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House approves formula changes and waivers for Prop 123 affordable-housing funds

Colorado House of Representatives
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Summary

HB13-13 revises qualification formulas and waiver provisions for Prop 123 affordable-housing funding, including tribal-government clarifications and rejected amendments seeking a 5-year proof period; the bill passed after extended floor debate.

The House passed HB13-13, a bill adjusting how local governments qualify for funds under Proposition 1,23 (Prop 123) intended to support affordable housing construction and preservation.

Sponsors said the statute’s prior formula created unrealistic targets for some local governments; the bill replaces the old formula with a new, permit- and job-growth‑driven approach, adds a robust waiver process and clarifies tribal-government participation. Representative Stewart called the measure “what thoughtful, responsive governance looks like.”

Floor debate focused on complexity and the desire for accountability. An amendment that would have required a five-year evaluation or temporary sunset was proposed (L009) and defeated; proponents of that amendment argued the new formula should be tested and repealed if it does not produce results. Several tribal‑government technical amendments were adopted to ensure tribal projects are not disadvantaged when they lack building-permit data.

Supporters argued the changes will make Prop 123 more administrable and aligned with local growth patterns; critics warned the new formula is complicated and could create reporting burdens or unintended distribution results. After floor votes on several amendments, HB13-13 passed the House as amended.