--- title: "Navigating Colorado's Housing Future: Impact of 2 New Bills" description: Two bills recently signed into law aim to improve the state of affordable housing in Colorado. Explore bills HB24-1316 and HB24-1434 and their effects. --- [Biz Tips | SVA Certified Public Accountants ](https://accountants.sva.com/biz-tips) # [Navigating Colorado's Housing Future: Impact of 2 New Bills](https://accountants.sva.com/biz-tips/navigating-colorados-housing-future-impact-of-2-new-bills) Written by [Adam Kleinmaus, CPA](https://accountants.sva.com/biz-tips/author/adam-kleinmaus) | Jul 30, 2024 | **Highlights:** | | --- | | - Summarizes Colorado’s newly signed laws** **HB24-1434 and HB24-1316, which expand affordable housing tax credits and create a middle-income housing tax credit to ease the state’s housing shortage. - Explains how HB24-1434 increases the Affordable Housing Tax Credit and adds a Transit-Oriented Communities credit to boost multifamily affordable development near transit hubs. - Details the anticipated impacts on housing supply, economic growth, and sustainable development, helping developers and policymakers understand opportunities in Colorado’s housing market. | Two bills recently signed into law aim to improve the state of affordable housing in Colorado. HB24-1316 and HB24-1434, signed into law on May 30 by Governor Jared Polis, focus on the multifamily housing sector and aim to supplement the State’s affordable housing programs and alleviate a stressed housing market. Let’s get into the highlights of these bills and what they may mean for you. ## HB24-1434: Expanding and Strengthening Affordable Housing HB24-1434 is designed to expand and enhance [Colorado’s Affordable Housing Tax Credit (AHTC)](https://www.chfainfo.com/rental-housing/housing-credit). Administered by the Colorado Housing and Finance Authority (CHFA), the AHTC is currently oversubscribed by a rate of 3 to 1 and in need of expansion. Key components of HB24-1434 include increased annual AHTCs and a new Transit Oriented Communities tax credit. ### Increased AHTC Funding The bill increases CHFA’s AHTC allocation authority by the following amounts per year: | **2024** | $20 million | | --- | --- | | **2025** | $16 million | | **2026-2027** | $12 million | | **2028** | $16 million | | **2029-2031** | $20 million | Similar to the existing AHTC, the allocated credit is claimed by a taxpayer over a six-year credit period. However, the bill accelerates this additional AHTC, requiring the qualified taxpayer to claim 70% of the total amount of the credit in the first year of the credit period and 6% of the credit amount in each of the second through sixth years of the credit period, rather than having the claiming the credit evenly over the six-year credit period. The CHFA qualified allocation plan for 2023 to 2024 was recently amended to address the provisions on how the additional AHTC can be allocated. ### Transit-Oriented Communities (TOC) Tax Credit This new, five-year credit is for eligible projects in TOC and promotes building affordable housing near transit hubs. It allocates $2 million annually from 2025 to 2027, $11 million in 2028, and $13 million in 2029. This credit must also be claimed in an accelerated manner, with 70% of the tax credit claimed in the first year of the credit period, 8% in the second and third years of the credit period, and 7% in the fourth and final years of the credit period. Although the credit is claimed over a period of five years, the taxpayer is subject to a 15-year compliance period. Like the AHTC, CHFA will be responsible for the allocation of the TOC tax credit. Though not required to be paired with Federal low-income housing tax credits, to be eligible for the TOC tax credit, a project must meet the definition of a “[Qualified Low-Income Housing Project](https://www.irs.gov/pub/irs-drop/rr-20-04.pdf),” as defined in Section 42 of the Internal Revenue Code. ### The Impact of HB24-1434 There are several positive impacts coming out of this bill: | **Increased Housing Supply** | Providing more funding will lead to an increase in the number of affordable housing units available, alleviating the current housing shortage. | | --- | --- | | **Economic Growth** | Building new housing units will create jobs and stimulate economic activity. | | **Community Stability** | Affordable housing is key to maintaining diverse and vibrant communities. This bill will provide more housing for low- and moderate-income families. | ## HB24-1316: Supporting Middle-Income Housing HB24-1316 creates a new middle-income housing tax credit, a pilot program for owners of qualified housing developments focused on rental housing for middle-income individuals and families. Middle-income individuals and families are defined as 80%-120% of the area median income. This significant new credit has a period of five years and is allocated as follows: | **2025** | $5 million | | --- | --- | | **2026** | $5 million | | **2027** | $10 million | | **2028** | $10 million | | **2029** | $10 million | While the credit is claimed over a 5-year credit period, the owner is required to provide middle-income housing in the qualified housing development for 15 years. ### The Impact of HB24-1316 The effects of HB24-1316 are expected to be multifaceted: #### Enhanced Housing Availability With the creation of a new financial resource available to developers, the bill is likely to result in a greater number of multifamily housing projects being completed that serve “the missing middle.” This will help accommodate the influx of new residents and alleviate pressure on the housing market. #### Sustainable Urban Development Multifamily housing is a key component of sustainable urban planning. By promoting higher-density living, HB24-1316 supports more efficient land use and reduces the environmental footprint of new developments. ## A Brighter Housing Future for Colorado HB24-1434 and HB24-1316 represent comprehensive approaches to tackling Colorado's housing challenges. By increasing affordable housing availability and supporting multifamily developments, these bills aim to create a more inclusive and sustainable housing market. As Colorado continues to grow, the implementation of these bills will help ensure that residents have access to safe, affordable, and high-quality housing. Stakeholders in the [real estate industry](https://accountants.sva.com/industries/real-estate-consulting), from developers to policymakers, must collaborate to maximize the impact of these legislative measures and build a brighter future for Colorado's communities. If you need help understanding these credits or determining if your projects qualify, contact SVA today. Our knowledgeable real estate [professionals](https://accountants.sva.com/professionals) are on top of these recent changes and can help you determine the best course of action. *© 2024 SVA Certified Public Accountants* [View full post](https://accountants.sva.com/biz-tips/navigating-colorados-housing-future-impact-of-2-new-bills) ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Adam Kleinmaus, CPA" }, "dateModified" : "2025-12-19T21:07:18.493Z", "datePublished" : "2024-07-30T15:35:00Z", "headline" : "Navigating Colorado's Housing Future: The Impact of HB24-1434 and HB24-1316", "image" : { "@type" : "ImageObject", "height" : 1307, "url" : "https://2939357.fs1.hubspotusercontent-na1.net/hubfs/2939357/sva-certified-public-accountants-biz-tips-navigating-colorados-housing-future-the-impact-of-hb24-1434-and-hb24-1316-01.png", "width" : 2500 }, "mainEntityOfPage" : "https://accountants.sva.com/biz-tips/navigating-colorados-housing-future-impact-of-2-new-bills", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png", "width" : 60 }, "name" : "Biz Tips" } } ```