SB 25-167: Invest State Funds to Benefit Communities

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Section 1 of the act requires, in addition to othr existing uses, that interest and income earned on the investment of the money in the public school fund to be used to pay for the costs of administering a newly created shared equity down payment assistance program. Section 2 requires at least one member of the public school fund investment board (board) to have expertise in community investments, requires the board to direct the state treasurer to securely invest money deposited in the public school fund in a manner that prioritizes specified new investment objectives, and authorizes the board to enter into contracts with investment advisors or other investment professionals to provide advice on community investments. Section 3 extends the time frame under which the state treasurer may make up a loss of principal to the public school fund by taking actions which lead to gains in the fund from 18 to 24 months. Section 4 creates a new community investment portfolio (portfolio) within the public school fund, and requires the state treasurer to invest at least 20% of the public school fund's value into the community investment portfolio by July 1, 2032. Money in the portfolio must be invested in community investments, and allowable community investments include: Bonds issued by Colorado school districts and charter schools; Certificates of participation issued by Colorado school districts and charter schools; Mortgage pass-through securities and collateralized mortgage obligations secured by residential real estate, the majority of which is owned by public school employees; Loans to the Colorado middle income housing authority for a revolving loan fund that funds rental housing developments that include preferences for public school employees; Bonds issued by the middle income housing authority that fund rental housing developments which include preferences for public school employees; Bonds or mortgage-backed securities issued by the Colorado housing and finance authority that fund rental housing developments that include preferences for public school employees or mortgages secured by residential real estate, the majority of which is owned by public school employees; Mortgage revenue bonds that support public school employee mortgages with interest rates of 3% or less; Loans to community development financial institutions or nonprofits with a history of providing affordable home ownership financing that fund: Housing that includes preferences for public school employees; or Low-interest mortgages secured by residential real estate that is owned by public school employees; Down payment shared appreciation products secured by residential real estate that is owned by public school employees; and Other investments that support public purpose of the portfolio. The educator first home ownership program (program) is created within the portfolio. Subject to a specified limitation, the treasurer shall invest the following amounts in the program by the following dates: By July 1, 2028, the greater of 6% of the fund's value or $100 million; and By July 1, 2030, the greater of 12% of the fund's value or $200 million. The treasurer shall aim to invest a target of 75% of the money in the program into the shared equity down payment assistance program for public school employees. The shared equity down payment assistance program must be established by July 1, 2026. Once the shared equity down payment assistance program is established: The public school fund investment board shall purchase from the program manager the mortgage products created through the shared equity down payment assistance program; and The public school investment board may provide notice of any discontinuation of future investments that the program manager has not already committed to the shared equity down payment assistance program, which notice must be provided at least 6 months prior to discontinuation. The treasurer shall aim to invest a target of 25% of the money in the program into allowable community investments. The program manager shall establish underwriting criteria and other guidelines for the shared equity down payment assistance program so that the shared equity down payment assistance program: Prioritizes first-time home buyers that use the home as a primary residence; Provides shared equity down payment assistance to public school employees and aims to help as many public school employees as possible achieve affordable home ownership; and Allows appreciation-sharing between the shared equity down payment assistance program and the borrower. Unless investments in the shared equity down payment assistance program have been discontinued and there is no fund money invested in the shared equity down payment assistance program, the program administrator shall present an annual report to the board on program outcomes. For the 2025-26 state fiscal year, section 5 appropriates $375,900 from interest or income earned on the investment of the money in the public school fund to the department of the treasury. (Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 27 · Republican 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 4, 2025Governor Signed
2. May 12, 2025Signed by the President of the Senate
3. May 12, 2025Sent to the Governor
4. May 12, 2025Signed by the Speaker of the House
5. May 5, 2025Senate Considered House Amendments - Result was to Concur - Repass
6. May 2, 2025House Third Reading Passed - No Amendments
7. May 1, 2025House Committee on Appropriations Refer Unamended to House Committee of the Whole
8. May 1, 2025House Second Reading Special Order - Passed with Amendments - Floor
9. April 24, 2025House Committee on Education Refer Unamended to Appropriations
10. April 22, 2025Introduced In House - Assigned to Education
11. April 17, 2025Senate Third Reading Passed - No Amendments
12. April 16, 2025Senate Third Reading Laid Over Daily - No Amendments

Showing 12 most recent of 16 actions. Full history