developers leverage federal tax credits and private investments. During the bill’s initial hearing in the house, one housing developer testified that for every dollar they get from LIHTC, they are able to leverage an additional $22. HB16-1465 extends the LIHTC program until 2019, and guarantees that the units built through this program will remain affordable for at least 15 years.
The LIHTC bill was one piece of the affordable housing package supported by House Democrats. A second piece, First-Time Home Buyer Savings Accounts, sponsored by Majority Leader Duran and Rep. Joe Salazar, D-Thornton, helps Coloradans save for their first home by creating tax exempt savings accounts to be used for a down payment and closing costs. HB16-1467 is awaiting the governor’s signature.